DoD Awards $32.7M for California Highway Construction to Granite Construction Company
Contract Overview
Contract Amount: $32,720,670 ($32.7M)
Contractor: Granite Construction Company
Awarding Agency: Department of Defense
Start Date: 2008-05-08
End Date: 2008-10-13
Contract Duration: 158 days
Daily Burn Rate: $207.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF APPROXIMATELY 8.59 MILES
Place of Performance
Location: EL CENTRO, IMPERIAL County, CALIFORNIA, 92243
Plain-Language Summary
Department of Defense obligated $32.7 million to GRANITE CONSTRUCTION COMPANY for work described as: CONSTRUCTION OF APPROXIMATELY 8.59 MILES Key points: 1. The contract value is $32.7 million for approximately 8.59 miles of highway construction. 2. Granite Construction Company was awarded this contract under full and open competition. 3. The project falls under the Highway, Street, and Bridge Construction NAICS code. 4. The contract was awarded as a Delivery Order with a Firm Fixed Price.
Value Assessment
Rating: good
The contract value of $32.7 million for 8.59 miles of highway construction appears reasonable given the scope. Benchmarking against similar projects would provide a more precise assessment of value.
Cost Per Unit: $3,796,353 per mile
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process that likely led to a fair price discovery. The delivery order structure indicates it was part of a larger contract vehicle.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for cost-effectiveness in infrastructure development.
Public Impact
Improved transportation infrastructure in California, facilitating commerce and public travel. Potential for job creation and economic activity in the local construction sector. Enhancement of military readiness through improved access and transportation routes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short project duration (158 days) may increase risk of delays or cost overruns.
- Firm Fixed Price contract offers limited flexibility for unforeseen issues.
Positive Signals
- Full and open competition suggests potential for competitive pricing.
- Delivery Order structure may indicate pre-negotiated terms and conditions.
Sector Analysis
This project falls within the construction sector, specifically highway, street, and bridge construction. Spending in this sector is crucial for national infrastructure and defense logistics.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The Department of the Army awarded this contract, implying oversight by the Department of Defense. The delivery order mechanism suggests it might be part of a larger framework contract with established oversight.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Short project duration
- Firm Fixed Price contract
- Lack of base contract details
- No indication of small business participation
Tags
highway-street-and-bridge-construction, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.7 million to GRANITE CONSTRUCTION COMPANY. CONSTRUCTION OF APPROXIMATELY 8.59 MILES
Who is the contractor on this award?
The obligated recipient is GRANITE CONSTRUCTION COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $32.7 million.
What is the period of performance?
Start: 2008-05-08. End: 2008-10-13.
What was the total value of the base contract from which this delivery order was issued?
The provided data only details a specific delivery order valued at $32.7 million. Information regarding the base contract's total value, its original scope, and its award details is not available. Understanding the base contract is crucial for a comprehensive assessment of the overall spending and potential cumulative costs.
Were there any performance issues or disputes during the contract execution given the short duration?
The contract was awarded in May 2008 and completed in October 2008, a duration of approximately 5 months. Without access to contract performance reports, post-award modifications, or dispute logs, it's impossible to determine if there were any performance issues. The firm fixed price nature could have incentivized timely completion but also potentially led to disputes if unforeseen challenges arose.
How did the final cost compare to the initial bid or estimated cost for this delivery order?
The data shows the awarded amount as $32,720,670.08. As this is a firm fixed price contract awarded via delivery order, it's likely that the awarded amount reflects the agreed-upon price for the specified work. However, without knowing the initial bid range or the government's estimate, a direct comparison to assess cost savings or overruns is not possible from this data alone.
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: Granite Construction Incorporated (UEI: 622826360)
Address: 585 WEST BEACH ST, WATSONVILLE, CA, 95076
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $32,720,670
Exercised Options: $32,720,670
Current Obligation: $32,720,670
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912BV07D2020
IDV Type: IDC
Timeline
Start Date: 2008-05-08
Current End Date: 2008-10-13
Potential End Date: 2008-10-13 00:00:00
Last Modified: 2021-04-29
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