Army awards $178.6M contract for Sacramento Weir Widening project to Granite Construction Company

Contract Overview

Contract Amount: $178,566,675 ($178.6M)

Contractor: Granite Construction Company

Awarding Agency: Department of Defense

Start Date: 2023-06-01

End Date: 2026-12-02

Contract Duration: 1,280 days

Daily Burn Rate: $139.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE SACRAMENTO WEIR WIDENING WILL REDUCE WATER SURFACE ELEVATION IN SACRAMENTO RIVER AND ALLOW WATER TO FLOW INTO THE YOLO BYPASS SYSTEM. PROJECT CONSISTS OF CONSTRUCTION OF A PASSIVE WEIR, LEVEE SETBACK, FISH PASSAGE CONTROL AMONG OTHERS.

Place of Performance

Location: WEST SACRAMENTO, YOLO County, CALIFORNIA, 95605

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $178.6 million to GRANITE CONSTRUCTION COMPANY for work described as: THE SACRAMENTO WEIR WIDENING WILL REDUCE WATER SURFACE ELEVATION IN SACRAMENTO RIVER AND ALLOW WATER TO FLOW INTO THE YOLO BYPASS SYSTEM. PROJECT CONSISTS OF CONSTRUCTION OF A PASSIVE WEIR, LEVEE SETBACK, FISH PASSAGE CONTROL AMONG OTHERS. Key points: 1. The project aims to improve flood control by widening the Sacramento Weir and allowing water flow into the Yolo Bypass. 2. Construction includes a passive weir, levee setback, and fish passage control, addressing critical infrastructure needs. 3. The contract is a definitive contract with a firm fixed price, indicating a clear cost structure. 4. Awarded under full and open competition, suggesting a competitive bidding process. 5. The project is located in California, a state with significant water management challenges. 6. The duration of the contract is 1280 days, spanning over three years. 7. The contractor, Granite Construction Company, has experience in large-scale civil engineering projects.

Value Assessment

Rating: good

The contract value of $178.6 million for a major civil engineering project of this scale appears reasonable. Benchmarking against similar large-scale flood control and water infrastructure projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that cost overruns are primarily the responsibility of the contractor, which can be a positive indicator for the government.

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 were likely invited to submit proposals. This competitive environment generally leads to better pricing and innovation. The presence of multiple bidders suggests a healthy market for this type of civil engineering construction.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures the government receives the best value for its investment.

Public Impact

The primary beneficiaries are residents and businesses in the Sacramento region who will experience improved flood protection. The project will enhance water management capabilities, potentially benefiting agricultural interests in the Yolo Bypass area. The geographic impact is concentrated in Sacramento and Yolo Counties, California. The project will likely create numerous jobs in the construction sector, benefiting the local and regional workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting project completion and flood control benefits.
Environmental impacts during construction need careful management to mitigate ecological disruption.
Coordination challenges between various stakeholders and regulatory agencies.

Positive Signals

Addresses critical flood control infrastructure needs for a major metropolitan area.
Utilizes a firm fixed-price contract, providing cost certainty.
Awarded through full and open competition, suggesting competitive pricing.
Contractor has a track record in large civil engineering projects.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on water infrastructure and flood control. This sector is characterized by large-scale projects, significant capital investment, and often involves complex engineering and environmental considerations. Comparable spending benchmarks would involve other major dam, levee, and water conveyance system projects across the country.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-asides. While the prime contractor is Granite Construction Company, a large entity, there may be opportunities for small businesses to participate as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting planned for this project.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer's representative (COR) within the awarding agency (Department of the Army). Transparency is expected through contract award databases and potentially public project updates. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Programs
California State Water Resources Control Board Projects
Federal Disaster Mitigation Programs
Sacramento Area Flood Control Agency (SAFCA) Initiatives

Risk Flags

Potential for cost overruns if unforeseen conditions arise.
Risk of environmental permit violations during construction.
Dependency on timely approvals and coordination from multiple agencies.
Weather-related delays impacting project schedule.
Availability of skilled labor and construction materials.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $178.6 million to GRANITE CONSTRUCTION COMPANY. THE SACRAMENTO WEIR WIDENING WILL REDUCE WATER SURFACE ELEVATION IN SACRAMENTO RIVER AND ALLOW WATER TO FLOW INTO THE YOLO BYPASS SYSTEM. PROJECT CONSISTS OF CONSTRUCTION OF A PASSIVE WEIR, LEVEE SETBACK, FISH PASSAGE CONTROL AMONG OTHERS.

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 $178.6 million.

What is the period of performance?

Start: 2023-06-01. End: 2026-12-02.

What is Granite Construction Company's track record with similar large-scale civil engineering and flood control projects?

Granite Construction Company has a substantial track record in large-scale civil engineering projects, including infrastructure development, transportation, and water-related construction. They have been involved in numerous projects requiring levee construction, dam work, and other heavy civil undertakings. For instance, they have completed projects such as the SR 99 Widening Project in California and various highway and bridge constructions. Their experience in managing complex logistics, environmental compliance, and large workforces for projects of similar magnitude suggests they are well-equipped for the Sacramento Weir Widening project. A detailed review of their past performance on projects with similar scope, budget, and timelines would provide further assurance of their capability.

How does the $178.6 million cost compare to similar weir widening or flood control projects in the US?

Benchmarking the $178.6 million cost requires comparing it to similar large-scale civil engineering projects focused on flood control and water management. Projects involving weir construction, levee enhancements, and bypass system development can vary significantly in cost due to factors like geographic location, environmental regulations, complexity of design, and material costs. For example, major levee system upgrades in other regions have incurred costs in the hundreds of millions of dollars. Without specific comparable projects that match the exact scope and scale of the Sacramento Weir Widening, a precise cost comparison is challenging. However, given the critical nature of flood control in California and the comprehensive scope of this project, the awarded amount appears to be within the expected range for substantial infrastructure investment.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential construction delays due to unforeseen site conditions, weather impacts, or supply chain disruptions. Environmental compliance during construction is another significant risk, requiring adherence to strict regulations to protect local ecosystems. Furthermore, coordination among various stakeholders, including federal, state, and local agencies, presents a risk of miscommunication or conflicting requirements. Mitigation strategies likely involve robust project management plans, contingency planning for weather and site conditions, stringent environmental monitoring protocols, and established communication channels with all involved parties. The firm fixed-price nature of the contract also shifts some financial risk to the contractor.

What is the expected effectiveness of the Sacramento Weir Widening project in improving flood control for the region?

The Sacramento Weir Widening project is designed to significantly enhance flood control capabilities for the Sacramento region. By widening the weir, the project aims to reduce water surface elevation in the Sacramento River during high-flow events, thereby increasing the capacity to divert excess water into the Yolo Bypass system. This increased diversion capacity is crucial for preventing overtopping of levees and reducing the risk of catastrophic flooding in urban and agricultural areas downstream. The project's effectiveness is tied to its ability to manage peak flows more efficiently, thereby providing a higher level of protection to communities and infrastructure that are vulnerable to Sacramento River flooding.

What are the historical spending patterns for similar flood control infrastructure projects managed by the Department of the Army?

The Department of the Army, primarily through the U.S. Army Corps of Engineers (USACE), has a long history of managing and funding large-scale flood control infrastructure projects. Historical spending patterns reveal significant investments in riverine flood management, levee construction and maintenance, dam operations, and coastal storm damage reduction. These projects often span multiple years and involve substantial capital outlays, frequently in the hundreds of millions or even billions of dollars for major programs. Funding levels can fluctuate based on federal appropriations, national infrastructure priorities, and the occurrence of major flood events. The Sacramento Weir Widening project aligns with the USACE's ongoing mission to provide flood risk management solutions across the nation.

What is the potential economic impact of this $178.6 million contract on the local and regional economy in California?

A contract of $178.6 million for a major civil engineering project like the Sacramento Weir Widening is expected to have a substantial positive economic impact on the local and regional economy in California. This includes the direct creation of numerous jobs in construction, engineering, and related trades. Indirect economic benefits will arise from increased demand for materials, equipment, and services from local suppliers and businesses. Furthermore, the improved flood protection provided by the project will enhance economic stability and reduce potential losses from flood damage, benefiting businesses and residents in the long term. The project also contributes to the overall infrastructure development, which is a key driver of economic growth.

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: SEALED BID

Solicitation ID: W9123823B0005

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: $178,566,675

Exercised Options: $178,566,675

Current Obligation: $178,566,675

Actual Outlays: $16,638,633

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline