Granite Construction awarded $32.9M for border fence segments in Texas
Contract Overview
Contract Amount: $32,899,139 ($32.9M)
Contractor: Granite Construction Company
Awarding Agency: Department of Defense
Start Date: 2008-08-13
End Date: 2010-09-30
Contract Duration: 778 days
Daily Burn Rate: $42.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BASE BID BORDER FENCE SEGMENT K-5
Place of Performance
Location: FORT HANCOCK, HUDSPETH County, TEXAS, 79839
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $32.9 million to GRANITE CONSTRUCTION COMPANY for work described as: BASE BID BORDER FENCE SEGMENT K-5 Key points: 1. Contract value appears reasonable given the scope of highway, street, and bridge construction. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type may limit cost overruns for the government. 4. Project duration of over two years indicates a significant undertaking. 5. Geographic focus on Texas aligns with border infrastructure needs. 6. The contract falls within the broad category of construction services.
Value Assessment
Rating: good
The contract value of $32.9 million for highway, street, and bridge construction is within a typical range for large infrastructure projects. Benchmarking against similar border infrastructure projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests that the government has secured a defined cost, which is generally favorable.
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 10 bids suggests a healthy level of competition for this project, which typically leads to more competitive pricing and better value for the government.
Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down the final price and ensured the government received a fair market offering.
Public Impact
The primary beneficiaries are the Department of the Army and potentially border security agencies. The services delivered include the construction of highway, street, and bridge segments, specifically for border fence infrastructure. The geographic impact is concentrated in Texas, along the border region. Workforce implications include employment opportunities for construction workers and related trades in the project area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in large, multi-year construction projects.
- Ensuring timely completion within the fixed-price contract can be challenging.
- Coordination with multiple stakeholders in border regions can be complex.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Full and open competition suggests a competitive award process.
- Experienced contractor in construction services.
Sector Analysis
This contract falls within the construction sector, specifically highway, street, and bridge construction (NAICS 237310). The market for border infrastructure is significant, driven by national security and immigration policies. Comparable spending benchmarks would involve looking at other large-scale federal construction projects, particularly those related to infrastructure and defense.
Small Business Impact
The contract was awarded under full and open competition and does not indicate any specific small business set-aside. There is no explicit information on subcontracting plans for small businesses. Further review of the contract details would be needed to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight would typically be managed by the contracting officer's representative (COR) within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract, with penalties for non-performance or delays. Transparency is generally provided through federal contract databases, though specific project oversight details may not be publicly available.
Related Government Programs
- Border Security Infrastructure Projects
- Department of Defense Construction Contracts
- Federal Highway and Bridge Construction
Risk Flags
- Potential for cost overruns due to fixed-price nature and long duration.
- Risk of delays related to environmental regulations or land acquisition.
- Ensuring consistent quality across a long construction period.
Tags
construction, department-of-defense, department-of-the-army, texas, full-and-open-competition, firm-fixed-price, delivery-order, infrastructure, border-security, highway-street-and-bridge-construction
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.9 million to GRANITE CONSTRUCTION COMPANY. BASE BID BORDER FENCE SEGMENT K-5
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 $32.9 million.
What is the period of performance?
Start: 2008-08-13. End: 2010-09-30.
What is Granite Construction Company's track record with federal contracts, particularly in construction?
Granite Construction Company has a significant history of performing federal contracts, primarily within the construction domain. Their experience spans various types of infrastructure projects, including roads, bridges, and other civil engineering works. A review of their federal contract history would reveal the number and value of previous awards, their performance ratings on those contracts, and any instances of disputes or contract terminations. This information is crucial for assessing their capability and reliability in executing the current border fence segment project.
How does the $32.9 million contract value compare to similar border infrastructure projects?
The $32.9 million contract value for border fence segments in Texas needs to be benchmarked against similar projects to assess its value for money. Factors such as the length of fence, terrain complexity, and specific construction requirements (e.g., type of barrier, associated infrastructure like roads or lighting) significantly influence cost. Without specific details on these comparable projects, it's difficult to definitively state if this contract is high or low. However, given the scale of border infrastructure needs, this figure appears to be within a plausible range for a significant segment.
What are the primary risks associated with this firm fixed-price contract for border fence construction?
The primary risks associated with this firm fixed-price contract for border fence construction include potential cost overruns if unforeseen site conditions arise (e.g., difficult terrain, unexpected subsurface obstacles), labor shortages, or material price escalations that are not adequately accounted for in the fixed price. While the government is protected from direct cost increases, the contractor might face financial strain, potentially impacting project quality or schedule if they attempt to cut corners. Delays due to environmental reviews, permitting issues, or community opposition can also pose risks to timely completion.
How effective is full and open competition in ensuring competitive pricing for large construction contracts like this?
Full and open competition is generally considered the most effective method for ensuring competitive pricing for large construction contracts. By allowing all responsible sources to bid, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving multiple competitive bids. This competitive pressure incentivizes contractors to submit their most favorable pricing and terms. The fact that 10 bids were received for this contract suggests that the full and open competition strategy was successful in attracting a significant number of interested parties, which is a positive indicator for price discovery and taxpayer value.
What is the historical spending pattern for border infrastructure projects by the Department of the Army?
Historical spending patterns for border infrastructure projects by the Department of the Army can vary significantly based on national priorities, funding appropriations, and specific administration policies. Over the past decade, there has been a notable increase in federal investment towards border security infrastructure, including fencing, barriers, and related facilities. The Army Corps of Engineers often plays a role in planning and executing such projects. Analyzing past budgets and contract awards would reveal trends in funding levels, the types of projects prioritized, and the average contract values, providing context for the current $32.9 million award.
What are the potential implications of the project's duration (778 days) on its overall cost and management?
A project duration of 778 days (approximately 2.1 years) for a $32.9 million border fence segment contract has several implications. Firstly, it suggests a complex scope of work requiring substantial time for planning, execution, and potential environmental or logistical challenges. For a firm fixed-price contract, a longer duration increases the contractor's exposure to market fluctuations in labor and material costs, potentially leading them to build in higher contingency into their bid. From a government management perspective, a longer timeline necessitates sustained oversight, regular progress reporting, and proactive risk management to ensure milestones are met and the project stays on track without significant delays or cost impacts.
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: 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: $32,899,139
Exercised Options: $32,899,139
Current Obligation: $32,899,139
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912BV07D2028
IDV Type: IDC
Timeline
Start Date: 2008-08-13
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2021-03-28
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