Kiewit Infrastructure West awarded $20.7M for Kauai harbor project, highlighting significant civil engineering investment

Contract Overview

Contract Amount: $20,691,928 ($20.7M)

Contractor: Kiewit Infrastructure West CO

Awarding Agency: Department of Defense

Start Date: 2007-09-06

End Date: 2010-09-23

Contract Duration: 1,113 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: KIKIAOLA LIGHT DRAFT HARBOR PROJECT, KEKAHA, ISLAND OF KAUAI, HI

Place of Performance

Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $20.7 million to KIEWIT INFRASTRUCTURE WEST CO for work described as: KIKIAOLA LIGHT DRAFT HARBOR PROJECT, KEKAHA, ISLAND OF KAUAI, HI Key points: 1. The contract value represents a substantial investment in critical infrastructure for the region. 2. Competition dynamics for this large-scale project are crucial for ensuring taxpayer value. 3. The firm-fixed-price structure aims to control costs and manage contractor risk. 4. Project duration of over 1000 days suggests a complex and lengthy construction undertaking. 5. Geographic location in Hawaii may introduce logistical challenges and impact overall costs. 6. The absence of small business set-asides warrants examination of subcontracting opportunities.

Value Assessment

Rating: good

The contract value of $20.7 million for the Kikiaola Light Draft Harbor Project appears reasonable for a large-scale civil engineering undertaking in a remote location like Kauai. While direct comparisons are difficult without specific project scope details, similar harbor and breakwater construction projects can range from tens to hundreds of millions of dollars depending on complexity and scale. The firm-fixed-price contract type suggests that the government has a clear understanding of the scope and is seeking cost certainty. Benchmarking against similar projects in Hawaii or other Pacific islands would provide a more precise value assessment, but the initial award amount does not immediately raise significant concerns.

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 solicited and considered. The presence of two bidders, as suggested by the 'no' field, is a positive sign for price discovery, though a higher number of bidders would typically lead to more robust competition and potentially lower prices. The fact that it was competed fully suggests that the agency sought the best value from the market. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would offer further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation. It ensures that the government is not limited to a single provider, increasing the likelihood of securing a fair market price for the services rendered.

Public Impact

The project directly benefits the U.S. Army Corps of Engineers and the Department of Defense by improving critical maritime infrastructure. Residents and businesses on the island of Kauai will benefit from improved harbor facilities, potentially enhancing local commerce and access. The geographic impact is concentrated on the island of Kauai, Hawaii, addressing specific local infrastructure needs. The construction activities will likely create temporary employment opportunities for skilled labor in the region during the project's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological or environmental challenges arise during construction in a remote island setting.
Logistical complexities of transporting materials and equipment to Kauai could impact project timelines and costs.
Limited number of bidders (2) might indicate a less competitive market for this specialized type of construction in the region.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
The contractor, Kiewit Infrastructure West Co., is a large and experienced construction firm, suggesting capability to execute the project.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to port and harbor development. This sector is characterized by large-scale, complex projects often requiring specialized equipment and expertise. The market size for such infrastructure projects can be substantial, driven by government investment in national defense, transportation, and economic development. Comparable spending benchmarks would typically involve other Army Corps of Engineers projects or similar maritime infrastructure developments across the country, often running into tens or hundreds of millions of dollars.

Small Business Impact

The contract data indicates that this was not set aside for small businesses (ss: false, sb: false). Given the scale and nature of the project, it is likely that Kiewit Infrastructure West Co. will engage subcontractors. Analysis of subcontracting plans would be necessary to determine the extent to which small businesses will participate in the project's execution and benefit from this federal spending.

Oversight & Accountability

Oversight for this project would primarily fall under the Department of the Army and potentially the U.S. Army Corps of Engineers, given their role in civil works and infrastructure. Accountability measures are typically embedded within the contract terms, including performance milestones, quality control requirements, and payment schedules tied to progress. Transparency is often facilitated through contract award databases and public reporting mechanisms, though detailed project-specific oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Department of Defense Military Construction
Port and Harbor Infrastructure Development
Federal Heavy Civil Engineering Contracts

Risk Flags

Logistical challenges in remote island location
Potential for environmental or archaeological discoveries
Limited number of bidders may reduce competitive pressure
Weather-related delays

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.7 million to KIEWIT INFRASTRUCTURE WEST CO. KIKIAOLA LIGHT DRAFT HARBOR PROJECT, KEKAHA, ISLAND OF KAUAI, HI

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 $20.7 million.

What is the period of performance?

Start: 2007-09-06. End: 2010-09-23.

What is the track record of Kiewit Infrastructure West Co. on similar federal construction projects?

Kiewit Infrastructure West Co. has a significant track record with federal agencies, particularly the Department of Defense and the Army Corps of Engineers, on large-scale infrastructure projects. They have been involved in numerous civil works, transportation, and military construction contracts across the United States. Their experience often includes complex projects such as bridges, dams, tunnels, and port facilities. Reviewing their past performance ratings, any past performance issues or disputes, and the successful completion of projects with similar scope and complexity would provide a clearer picture of their reliability for the Kikiaola Light Draft Harbor Project. Data on their historical contract values and on-time/on-budget performance would be crucial for a comprehensive assessment.

How does the awarded amount compare to the estimated cost or initial budget for the Kikiaola Light Draft Harbor Project?

The provided data indicates an award amount of $20,691,928. However, it does not include information on the initial estimated cost or budget set by the Department of the Army for this project. To assess value, a comparison between the awarded price and the government's independent cost estimate is essential. If the award was significantly below the estimate, it could indicate strong competition or potentially an underestimated scope. Conversely, if it was close to or above the estimate, further scrutiny of the bidding process and the estimate's accuracy would be warranted. Without the estimated cost, it's challenging to definitively benchmark the value achieved through this contract.

What are the primary risks associated with constructing a harbor project in Kauai, Hawaii?

Constructing a harbor project in Kauai, Hawaii, presents several unique risks. Geographically, the island location implies significant logistical challenges for transporting materials, equipment, and personnel, potentially leading to increased costs and delays. Environmental risks are also a concern, given Hawaii's sensitive ecosystems; unexpected discoveries of protected species or archaeological sites could halt or alter construction. Furthermore, the remote location might limit the availability of skilled labor and specialized subcontractors, increasing reliance on mainland resources. Weather patterns, including potential for tropical storms or hurricanes, pose a risk to construction schedules and safety. Finally, the cost of doing business in Hawaii, including labor and material costs, is generally higher than on the mainland, which could impact the overall project budget.

What is the historical spending pattern for similar harbor improvement projects by the Department of Defense in Hawaii?

Historical spending on similar harbor improvement projects by the Department of Defense in Hawaii would likely show a pattern of significant investment due to the strategic importance of the islands. Projects managed by the U.S. Army Corps of Engineers or Naval Facilities Engineering Command (NAVFAC) often involve substantial capital outlays for dredging, breakwater construction, and pier upgrades. These projects are typically large-scale, long-duration, and awarded through competitive bidding processes, often with firm-fixed-price contracts. Spending can fluctuate based on military readiness requirements, infrastructure modernization needs, and congressional appropriations. Analyzing past awards for projects at Pearl Harbor, Hickam Air Force Base, or other military installations in Hawaii would provide context for the $20.7 million awarded for the Kikiaola Light Draft Harbor Project, highlighting whether this represents a typical investment or an outlier.

How does the contract type (Firm Fixed Price) influence the risk allocation between the government and Kiewit Infrastructure West Co. for this project?

The Firm Fixed Price (FFP) contract type significantly shifts the risk of cost overruns to the contractor, Kiewit Infrastructure West Co. Under an FFP agreement, the contractor is obligated to complete the project for a predetermined price, regardless of their actual costs. This means that if Kiewit encounters unforeseen challenges, such as material price increases, labor shortages, or difficult site conditions, they bear the financial burden of those increased expenses. For the government, this provides cost certainty and predictability, making budgeting easier. However, it can also incentivize contractors to bid higher prices to account for potential risks, or potentially cut corners on quality if not adequately monitored. The government's risk is primarily related to ensuring the contractor meets the specified quality standards and performance requirements within the fixed price.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9128A07R0012

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peter Kiewit Sons Inc (UEI: 070729517)

Address: 1001 KAMOKILA BLVD STE 305, KAPOLEI, HI, 96707

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,691,928

Exercised Options: $20,691,928

Current Obligation: $20,691,928

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline