DOD Awards $31.3M Runway Contract to Granite Construction in Kentucky
Contract Overview
Contract Amount: $31,289,348 ($31.3M)
Contractor: Granite Construction Company
Awarding Agency: Department of Defense
Start Date: 2016-07-25
End Date: 2017-12-31
Contract Duration: 524 days
Daily Burn Rate: $59.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF MAIN RUNWAY 5/23 BASE
Place of Performance
Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $31.3 million to GRANITE CONSTRUCTION COMPANY for work described as: IGF::OT::IGF MAIN RUNWAY 5/23 BASE Key points: 1. Significant investment in critical infrastructure for the Department of the Army. 2. Full and open competition suggests a potentially competitive bidding process. 3. Firm Fixed Price contract type aims to control costs for taxpayers. 4. Project duration of 524 days indicates a substantial construction undertaking.
Value Assessment
Rating: good
The contract value of $31.3M for runway construction appears reasonable given the project's scope and duration. Benchmarking against similar large-scale civil engineering projects would provide a more precise assessment.
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 and a firm fixed price contract are positive indicators for taxpayer value, aiming to secure the best possible price for the required construction services.
Public Impact
Enhances military operational readiness through improved airfield infrastructure. Supports local economy through construction jobs and material procurement. Potential for long-term benefits in transportation and logistics capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract awarded to a single entity, Granite Construction Company.
- Project duration is substantial, requiring careful monitoring.
- No explicit mention of small business participation.
Positive Signals
- Firm Fixed Price contract type.
- Full and open competition utilized.
- Clear start and end dates for the project.
Sector Analysis
This contract falls within the Highway, Street, and Bridge Construction sector, which is a significant area of federal spending for infrastructure development and maintenance. Benchmarks for similar large-scale construction projects are essential for evaluating cost-effectiveness.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small business subcontracting opportunities were pursued or if the scope of work was beyond typical small business capabilities.
Oversight & Accountability
The contract was awarded by the Department of the Army, suggesting oversight from within the Department of Defense. The firm fixed price nature of the contract provides a degree of cost control, but ongoing monitoring of performance and adherence to specifications is crucial.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for schedule delays impacting military readiness.
- Risk of unforeseen site conditions leading to cost pressures.
- Need for rigorous quality assurance during construction.
- Lack of explicit small business participation noted.
Tags
highway-street-and-bridge-construction, department-of-defense, ky, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.3 million to GRANITE CONSTRUCTION COMPANY. IGF::OT::IGF MAIN RUNWAY 5/23 BASE
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 $31.3 million.
What is the period of performance?
Start: 2016-07-25. End: 2017-12-31.
What was the competitive landscape like for this runway construction bid?
The contract was awarded under full and open competition, suggesting that multiple qualified contractors were invited to bid. This approach typically fosters a competitive environment, allowing the government to select the most advantageous offer based on price and technical merit. The presence of a single awardee, Granite Construction Company, indicates they were the successful bidder among potentially several.
What are the primary risks associated with this contract?
Key risks include potential cost overruns if unforeseen site conditions arise, despite the firm fixed price. Delays in the 524-day schedule could impact military operations. Ensuring the quality of construction for a critical runway is paramount to prevent future maintenance issues or safety concerns.
How effectively does this contract serve taxpayer interests?
The contract aims to serve taxpayer interests through full and open competition, which should drive competitive pricing, and a firm fixed price, which caps the government's financial exposure. The successful completion of a vital infrastructure project like a runway is a direct benefit, enhancing national security and operational capabilities.
Industry Classification
NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: W9124816B0001
Offers Received: 4
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: $31,289,348
Exercised Options: $31,289,348
Current Obligation: $31,289,348
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-07-25
Current End Date: 2017-12-31
Potential End Date: 2017-12-31 00:00:00
Last Modified: 2018-03-07
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