DoD's Biological Threat Reduction Program in Ukraine awarded $77M to Black & Veatch for technical services
Contract Overview
Contract Amount: $77,186,628 ($77.2M)
Contractor: Black & Veatch Special Projects Corp.
Awarding Agency: Department of Defense
Start Date: 2008-06-01
End Date: 2013-11-30
Contract Duration: 2,008 days
Daily Burn Rate: $38.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 9
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: BIOLOGICAL THREAT REDUCTION PROGRAM (BTRP) UKRAINE
Plain-Language Summary
Department of Defense obligated $77.2 million to BLACK & VEATCH SPECIAL PROJECTS CORP. for work described as: BIOLOGICAL THREAT REDUCTION PROGRAM (BTRP) UKRAINE Key points: 1. The contract focuses on technical services, a broad category with varying cost efficiencies. 2. Competition was full and open after exclusion of sources, suggesting some justification for the approach. 3. The risk profile is moderate, given the nature of biological threat reduction and international operations. 4. The Defense sector often involves complex, high-value contracts with significant oversight requirements.
Value Assessment
Rating: fair
The Cost Plus Award Fee (CPAF) structure can incentivize performance but may lead to higher costs if not managed tightly. Benchmarking is difficult without specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The 'Full and Open Competition After Exclusion of Sources' indicates a specific justification was made to limit the initial pool of bidders. This can impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.
Taxpayer Impact: While the program's goal is threat reduction, the contract structure and limited competition warrant scrutiny to ensure taxpayer funds are used efficiently.
Public Impact
Enhances global security by mitigating biological threats. Supports international partnerships in critical areas of public health and safety. Investments in this program contribute to preventing the spread of dangerous pathogens.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises cost concerns.
- CPAF structure requires robust oversight.
- International program execution risks.
Positive Signals
- Addresses critical national security threats.
- Supports vital international cooperation.
- Long-term program with potential for significant impact.
Sector Analysis
This contract falls within professional, scientific, and technical services, often supporting complex government initiatives. Spending benchmarks for similar international threat reduction programs are highly variable due to unique operational needs and geopolitical factors.
Small Business Impact
The contract was awarded to a large business (Black & Veatch Special Projects Corp.) and there is no indication of small business subcontracting participation in the provided data.
Oversight & Accountability
The use of a Delivery Order under a larger contract structure implies some level of pre-existing oversight. However, the CPAF payment type necessitates diligent monitoring of performance and costs to ensure accountability.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Limited competition may inflate costs.
- CPAF requires strong oversight to control spending.
- International program execution carries inherent risks.
- Lack of specific service details hinders cost-benefit analysis.
Tags
all-other-professional-scientific-and-te, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $77.2 million to BLACK & VEATCH SPECIAL PROJECTS CORP.. BIOLOGICAL THREAT REDUCTION PROGRAM (BTRP) UKRAINE
Who is the contractor on this award?
The obligated recipient is BLACK & VEATCH SPECIAL PROJECTS CORP..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Threat Reduction Agency).
What is the total obligated amount?
The obligated amount is $77.2 million.
What is the period of performance?
Start: 2008-06-01. End: 2013-11-30.
What specific technical services were provided under this contract, and how do they align with the program's objectives?
The contract number (541990) indicates 'All Other Professional, Scientific, and Technical Services.' Without further detail, it's difficult to ascertain the exact services. These could range from laboratory analysis and equipment maintenance to training and program management, all crucial for biological threat reduction but varying in cost-effectiveness.
What were the justifications for excluding other sources during the competition phase, and did this exclusion impact the final award price?
Excluding sources typically requires a documented justification, such as specialized capabilities or urgent needs. The impact on price is often an increase due to reduced competition. Understanding the rationale behind the exclusion is key to assessing whether the price paid was reasonable under the circumstances.
How effectively was the Biological Threat Reduction Program in Ukraine managed, and did the award fee structure incentivize optimal performance and cost control?
Assessing effectiveness requires post-award performance reviews and program outcome data. The Cost Plus Award Fee (CPAF) structure aims to incentivize performance, but its success hinges on clear performance metrics and rigorous oversight to prevent cost overruns and ensure value for taxpayer money.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 9
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 6601 COLLEGE BLVD, SHAWNEE MISSION, KS, 66211
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $140,223,717
Exercised Options: $91,634,099
Current Obligation: $77,186,628
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDTRA108D0007
IDV Type: IDC
Timeline
Start Date: 2008-06-01
Current End Date: 2013-11-30
Potential End Date: 2013-11-30 00:00:00
Last Modified: 2017-09-27
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