DoD Awards $39.5M Construction Contract to Granite Construction Company

Contract Overview

Contract Amount: $39,497,707 ($39.5M)

Contractor: Granite Construction Company

Awarding Agency: Department of Defense

Start Date: 2019-05-30

End Date: 2021-09-01

Contract Duration: 825 days

Daily Burn Rate: $47.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: LDSM - VOLUME 1 BASE

Place of Performance

Location: LEWISVILLE, DENTON County, TEXAS, 75057

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $39.5 million to GRANITE CONSTRUCTION COMPANY for work described as: LDSM - VOLUME 1 BASE Key points: 1. Contract awarded to a single large business, Granite Construction Company. 2. The contract is for heavy and civil engineering construction services. 3. Spending is within the Department of Defense, specifically the Army. 4. The contract type is Firm Fixed Price, indicating price certainty.

Value Assessment

Rating: fair

The award amount of $39.5M is substantial for a single contract. Benchmarking against similar heavy civil engineering construction contracts would be necessary to fully assess value, but the 'br' value of 47876 suggests a potential for cost efficiencies or a specific scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the specific details of the bidding process and the number of bids received are not provided, making it difficult to fully assess the competitive landscape.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently. The final price reflects the outcome of this competitive process.

Public Impact

Infrastructure development funded by taxpayers. Potential impact on local construction labor markets. Ensuring quality and timely completion of essential construction projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, which is crucial for national infrastructure. Spending benchmarks in this sector can vary widely based on project scope, location, and material costs.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if small business subcontracting opportunities were included or pursued.

Oversight & Accountability

The contract is managed by the Department of the Army, part of the Department of Defense. Standard DoD oversight mechanisms for construction contracts would apply, focusing on performance, quality, and financial management.

Related Government Programs

Risk Flags

Tags

other-heavy-and-civil-engineering-constr, department-of-defense, tx, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.5 million to GRANITE CONSTRUCTION COMPANY. LDSM - VOLUME 1 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 $39.5 million.

What is the period of performance?

Start: 2019-05-30. End: 2021-09-01.

What was the total number of bids received under the full and open competition, and how did Granite Construction Company's bid compare to others?

The provided data does not specify the number of bids received or the comparative pricing of competing offers. Understanding this would offer greater insight into the effectiveness of the competition in securing the best value for the government and taxpayers. Without this, it's difficult to definitively assess if the price achieved was optimal.

Are there any specific risks associated with Granite Construction Company's performance on this contract, given its size and scope?

The data does not highlight any specific performance risks for Granite Construction Company on this contract. However, large-scale construction projects inherently carry risks related to schedule delays, cost overruns, and quality control. The 'br' value of 47876 might indicate a specific risk mitigation strategy or a unique project characteristic that warrants further investigation.

How does the 'br' value of 47876 relate to the overall contract value and potential cost savings or efficiencies achieved?

The 'br' value of 47876 is not clearly defined in the provided data context. If it represents a benchmark or a specific cost component, its relationship to the $39.5M award needs clarification. Understanding its meaning is crucial for assessing whether the contract achieved significant cost efficiencies or represented a fair market price for the services rendered.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: W9126G18R0770

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Granite Construction Incorporated

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: $39,497,707

Exercised Options: $39,497,707

Current Obligation: $39,497,707

Actual Outlays: $11,408,940

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2019-05-30

Current End Date: 2021-09-01

Potential End Date: 2021-09-01 00:00:00

Last Modified: 2022-11-18

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