Granite Construction Company awarded $24.15M for 13th Street Bridge replacement at Vandenberg AFB
Contract Overview
Contract Amount: $24,150,980 ($24.2M)
Contractor: Granite Construction Company
Awarding Agency: Department of Defense
Start Date: 2015-09-24
End Date: 2018-05-02
Contract Duration: 951 days
Daily Burn Rate: $25.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF REPLACE 13TH STREET BRIDGE, VAFB, CA
Place of Performance
Location: LOMPOC, SANTA BARBARA County, CALIFORNIA, 93437
Plain-Language Summary
Department of Defense obligated $24.2 million to GRANITE CONSTRUCTION COMPANY for work described as: IGF::OT::IGF REPLACE 13TH STREET BRIDGE, VAFB, CA Key points: 1. Contract value appears reasonable given the scope of bridge construction. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risk for the government. 4. Project duration of 951 days indicates a significant construction undertaking. 5. Geographic location in California may influence labor and material costs.
Value Assessment
Rating: good
The contract value of $24.15 million for bridge construction is within a typical range for such infrastructure projects. Benchmarking against similar bridge replacement projects in California or for the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps control costs, but the final price is dependent on the contractor's efficiency and material costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple bidders were likely considered after an initial exclusion period. With 3 bids received, the competition level suggests a moderate degree of market interest. This level of competition is generally favorable for price discovery, though the specific number of bidders could be higher for a project of this scale.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down prices. The receipt of multiple bids suggests that the government received fair market value for the services rendered.
Public Impact
The primary beneficiaries are the Department of Defense and users of Vandenberg Air Force Base, who will gain a safer and more functional bridge. The project delivers essential infrastructure improvements, specifically the replacement of a critical bridge. The geographic impact is localized to Vandenberg Air Force Base in California. Workforce implications include employment opportunities for construction workers, engineers, and related trades during the project's duration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting base operations.
- Fluctuations in material costs could affect contractor profitability under a fixed-price contract.
- Ensuring compliance with environmental regulations during construction.
Positive Signals
- Firm fixed-price contract limits government exposure to cost increases.
- Full and open competition generally leads to better pricing.
- Experienced contractor likely selected through a competitive process.
Sector Analysis
This contract falls within the Highway, Street, and Bridge Construction sector (NAICS code 237310). This sector is characterized by significant government investment in public infrastructure. The market size for bridge construction is substantial, driven by aging infrastructure and the need for upgrades. This specific contract represents a targeted investment in critical military infrastructure.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem for this specific contract is likely minimal unless the prime contractor engages small businesses for subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and relevant personnel within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to complete the work within the agreed-upon price. Transparency is facilitated through contract award databases, though detailed project progress reports may not be publicly available.
Related Government Programs
- Military Base Infrastructure Projects
- Department of Defense Construction Contracts
- Federal Bridge Repair and Replacement Programs
- Infrastructure Investment and Jobs Act Projects
Risk Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Risk of project delays impacting base operations.
- Ensuring contractor compliance with all safety and environmental regulations.
Tags
construction, defense, department-of-defense, army, california, vandenberg-air-force-base, bridge-construction, infrastructure, firm-fixed-price, full-and-open-competition, definitive-contract, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.2 million to GRANITE CONSTRUCTION COMPANY. IGF::OT::IGF REPLACE 13TH STREET BRIDGE, VAFB, CA
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 $24.2 million.
What is the period of performance?
Start: 2015-09-24. End: 2018-05-02.
What is the track record of Granite Construction Company with federal contracts, particularly for bridge construction?
Granite Construction Company has a significant history of performing federal contracts, including numerous projects for the Department of Defense and other agencies involving heavy civil construction, such as bridges, highways, and airfields. Their experience suggests a capacity to handle complex infrastructure projects. Analyzing their past performance ratings, any past performance issues, and the value of previously awarded federal contracts would provide a more detailed understanding of their reliability and expertise in executing similar projects. Specific data on their federal contract history, including on-time and on-budget performance, would be crucial for a comprehensive assessment.
How does the awarded price compare to similar bridge replacement projects in California or for the Department of Defense?
A precise comparison requires access to a database of similar federal bridge replacement contracts, including project scope, size, complexity, and location. However, the $24.15 million award for the 13th Street Bridge replacement at Vandenberg AFB appears to be within a reasonable range for a project of this nature. Factors such as the specific geological conditions, environmental mitigation requirements, and the complexity of the existing structure can significantly influence costs. Benchmarking against projects with similar square footage, span lengths, and load-bearing requirements would be necessary for a robust value-for-money assessment.
What are the primary risks associated with this firm fixed-price contract for bridge construction?
The primary risk with a firm fixed-price contract lies with the contractor, Granite Construction Company. If material costs escalate unexpectedly, or if unforeseen site conditions (e.g., difficult soil, underground utilities) increase labor requirements beyond initial estimates, the contractor may experience reduced profit margins or even incur a loss. For the government, the main risks are ensuring the contractor's ability to deliver the required quality and adhere to the schedule, and that the fixed price truly reflects fair market value. Robust oversight and clear contract specifications are crucial to mitigate these risks.
What is the expected effectiveness of the new bridge in terms of service life and operational impact?
The effectiveness of the new bridge will be measured by its ability to provide safe and reliable transportation for the intended users of Vandenberg Air Force Base over its designed service life, typically several decades (e.g., 50-75 years). A successful replacement should enhance operational efficiency by eliminating current structural deficiencies, reducing maintenance needs, and potentially accommodating increased traffic loads or larger vehicles. The project's effectiveness will also be judged by its timely completion and adherence to quality standards, ensuring the bridge meets all functional and safety requirements for its intended lifespan.
How has federal spending on bridge construction evolved over the past five years, and how does this contract fit into that trend?
Federal spending on bridge construction has generally seen an upward trend, driven by increased infrastructure investment initiatives and the aging state of existing bridges nationwide. Programs like the Infrastructure Investment and Jobs Act have allocated significant funds towards repairing and replacing critical infrastructure, including bridges. This $24.15 million contract for the 13th Street Bridge replacement aligns with this trend of prioritizing and funding essential infrastructure upgrades, particularly within military installations that require robust and secure facilities. It represents a specific allocation within the broader federal commitment to improving transportation networks.
Industry Classification
NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912PL15R0012
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Granite Construction Incorporated (UEI: 622826360)
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: $24,150,980
Exercised Options: $24,150,980
Current Obligation: $24,150,980
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-09-24
Current End Date: 2018-05-02
Potential End Date: 2018-05-02 00:00:00
Last Modified: 2020-04-20
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