Kiewit New Mexico awarded $38.4M for Border Fence Segment K-2C construction in Texas

Contract Overview

Contract Amount: $38,412,840 ($38.4M)

Contractor: Kiewit NEW Mexico CO.

Awarding Agency: Department of Defense

Start Date: 2008-09-25

End Date: 2010-09-30

Contract Duration: 735 days

Daily Burn Rate: $52.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BORDER FENCE SEGMENT K-2C

Place of Performance

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

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $38.4 million to KIEWIT NEW MEXICO CO. for work described as: BORDER FENCE SEGMENT K-2C Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 735 days indicates a significant construction timeline. 3. Firm Fixed Price contract type helps mitigate cost overrun risks for the government. 4. The award was a delivery order under a larger contract, implying potential for follow-on work. 5. The project falls under Highway, Street, and Bridge Construction, a common infrastructure category. 6. The contractor, Kiewit New Mexico, is a known entity in large-scale construction projects.

Value Assessment

Rating: fair

The total award amount of $38.4 million for the Border Fence Segment K-2C is a substantial investment. Benchmarking this against similar large-scale border infrastructure projects is challenging without more specific project details. However, the firm fixed-price nature of the contract suggests an attempt to control costs upfront. The contract value relative to its duration (735 days) implies a significant per-day expenditure, but this needs to be weighed against the complexity and scope of the segment being built.

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 a bid. The presence of 10 bids suggests a healthy level of interest and competition for this project. A competitive bidding process generally leads to better price discovery and can result in more favorable pricing for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The robust competition for this border fence segment project likely resulted in a more cost-effective outcome for taxpayers, ensuring that the government received competitive bids for the construction services.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the Department of Homeland Security, through the construction of border infrastructure. The service delivered is the physical construction of a specific segment of the border fence. The geographic impact is localized to Texas, where the segment K-2C is located. Workforce implications include employment opportunities for construction workers, engineers, and project managers in the Texas region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large, multi-year construction projects.
Environmental impact assessments and mitigation strategies are critical for border construction.
Coordination with multiple agencies and stakeholders can introduce complexities.
Long-term maintenance and operational costs of the constructed segment are not detailed here.

Positive Signals

Awarded under full and open competition, indicating a competitive market.
Firm Fixed Price contract type helps manage cost certainty.
Contractor Kiewit New Mexico has experience in large infrastructure projects.
The project contributes to national security infrastructure.
The duration of the contract allows for thorough planning and execution.

Sector Analysis

This contract falls within the construction sector, specifically related to heavy civil engineering and infrastructure development. The market for border security infrastructure is significant, often involving large federal contracts. Comparable spending benchmarks would typically involve other large-scale construction projects awarded by agencies like the Army Corps of Engineers or the Department of Homeland Security for similar infrastructure, though specific project details are needed for precise comparisons.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While Kiewit New Mexico is a large prime contractor, there may be subcontracting opportunities for small businesses within the scope of this project. The extent of small business participation would depend on Kiewit's subcontracting plan and the availability of qualified small businesses for specialized construction services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, which awarded the delivery order. The firm fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract award databases like FPDS. Accountability measures would involve performance monitoring against contract requirements and adherence to construction standards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Border Security Infrastructure Projects
Department of Defense Construction Contracts
Army Corps of Engineers Projects
Federal Highway and Bridge Construction

Risk Flags

Potential for cost overruns despite fixed-price contract if scope changes.
Environmental impact and mitigation complexities.
Long-term maintenance and sustainability considerations.
Geopolitical and security landscape influencing project needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.4 million to KIEWIT NEW MEXICO CO.. BORDER FENCE SEGMENT K-2C

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 $38.4 million.

What is the period of performance?

Start: 2008-09-25. End: 2010-09-30.

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

Kiewit New Mexico, as part of the larger Kiewit Corporation, has a substantial track record in large-scale infrastructure projects, including highways, bridges, and other civil engineering works. While specific details on their border infrastructure projects are not provided in this data snippet, Kiewit has been involved in numerous complex federal contracts across various sectors. Their experience typically includes managing large workforces, adhering to strict timelines, and navigating complex regulatory environments. A deeper dive into their past performance on similar Department of Defense or Department of Homeland Security contracts would provide a more precise assessment of their suitability and past success rates for projects of this magnitude and nature.

How does the $38.4 million award for Border Fence Segment K-2C compare to the average cost of similar border infrastructure construction projects?

Directly comparing the $38.4 million award for Border Fence Segment K-2C to an 'average cost' is difficult without a standardized definition of 'similar projects' and access to detailed cost breakdowns. Border infrastructure projects vary significantly in scope, terrain, materials, and technological integration, all of which heavily influence cost. Factors such as the specific type of fencing, required land acquisition, environmental mitigation, and security features play a crucial role. While $38.4 million represents a significant investment, its value-for-money can only be assessed by comparing it to projects with comparable specifications, geographic challenges, and construction durations. The firm fixed-price nature suggests an effort to cap costs, but the underlying unit costs would need to be benchmarked against industry standards for heavy civil construction in that region.

What are the primary risks associated with the construction of this border fence segment, and how are they being mitigated?

Key risks for this project include potential environmental challenges (e.g., terrain, wildlife, water resources), unforeseen geological conditions, labor availability and cost fluctuations, material supply chain disruptions, and potential scope creep. The firm fixed-price contract type is a primary mitigation strategy for cost overruns, shifting some financial risk to the contractor. The 735-day duration allows for phased construction and contingency planning. Mitigation for environmental risks would involve adherence to environmental impact assessments and permits. The contractor's experience and the competitive bidding process also serve as risk mitigators, suggesting a capable entity was selected through a process designed to identify competitive pricing and technical competence.

What is the historical spending pattern for border fence construction under the Department of the Army, and how does this award fit within that trend?

Historical spending on border fence construction by the Department of the Army has varied significantly based on national priorities, funding appropriations, and specific administration policies. Large-scale border infrastructure initiatives have seen substantial investment in certain periods. This $38.4 million award for Segment K-2C, being a delivery order under a potentially larger contract, suggests it's part of an ongoing or planned series of construction efforts. Without access to broader historical spending data for border fencing specifically under the Army's purview, it's difficult to definitively state how this single award fits into a larger trend. However, it represents a notable allocation for a specific segment of infrastructure.

Given the 'full and open competition' and 10 bidders, what does this imply about the market competitiveness for large-scale border construction projects?

The fact that this contract received 10 bids under full and open competition suggests a relatively competitive market for large-scale border construction projects. This level of interest indicates that multiple qualified contractors are capable of undertaking such work and are willing to compete for these federal contracts. A competitive environment generally benefits the government by driving down prices, encouraging innovation, and ensuring a wider pool of potential contractors. It implies that the project scope and value were attractive enough to draw significant attention from industry players, potentially leading to a more favorable outcome for taxpayers compared to a less competitive scenario.

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: $38,412,840

Exercised Options: $38,412,840

Current Obligation: $38,412,840

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912BV07D2026

IDV Type: IDC

Timeline