DOD Awards $327M Firm Fixed Price Contract to Kiewit for Folsom JFP Phase IV
Contract Overview
Contract Amount: $326,791,985 ($326.8M)
Contractor: Kiewit Infrastructure West CO.
Awarding Agency: Department of Defense
Start Date: 2013-05-03
End Date: 2017-12-30
Contract Duration: 1,702 days
Daily Burn Rate: $192.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: THIS IS THE AWARD FOR PHASE IV OF THE FOLSOM JFP.
Place of Performance
Location: FOLSOM, SACRAMENTO County, CALIFORNIA, 95630
Plain-Language Summary
Department of Defense obligated $326.8 million to KIEWIT INFRASTRUCTURE WEST CO. for work described as: THIS IS THE AWARD FOR PHASE IV OF THE FOLSOM JFP. Key points: 1. The contract value of $327M for Phase IV of the Folsom JFP is substantial, indicating a significant project scale. 2. Awarded under full and open competition, this suggests a competitive bidding process was utilized. 3. The firm fixed price contract type aims to control costs for the Department of Defense. 4. The project falls under the 'Poured Concrete Foundation and Structure Contractors' NAICS code, relevant to construction.
Value Assessment
Rating: good
The $327M award for a definitive contract suggests a significant investment. Without specific benchmarks for similar large-scale concrete foundation projects, direct pricing comparison is difficult, but the firm fixed price structure implies an effort to establish a clear cost ceiling.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating multiple bidders were likely considered. This competitive process is generally expected to drive better pricing and value for the government.
Taxpayer Impact: The use of full and open competition and a firm fixed price contract aims to ensure taxpayer funds are used efficiently and effectively for this large infrastructure project.
Public Impact
Significant infrastructure investment by the Department of Defense. Project completion expected to enhance critical facilities or operations. Potential for job creation and economic activity in California. Long-term asset development for military infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 1702 days is lengthy, potentially increasing risk of cost overruns or scope creep if not managed tightly.
- Lack of small business participation noted (ss: false, sb: false).
Positive Signals
- Firm fixed price contract provides cost certainty.
- Full and open competition suggests potential for competitive pricing.
- Awarded to a single contractor, Kiewit Infrastructure West Co., indicating specialized capability.
Sector Analysis
This contract falls within the construction sector, specifically focusing on poured concrete foundations and structures. Large-scale infrastructure projects like this often involve significant government spending and require specialized contractors.
Small Business Impact
The data indicates no small business participation in this contract (ss: false, sb: false). This suggests the prime contractor is likely a large entity, and subcontracting opportunities for small businesses are not explicitly detailed in this award notice.
Oversight & Accountability
The definitive contract award under full and open competition suggests a structured procurement process. However, the long duration necessitates robust oversight to ensure adherence to scope, schedule, and budget, particularly given the firm fixed price.
Related Government Programs
- Poured Concrete Foundation and Structure Contractors
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (1702 days).
- No noted small business participation.
- Potential for unforeseen site conditions in large construction projects.
- Firm Fixed Price contract can incentivize contractor to cut corners if not properly overseen.
Tags
poured-concrete-foundation-and-structure, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $326.8 million to KIEWIT INFRASTRUCTURE WEST CO.. THIS IS THE AWARD FOR PHASE IV OF THE FOLSOM JFP.
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 $326.8 million.
What is the period of performance?
Start: 2013-05-03. End: 2017-12-30.
What specific infrastructure or facility is the Folsom JFP Phase IV project intended to support or improve, and how does this $327M investment align with broader DOD infrastructure goals?
The Folsom JFP (Joint Forces Protection) project likely relates to enhancing security or operational capabilities at a specific military installation. The $327M investment signifies a substantial commitment to this particular facility's infrastructure. Understanding the project's specific objectives, such as upgrading critical systems, expanding capacity, or improving resilience, would clarify its alignment with broader DOD infrastructure modernization and readiness goals.
Given the firm fixed price contract and the 1702-day duration, what are the primary risks to the government regarding potential cost overruns or scope creep, and what mitigation strategies are in plac
The primary risks with a long-duration, firm fixed price contract include potential cost increases due to unforeseen site conditions, material price fluctuations (though FFP aims to mitigate this), and contractor-initiated scope changes. Mitigation strategies typically involve detailed contract specifications, rigorous change order management processes, regular progress reviews, and performance monitoring to ensure the contractor adheres to the agreed-upon scope and price.
How effectively did the 'full and open competition' process ensure competitive pricing for this $327M contract, and are there any indicators of potential market concentration or limited viable bidders
Full and open competition is designed to maximize bidder participation and thus drive competitive pricing. The fact that Kiewit Infrastructure West Co. won suggests they offered the best value. However, for highly specialized and large-value contracts like this, the pool of qualified bidders might be limited, potentially leading to less intense competition than in broader markets. Analyzing past awards for similar projects could reveal market concentration trends.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9123813R0001
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Peter Kiewit Sons Inc (UEI: 070729517)
Address: 4650 BUSINESS CENTER DRIVE, FAIRFIELD, CA, 94534
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $327,392,297
Exercised Options: $326,791,985
Current Obligation: $326,791,985
Subaward Activity
Number of Subawards: 46
Total Subaward Amount: $60,477,744
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-05-03
Current End Date: 2017-12-30
Potential End Date: 2017-12-30 00:00:00
Last Modified: 2021-04-28
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