State Dept. Construction Contract Awarded to Kiewit for $16.6M, Ending Jan 2028
Contract Overview
Contract Amount: $16,597,186 ($16.6M)
Contractor: Kiewit Infrastructure South CO
Awarding Agency: Department of State
Start Date: 2025-09-30
End Date: 2028-01-12
Contract Duration: 834 days
Daily Burn Rate: $19.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION PROJECT
Place of Performance
Location: EL PASO, EL PASO County, TEXAS, 79902
State: Texas Government Spending
Plain-Language Summary
Department of State obligated $16.6 million to KIEWIT INFRASTRUCTURE SOUTH CO for work described as: CONSTRUCTION PROJECT Key points: 1. Significant contract value of $16.6 million for heavy civil engineering construction. 2. Full and open competition indicates a potentially competitive bidding process. 3. Risk of cost overruns or delays exists in long-term construction projects. 4. Project location in Texas may influence labor and material costs.
Value Assessment
Rating: good
The contract value of $16.6 million appears reasonable for a multi-year heavy civil engineering project. Benchmarking against similar large-scale infrastructure projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing compared to limited or sole-source awards.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value.
Public Impact
Impacts border infrastructure and international relations between the U.S. and Mexico. Creates construction jobs and economic activity in Texas. Potential for long-term benefits from improved infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Project duration of over 3 years.
- Fixed price contract can shift risk to contractor but may lead to higher initial bids.
- Lack of small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Clear end date for the contract.
- Definitive contract provides clarity on scope and terms.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, which is subject to fluctuations in material costs and labor availability. Benchmarks for similar international infrastructure projects are essential for full evaluation.
Small Business Impact
The data indicates that small businesses were not directly involved in this contract award. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The use of a definitive contract and full and open competition suggests a structured procurement process. Oversight will be crucial to ensure project milestones are met and funds are managed effectively.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of State Contracting
- International Boundary and Water Commission: U.S.-Mexico Programs
Risk Flags
- Long project duration.
- Potential for material cost escalation.
- Lack of small business participation.
- Scope definition for fixed-price contracts.
Tags
other-heavy-and-civil-engineering-constr, department-of-state, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $16.6 million to KIEWIT INFRASTRUCTURE SOUTH CO. CONSTRUCTION PROJECT
Who is the contractor on this award?
The obligated recipient is KIEWIT INFRASTRUCTURE SOUTH CO.
Which agency awarded this contract?
Awarding agency: Department of State (International Boundary and Water Commission: U.S.-Mexico).
What is the total obligated amount?
The obligated amount is $16.6 million.
What is the period of performance?
Start: 2025-09-30. End: 2028-01-12.
What specific infrastructure improvements are being undertaken, and how do they align with the U.S.-Mexico International Boundary and Water Commission's mission?
The specific infrastructure improvements are not detailed in the provided data. However, the project's alignment with the IBWC's mission would likely involve projects related to water management, border security infrastructure, or environmental protection along the shared border. Understanding the precise nature of the construction is key to assessing its strategic value and effectiveness.
What are the key performance indicators (KPIs) for this contract, and how will performance be measured to mitigate risks?
Key performance indicators are not explicitly stated. However, typical KPIs for such projects include adherence to schedule, budget compliance, quality of work, and safety standards. The Department of State and the IBWC will likely monitor progress through regular site inspections, progress reports, and milestone reviews to ensure the contractor meets contractual obligations and mitigate potential risks.
How does the firm fixed price structure impact the potential for cost savings or overruns compared to other contract types?
A firm fixed price contract shifts the risk of cost overruns to the contractor, which can incentivize efficiency. However, contractors may build in a contingency premium to their initial bid to account for potential unforeseen costs. This could lead to a higher initial price but provides greater budget certainty for the government, assuming the scope is well-defined.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Kiewit-Turner a Joint Venture
Address: 2050 ROANOKE RD STE 100, WESTLAKE, TX, 76262
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,597,186
Exercised Options: $16,597,186
Current Obligation: $16,597,186
Contract Characteristics
Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2025-09-30
Current End Date: 2028-01-12
Potential End Date: 2028-01-12 00:00:00
Last Modified: 2025-10-03
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