Kiewit Infrastructure West Co. awarded $87.2M for Folsom Bridge construction, a definitive contract under full and open competition

Contract Overview

Contract Amount: $87,227,505 ($87.2M)

Contractor: Kiewit Infrastructure West CO.

Awarding Agency: Department of Defense

Start Date: 2007-01-08

End Date: 2009-06-30

Contract Duration: 904 days

Daily Burn Rate: $96.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT FOLSOM BRIDGE AND ASSOCIATED INTERCONNECTING ROADWAYS.

Place of Performance

Location: FOLSOM, SACRAMENTO County, CALIFORNIA, 95630

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $87.2 million to KIEWIT INFRASTRUCTURE WEST CO. for work described as: CONSTRUCT FOLSOM BRIDGE AND ASSOCIATED INTERCONNECTING ROADWAYS. Key points: 1. The contract value of $87.2 million represents a significant investment in critical infrastructure. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The definitive contract type indicates a clear scope and pricing structure. 4. The project duration of 904 days points to a substantial and complex construction undertaking. 5. The fixed-price nature of the contract shifts risk to the contractor, potentially stabilizing costs. 6. The project is located in California, a state with high construction demand and costs.

Value Assessment

Rating: good

The contract value of $87.2 million for bridge and roadway construction appears within a reasonable range for a project of this scale and complexity. Benchmarking against similar large-scale infrastructure projects in California would provide a more precise value-for-money assessment. The firm fixed-price contract structure suggests that the initial pricing was deemed acceptable and that cost overruns are primarily the contractor's responsibility.

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 fact that it was competed suggests that multiple entities likely vied for the contract, fostering price discovery and potentially driving down costs. The number of bidders, while not explicitly stated, is implied to be more than one due to the 'full and open' designation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a competitive environment that can lead to more favorable pricing and a wider selection of qualified contractors.

Public Impact

The primary beneficiaries are the residents and businesses in and around Folsom, California, who will gain improved transportation infrastructure. The project delivers essential services by constructing a bridge and associated roadways, enhancing connectivity and traffic flow. The geographic impact is localized to Folsom, California, addressing specific transportation needs in that region. The project will likely create numerous jobs in the construction sector, benefiting skilled laborers and related industries in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price contract.
Delays in construction could impact the intended benefits and increase indirect costs.
Environmental impact during construction needs careful management to mitigate ecological disruption.
Long-term maintenance costs for the new infrastructure should be considered beyond the initial construction phase.

Positive Signals

The use of full and open competition suggests a strong likelihood of selecting a qualified and capable contractor.
The firm fixed-price contract provides cost certainty for the government.
The project addresses a clear need for improved transportation infrastructure, indicating strong program justification.
The contractor, Kiewit Infrastructure West Co., is a well-established entity in the construction industry.

Sector Analysis

This contract falls within the heavy construction sector, specifically focusing on civil engineering projects like bridges and roadways. The market for such infrastructure projects is substantial, driven by government funding for transportation and public works. Kiewit Infrastructure West Co. operates in a competitive landscape with other large construction firms vying for similar federal, state, and local contracts. Spending benchmarks for similar bridge construction projects vary widely based on size, complexity, and location, but projects in the tens of millions of dollars are common for significant infrastructure.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While Kiewit Infrastructure West Co. is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors on this project. The extent of small business subcontracting would depend on the prime contractor's strategy and federal subcontracting requirements, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and technical representatives within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting, though detailed project-specific oversight reports may not always be publicly accessible.

Related Government Programs

Federal Highway Administration (FHWA) programs
Army Corps of Engineers Civil Works Projects
State Department of Transportation (Caltrans) initiatives
Infrastructure Investment and Jobs Act (IIJA) funded projects

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Contractor performance quality
Environmental compliance during construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $87.2 million to KIEWIT INFRASTRUCTURE WEST CO.. CONSTRUCT FOLSOM BRIDGE AND ASSOCIATED INTERCONNECTING ROADWAYS.

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 $87.2 million.

What is the period of performance?

Start: 2007-01-08. End: 2009-06-30.

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

Kiewit Infrastructure West Co. has a substantial track record with large-scale federal infrastructure projects, including bridges, highways, and other civil works. As a subsidiary of Kiewit Corporation, it benefits from the parent company's extensive experience and resources. Historical data indicates successful completion of numerous complex projects for agencies like the Department of Transportation, Department of Defense, and various state transportation departments. Their portfolio often includes projects of similar or greater magnitude to the Folsom Bridge construction, suggesting a high level of capability and experience in managing such undertakings. Performance reviews and past project outcomes are generally positive, though like any large contractor, specific project challenges and resolutions would exist.

How does the $87.2 million contract value compare to similar bridge construction projects?

The $87.2 million contract value for the Folsom Bridge and associated roadways appears to be within the expected range for a significant infrastructure project of this nature. However, a precise comparison requires detailed analysis of project specifics such as bridge span, height, material, complexity of roadway interconnectivity, and geological conditions. For instance, a simple overpass might cost significantly less, while a major river-spanning bridge with complex interchanges could cost substantially more. Given that this is a definitive contract awarded in 2007, inflation and market conditions since then would also influence current cost comparisons. Benchmarking against projects of similar scope, size, and location (California) from the same time period would provide the most relevant context for assessing value for money.

What are the primary risks associated with this type of construction contract?

The primary risks associated with this firm fixed-price construction contract include potential cost overruns if unforeseen site conditions (e.g., unexpected soil issues, hazardous materials) are encountered, which could lead to change orders or disputes. Schedule delays are another significant risk, stemming from weather, labor issues, material availability, or design changes, impacting project completion and potentially incurring penalties or increased indirect costs. Performance risk also exists, where the contractor may not meet quality standards or specifications, requiring corrective actions. Environmental risks during construction, such as pollution or habitat disruption, and safety risks inherent in large-scale construction operations are also critical considerations that require diligent management by the contractor and oversight by the agency.

How effective is the 'full and open competition' approach for large infrastructure projects?

The 'full and open competition' approach is generally considered highly effective for large infrastructure projects as it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive proposals. This broad competition can drive down prices, encourage innovation, and ensure that the government selects the most qualified contractor for the job. It provides a level playing field for various firms, including large established companies and potentially smaller, specialized ones if they can meet the requirements. The process requires robust solicitation documents and evaluation criteria to ensure fairness and transparency, but when executed properly, it is a cornerstone of efficient and cost-effective public procurement for major capital investments.

What is the historical spending pattern for bridge and roadway construction by the Department of the Army?

The Department of the Army, primarily through the Army Corps of Engineers, has a long history of funding and executing bridge and roadway construction projects, particularly those related to military installations, flood control, navigation, and disaster recovery. Historical spending patterns show significant investment in civil works infrastructure, which often includes bridges and connecting roadways essential for transportation networks and economic development. While specific annual totals fluctuate based on budget allocations and national priorities, the Army consistently allocates substantial funds to these types of projects. This contract represents a typical expenditure for a major bridge construction undertaking within the Army's broader infrastructure development portfolio.

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

Solicitation ID: W9123806R0020

Offers Received: 2

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, 94520

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

Financial Breakdown

Contract Ceiling: $128,109,525

Exercised Options: $92,733,270

Current Obligation: $87,227,505

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline