DoD's $46M Wheeler Army Airfield apron contract awarded to Kiewit Infrastructure West Co. for construction

Contract Overview

Contract Amount: $46,159,380 ($46.2M)

Contractor: Kiewit Infrastructure West CO

Awarding Agency: Department of Defense

Start Date: 2020-09-29

End Date: 2022-08-03

Contract Duration: 673 days

Daily Burn Rate: $68.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: POH004- ROTARY WING PARKING APRON WHEELER ARMY AIRFIELD, HAWAII

Place of Performance

Location: SCHOFIELD BARRACKS, HONOLULU County, HAWAII, 96857

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $46.2 million to KIEWIT INFRASTRUCTURE WEST CO for work described as: POH004- ROTARY WING PARKING APRON WHEELER ARMY AIRFIELD, HAWAII Key points: 1. The contract value of $46.16 million represents a significant investment in critical aviation infrastructure. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. The firm-fixed-price contract type aims to control costs and provide predictability. 4. The project duration of 673 days indicates a substantial construction undertaking. 5. The contractor, Kiewit Infrastructure West Co., is a major player in the heavy construction sector. 6. The project is located in Hawaii, highlighting infrastructure needs in remote or strategically important locations.

Value Assessment

Rating: good

The contract value of $46.16 million for apron construction appears reasonable given the scope and location. Benchmarking against similar airfield construction projects would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that cost overruns are primarily the contractor's responsibility, which is a positive indicator for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a competitive environment, though further details on the bidding process and the number of proposals received would offer a clearer picture of the competition's intensity and its impact on price discovery.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging multiple companies to offer their best terms to win the contract.

Public Impact

The primary beneficiaries are the U.S. Army and its aviation units operating at Wheeler Army Airfield, Hawaii, who will gain improved parking and operational facilities. The project delivers essential construction services, specifically the development of a rotary-wing parking apron. The geographic impact is localized to Schofield Barracks, Hawaii, enhancing military operational capabilities in the Pacific region. The contract supports the construction workforce, likely involving skilled laborers, engineers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Weather-related challenges in Hawaii could affect project timelines and costs.
Ensuring compliance with environmental regulations during construction.

Positive Signals

Firm-fixed-price contract helps manage cost certainty.
Awarded through full and open competition, suggesting competitive pricing.
Kiewit Infrastructure West Co. has a track record in large-scale infrastructure projects.

Sector Analysis

This contract falls within the heavy civil construction sector, specifically focusing on airfield infrastructure. The market for military airfield construction is specialized, often involving large, established firms capable of handling complex projects with stringent security and operational requirements. Spending in this area is driven by modernization needs, force projection, and maintenance of existing facilities.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'sb' (small business set-aside) flag is false. There is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if opportunities for small businesses were overlooked or if the nature of the prime contract made extensive subcontracting unlikely.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting and project management offices. Accountability measures are inherent in the firm-fixed-price contract type, which places cost risk on the contractor. Transparency is generally maintained through contract award databases and reporting requirements, though specific project-level oversight details are not provided.

Related Government Programs

Army Aviation Facilities Modernization
Airfield Pavement and Construction Projects
Military Construction (MILCON) Program
Pacific Region Infrastructure Development

Risk Flags

Potential for cost overruns if unforeseen site conditions arise, despite FFP.
Risk of schedule delays due to weather or logistical challenges in Hawaii.
Ensuring adequate quality control and adherence to military construction standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.2 million to KIEWIT INFRASTRUCTURE WEST CO. POH004- ROTARY WING PARKING APRON WHEELER ARMY AIRFIELD, HAWAII

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 $46.2 million.

What is the period of performance?

Start: 2020-09-29. End: 2022-08-03.

What is Kiewit Infrastructure West Co.'s track record with similar Department of Defense construction contracts?

Kiewit Infrastructure West Co. has a significant history of performing large-scale construction projects for the Department of Defense and other federal agencies. Their portfolio includes numerous airfield, infrastructure, and heavy civil engineering projects. While specific details on past apron construction contracts are not provided here, their general experience suggests a capacity to handle complex military projects. A deeper dive into their past performance reviews, any past performance issues, and the scale of their previous DoD contracts would offer a more comprehensive understanding of their suitability for this specific project.

How does the awarded price compare to similar rotary-wing apron construction projects at other military installations?

Direct comparison of the $46.16 million award for the Wheeler Army Airfield apron to similar projects is challenging without detailed project specifications (e.g., size, materials, specific site conditions) and location-adjusted cost indices. However, large-scale airfield construction projects can range from tens to hundreds of millions of dollars. The firm-fixed-price nature of this contract suggests that the government sought to lock in costs. Benchmarking against projects of similar scope and complexity, adjusted for regional construction cost differences, would be necessary for a definitive value assessment. The number of bidders (two) also provides a clue, as fewer bidders might indicate less competitive pricing pressure.

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

Key risks for this project include potential construction delays due to weather (common in Hawaii), unforeseen site conditions, and contractor performance issues. Mitigation strategies are embedded in the contract structure and oversight. The firm-fixed-price (FFP) contract shifts cost overrun risk to the contractor. The award through full and open competition implies selection of a contractor deemed capable. The government's project management team will oversee progress, quality, and adherence to schedule. Specific risk mitigation plans would be detailed in the contract's statement of work and associated documentation.

What is the historical spending pattern for airfield construction at Wheeler Army Airfield or similar Army installations?

Analyzing historical spending for airfield construction at Wheeler Army Airfield or comparable Army installations requires access to detailed federal procurement data over several fiscal years. Such data would reveal trends in contract awards, average project costs, and the frequency of major construction initiatives. This specific $46.16 million contract represents a significant single investment. Understanding past spending would help contextualize whether this award is part of a larger modernization effort, a response to urgent needs, or an outlier in terms of project scale and cost for the installation.

What is the significance of the 'definitive contract' award type in this context?

A definitive contract is a fixed-price or cost-reimbursement contract that is fully funded and awarded. In this case, it's a firm-fixed-price definitive contract, meaning the price is set and not subject to adjustment based on the contractor's cost experience. This award type signifies that the scope of work, specifications, and price were finalized before the contract was awarded, providing maximum price certainty for the government. It contrasts with other contract types like indefinite-delivery/indefinite-quantity (IDIQ) contracts, which allow for more flexibility in task orders over time.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911KB20R0008

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peter Kiewit Sons Inc

Address: 707 RICHARDS ST STE 750, HONOLULU, HI, 96813

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

Financial Breakdown

Contract Ceiling: $51,229,380

Exercised Options: $46,159,380

Current Obligation: $46,159,380

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline