Department of the Army awards $19.4M civil engineering contract to Granite Construction Company for Tucson drainage improvements

Contract Overview

Contract Amount: $20,423,326 ($20.4M)

Contractor: Granite Construction Company

Awarding Agency: Department of Defense

Start Date: 2007-06-05

End Date: 2010-12-13

Contract Duration: 1,287 days

Daily Burn Rate: $15.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TUCSON DRAINAGE, TUSD BASIN, PIMA COUNTY, AZ BASIC CONTRACT FOR $19,435,426.00; CONTINUING CONTRACT WITH $8,000,000.00 OBLIGATED UPON AWARD. CAR # 07-0450

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85719

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $20.4 million to GRANITE CONSTRUCTION COMPANY for work described as: TUCSON DRAINAGE, TUSD BASIN, PIMA COUNTY, AZ BASIC CONTRACT FOR $19,435,426.00; CONTINUING CONTRACT WITH $8,000,000.00 OBLIGATED UPON AWARD. CAR # 07-0450 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract's duration of approximately 1287 days indicates a significant, long-term infrastructure project. 3. The initial obligation of $8M suggests a phased funding approach for the project. 4. The firm-fixed-price structure aims to control costs for the government. 5. This contract falls under heavy and civil engineering construction, a critical sector for public infrastructure. 6. The project's location in Pima County, Arizona, highlights regional infrastructure development.

Value Assessment

Rating: fair

The total contract value is $19.4 million, with $8 million obligated at award. Benchmarking this against similar heavy and civil engineering construction contracts requires detailed cost breakdowns and scope comparisons. Without specific performance metrics or detailed cost data, it's challenging to definitively assess value for money. However, the firm-fixed-price nature provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this method generally fosters price discovery and encourages competitive pricing. The government likely received multiple proposals, allowing for selection of the most advantageous offer.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Residents and businesses in the TUSD Basin, Pima County, Arizona, will benefit from improved drainage infrastructure, reducing flood risks. The contract will deliver essential civil engineering services for the construction and maintenance of drainage systems. The geographic impact is localized to Pima County, Arizona, addressing specific regional needs. The project is expected to create or sustain jobs in the construction and engineering sectors within Arizona.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price structure.
Contract duration may be subject to delays due to weather or permitting issues.
Ensuring compliance with environmental regulations during construction will be critical.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a robust selection process.
Project addresses critical infrastructure needs, indicating strong public benefit.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector (NAICS 237990), which includes the construction of infrastructure such as highways, streets, bridges, tunnels, and water/sewer systems. The market for such projects is often characterized by large, established firms capable of handling complex, large-scale undertakings. Government spending in this sector is crucial for maintaining and upgrading public infrastructure.

Small Business Impact

The contract was awarded to Granite Construction Company and does not indicate any specific small business set-aside provisions. There is no information provided on subcontracting plans for small businesses. Further investigation would be needed to determine if small businesses will participate in the subcontracting opportunities associated with this large-scale project.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting office and potentially involve quality assurance representatives. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Federal Highway Administration Construction Contracts
Environmental Protection Agency Infrastructure Grants

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Risk of material price escalation over the contract duration.
Weather delays could affect project timeline.
Ensuring compliance with environmental regulations throughout the project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.4 million to GRANITE CONSTRUCTION COMPANY. TUCSON DRAINAGE, TUSD BASIN, PIMA COUNTY, AZ BASIC CONTRACT FOR $19,435,426.00; CONTINUING CONTRACT WITH $8,000,000.00 OBLIGATED UPON AWARD. CAR # 07-0450

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 $20.4 million.

What is the period of performance?

Start: 2007-06-05. End: 2010-12-13.

What is the historical spending pattern of the Department of the Army on similar civil engineering projects in Arizona?

Analyzing the Department of the Army's historical spending on civil engineering projects in Arizona requires access to detailed procurement data over several fiscal years. This would involve identifying contracts with similar scopes of work (e.g., drainage, water management, heavy construction) and geographic locations within Arizona. Trends in contract values, award types (e.g., fixed-price, cost-plus), and contractor performance could reveal patterns. For instance, a review might show a consistent investment in flood control infrastructure in flood-prone areas like Pima County, or a shift towards specific types of construction technologies. Understanding these patterns helps contextualize the current $19.4 million award and assess if it aligns with historical investment levels or represents a significant deviation.

How does the awarded price compare to industry benchmarks for similar drainage construction projects?

To compare the awarded price of $19.4 million to industry benchmarks, one would need to analyze the specific scope of work, project complexity, and prevailing market rates for materials, labor, and equipment at the time of award. This involves consulting industry cost estimating guides, recent bid results for comparable public and private projects, and potentially engaging with construction cost consultants. Factors such as soil conditions, environmental mitigation requirements, and the scale of the drainage system (e.g., capacity, length, type of materials) significantly influence costs. A firm-fixed-price contract suggests the contractor believes the price is competitive and covers all anticipated costs and profit. Without a detailed breakdown of the project's components, a precise benchmark comparison is difficult, but the contract's competitive award process implies the price was deemed reasonable relative to other bids.

What are the key performance indicators (KPIs) for this contract and how is performance being monitored?

Key performance indicators (KPIs) for a civil engineering construction contract like this typically revolve around schedule adherence, quality of work, safety compliance, and adherence to budget. For this specific contract, KPIs might include meeting milestones for design completion, excavation, installation of drainage structures, and final site restoration, all within the 1287-day timeframe. Performance monitoring is usually conducted by government representatives, such as contracting officers' representatives (CORs) or quality assurance personnel, who conduct site inspections, review progress reports, and verify that work meets contract specifications and quality standards. Failure to meet KPIs could result in contractual remedies, such as liquidated damages or termination.

What is Granite Construction Company's track record with the Department of Defense and similar projects?

Granite Construction Company has a significant history of working with government agencies, including the Department of Defense, on large-scale infrastructure projects. A review of their past performance would involve examining contract databases for awards from the DoD and other federal agencies, assessing project types (e.g., civil works, heavy construction), contract values, and performance ratings. Information on project completion success, any disputes or claims, and adherence to schedules and budgets would be crucial. Their experience with similar drainage and civil engineering projects, particularly in arid or challenging environments, would be a strong indicator of their capability to successfully execute this contract. Publicly available information and contractor performance databases can provide insights into their reliability and expertise.

What are the potential risks associated with a long-duration civil engineering project like this?

Long-duration civil engineering projects inherently carry several risks. For this Tucson drainage contract, potential risks include unforeseen subsurface conditions (e.g., unexpected soil types, groundwater, buried utilities) that could lead to delays and cost increases. Material price escalation over the project's duration (approximately 3.5 years) is another concern, although a firm-fixed-price contract shifts much of this risk to the contractor. Weather-related delays, particularly in Arizona, could impact the schedule. Permitting and regulatory changes during the project lifecycle, as well as potential labor shortages or disputes, also pose risks. Furthermore, community relations and environmental impact management require ongoing attention throughout the project's extensive timeline.

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: SEALED BID

Solicitation ID: W912PL06B0015

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Granite Construction Incorporated (UEI: 622826360)

Address: 585 WEST BEACH ST, WATSONVILLE, CA, 95076

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

Financial Breakdown

Contract Ceiling: $20,423,326

Exercised Options: $20,423,326

Current Obligation: $20,423,326

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline