DOD's $41.2M El Paso MATOC for Highway Construction Awarded to Kiewit New Mexico Under Full and Open Competition
Contract Overview
Contract Amount: $41,205,867 ($41.2M)
Contractor: Kiewit NEW Mexico CO.
Awarding Agency: Department of Defense
Start Date: 2008-07-02
End Date: 2011-09-30
Contract Duration: 1,185 days
Daily Burn Rate: $34.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: EL PASO SECTOR MATOC, K-2A
Place of Performance
Location: EL PASO, EL PASO County, TEXAS, 79901
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $41.2 million to KIEWIT NEW MEXICO CO. for work described as: EL PASO SECTOR MATOC, K-2A Key points: 1. The contract, valued at $41.2 million, was awarded to Kiewit New Mexico Co. for highway, street, and bridge construction. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract duration was 1185 days, ending in September 2011. 4. The awarding agency was the Department of Defense, specifically the Department of the Army. 5. The contract type was Firm Fixed Price, providing cost certainty.
Value Assessment
Rating: good
The contract's value of $41.2 million appears reasonable for highway, street, and bridge construction projects of this scale. Benchmarking against similar large-scale infrastructure contracts would provide a more precise assessment, but the firm fixed-price nature suggests a degree of cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. This method allows any qualified contractor to bid, promoting a robust price discovery process.
Taxpayer Impact: Full and open competition generally leads to more efficient use of taxpayer funds by driving down costs through market forces.
Public Impact
Supports infrastructure development in Texas, creating jobs and improving transportation networks. The Department of Defense's investment in construction projects can stimulate local economies. Ensures the maintenance and improvement of critical transportation infrastructure for military and civilian use.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type.
- Supports critical infrastructure development.
Sector Analysis
This contract falls within the Construction sector, specifically Highway, Street, and Bridge Construction. Spending in this sector is crucial for national infrastructure and can fluctuate based on government funding priorities and economic conditions.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses likely did not have a direct opportunity to bid on this specific award, though they may have participated as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense, which has established oversight mechanisms for its procurement processes. The firm fixed-price nature can simplify oversight compared to cost-reimbursement contracts.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns if material prices increase significantly over the contract duration.
- Risk of delays due to unforeseen site conditions or environmental factors.
- Dependence on a single contractor (Kiewit New Mexico) for multiple task orders under the MATOC.
- Lack of specific small business participation noted in the award data.
Tags
highway-street-and-bridge-construction, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.2 million to KIEWIT NEW MEXICO CO.. EL PASO SECTOR MATOC, K-2A
Who is the contractor on this award?
The obligated recipient is KIEWIT NEW MEXICO 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 $41.2 million.
What is the period of performance?
Start: 2008-07-02. End: 2011-09-30.
What was the specific scope of work covered by this MATOC, and how did it align with the Department of Defense's infrastructure needs in the El Paso sector?
The MATOC (Multiple Award Task Order Contract) likely covered a range of highway, street, and bridge construction and repair services within the El Paso sector. Its alignment with DOD needs would depend on the proximity of military installations and the strategic importance of the transportation infrastructure to base operations and logistics. Specific task orders would detail the precise scope.
Given the 1185-day duration, what were the potential risks associated with long-term construction contracts, and how were they mitigated?
Long-term construction contracts face risks like material cost escalation, labor availability fluctuations, and unforeseen site conditions. Mitigation strategies could include robust contract clauses addressing price adjustments, detailed site investigations prior to award, and strong project management by the Army Corps of Engineers to monitor progress and address issues promptly.
How effectively did the full and open competition process ensure value for money for this $41.2 million award?
Full and open competition is designed to maximize value by encouraging multiple bids, which typically drives down prices. The effectiveness in this case would be assessed by comparing Kiewit New Mexico's bid against the government's estimate and potentially against bids from other qualified contractors. The firm fixed-price structure further locks in costs, enhancing value certainty.
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: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Peter Kiewit Sons Inc (UEI: 070729517)
Address: KIEWIT PLAZA, OMAHA, NE, 68131
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $41,205,867
Exercised Options: $41,205,867
Current Obligation: $41,205,867
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912BV07D2026
IDV Type: IDC
Timeline
Start Date: 2008-07-02
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2021-03-28
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