DOD Awards $24.3M Border Fence Contract to Granite Construction for Arizona Project
Contract Overview
Contract Amount: $24,296,770 ($24.3M)
Contractor: Granite Construction Company
Awarding Agency: Department of Defense
Start Date: 2007-08-20
End Date: 2008-12-31
Contract Duration: 499 days
Daily Burn Rate: $48.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: TASK ORDER IS FOR DESIGN AND CONSTRUCTION OF PRIMARY BORDER BARRIE FENCE APPROX 5.4 MILES WEST OF PORT OF ENTRY.
Place of Performance
Location: NACO, COCHISE County, ARIZONA, 85620
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $24.3 million to GRANITE CONSTRUCTION COMPANY for work described as: TASK ORDER IS FOR DESIGN AND CONSTRUCTION OF PRIMARY BORDER BARRIE FENCE APPROX 5.4 MILES WEST OF PORT OF ENTRY. Key points: 1. The contract focuses on highway, street, and bridge construction for a 5.4-mile border barrier. 2. Granite Construction Company secured the award under full and open competition. 3. The project spans nearly 17 months, indicating a significant construction undertaking. 4. The firm fixed-price contract type suggests defined costs and potential for contractor risk. 5. This falls within the broader construction sector, specifically infrastructure development.
Value Assessment
Rating: good
The contract value of $24.3 million for 5.4 miles of construction appears reasonable given the scope. Benchmarking against similar large-scale infrastructure projects would provide a more precise assessment, but the price per mile is within expected ranges for complex construction.
Cost Per Unit: $4.5M per mile
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value through market forces.
Taxpayer Impact: Competitive bidding in this instance likely resulted in a fair market price, maximizing taxpayer value for this critical infrastructure project.
Public Impact
Enhances border security infrastructure in Arizona. Supports economic activity through construction jobs and material procurement. Represents a significant federal investment in national security. Potential for environmental impact due to construction in a sensitive border region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Construction timelines can be affected by weather and logistical challenges.
- Long-term maintenance costs for the barrier are not detailed.
Positive Signals
- Awarded under full and open competition, indicating competitive pricing.
- Firm fixed-price contract provides cost certainty.
- Project addresses a stated national security priority.
Sector Analysis
This contract falls under the Highway, Street, and Bridge Construction sector (NAICS 237310). Spending in this sector is often driven by infrastructure needs, defense installations, and public works projects. Federal benchmarks for similar projects vary widely based on terrain and complexity.
Small Business Impact
The data indicates the primary contractor is Granite Construction Company. There is no explicit information on subcontracting to small businesses within this task order's details. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army, under the Department of Defense, awarded this contract. Standard federal procurement oversight processes would apply, including contract closeout and performance monitoring to ensure compliance and accountability.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to unforeseen site conditions.
- Risk of construction delays due to weather or logistical issues.
- Long-term maintenance costs not specified.
- Environmental impact concerns in border region.
- Limited insight into small business participation.
Tags
highway-street-and-bridge-construction, department-of-defense, az, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.3 million to GRANITE CONSTRUCTION COMPANY. TASK ORDER IS FOR DESIGN AND CONSTRUCTION OF PRIMARY BORDER BARRIE FENCE APPROX 5.4 MILES WEST OF PORT OF ENTRY.
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 $24.3 million.
What is the period of performance?
Start: 2007-08-20. End: 2008-12-31.
What is the projected long-term maintenance cost for this border barrier, and how is it funded?
The provided data does not include information on the long-term maintenance costs or funding mechanisms for the border barrier. This is a critical aspect for understanding the total lifecycle cost to taxpayers. Future budget allocations or separate maintenance contracts would be required to address ongoing upkeep and repairs.
Were there any significant challenges or disputes during the design and construction phases that impacted the final cost or timeline?
The available data covers the award and period of performance but does not detail any specific challenges or disputes encountered during the design and construction. Post-award contract modifications, change orders, or claims could indicate issues. A review of contract performance reports would be necessary to identify any such events.
How does the cost per mile of this barrier compare to similar projects in different terrains or regions?
The cost per mile is approximately $4.5 million. This figure should be compared against similar border barrier projects or large-scale infrastructure constructions in comparable terrains and regions. Factors like geological conditions, land acquisition, and security requirements significantly influence per-mile costs, making direct comparisons complex but valuable.
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
Solicitation ID: W912BV07R2026
Offers Received: 14
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, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $24,296,770
Exercised Options: $24,296,770
Current Obligation: $24,296,770
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912BV07D2024
IDV Type: IDC
Timeline
Start Date: 2007-08-20
Current End Date: 2008-12-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2008-10-23
More Contracts from Granite Construction Company
- Border Wall Construction- Vertical Barrier, Laredo Texas Sector, LRT-4 — $512.3M (Department of Homeland Security)
- Construction of Control Structure for SIX Submerged Tainter Gates — $252.1M (Department of Defense)
- THE Project Consists of TWO Phases: 1) Pre-Construction Services Contained in the Base Contract; and 2) Construction Services Contained in TWO Options. the Project Will Consist of Spanning the Active Pretty Rocks Landslide With an Approximately 475-F — $214.9M (Department of Transportation)
- THE Sacramento Weir Widening Will Reduce Water Surface Elevation in Sacramento River and Allow Water to Flow Into the Yolo Bypass System. Project Consists of Construction of a Passive Weir, Levee Setback, Fish Passage Control Among Others — $178.6M (Department of Defense)
- Border Infrastructure-Barrier Gaps Design Build Construction — $178.5M (Department of Homeland Security)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)