Kiewit Infrastructure West Co. awarded $17.2M contract for construction of revetment in Alaska
Contract Overview
Contract Amount: $17,216,055 ($17.2M)
Contractor: Kiewit Infrastructure West CO.
Awarding Agency: Department of Defense
Start Date: 2009-02-27
End Date: 2011-11-04
Contract Duration: 980 days
Daily Burn Rate: $17.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCT REVETMENT A ROCK, COMPLETE.
Place of Performance
Location: UNALAKLEET, NOME County, ALASKA, 99684
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $17.2 million to KIEWIT INFRASTRUCTURE WEST CO. for work described as: CONSTRUCT REVETMENT A ROCK, COMPLETE. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 980 days indicates a significant, long-term construction project. 3. The firm fixed-price contract type suggests that cost risks are largely borne by the contractor. 4. The project is located in Alaska, potentially involving unique logistical and environmental challenges. 5. The North American Industry Classification System (NAICS) code 237990 points to heavy civil engineering construction. 6. The award amount of $17.2 million falls within a moderate range for large-scale civil engineering projects.
Value Assessment
Rating: good
The contract value of $17.2 million for constructing a revetment appears reasonable for a project of this scale and duration, especially considering the location in Alaska which often incurs higher costs due to logistics and specialized labor requirements. Benchmarking against similar large-scale civil engineering projects in remote or challenging environments would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract shifts cost overrun risks to the contractor, which can be favorable for the government if managed effectively.
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. With 7 bidders, the level of competition appears robust, which typically drives down prices and encourages innovation. A higher number of bidders generally suggests a more efficient market and better price discovery for the government.
Taxpayer Impact: The strong competition in this procurement is beneficial for taxpayers, as it likely resulted in a more competitive price than a sole-source or limited competition award. This process helps ensure that government funds are used efficiently.
Public Impact
The primary beneficiaries are the Department of Defense and potentially local communities in Alaska that benefit from improved infrastructure and flood control measures. The service delivered is the construction of a revetment, a structure designed to protect shorelines or riverbanks from erosion. The geographic impact is concentrated in Alaska, where the revetment will be built. The project likely supports a workforce of construction laborers, engineers, and project managers, contributing to local employment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen geological or environmental conditions arise, despite the firm fixed-price structure.
- Logistical challenges in remote Alaska could impact project timelines and costs.
- Environmental impact assessments and compliance may add complexity and potential delays.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Full and open competition with multiple bidders suggests a competitive market price was likely achieved.
- Experienced contractor, Kiewit Infrastructure West Co., has a track record in large-scale infrastructure projects.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on infrastructure development. The market for such projects is often characterized by large, established firms capable of undertaking complex, high-value projects. Spending in this sector is driven by government needs for infrastructure maintenance, upgrades, and new construction, often influenced by geographic location and environmental factors. Comparable spending benchmarks would typically involve analyzing other large-scale coastal or riverine protection projects undertaken by federal agencies.
Small Business Impact
The contract was awarded under full and open competition and does not indicate a small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. The nature of this large-scale civil engineering project might limit opportunities for direct small business prime contracting, but subcontracting opportunities could exist for specialized services or material supply.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant project management office within the Department of the Army. Performance monitoring, site inspections, and adherence to contract specifications would be key accountability measures. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details are not provided.
Related Government Programs
- Army Corps of Engineers Civil Works Projects
- Coastal and Shoreline Protection Projects
- Infrastructure Construction Contracts
- Federal Heavy Civil Engineering Contracts
Risk Flags
- Potential for unforeseen site conditions impacting cost and schedule.
- Logistical challenges in remote Alaskan environment.
- Environmental compliance and permitting risks.
- Long-term maintenance requirements not specified.
Tags
construction, department-of-defense, department-of-the-army, alaska, heavy-civil-engineering, full-and-open-competition, firm-fixed-price, infrastructure, revetment, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.2 million to KIEWIT INFRASTRUCTURE WEST CO.. CONSTRUCT REVETMENT A ROCK, COMPLETE.
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 $17.2 million.
What is the period of performance?
Start: 2009-02-27. End: 2011-11-04.
What is Kiewit Infrastructure West Co.'s track record with similar federal construction contracts?
Kiewit Infrastructure West Co. is a major player in the heavy civil construction industry and has a significant history of performing large-scale federal contracts, particularly with the Department of Defense and the Army Corps of Engineers. Their portfolio often includes infrastructure projects such as bridges, dams, highways, and, relevantly, coastal and riverine protection structures. While specific details on past revetment projects are not provided here, their general experience suggests a capacity to handle complex projects. Analyzing their past performance ratings, any contract disputes, or modifications on similar projects would offer further insight into their reliability and execution capabilities for this specific award.
How does the awarded amount compare to similar revetment construction projects?
The $17.2 million award for constructing a revetment is a substantial figure, indicative of a significant project. To benchmark its value, one would need to compare it with similar revetment or shoreline protection projects, considering factors like project scope, length of shoreline protected, materials used, environmental conditions, and geographic location. Projects in remote or environmentally sensitive areas like Alaska typically command higher costs due to logistical complexities and specialized requirements. Without specific comparable project data, it's difficult to definitively state if this represents excellent or fair value, but the competitive bidding process suggests a market-driven price was sought.
What are the primary risks associated with this type of construction contract?
The primary risks for this firm fixed-price contract include potential cost overruns due to unforeseen site conditions (e.g., geological instability, unexpected soil properties), environmental challenges (e.g., permitting delays, discovery of protected species), and logistical hurdles inherent in construction in Alaska. While the contractor bears the financial risk of cost overruns, significant delays or scope changes could still impact the government's objectives and potentially lead to contract modifications. Ensuring thorough site investigations and robust environmental assessments prior to award are critical risk mitigation steps.
How effective are revetments in achieving their intended purpose of erosion control?
Revetments are generally considered an effective structural measure for erosion control along shorelines and riverbanks. They function by absorbing and dissipating the energy of waves, currents, or runoff, thereby protecting the underlying soil from erosion. Their effectiveness depends on proper design, material selection (e.g., rock, concrete, vegetation), and installation tailored to the specific hydraulic and environmental conditions. While effective, they can alter natural sediment transport processes and may require ongoing maintenance. The long-term success of this specific revetment will depend on its design integrity and the environmental forces it is intended to withstand.
What has been the historical spending trend for similar heavy civil engineering construction by the Department of the Army?
Historical spending by the Department of the Army (and the Army Corps of Engineers specifically) on heavy civil engineering construction, including projects like revetments, flood control, and navigation infrastructure, has been substantial and cyclical. Spending often correlates with infrastructure needs, national security priorities, and federal budget allocations. While specific figures for revetment construction alone are not readily available, the Army Corps consistently manages billions of dollars annually for its Civil Works program, which encompasses a wide range of construction activities. Trends can be influenced by major infrastructure initiatives, disaster recovery efforts, and long-term strategic investments in national infrastructure.
What are the potential long-term environmental impacts of constructing this revetment?
The construction of a revetment can have several long-term environmental impacts. By stabilizing a shoreline or bank, it can alter natural erosion and accretion processes, potentially affecting downstream sediment supply and habitats. The physical presence of the revetment structure itself can modify aquatic habitats, affecting fish spawning grounds or benthic communities. Construction activities can also lead to temporary increases in turbidity and noise. However, revetments are often implemented to mitigate more severe environmental degradation caused by uncontrolled erosion. A thorough Environmental Impact Statement (EIS) or similar assessment would detail these potential impacts and outline mitigation strategies.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911KB09R0004
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Peter Kiewit Sons Inc (UEI: 070729517)
Address: 2200 COLUMBIA HOUSE BLVD, VANCOUVER, WA, 03
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,245,620
Exercised Options: $17,216,055
Current Obligation: $17,216,055
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-02-27
Current End Date: 2011-11-04
Potential End Date: 2011-11-04 00:00:00
Last Modified: 2011-11-20
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