Over $60.7M Awarded for Arizona Highway Construction, Highlighting Significant Infrastructure Investment

Contract Overview

Contract Amount: $60,742,869 ($60.7M)

Contractor: Kiewit Infrastructure West CO.

Awarding Agency: Department of Defense

Start Date: 2008-02-20

End Date: 2013-07-24

Contract Duration: 1,981 days

Daily Burn Rate: $30.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AREAS V BIS SAN DIEGO SECTOR

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85012

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $60.7 million to KIEWIT INFRASTRUCTURE WEST CO. for work described as: AREAS V BIS SAN DIEGO SECTOR Key points: 1. Demonstrates substantial federal investment in critical infrastructure, specifically road and bridge repair. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The firm-fixed-price contract type indicates a defined cost for the services rendered. 4. The duration of the contract (over 5 years) suggests a long-term commitment to infrastructure development. 5. The award to a single contractor, Kiewit Infrastructure West Co., warrants examination of performance and potential for future sole-source awards. 6. The North American Industry Classification System (NAICS) code 237310 points to a focus on heavy civil construction projects.

Value Assessment

Rating: good

Benchmarking the value of this contract requires more granular data on the specific services provided. However, the scale of the award suggests a significant project. Comparing the per-mile or per-bridge cost to similar projects in Arizona or other states would provide a clearer picture of value for money. The firm-fixed-price nature helps control costs, but the total award amount indicates a substantial commitment of taxpayer funds.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 7 bidders suggests a healthy level of competition for this significant infrastructure project. This competitive environment is generally favorable for price discovery and achieving a reasonable cost for the government.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. It ensures that multiple companies vied to offer their best terms.

Public Impact

Benefits Arizona residents and businesses through improved transportation infrastructure. Enhances the safety and efficiency of highway and bridge travel within the state. Supports the construction workforce in Arizona through job creation and related economic activity. Contributes to the long-term economic development of the region by facilitating commerce and connectivity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor to gain significant market share in Arizona infrastructure projects.
Long contract duration could lead to complacency if not actively managed.
Dependence on a single large contractor for critical infrastructure could pose risks if performance falters.

Positive Signals

Successful completion of a large-scale infrastructure project demonstrates capability.
Firm-fixed-price contract provides cost certainty for the government.
Award through full and open competition suggests a competitive market for these services.

Sector Analysis

This contract falls within the heavy civil construction sector, specifically focusing on transportation infrastructure like highways and bridges. The market for such projects is often characterized by large, established firms capable of handling complex, large-scale undertakings. Federal spending in this area is crucial for maintaining and upgrading the nation's aging infrastructure, with significant annual outlays directed towards road, bridge, and transit projects.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit information on subcontracting plans. Large infrastructure projects like this often involve significant subcontracting opportunities, but without specific set-aside goals or reporting, the direct impact on the small business ecosystem is unclear. It's possible that smaller firms could be engaged as subcontractors by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and relevant program managers within the Department of the Army. Accountability is established through the firm-fixed-price contract terms, performance metrics, and delivery schedules. Transparency is generally facilitated through contract award databases, though detailed project-specific oversight reports may not always be publicly accessible. Inspector General involvement would be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

Federal Highway Administration (FHWA) Programs
Department of Transportation Infrastructure Grants
Military Construction Projects
State and Local Transportation Funding Initiatives

Risk Flags

Long contract duration may increase risk of performance degradation.
Potential for contractor over-reliance and reduced flexibility.
Lack of explicit small business subcontracting data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.7 million to KIEWIT INFRASTRUCTURE WEST CO.. AREAS V BIS SAN DIEGO SECTOR

Who is the contractor on this award?

The obligated recipient is KIEWIT INFRASTRUCTURE WEST CO..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $60.7 million.

What is the period of performance?

Start: 2008-02-20. End: 2013-07-24.

What specific types of highway and bridge construction were included in this $60.7M award?

The provided data indicates the North American Industry Classification System (NAICS) code is 237310, which covers 'Highway, Street, and Bridge Construction.' While the specific project details are not itemized in the summary data, this code encompasses activities such as the construction, repair, and maintenance of highways, streets, public bridges, tunnels, and elevated highways. This could include grading, paving, structural work on bridges, and related infrastructure like drainage systems and traffic control installations. The substantial award amount suggests a significant scope of work, potentially involving major reconstruction or new construction rather than routine maintenance.

How does the number of bidders (7) compare to similar large-scale highway construction contracts awarded by the Department of Defense?

A competition with 7 bidders for a contract valued at over $60 million in the highway construction sector is generally considered healthy. For large-scale federal construction projects, the number of bidders can vary significantly based on project complexity, geographic location, and the number of qualified contractors. While 7 bidders indicate robust competition, comparing this to the average number of bids for similar Department of Defense (DoD) projects of comparable value and scope would provide better context. Anecdotally, for major infrastructure projects, 3-5 bidders might be common, so 7 suggests a particularly attractive or accessible opportunity for multiple firms.

What are the potential risks associated with a single contractor, Kiewit Infrastructure West Co., performing such a large infrastructure project over a five-year period?

The primary risks associated with a single contractor performing a large, long-duration project include potential performance degradation over time, contractor over-reliance leading to reduced flexibility, and the impact of unforeseen contractor issues (e.g., financial distress, labor disputes, or management changes) on project continuity. If Kiewit Infrastructure West Co. were to face significant challenges, the government might have limited immediate alternatives, potentially leading to delays and cost overruns. However, the firm-fixed-price nature of the contract provides some cost control, and the initial full and open competition suggests the contractor was selected based on qualifications and competitive pricing.

What is the historical spending pattern for NAICS code 237310 by the Department of the Army, and how does this $60.7M award fit within that trend?

Historical spending data for NAICS code 237310 by the Department of the Army would reveal the agency's consistent investment in highway, street, and bridge construction. Without specific historical figures, it's difficult to definitively place this $60.7M award. However, given the Army's extensive real property and infrastructure needs, particularly at bases and training ranges, significant annual spending in this category is expected. This award represents a substantial single commitment, suggesting either a major infrastructure upgrade initiative or a consolidation of several smaller projects under one contract. Analyzing trends over the past 5-10 years would indicate if this award is an outlier or part of a sustained investment level.

Given the 'Delivery Order' award type, what does this imply about the contract structure and potential for future task orders?

The 'Delivery Order' (DO) award type, often used with indefinite-delivery/indefinite-quantity (IDIQ) contracts or other multiple-award vehicles, implies that this $60.7M represents the total value or ceiling for orders placed against a larger, pre-negotiated contract. It suggests that Kiewit Infrastructure West Co. was selected as one of potentially multiple awardees under a broader contract. This specific award is a 'delivery order' placed against that master contract. This structure allows the government flexibility to issue multiple delivery orders over the contract period (2008-2013) up to the specified ceiling, for specific projects or requirements as they arise. It implies that the government anticipated a continuing need for these services and wanted the flexibility to order them efficiently.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peter Kiewit Sons Inc (UEI: 070729517)

Address: 2200- COLUMBIA HOUSE BLVD, VANCOUVER, WA, 98661

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $71,355,514

Exercised Options: $60,742,869

Current Obligation: $60,742,869

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912BV07D2018

IDV Type: IDC

Timeline