DoD's $40.4M Engineering Services Contract Awarded to Black & Veatch Raises Competition Concerns
Contract Overview
Contract Amount: $40,449,463 ($40.4M)
Contractor: Black & Veatch Special Projects Corp.
Awarding Agency: Department of Defense
Start Date: 2013-05-01
End Date: 2016-07-31
Contract Duration: 1,187 days
Daily Burn Rate: $34.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PROGRAM MANGEMENT. IGF::OT::IGF
Plain-Language Summary
Department of Defense obligated $40.4 million to BLACK & VEATCH SPECIAL PROJECTS CORP. for work described as: PROGRAM MANGEMENT. IGF::OT::IGF Key points: 1. Significant contract value of $40.4 million for engineering services. 2. Sole-source award to Black & Veatch Special Projects Corp. limits competition. 3. Contract duration of nearly 4 years suggests substantial project scope. 4. Potential for higher costs due to lack of competitive bidding.
Value Assessment
Rating: fair
The contract's total value is $40.4 million. Without competitive benchmarks or per-unit cost data, assessing its pricing fairness is challenging. The cost-plus-fixed-fee structure requires careful monitoring to ensure costs remain reasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This significantly limits price discovery and may lead to higher costs for taxpayers compared to a competitive procurement.
Taxpayer Impact: The lack of competition on this $40.4 million contract means taxpayers may not have received the best possible price for these engineering services.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. Limited transparency into the justification for a sole-source award. Potential impact on the broader engineering services market by bypassing competitive processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Cost-plus contract type
Positive Signals
- Established contractor
- Long-term engagement
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector often characterized by specialized expertise. While competitive bidding is common, sole-source awards can occur for unique requirements. The $40.4M value is substantial for this category.
Small Business Impact
The contract was awarded to Black & Veatch Special Projects Corp., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, missing an opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny regarding the justification and approval process. Robust oversight is needed to ensure the fixed fee is reasonable and costs are controlled throughout the contract's life.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency in award justification
- No small business participation noted
Tags
engineering-services, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.4 million to BLACK & VEATCH SPECIAL PROJECTS CORP.. PROGRAM MANGEMENT. IGF::OT::IGF
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 $40.4 million.
What is the period of performance?
Start: 2013-05-01. End: 2016-07-31.
What was the specific justification for awarding this significant engineering services contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available sources. Without detailed documentation, it's difficult to ascertain if alternatives were explored. Agencies must demonstrate that competition was not feasible or would not result in the best value to the government.
How does the cost-plus-fixed-fee structure impact cost control and potential overruns for this $40.4 million contract, given the lack of competition?
Cost-plus-fixed-fee contracts can incentivize contractors to incur costs, as the fee is fixed regardless of the final cost. Without competitive pressure, there's a heightened risk of cost escalation. Effective government oversight, including detailed cost reviews and audits, is crucial to mitigate this risk and ensure the fixed fee remains fair.
What is the expected effectiveness and value delivered by Black & Veatch Special Projects Corp. under this contract, and how will it be measured?
Effectiveness and value are typically measured against defined performance metrics and deliverables outlined in the contract. For engineering services, this could include adherence to project timelines, quality of designs, and successful completion of technical objectives. Regular performance reviews and acceptance of work are key to ensuring value realization.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HDTRA107R0002
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $52,277,716
Exercised Options: $48,489,510
Current Obligation: $40,449,463
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: 2013-05-01
Current End Date: 2016-07-31
Potential End Date: 2016-07-31 00:00:00
Last Modified: 2017-07-18
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