Kiewit Infrastructure West awarded $44.9M for border infrastructure design-build construction in Texas

Contract Overview

Contract Amount: $44,936,994 ($44.9M)

Contractor: Kiewit Infrastructure West CO.

Awarding Agency: Department of Defense

Start Date: 2019-05-24

End Date: 2020-05-27

Contract Duration: 369 days

Daily Burn Rate: $121.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF UNITED STATES ARMY CORPS OF ENGINEERS, DEPARTMENT OF HOMELAND SECURITY, AND CUSTOMS AND BORDER PROTECTION, RIO GRANDE VALLEY, TEXAS, SECTOR 05 RGV-05 BORDER INFRASTRUCTURE DESIGN BUILD CONSTRUCTION PROJECT EAST AND NORTHWEST OF FRONTON, TX.

Place of Performance

Location: RIO GRANDE CITY, STARR County, TEXAS, 78582

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $44.9 million to KIEWIT INFRASTRUCTURE WEST CO. for work described as: IGF::OT::IGF UNITED STATES ARMY CORPS OF ENGINEERS, DEPARTMENT OF HOMELAND SECURITY, AND CUSTOMS AND BORDER PROTECTION, RIO GRANDE VALLEY, TEXAS, SECTOR 05 RGV-05 BORDER INFRASTRUCTURE DESIGN BUILD CONSTRUCTION PROJECT EAST AND NORTHWEST OF FRONTON, TX. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Project involves highway, street, and bridge construction, indicating significant infrastructure development. 3. Firm Fixed Price contract type helps manage cost certainty for the government. 4. Short duration of 369 days suggests a focused and potentially rapid project execution. 5. Awarded by the Army Corps of Engineers, a common agency for large-scale infrastructure projects. 6. Geographic focus on Rio Grande Valley, Texas, highlights regional infrastructure needs.

Value Assessment

Rating: good

The contract value of $44.9 million for a design-build construction project of this nature appears reasonable, especially considering it was awarded through full and open competition. Benchmarking against similar large-scale infrastructure projects managed by the Army Corps of Engineers would provide further context, but the fixed-price nature suggests an effort to control costs. The specific scope of border infrastructure development in a challenging region also implies a premium for specialized expertise and execution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. The presence of a competitive bidding process is generally favorable for price discovery and ensuring the government receives competitive offers. The number of bidders, while not explicitly stated, is crucial to fully assess the depth of competition and its impact on the final award price.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among contractors, driving down costs through multiple bids.

Public Impact

Benefits the U.S. Army Corps of Engineers and Customs and Border Protection in enhancing border infrastructure. Delivers critical design and construction services for border security and operational needs. Geographic impact is concentrated in the Rio Grande Valley, Texas, potentially improving local transportation and infrastructure. Workforce implications include job creation in the construction sector within the specified region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Delays in project completion could impact border security operations.
Ensuring compliance with environmental regulations during construction in a sensitive area.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Awarded to a reputable contractor with experience in large infrastructure projects.
Short project duration suggests efficient planning and execution.

Sector Analysis

This contract falls within the construction sector, specifically focusing on highway, street, and bridge construction. The market for large-scale infrastructure projects, particularly those related to government and defense, is substantial. Kiewit Infrastructure West is a major player in this space. Comparable spending benchmarks would involve looking at other Army Corps of Engineers projects or large federal transportation and infrastructure initiatives.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Kiewit Infrastructure West, will likely manage the project. Any subcontracting opportunities for small businesses would depend on Kiewit's procurement strategy and the specific needs of the project, but there is no explicit requirement indicated in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and the U.S. Army Corps of Engineers. Accountability measures are inherent in the firm fixed-price contract type, which places a significant portion of the cost risk on the contractor. Transparency is generally maintained through contract award databases and public reporting, though specific project-level oversight details are not provided.

Related Government Programs

Border Infrastructure Projects
Army Corps of Engineers Construction Contracts
Department of Homeland Security Contracts
Texas Infrastructure Development

Risk Flags

Potential for schedule delays
Unforeseen site conditions
Environmental compliance challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.9 million to KIEWIT INFRASTRUCTURE WEST CO.. IGF::OT::IGF UNITED STATES ARMY CORPS OF ENGINEERS, DEPARTMENT OF HOMELAND SECURITY, AND CUSTOMS AND BORDER PROTECTION, RIO GRANDE VALLEY, TEXAS, SECTOR 05 RGV-05 BORDER INFRASTRUCTURE DESIGN BUILD CONSTRUCTION PROJECT EAST AND NORTHWEST OF FRONTON, TX.

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 $44.9 million.

What is the period of performance?

Start: 2019-05-24. End: 2020-05-27.

What is Kiewit Infrastructure West's track record with similar federal infrastructure projects?

Kiewit Infrastructure West Co. is a subsidiary of Kiewit Corporation, a large construction and engineering company with extensive experience in major infrastructure projects for federal, state, and local governments. They have a history of undertaking complex projects including bridges, highways, dams, and military facilities. Their track record typically involves large-scale civil engineering and construction, often involving significant federal contracts. Specific details on past performance metrics, such as on-time completion rates or cost performance on similar Army Corps of Engineers projects, would require a deeper dive into federal procurement databases and performance reports.

How does the awarded amount compare to similar border infrastructure projects?

Comparing the $44.9 million award for this specific border infrastructure design-build project requires access to a database of similar contracts. However, large-scale infrastructure projects, especially those involving specialized design and construction in challenging environments like border regions, can range significantly in cost. Factors such as the scope of work (e.g., type of structures, length of roads, environmental mitigation required), the complexity of the design, and the specific geographic location all influence the final price. Given the firm fixed-price nature and full and open competition, the award suggests a competitive market assessment for the defined scope.

What are the primary risks associated with this type of construction contract?

Key risks for this firm fixed-price design-build contract include unforeseen site conditions (e.g., geological issues, environmental hazards) that could increase costs or delay the schedule, potential for scope creep if requirements are not clearly defined, and contractor performance issues. For border infrastructure, risks can also include security concerns, complex permitting processes, and potential impacts from weather or environmental factors. The short duration (369 days) also implies a tight schedule, increasing the risk of delays if any of these issues arise.

How effective is the Army Corps of Engineers in managing large infrastructure projects?

The U.S. Army Corps of Engineers (USACE) is a primary federal agency responsible for public engineering works, including major infrastructure projects. They have decades of experience managing complex civil works and military construction projects. Their effectiveness is generally considered high, particularly in areas of technical expertise and project management. However, like any large organization, effectiveness can vary by district and specific project. Oversight mechanisms, including contract management, quality assurance, and independent reviews, are in place to ensure project success and accountability.

What are historical spending patterns for border infrastructure by the Army Corps of Engineers?

Historical spending patterns for border infrastructure by the Army Corps of Engineers would show a significant and often fluctuating investment, influenced by national security priorities, immigration policies, and congressional appropriations. Spending can be concentrated in specific regions like the Rio Grande Valley. Analyzing past contracts would reveal trends in project types (e.g., fencing, roads, facilities), contract values, and the prevalence of design-build versus traditional design-bid-build approaches. This specific $44.9 million award is one component of a broader federal investment in border security and infrastructure.

What is the significance of the 'Highway, Street, and Bridge Construction' NAICS code for this contract?

The North American Industry Classification System (NAICS) code 237310, 'Highway, Street, and Bridge Construction,' signifies the primary industry and type of work covered by this contract. This code indicates that the project involves the construction or alteration of highways, streets, bridges, tunnels, and related structures. For this specific contract, it means the $44.9 million award is for the physical building and potentially the design of such infrastructure, likely related to improving access, transportation, or support facilities along the border.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9126G16R0011

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peter Kiewit Sons Inc

Address: 3888 E BROADWAY RD, PHOENIX, AZ, 85040

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,936,994

Exercised Options: $44,936,994

Current Obligation: $44,936,994

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $8,316,038

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G17D0004

IDV Type: IDC

Timeline