DoD's $33M Biological Engagement Program in Azerbaijan awarded to Bechtel National, Inc

Contract Overview

Contract Amount: $33,134,438 ($33.1M)

Contractor: Bechtel National, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-07-21

End Date: 2016-07-20

Contract Duration: 1,826 days

Daily Burn Rate: $18.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: COOPERATIVE BIOLOGICAL ENGAGEMENT PROGRAM IMPLEMENTATION IN AZERBAIJAN.

Plain-Language Summary

Department of Defense obligated $33.1 million to BECHTEL NATIONAL, INC. for work described as: COOPERATIVE BIOLOGICAL ENGAGEMENT PROGRAM IMPLEMENTATION IN AZERBAIJAN. Key points: 1. Contract awarded via full and open competition, suggesting a robust bidding process. 2. The contract type is Cost Plus Award Fee, which can incentivize performance but requires careful oversight. 3. The duration of 1826 days (5 years) indicates a long-term commitment to the program. 4. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services,' a broad category. 5. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. No small business set-aside was utilized, indicating the competition was open to all eligible firms.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without knowing the specific deliverables and the scope of work for the 'Cooperative Biological Engagement Program Implementation in Azerbaijan.' The Cost Plus Award Fee (CPAF) structure means the final cost could vary based on performance incentives. Comparing it to similar international biological engagement programs would require detailed analysis of their objectives, duration, and contractor performance. The raw dollar amount of $33.1 million over five years suggests a significant investment, but its value-for-money can only be assessed against the program's success metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition,' indicating that all eligible responsible sources were permitted to submit a bid. The number of bidders is not specified, but this method generally promotes a competitive environment, which should theoretically lead to better pricing and terms for the government. The Defense Threat Reduction Agency (DTRA) likely issued a solicitation that allowed any qualified company to compete for this work.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and ensures the government receives the best value through a wide range of offers.

Public Impact

The primary beneficiaries are likely the host nation (Azerbaijan) through enhanced biological security and engagement, and potentially U.S. national security interests by mitigating biological threats. The services delivered involve the implementation of a cooperative biological engagement program, which could include infrastructure development, training, equipment, or technical assistance related to biological safety and security. The geographic impact is specific to Azerbaijan, focusing on facilities and programs within that country. Workforce implications could include the deployment of specialized personnel by Bechtel National, Inc. to Azerbaijan, as well as potential training and capacity building for local Azerbaijani personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can lead to cost overruns if award criteria are not tightly defined and monitored.
The broad nature of 'All Other Professional, Scientific, and Technical Services' may indicate a wide scope of work, increasing the potential for unforeseen complexities and costs.
International program implementation carries inherent risks related to geopolitical stability, local regulations, and logistical challenges.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
The long contract duration (5 years) implies a stable, ongoing program with potentially significant long-term impact.
Bechtel National, Inc. is a large, established company with experience in complex international projects, suggesting a capable contractor.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to defense and international security cooperation. The market for such services is driven by government needs for specialized expertise in areas like threat reduction, biosecurity, and international program management. Comparable spending benchmarks would involve looking at other DTRA programs or similar international security assistance contracts managed by agencies like the Department of State, though specifics would vary greatly by region and objective.

Small Business Impact

The contract was not awarded as a small business set-aside, nor is there an indication of specific subcontracting goals for small businesses in the provided data. This suggests that the primary contract was likely awarded to a large business capable of handling complex international projects. The impact on the small business ecosystem would depend on whether Bechtel National, Inc. engages small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense, specifically the Defense Threat Reduction Agency (DTRA). As a Cost Plus Award Fee contract, DTRA would be responsible for monitoring contractor performance against defined award criteria to determine incentive fees. Transparency would be subject to standard government contracting regulations, with potential for Inspector General review if performance issues or fraud were suspected. The specific mechanisms for oversight, such as regular reporting requirements and site visits, are not detailed in the provided data.

Related Government Programs

Cooperative Threat Reduction Program
Biosecurity Engagement Program
International Security Assistance Programs
Department of Defense Contracts in Azerbaijan
Professional, Scientific, and Technical Services Contracts

Risk Flags

Cost Plus Award Fee contract type requires careful monitoring of performance metrics to ensure value.
Broad NAICS code may obscure specific deliverables and associated risks.
International program implementation carries inherent geopolitical and logistical risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.1 million to BECHTEL NATIONAL, INC.. COOPERATIVE BIOLOGICAL ENGAGEMENT PROGRAM IMPLEMENTATION IN AZERBAIJAN.

Who is the contractor on this award?

The obligated recipient is BECHTEL NATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $33.1 million.

What is the period of performance?

Start: 2011-07-21. End: 2016-07-20.

What specific biological engagement activities were undertaken in Azerbaijan under this contract?

The provided data describes the contract as 'COOPERATIVE BIOLOGICAL ENGAGEMENT PROGRAM IMPLEMENTATION IN AZERBAIJAN' but does not detail the specific activities. Typically, such programs aim to enhance biological safety, security, and disease surveillance capabilities in partner nations. This could involve training local personnel, providing specialized equipment, assisting in the maintenance or upgrade of biological laboratories, and facilitating information sharing on infectious diseases. The 'All Other Professional, Scientific, and Technical Services' NAICS code suggests a broad range of potential activities, from scientific research and analysis to program management and technical consulting, all geared towards improving biological security cooperation.

How does the $33.1 million cost compare to similar international biological engagement programs?

Direct cost comparison is difficult without specific details on the scope, duration, and objectives of other programs. However, $33.1 million over five years (approximately $6.6 million annually) for implementing a biological engagement program in a foreign country appears to be a substantial investment. This figure would need to be benchmarked against programs with similar geographic scope, threat levels, and types of services rendered. Factors like the complexity of the biological infrastructure, the level of technical expertise required, and the geopolitical context of Azerbaijan would influence the cost. Without comparable data points, it's challenging to definitively state if this represents excellent, fair, or questionable value.

What were the key performance indicators (KPIs) used to determine award fees for Bechtel National, Inc. under this Cost Plus Award Fee contract?

The specific Key Performance Indicators (KPIs) for determining award fees under this Cost Plus Award Fee (CPAF) contract are not detailed in the provided data. For CPAF contracts, the government typically establishes measurable performance objectives related to the scope of work. These could include timely completion of milestones, adherence to budget targets (within the cost-reimbursement framework), quality of deliverables, effectiveness of training programs, successful implementation of security protocols, or positive feedback from host nation partners. The contracting officer would assess Bechtel's performance against these pre-defined KPIs to determine the amount of award fee, if any, earned.

What is Bechtel National, Inc.'s track record with the Defense Threat Reduction Agency (DTRA) or similar biological security programs?

Bechtel National, Inc. is a large, established engineering and construction company with extensive experience in managing complex, large-scale projects, including those for government agencies. While the provided data doesn't detail their specific history with DTRA or biological security programs, their general profile suggests they possess the capacity and expertise for such international endeavors. Companies of Bechtel's size often undertake diverse projects, ranging from infrastructure development to energy and defense-related services. A deeper dive into their contract history with DTRA or other agencies involved in biosecurity or international security cooperation would be necessary to fully assess their specific track record in this niche.

What are the potential risks associated with implementing a biological engagement program in Azerbaijan, and how were they mitigated?

Implementing a biological engagement program in Azerbaijan carries several potential risks. These include geopolitical instability in the region, potential for diversion of materials or knowledge, challenges in ensuring long-term sustainability of implemented programs, cultural and language barriers, and logistical complexities of operating in a foreign country. Additionally, the nature of biological work itself involves inherent safety and security risks. Mitigation strategies would typically involve thorough risk assessments, robust security protocols, close collaboration with Azerbaijani authorities, adherence to international safety standards (e.g., WHO, BWC), contingency planning, and ongoing monitoring by DTRA and potentially other U.S. government entities.

How has spending on similar 'All Other Professional, Scientific, and Technical Services' contracts by DTRA evolved over the past decade?

Analyzing the evolution of spending on similar contracts requires access to historical contract databases and specific filtering capabilities. The NAICS code 541990 is very broad, encompassing a wide array of services. DTRA's mission focuses on reducing threats from weapons of mass destruction, which often involves complex scientific, technical, and programmatic support. Spending in this category by DTRA likely fluctuates based on global threat assessments, specific program initiatives (like cooperative biological engagement), and congressional appropriations. Without specific data trends for DTRA's spending under NAICS 541990, it's difficult to provide a precise historical context, but it's reasonable to assume spending aligns with national security priorities and international cooperation efforts.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HDTRA107R0004

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bechtel Group, Inc.

Address: 12021 SUNSET HILLS RD, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,837,013

Exercised Options: $33,837,013

Current Obligation: $33,134,438

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDTRA108D0010

IDV Type: IDC

Timeline