Army awards $252M for submerged gate control structure, a significant civil engineering project
Contract Overview
Contract Amount: $252,137,252 ($252.1M)
Contractor: Granite Construction Company
Awarding Agency: Department of Defense
Start Date: 2010-09-24
End Date: 2016-12-30
Contract Duration: 2,289 days
Daily Burn Rate: $110.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF CONTROL STRUCTURE FOR SIX SUBMERGED TAINTER GATES.
Place of Performance
Location: FOLSOM, SACRAMENTO County, CALIFORNIA, 95630
Plain-Language Summary
Department of Defense obligated $252.1 million to GRANITE CONSTRUCTION COMPANY for work described as: CONSTRUCTION OF CONTROL STRUCTURE FOR SIX SUBMERGED TAINTER GATES. Key points: 1. The contract value represents a substantial investment in critical infrastructure maintenance. 2. Competition dynamics for this large-scale project are crucial for ensuring taxpayer value. 3. Project duration and firm fixed-price terms suggest a focus on cost control. 4. The geographic location in California may indicate specific regional infrastructure needs. 5. This contract falls within the heavy and civil engineering construction sector, requiring specialized expertise.
Value Assessment
Rating: good
The contract value of $252 million for the construction of a control structure for submerged gates is substantial. Benchmarking against similar large-scale civil engineering projects is necessary to fully assess value for money. However, the firm fixed-price contract type suggests that the government has locked in costs, which can be advantageous if the scope is well-defined. The number of bidders (3) indicates a moderate level of competition for this specialized work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With three bidders participating, there was a reasonable level of competition for this specialized construction project. This suggests that the pricing is likely to be competitive, as multiple firms vied for the opportunity.
Taxpayer Impact: Full and open competition generally leads to better price discovery and can result in cost savings for taxpayers by ensuring that the government receives the most advantageous offer.
Public Impact
The primary beneficiaries are the Department of the Army and potentially other federal agencies relying on the controlled water infrastructure. The project delivers a critical control structure for six submerged tainter gates, essential for water management and operational control. The geographic impact is localized to the specific site in California where the control structure is being built. This project likely supports a specialized construction workforce, including engineers, project managers, and skilled tradespeople.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise during construction.
- Risk of schedule delays due to the complexity of submerged construction.
- Ensuring long-term durability and maintenance of the control structure.
Positive Signals
- Firm fixed-price contract helps mitigate cost uncertainty.
- Full and open competition suggests a competitive bidding process.
- The project addresses a critical infrastructure need for water control.
Sector Analysis
This contract falls under the heavy and civil engineering construction sector, specifically focusing on water infrastructure. The market for such specialized construction is often characterized by a limited number of highly qualified firms capable of undertaking complex projects. Comparable spending benchmarks would involve looking at other large-scale dam, levee, or water control structure construction and maintenance projects undertaken by federal or state agencies.
Small Business Impact
The contract was awarded under full and open competition and does not indicate any specific small business set-asides. Therefore, the direct impact on small businesses is likely limited unless they are involved as subcontractors to the prime contractor, Granite Construction Company. Further analysis of subcontracting plans would be needed to assess the broader impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and project managers within the Department of the Army. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is generally maintained through contract award databases, though specific project oversight details may not be publicly available.
Related Government Programs
- Army Corps of Engineers Civil Works Projects
- Federal Water Infrastructure Projects
- Heavy and Civil Engineering Construction Contracts
- Department of Defense Infrastructure Modernization
Risk Flags
- Potential for cost overruns due to unforeseen site conditions.
- Risk of schedule delays in complex submerged construction.
- Ensuring long-term operational reliability of critical water control infrastructure.
Tags
construction, department-of-defense, department-of-the-army, california, heavy-and-civil-engineering, definitive-contract, firm-fixed-price, full-and-open-competition, large-contract, infrastructure, water-management
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $252.1 million to GRANITE CONSTRUCTION COMPANY. CONSTRUCTION OF CONTROL STRUCTURE FOR SIX SUBMERGED TAINTER GATES.
Who is the contractor on this award?
The obligated recipient is GRANITE CONSTRUCTION COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $252.1 million.
What is the period of performance?
Start: 2010-09-24. End: 2016-12-30.
What is the track record of Granite Construction Company on similar large-scale civil engineering projects?
Granite Construction Company is a well-established firm with a significant history in heavy civil construction. They have been involved in numerous large-scale infrastructure projects across the United States, including highways, bridges, tunnels, and water-related structures. Their portfolio often includes complex projects requiring specialized engineering and construction capabilities. A review of their past performance on projects of similar scale and complexity, particularly those involving water control structures or submerged elements, would be crucial for assessing their capability and reliability for this specific contract. This would involve examining project completion records, any history of disputes or claims, and client satisfaction feedback.
How does the awarded price of $252 million compare to similar submerged gate control structure projects?
Directly comparing the $252 million award for this specific control structure to identical projects is challenging due to the unique nature of such infrastructure. However, a benchmark can be established by analyzing the cost per unit of work (e.g., cost per cubic yard of concrete, cost per ton of steel, cost per gate controlled) against other large civil engineering projects involving dam construction, spillway modifications, or complex water management systems. Factors such as geographic location, site conditions (e.g., soil stability, water depth), material costs, and labor rates significantly influence project costs. The firm fixed-price nature of this contract suggests that the government aimed to cap costs, but a detailed cost breakdown and comparison with industry cost indices for heavy civil construction would be necessary for a thorough value assessment.
What are the primary risks associated with the construction of submerged tainter gate control structures?
The construction of submerged tainter gate control structures presents several significant risks. Firstly, working underwater or in saturated conditions introduces complexities related to dewatering, cofferdams, and specialized marine construction techniques, increasing the potential for schedule delays and cost overruns. Secondly, unforeseen geological or hydrological conditions at the site can lead to substantial changes in scope and cost. Thirdly, the precise engineering and fabrication required for gate mechanisms and their control systems demand high levels of accuracy to ensure proper functionality and longevity. Finally, environmental considerations, such as managing water flow and protecting aquatic habitats during construction, add another layer of complexity and potential regulatory hurdles. The firm fixed-price contract aims to mitigate some financial risk, but technical and logistical challenges remain.
What is the expected effectiveness and long-term performance of the completed control structure?
The expected effectiveness and long-term performance of the completed control structure are critical for its intended purpose, which is likely water level regulation, flood control, or operational management of a waterway. Effectiveness will be measured by the structure's ability to reliably operate the six submerged tainter gates as designed, ensuring precise control over water flow. Long-term performance hinges on the quality of construction, the durability of materials used, and the adequacy of the maintenance plan. A well-constructed and maintained control structure should provide decades of reliable service. The firm fixed-price contract, coupled with the Department of the Army's oversight, should ensure that construction meets stringent quality standards. However, ongoing monitoring and preventative maintenance will be essential to guarantee sustained performance and prevent premature degradation.
How has federal spending on heavy and civil engineering construction, particularly for water infrastructure, trended in recent years?
Federal spending on heavy and civil engineering construction, especially for water infrastructure, has seen fluctuations influenced by infrastructure initiatives, economic conditions, and national priorities. Historically, significant investments have been made through programs managed by agencies like the Army Corps of Engineers for flood control, navigation, and water supply projects. In recent years, there has been a growing emphasis on modernizing aging water infrastructure, addressing climate change impacts (e.g., sea-level rise, extreme weather), and improving water quality. This has led to increased appropriations for water-related construction projects. Analyzing historical spending data for the Army Corps of Engineers and other relevant agencies can reveal trends in the types of projects funded, the average contract values, and the overall investment levels in this critical sector.
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: SEALED BID
Solicitation ID: W9123810B0001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Granite Construction Incorporated (UEI: 622826360)
Address: 585 W BEACH ST, WATSONVILLE, CA, 95076
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $253,242,052
Exercised Options: $252,137,252
Current Obligation: $252,137,252
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-09-24
Current End Date: 2016-12-30
Potential End Date: 2016-12-30 00:00:00
Last Modified: 2020-10-03
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