DoD's $52M Engineering Services Contract with Black & Veatch: A Cost Plus Award Fee Analysis
Contract Overview
Contract Amount: $52,024,403 ($52.0M)
Contractor: Black & Veatch Special Projects Corp.
Awarding Agency: Department of Defense
Start Date: 2008-08-28
End Date: 2013-04-30
Contract Duration: 1,706 days
Daily Burn Rate: $30.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: PROGRAM MANAGEMENT
Plain-Language Summary
Department of Defense obligated $52.0 million to BLACK & VEATCH SPECIAL PROJECTS CORP. for work described as: PROGRAM MANAGEMENT Key points: 1. The contract awarded to Black & Veatch Special Projects Corp. for engineering services totals $52,024,402.72. 2. Awarded by the Defense Threat Reduction Agency (DTRA), this contract falls under the Engineering Services NAICS code 541330. 3. The contract type is Cost Plus Award Fee (CPAF), indicating a focus on performance incentives. 4. The contract was not competed, raising questions about potential price discovery limitations. 5. The duration of the contract was 1706 days, spanning from August 2008 to April 2013.
Value Assessment
Rating: questionable
The Cost Plus Award Fee structure can incentivize performance but may also lead to higher costs if not carefully managed. Without specific award fee criteria and outcomes, it's difficult to definitively assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, suggesting a sole-source or limited competition award. This limits price discovery and potentially reduces the government's ability to secure the best possible price.
Taxpayer Impact: The lack of competition may have resulted in higher costs for taxpayers compared to a fully competed contract.
Public Impact
Taxpayers funded a significant contract for specialized engineering services within the Department of Defense. The contract's duration and cost raise questions about long-term program management and cost-effectiveness. The absence of competition limits transparency into the pricing and selection process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Award Fee structure
- Limited transparency on performance metrics
Positive Signals
- Awarded to a specialized firm for engineering services
- Contract served a specific defense agency need
Sector Analysis
This contract falls within the Engineering Services sector, which is critical for government infrastructure and defense projects. Spending benchmarks for this sector can vary widely based on project complexity and duration.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine any potential small business participation.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential lack of robust oversight in the initial award process. Ongoing oversight would be crucial to manage the CPAF structure effectively.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns in CPAF
- Limited transparency on performance metrics
- No indication of small business participation
Tags
engineering-services, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.0 million to BLACK & VEATCH SPECIAL PROJECTS CORP.. PROGRAM MANAGEMENT
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 $52.0 million.
What is the period of performance?
Start: 2008-08-28. End: 2013-04-30.
What were the specific performance objectives and award fee criteria that justified the awarded fees under this CPAF contract?
The specific performance objectives and award fee criteria are not detailed in the provided data. A Cost Plus Award Fee (CPAF) contract typically includes metrics related to cost control, schedule adherence, technical performance, and quality. The government would have evaluated the contractor's performance against these predefined criteria to determine the amount of award fee paid, aiming to incentivize superior performance while managing costs.
How did the lack of competition impact the final cost and overall value for the taxpayer on this $52M engineering services contract?
The absence of competition inherently limits the government's ability to leverage market forces to achieve the lowest possible price. Without competitive bids, it is difficult to ascertain if Black & Veatch's pricing was optimal. The Cost Plus Award Fee structure, while incentivizing performance, can also lead to higher costs if not rigorously managed, potentially resulting in a less favorable outcome for taxpayers compared to a fully competed contract.
What was the strategic necessity for awarding this significant engineering services contract on a sole-source basis, and were alternatives explored?
The provided data does not specify the strategic necessity or alternatives explored for this sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, often due to unique capabilities, urgent needs, or specific research and development requirements. A thorough justification would be required to validate this approach.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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
Financial Breakdown
Contract Ceiling: $77,749,505
Exercised Options: $61,965,929
Current Obligation: $52,024,403
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDTRA107D0007
IDV Type: IDC
Timeline
Start Date: 2008-08-28
Current End Date: 2013-04-30
Potential End Date: 2013-04-30 00:00:00
Last Modified: 2018-10-17
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