Kiewit New Mexico awarded $44M for Border Barrier Fence, highlighting highway construction in Texas

Contract Overview

Contract Amount: $44,028,259 ($44.0M)

Contractor: Kiewit NEW Mexico CO.

Awarding Agency: Department of Defense

Start Date: 2008-08-14

End Date: 2010-09-30

Contract Duration: 777 days

Daily Burn Rate: $56.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BORDER BARRIER FENCE K-2D

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79901

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $44.0 million to KIEWIT NEW MEXICO CO. for work described as: BORDER BARRIER FENCE K-2D Key points: 1. Contract value of $44 million for border barrier construction. 2. Awarded under a full and open competition, suggesting broad market engagement. 3. Firm fixed-price contract type indicates predictable costs for the government. 4. Delivery order issued under a larger contract vehicle, potentially for efficiency. 5. Project duration of 777 days implies a significant construction timeline. 6. Geographic focus on Texas, a key border state.

Value Assessment

Rating: fair

The contract value of $44 million for border barrier fencing appears substantial. Benchmarking against similar large-scale construction projects is difficult without more specific project details (e.g., linear feet, materials). However, the firm fixed-price nature suggests an attempt to control costs. The reported 'br' (benchmark rate) of 56664, if representing a cost per unit or similar metric, would require further analysis to determine its competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 10 bidders (no) suggests a reasonably competitive environment for this type of construction work. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award, as it encouraged a wider range of contractors to bid.

Public Impact

Benefits the Department of Homeland Security's border security mission through physical infrastructure. Services delivered include the construction of a border barrier fence. Geographic impact is concentrated in Texas, along the U.S.-Mexico border. Workforce implications include employment for construction workers and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite fixed-price contract.
Environmental impact of large-scale construction in sensitive border regions.
Security concerns related to the effectiveness and long-term maintenance of the barrier.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bidding process, potentially leading to better value.
Delivery order mechanism can streamline the acquisition process for specific needs.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector (NAICS code 237310). This sector involves the construction of roads, bridges, and related infrastructure. Large federal contracts in this area often involve significant material procurement, labor, and project management. Comparable spending benchmarks would typically be found in other large-scale civil engineering and construction projects undertaken by federal agencies like the Department of Transportation or Defense.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-asides (ss: false, sb: false). Therefore, small businesses would have participated as potential prime contractors if they met the qualifications, or more likely, as subcontractors to larger firms like Kiewit New Mexico. The subcontracting opportunities for small businesses are not detailed here but are common in large construction projects.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and potentially the Department of Defense's Inspector General. The firm fixed-price contract type provides a degree of accountability by locking in costs. Transparency is facilitated by the public nature of federal contract awards, allowing for general oversight, though detailed project-specific oversight mechanisms are not specified in this data.

Related Government Programs

Border Security Infrastructure
Department of Defense Construction Contracts
Federal Highway and Bridge Construction
Texas Federal Contracts

Risk Flags

Potential environmental impact in sensitive border ecosystems.
Land acquisition challenges in border regions.
Long-term maintenance and effectiveness of the barrier.
Security implications of physical border infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.0 million to KIEWIT NEW MEXICO CO.. BORDER BARRIER FENCE K-2D

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 $44.0 million.

What is the period of performance?

Start: 2008-08-14. End: 2010-09-30.

What is the specific type and length of the border barrier constructed under this contract?

The provided data identifies the contract as 'BORDER BARRIER FENCE K-2D' and falls under 'Highway, Street, and Bridge Construction.' However, it does not specify the exact type of fence (e.g., vehicle, pedestrian, mesh) or its total linear footage. The contract was awarded as a delivery order with a duration of 777 days, suggesting a significant construction effort. Further details on the physical specifications of the barrier would be needed for a complete understanding of the project's scope and physical output.

How does the awarded amount of $44 million compare to the benchmark rate of 56664?

The benchmark rate 'br' is listed as 56664. Without explicit definition, it's challenging to definitively interpret this figure. If 'br' represents a cost per unit (e.g., per linear foot, per mile, per panel), then comparing the total contract value ($44,028,259.33) to this benchmark would be possible. For instance, if 'br' were cost per mile, we could estimate the total miles of fence. However, given the ambiguity, it's impossible to state whether $44 million is high or low relative to this benchmark. Further clarification on what 'br' signifies is essential for a meaningful comparison.

What specific risks are associated with constructing border barriers in Texas, and how were they addressed in this contract?

Constructing border barriers in Texas involves several risks, including environmental challenges (terrain, weather, wildlife habitats), land acquisition issues (private property), and potential security vulnerabilities of the barrier itself. While the contract specifies a firm fixed-price structure, which mitigates cost overrun risks for the government, it doesn't detail specific provisions for environmental mitigation or land acquisition complexities. The 777-day duration suggests a phased approach that might allow for addressing these issues incrementally. However, the provided data does not elaborate on the contractor's specific risk mitigation plans or the government's oversight concerning these potential challenges.

What is Kiewit New Mexico's track record with similar large-scale federal construction projects, particularly border infrastructure?

Kiewit New Mexico is part of Kiewit Corporation, a major engineering and construction firm with extensive experience in large-scale infrastructure projects, including federal contracts. While this specific data point focuses on a single border barrier fence contract, Kiewit has a history of undertaking complex projects for various government agencies. Assessing their specific track record for border infrastructure would require examining their portfolio for other similar projects, their performance history on those contracts (e.g., on-time completion, budget adherence, quality), and any past issues or commendations related to border-related construction.

How does the number of bidders (10) influence the value for money achieved in this $44 million contract?

The fact that 10 bids were received under a full and open competition is a positive indicator for value for money. A higher number of bidders generally intensifies competition, pressuring contractors to offer more competitive pricing and better terms to win the contract. This suggests that the government likely received a fair price for the border barrier construction services. While the firm fixed-price nature locks in costs, the competitive bidding process is crucial for ensuring that the initial price offered was reasonable and reflected market conditions.

What are the historical spending patterns for border barrier construction by the Department of the Army or related agencies?

Historical spending on border barrier construction by the Department of the Army and other agencies has varied significantly over time, often influenced by national security priorities and political administrations. Major funding initiatives for border infrastructure have occurred periodically. To analyze historical patterns for this specific type of project, one would need to examine federal procurement databases for similar contracts awarded over the past decade or more, looking at total obligated amounts, number of contracts, and key contractors involved. This contract, valued at $44 million, represents a significant but not unprecedented investment in border infrastructure.

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: $44,028,259

Exercised Options: $44,028,259

Current Obligation: $44,028,259

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912BV07D2026

IDV Type: IDC

Timeline