DOD awards $15.9M for Yuma County border barrier fencing, highlighting construction sector spending
Contract Overview
Contract Amount: $15,891,677 ($15.9M)
Contractor: Granite Construction Company
Awarding Agency: Department of Defense
Start Date: 2008-05-08
End Date: 2008-12-31
Contract Duration: 237 days
Daily Burn Rate: $67.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN AND CONSTRUCTION OF BORDER BARRIER FENCING BETWEEN COUNTY 18TH STREET SOUTH AND COUNTY 21 1/2 STREET SOUTH, YUMA COUNTY, AZ
Place of Performance
Location: YUMA, YUMA County, ARIZONA, 85365
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $15.9 million to GRANITE CONSTRUCTION COMPANY for work described as: DESIGN AND CONSTRUCTION OF BORDER BARRIER FENCING BETWEEN COUNTY 18TH STREET SOUTH AND COUNTY 21 1/2 STREET SOUTH, YUMA COUNTY, AZ Key points: 1. Contract awarded to Granite Construction Company for border barrier fencing. 2. Project falls under highway, street, and bridge construction NAICS code. 3. Full and open competition was utilized for this contract. 4. The contract was awarded as a delivery order. 5. Project duration was approximately 237 days. 6. The contract was firm fixed price, indicating price certainty.
Value Assessment
Rating: fair
The contract value of $15.9 million for border barrier fencing is a significant investment. Benchmarking this cost requires comparison to similar border infrastructure projects, which can vary widely based on terrain, materials, and scope. Without specific details on the linear footage or type of fencing, a precise value-for-money assessment is challenging. However, the firm fixed-price nature suggests the government aimed to control costs upfront.
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 9 bidders suggests a competitive environment, which typically drives down prices and encourages innovation. The level of competition is a positive sign for price discovery and ensuring taxpayer funds are used efficiently.
Taxpayer Impact: A competitive bidding process for this project likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.
Public Impact
The primary beneficiaries are likely federal agencies responsible for border security. The service delivered is the physical construction of border barrier fencing. The geographic impact is localized to Yuma County, Arizona. Workforce implications include employment opportunities for construction labor in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Durational risks associated with construction projects in remote or challenging environments.
Positive Signals
- Firm fixed-price contract helps mitigate cost uncertainty.
- Full and open competition suggests a robust selection process.
Sector Analysis
The construction sector, particularly heavy civil engineering and infrastructure projects, is a significant area of federal spending. This contract for border barrier fencing falls within the highway, street, and bridge construction category. Federal spending in this sector often supports national security, transportation, and infrastructure development. Comparable spending benchmarks would involve analyzing other large-scale construction contracts awarded by agencies like the Department of Defense or Department of Homeland Security for similar infrastructure.
Small Business Impact
While this contract was awarded under full and open competition, there is no explicit indication of a small business set-aside. The prime contractor, Granite Construction Company, is a large entity. Subcontracting opportunities may exist for small businesses, but this information is not detailed in the provided data. The impact on the small business ecosystem would depend on the extent to which the prime contractor engages small businesses for specialized services or materials.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Accountability measures are inherent in the firm fixed-price contract type, requiring delivery of specified work within the agreed price. Transparency is generally facilitated through contract award databases, though specific project oversight details are not provided here. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Border Security Infrastructure
- Department of Defense Construction Contracts
- Federal Highway and Bridge Projects
Risk Flags
- Environmental risks in desert construction
- Logistical challenges in remote areas
- Potential for unforeseen site conditions
Tags
construction, department-of-defense, department-of-the-army, yuma-county, arizona, full-and-open-competition, delivery-order, firm-fixed-price, highway-street-and-bridge-construction, border-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.9 million to GRANITE CONSTRUCTION COMPANY. DESIGN AND CONSTRUCTION OF BORDER BARRIER FENCING BETWEEN COUNTY 18TH STREET SOUTH AND COUNTY 21 1/2 STREET SOUTH, YUMA COUNTY, AZ
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 $15.9 million.
What is the period of performance?
Start: 2008-05-08. End: 2008-12-31.
What is the track record of Granite Construction Company with federal contracts, particularly with the Department of Defense?
Granite Construction Company has a substantial history of federal contracting, including numerous awards from the Department of Defense and other agencies. Their portfolio often includes large-scale infrastructure projects, such as roads, bridges, and facilities. Analyzing their past performance on similar projects, including adherence to schedule, budget, and quality standards, would provide insight into their capability to execute this border barrier contract. Federal procurement data typically tracks contractor performance ratings, which can be reviewed for a more detailed assessment of their reliability and past success rates on government projects.
How does the cost per linear foot of this border barrier fencing compare to similar projects?
Determining the cost per linear foot requires knowing the total linear footage of fencing constructed under this $15.9 million contract. Without this specific metric, a direct comparison is difficult. Border barrier projects can vary significantly in cost per foot due to factors like terrain (e.g., mountains vs. flat desert), the type of barrier (e.g., solid wall, mesh fencing, vehicle barriers), and the inclusion of additional security features like sensors or lighting. To benchmark effectively, one would need to identify comparable projects with similar geographical challenges and barrier specifications and then calculate their respective cost per linear foot.
What are the primary risks associated with constructing border fencing in Yuma County, Arizona?
Constructing border fencing in Yuma County, Arizona, presents several risks. Environmental factors are significant, including extreme heat, potential flash floods, and challenging desert terrain, which can impact construction timelines and worker safety. Land acquisition and right-of-way issues can also pose delays. Furthermore, the remote nature of some locations may complicate logistics for materials and personnel. Security concerns related to the border region itself could also introduce operational risks. Finally, the potential for unforeseen subsurface conditions (e.g., rock formations, unstable soil) could lead to cost increases or schedule slippage, even with a fixed-price contract.
What is the historical spending pattern for border barrier construction by the Department of Defense?
Historical spending by the Department of Defense (DoD) on border barrier construction has varied significantly over time, often influenced by national policy priorities and specific security needs. While the Department of Homeland Security (DHS) is the primary agency for border security, the DoD has been tasked with supporting border barrier projects, particularly during periods of heightened concern. This support has often involved reallocating funds or utilizing specific authorities to expedite construction. Analyzing historical DoD budgets and contract awards related to border infrastructure would reveal trends in funding levels, types of projects undertaken, and the duration of such initiatives.
How effective are firm fixed-price contracts in managing costs for large-scale construction projects like this one?
Firm fixed-price (FFP) contracts are generally considered effective for managing costs in large-scale construction projects when the scope of work is well-defined and risks are understood. Under an FFP contract, the contractor assumes most of the risk for cost overruns, providing the government with cost certainty. This structure incentivizes the contractor to control costs efficiently. However, if unforeseen issues arise that significantly alter the scope or introduce substantial new risks not accounted for during bidding, the FFP structure can sometimes lead to contractor claims or disputes, potentially negating some of the initial cost certainty. For projects with high uncertainty, other contract types might be more appropriate.
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: 9
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: $15,891,677
Exercised Options: $15,891,677
Current Obligation: $15,891,677
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912BV07D2033
IDV Type: IDC
Timeline
Start Date: 2008-05-08
Current End Date: 2008-12-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2021-04-29
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