DoD's $35M ramp repair contract awarded to Kiewit Infrastructure West Co. for Oregon base

Contract Overview

Contract Amount: $35,071,283 ($35.1M)

Contractor: Kiewit Infrastructure West CO.

Awarding Agency: Department of Defense

Start Date: 2020-06-12

End Date: 2022-12-09

Contract Duration: 910 days

Daily Burn Rate: $38.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR RAMP

Place of Performance

Location: KLAMATH FALLS, KLAMATH County, OREGON, 97603

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $35.1 million to KIEWIT INFRASTRUCTURE WEST CO. for work described as: REPAIR RAMP Key points: 1. Contract value appears reasonable for a large-scale infrastructure repair project. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Project duration of 910 days indicates a significant scope of work. 5. Awarded to a single contractor, Kiewit Infrastructure West Co., for specialized repair services. 6. Geographic focus on Oregon suggests localized infrastructure needs.

Value Assessment

Rating: good

The contract value of $35,071,282.65 for ramp repair is substantial. Benchmarking against similar large-scale concrete foundation and structure repair projects for the Department of Defense would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature of the contract provides cost certainty for the government, which is a positive indicator. The award was made after a full and open competition, suggesting that pricing was likely scrutinized against multiple bids.

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 two bids suggests a moderate level of competition for this significant infrastructure project. While two bidders is not extensive, it does provide a basis for price comparison and negotiation, likely leading to a more competitive price than a sole-source award.

Taxpayer Impact: The full and open competition, even with two bidders, helps ensure that taxpayer funds are used efficiently by driving down costs through a competitive process.

Public Impact

The primary beneficiaries are the Department of Defense and its operational units at the Oregon base, who will receive improved and functional ramp infrastructure. The services delivered include the repair of poured concrete foundations and structures, specifically a ramp, ensuring operational readiness. The geographic impact is localized to the specific military installation in Oregon where the ramp is located. Workforce implications include employment opportunities for construction workers, engineers, and project managers involved in the repair and construction activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the project's 910-day duration.
Scope creep could be a risk if not managed tightly, despite the fixed-price nature.
Dependence on a single contractor for a critical infrastructure repair.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost overruns.
Full and open competition suggests a fair and transparent procurement process.
Awarded to a contractor with experience in infrastructure projects (implied by company name and contract type).

Sector Analysis

This contract falls within the construction and infrastructure sector, specifically focusing on poured concrete foundation and structure repair. The North American Industry Classification System (NAICS) code 238110, Poured Concrete Foundation and Structure Contractors, confirms this specialization. The market for such services within the federal government is significant, driven by the need to maintain and upgrade aging military installations. Comparable spending benchmarks would involve analyzing other large-scale concrete repair or construction contracts awarded by the Department of Defense or other federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Kiewit Infrastructure West Co. is likely a large business. There is no explicit information on subcontracting plans for small businesses within this award, which could be a missed opportunity to engage the small business ecosystem. Further analysis would be needed to determine if subcontracting goals were established or met.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project management team within the Department of the Army. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases, though detailed project progress reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Infrastructure Projects
Military Base Construction and Repair
Poured Concrete Services Contracts
Federal Infrastructure Maintenance

Risk Flags

Potential for schedule overruns given the long duration.
Risk of unforeseen site conditions impacting cost and schedule.
Contractor performance monitoring is critical for project success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.1 million to KIEWIT INFRASTRUCTURE WEST CO.. REPAIR RAMP

Who is the contractor on this award?

The obligated recipient is KIEWIT INFRASTRUCTURE WEST 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 $35.1 million.

What is the period of performance?

Start: 2020-06-12. End: 2022-12-09.

What is Kiewit Infrastructure West Co.'s track record with the federal government, particularly the Department of Defense?

Kiewit Infrastructure West Co. has a significant history of federal contracting, particularly with the Department of Defense and Army Corps of Engineers. Their portfolio includes numerous large-scale construction and infrastructure projects, often involving civil works, transportation, and facility construction. Analyzing their past performance ratings, any past performance issues, and the types of contracts they have successfully executed would provide further insight into their reliability for this ramp repair project. Their experience suggests they are well-equipped to handle complex projects of this magnitude.

How does the awarded amount of $35,071,282.65 compare to similar ramp repair or concrete structure projects within the Department of Defense?

Directly comparing this $35 million contract requires access to a database of similar federal construction projects, including their scope, location, and duration. However, for a project of this scale involving poured concrete foundations and structures at a military installation, the value appears within a reasonable range for large infrastructure repairs. Factors like specific site conditions, material costs in Oregon, and the complexity of the ramp's design and required repairs would influence the final price. Without specific comparable data, it's difficult to definitively state if it's high or low, but it aligns with the expected cost of significant federal infrastructure work.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks include potential schedule delays due to the project's 910-day duration, unforeseen site conditions requiring additional work, and contractor performance issues. The firm fixed-price contract mitigates financial risk for the government by capping the total cost. The full and open competition process, with two bidders, suggests a level of vetting for contractor capability. Oversight by the contracting officer and project managers is crucial for monitoring progress, managing scope, and ensuring quality. Clear contract specifications and performance metrics are also key mitigation tools.

How effective is the firm fixed-price contract type in ensuring value for money for this specific ramp repair project?

The firm fixed-price (FFP) contract type is generally effective in ensuring value for money for projects with well-defined scopes, such as ramp repair. It shifts the risk of cost overruns to the contractor, incentivizing them to manage costs efficiently and complete the work within the agreed budget. For the government, it provides cost certainty, making budgeting more predictable. The effectiveness hinges on the accuracy of the initial scope definition and the contractor's ability to execute within that scope. Given the nature of concrete repair, unforeseen conditions could still arise, but the FFP structure provides a strong baseline for value.

What are the historical spending patterns for ramp repair and similar infrastructure projects at this specific Oregon military base or within the Department of the Army?

Analyzing historical spending patterns for ramp repair and similar infrastructure projects at this specific Oregon base or within the Department of the Army would require access to historical contract data. This would involve querying federal procurement databases for contracts awarded to the specific installation or the broader Army command over several fiscal years. Such an analysis could reveal trends in contract values, types of services procured, and the frequency of such repairs, helping to contextualize the current $35 million award and identify potential patterns of underinvestment or increased maintenance needs.

What is the significance of the 910-day duration for this contract, and does it indicate potential complexities or a phased approach?

A duration of 910 days (approximately 2.5 years) for a ramp repair project suggests a substantial scope of work, potentially involving extensive demolition, structural repairs, and reconstruction, possibly with multiple phases. It could also indicate that the project is integrated with other base operations, requiring careful scheduling to minimize disruption, or that it is part of a larger, multi-year infrastructure upgrade plan for the base. This extended timeline necessitates robust project management and oversight to ensure timely completion and prevent scope creep or delays.

Industry Classification

NAICS: Construction › Foundation, Structure, and Building Exterior Contractors › Poured Concrete Foundation and Structure Contractors

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912JV19B7001

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peter Kiewit Sons Inc

Address: 2200 COLUMBIA HOUSE BLVD, VANCOUVER, WA, 98661

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,071,283

Exercised Options: $35,071,283

Current Obligation: $35,071,283

Actual Outlays: $35,071,283

Subaward Activity

Number of Subawards: 171

Total Subaward Amount: $9,050,385,824

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline