DoD Awards $165.6M Contract for HCR RODS Replacement to Granite Construction
Contract Overview
Contract Amount: $16,561,661 ($16.6M)
Contractor: Granite Construction Company
Awarding Agency: Department of Defense
Start Date: 2023-03-11
End Date: 2028-02-12
Contract Duration: 1,799 days
Daily Burn Rate: $9.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: HCR RODS REPLACEMENT
Place of Performance
Location: FOLSOM, SACRAMENTO County, CALIFORNIA, 95630
Plain-Language Summary
Department of Defense obligated $16.6 million to GRANITE CONSTRUCTION COMPANY for work described as: HCR RODS REPLACEMENT Key points: 1. Significant investment in infrastructure, potentially impacting transportation and logistics. 2. Competition was full and open, suggesting a competitive bidding process. 3. Risk associated with large-scale construction projects, including potential delays and cost overruns. 4. Sector is heavy civil engineering construction, a critical but often complex area.
Value Assessment
Rating: good
The award amount of $165.6 million for HCR RODS Replacement appears reasonable given the scope and duration of the contract (1799 days). Benchmarking against similar large-scale civil engineering projects would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it encourages a competitive environment that can drive down costs.
Public Impact
Infrastructure improvement in California, potentially enhancing regional transportation networks. Job creation in the construction sector, supporting economic activity. Long-term asset development for the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for project delays due to complexity or unforeseen site conditions.
- Risk of cost escalation if not managed tightly under the firm fixed price.
- Dependence on a single prime contractor for a large, critical project.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract structure provides cost certainty.
- Significant investment in essential infrastructure.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, which is vital for national infrastructure. Spending benchmarks for similar large-scale projects can vary widely based on location, complexity, and specific requirements.
Small Business Impact
While the prime contractor is Granite Construction Company, the data does not indicate specific subcontracting plans for small businesses. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The firm fixed price contract and full and open competition suggest a degree of oversight in the procurement process. However, ongoing monitoring of project progress, quality, and adherence to schedule will be crucial for accountability.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Large contract value increases financial risk.
- Long project duration (nearly 5 years) increases risk of unforeseen issues.
- Dependence on a single contractor for critical infrastructure.
- Potential for scope creep or change orders impacting cost and schedule.
- Geographic concentration in California may present specific environmental or logistical challenges.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.6 million to GRANITE CONSTRUCTION COMPANY. HCR RODS REPLACEMENT
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 $16.6 million.
What is the period of performance?
Start: 2023-03-11. End: 2028-02-12.
What specific 'RODS' are being replaced, and what is their criticality to DoD operations?
The specific 'RODS' are not detailed in the provided data. However, given the substantial award amount and the Department of the Army as the contracting agency, it is likely related to critical infrastructure supporting military operations, potentially including roads, railways, or other essential transport/utility systems. Understanding their function is key to assessing the true value of this replacement.
What are the key performance indicators (KPIs) for this contract, and how will success be measured?
The provided data does not specify the key performance indicators (KPIs) for this contract. Success measurement would typically involve adherence to the firm fixed price, completion within the scheduled duration (1799 days), meeting quality standards for construction, and ensuring the replaced 'RODS' function as intended. Specific milestones and acceptance criteria would be detailed in the contract's statement of work.
Are there any historical performance issues with Granite Construction Company on similar large-scale civil engineering projects?
The provided data does not include historical performance information for Granite Construction Company. A comprehensive risk assessment would typically involve reviewing past contract performance, including any instances of delays, cost overruns, or quality issues on comparable projects. This information is crucial for evaluating the likelihood of successful project execution.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
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: W9123822R0031
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Granite Construction Company Guam
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: $16,915,661
Exercised Options: $16,561,661
Current Obligation: $16,561,661
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-03-11
Current End Date: 2028-02-12
Potential End Date: 2028-02-12 00:00:00
Last Modified: 2025-08-28
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