Kiewit Infrastructure West Co. awarded $15.5M for Folsom Dam safety modifications, a significant civil engineering project

Contract Overview

Contract Amount: $15,458,083 ($15.5M)

Contractor: Kiewit Infrastructure West CO.

Awarding Agency: Department of the Interior

Start Date: 2007-09-28

End Date: 2009-04-17

Contract Duration: 567 days

Daily Burn Rate: $27.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FOLSOM DAM, PHASE 1 SAFETY OF DAMS MODIFICATIONS, AMERICAN RIVER DIVISION - FOLSOM UNIT, CENTRAL VALLEY PROJECT, CALIFORNIA, FOLSOM, CALIFORNIA

Place of Performance

Location: FOLSOM, SACRAMENTO County, CALIFORNIA, 95630

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $15.5 million to KIEWIT INFRASTRUCTURE WEST CO. for work described as: FOLSOM DAM, PHASE 1 SAFETY OF DAMS MODIFICATIONS, AMERICAN RIVER DIVISION - FOLSOM UNIT, CENTRAL VALLEY PROJECT, CALIFORNIA, FOLSOM, CALIFORNIA Key points: 1. The contract value represents a substantial investment in critical infrastructure. 2. Competition dynamics for this project are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on project scope and contractor history. 4. Performance context is established by comparing to similar large-scale construction projects. 5. The project positions the Bureau of Reclamation as a key player in California's water infrastructure management. 6. The firm-fixed-price contract type suggests a defined cost structure.

Value Assessment

Rating: good

The $15.5 million award for the Folsom Dam safety modifications appears reasonable given the scale and complexity of heavy civil engineering projects. Benchmarking against similar dam safety and modification contracts, particularly those managed by the Army Corps of Engineers or other Bureau of Reclamation projects, would provide a more precise value-for-money assessment. The firm-fixed-price contract type generally offers good cost control for the government, assuming the initial scope was well-defined. Without detailed cost breakdowns or comparisons to independent cost estimates, a definitive assessment of exceptional value is difficult, but the price seems within expected ranges for this type of specialized work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. With 5 bidders identified, the level of competition appears healthy, which typically drives more competitive pricing and encourages contractors to offer their best value propositions. The presence of several bidders suggests a robust market for this type of heavy civil engineering construction. The Bureau of Reclamation's approach to full and open competition is a standard practice for ensuring a broad range of potential solutions and fair market pricing.

Taxpayer Impact: The full and open competition for this project is beneficial for taxpayers as it likely resulted in a more competitive bid environment, potentially lowering the overall cost compared to a sole-source or limited competition scenario. This process helps ensure that government funds are used efficiently by leveraging market forces to achieve the best possible price.

Public Impact

The primary beneficiaries are the residents and businesses in the downstream areas of the American River Division, who benefit from enhanced dam safety and flood control. The project delivers critical safety modifications to the Folsom Dam, ensuring its structural integrity and operational reliability. The geographic impact is concentrated in Folsom, California, and the surrounding regions reliant on the dam's infrastructure. The project supports a workforce of skilled engineers, construction workers, and project managers in the heavy civil engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large infrastructure projects can lead to cost overruns if not managed tightly.
Unforeseen geological or structural issues during construction could impact timelines and budgets.
Coordination with multiple stakeholders and environmental regulations adds complexity.

Positive Signals

The contractor, Kiewit Infrastructure West Co., has a significant track record in large-scale civil engineering projects.
The firm-fixed-price contract structure provides cost certainty for the government.
The project addresses a critical safety need for a major piece of infrastructure.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, a vital part of the broader construction industry. This sector is characterized by large-scale projects such as dams, bridges, highways, and other public works. Spending in this area is often driven by government infrastructure investment and maintenance needs. Comparable spending benchmarks would include other major dam rehabilitation or construction projects, as well as significant flood control or water management initiatives across the United States. The market size for such specialized construction is substantial, requiring significant capital and expertise.

Small Business Impact

There is no indication that this contract included specific small business set-asides. Given the specialized nature and large scale of the Folsom Dam modifications, it is likely that the prime contractor, Kiewit Infrastructure West Co., would subcontract portions of the work. Analysis of subcontracting plans would be necessary to determine the extent to which small businesses participated in this project and the impact on the small business ecosystem. Without this information, it's difficult to assess the direct benefit to small businesses from this specific award.

Oversight & Accountability

Oversight for this contract would primarily be managed by the Bureau of Reclamation, an agency within the Department of the Interior. Accountability measures are embedded in the contract terms, including performance standards, reporting requirements, and payment schedules tied to milestones. Transparency is generally maintained through public contract databases and agency reporting. The Inspector General for the Department of the Interior would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Central Valley Project
Folsom Dam Operations and Maintenance
Bureau of Reclamation Construction Projects
California Infrastructure Projects
Dam Safety Modernization Programs

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays impacting critical infrastructure availability.
Complexity of coordinating with environmental regulations and stakeholders.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $15.5 million to KIEWIT INFRASTRUCTURE WEST CO.. FOLSOM DAM, PHASE 1 SAFETY OF DAMS MODIFICATIONS, AMERICAN RIVER DIVISION - FOLSOM UNIT, CENTRAL VALLEY PROJECT, CALIFORNIA, FOLSOM, CALIFORNIA

Who is the contractor on this award?

The obligated recipient is KIEWIT INFRASTRUCTURE WEST CO..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Reclamation).

What is the total obligated amount?

The obligated amount is $15.5 million.

What is the period of performance?

Start: 2007-09-28. End: 2009-04-17.

What is Kiewit Infrastructure West Co.'s track record with similar federal infrastructure projects, particularly dam modifications?

Kiewit Infrastructure West Co. has a substantial and well-documented track record with large-scale federal infrastructure projects, including numerous dam construction and modification efforts. They have been involved in significant projects for agencies like the U.S. Army Corps of Engineers and the Bureau of Reclamation. Their experience often encompasses complex civil engineering challenges, such as those found in dam safety upgrades, spillway construction, and powerhouse rehabilitation. Reviewing their past performance on projects of similar magnitude and technical complexity would provide insight into their capacity to successfully execute the Folsom Dam modifications. Publicly available contract databases and agency performance reviews can offer details on their project delivery history, including adherence to schedule, budget, and quality standards.

How does the awarded amount of $15.5 million compare to the estimated cost or independent cost analyses for the Folsom Dam safety modifications?

The awarded amount of $15,458,082.68 for the Folsom Dam Phase 1 Safety of Dams Modifications needs to be compared against the government's independent cost estimate (ICE) or any pre-bid cost analyses conducted by the Bureau of Reclamation. If the award was significantly below the ICE, it could indicate strong competition or potentially an underestimated scope. Conversely, if it was at or above the ICE, it suggests the bids aligned with the government's expectations. Without access to the specific ICE for this project, a direct comparison is challenging. However, the fact that it was awarded under full and open competition with five bidders suggests that the pricing was likely competitive and reflected market conditions for such specialized heavy civil engineering work.

What are the primary risk indicators associated with this specific contract, and how were they mitigated?

Primary risk indicators for this contract include the inherent complexities of modifying a large, operational dam, potential for unforeseen geological or structural issues during excavation and construction, and the coordination required with various environmental regulations and stakeholders. The duration of the contract (567 days) also presents risks related to potential delays. Mitigation strategies likely involved thorough pre-bid site investigations, detailed engineering designs, robust contract clauses for change management and unforeseen conditions, and stringent oversight by the Bureau of Reclamation. The selection of Kiewit Infrastructure West Co., a contractor with a strong history in similar projects, also serves as a risk mitigation factor, suggesting they possess the expertise to navigate these challenges. The firm-fixed-price contract type helps mitigate cost overrun risks for the government, provided the scope is well-defined.

How effective has the Bureau of Reclamation been in managing similar large-scale civil engineering contracts in the past?

The Bureau of Reclamation has a long history of managing large-scale civil engineering projects, including numerous dams, canals, and water infrastructure throughout the Western United States. Their effectiveness can be evaluated by examining project outcomes, such as adherence to budget, schedule, and quality standards, as well as the long-term performance of the infrastructure they build and maintain. While specific project successes and challenges vary, the Bureau generally operates with established project management frameworks and technical expertise. Reviewing their portfolio of completed projects, particularly those involving dam safety and modifications, can provide context for their capabilities. Publicly available reports, Inspector General audits, and GAO reviews related to Bureau projects can offer further insights into their management effectiveness and areas for improvement.

What are the historical spending patterns for dam safety and modification projects by the Department of the Interior or Bureau of Reclamation?

Historical spending patterns for dam safety and modification projects by the Department of the Interior and the Bureau of Reclamation reflect a consistent need for infrastructure upkeep and upgrades. These expenditures often fluctuate based on federal budget allocations, infrastructure priorities, and the identification of critical safety concerns. Major dam rehabilitation efforts can span multiple fiscal years and involve significant contract awards, often in the tens or hundreds of millions of dollars, depending on the project's scope and complexity. Analyzing past spending trends can reveal cyclical investment patterns, the average cost per project, and the typical duration of such undertakings. This data is crucial for forecasting future needs and understanding the long-term financial commitment required for maintaining the nation's water infrastructure.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering 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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peter Kiewit Sons Inc (UEI: 070729517)

Address: 5000 MARSH DR, CONCORD, CA, 10

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,458,083

Exercised Options: $15,458,083

Current Obligation: $15,458,083

Timeline