WSP USA secured a $53.6M contract for construction services, awarded by the Department of the Army

Contract Overview

Contract Amount: $53,566,601 ($53.6M)

Contractor: WSP USA Environment & Infrastructure Inc.

Awarding Agency: Department of Defense

Start Date: 2012-04-16

End Date: 2021-05-31

Contract Duration: 3,332 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CONSTRUCT COALITION COMPOUND BILLETING

Plain-Language Summary

Department of Defense obligated $53.6 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC. for work described as: IGF::OT::IGF CONSTRUCT COALITION COMPOUND BILLETING Key points: 1. The contract value of $53.6 million represents a significant investment in infrastructure development. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. The duration of the contract (3332 days) indicates a long-term project requirement. 4. The firm-fixed-price contract type shifts cost risk to the contractor. 5. The contract falls under the Commercial and Institutional Building Construction NAICS code. 6. The contractor, WSP USA, is a major player in the engineering and infrastructure sector.

Value Assessment

Rating: good

The contract value of $53.6 million for construction services appears reasonable given the extensive 9-year duration. Benchmarking against similar large-scale construction projects managed by the Department of Defense would provide a more precise value-for-money assessment. However, the firm-fixed-price structure suggests that the contractor assumed the primary cost risk, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 10 bids suggests a healthy level of competition for this significant project. This competitive environment is expected to drive more favorable pricing and service offerings for the government.

Taxpayer Impact: The extensive competition for this contract likely resulted in a more cost-effective outcome for taxpayers, ensuring that the government received competitive bids for the construction services.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel, who will receive improved or new facilities. The services delivered include commercial and institutional building construction, encompassing a wide range of potential structures. The geographic impact is likely concentrated at the specific military installation(s) where the construction takes place. The contract supports jobs within the construction industry, including skilled trades and project management roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the long project duration, despite the fixed-price nature.
Ensuring consistent quality control over a nearly decade-long construction project can be challenging.
Dependency on a single contractor for an extended period may limit flexibility for future changes.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Awarded through full and open competition, indicating a competitive bidding process.
The contractor, WSP USA, is a large, established firm with significant experience in infrastructure projects.

Sector Analysis

The construction sector is a vital component of the U.S. economy, with significant government spending allocated to infrastructure projects. This contract falls within the Commercial and Institutional Building Construction category, which includes a broad range of facilities. The Department of Defense is a major client for construction services, often awarding large, long-term contracts for base development and modernization. Comparable spending benchmarks would involve analyzing other large-scale military construction contracts awarded over similar timeframes.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the substantial value and scope of the project, it is unlikely that small businesses would be primary contractors, though they may participate as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting opportunities associated with this award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) and the relevant Department of the Army contracting office. Transparency is facilitated through contract award databases like FPDS. Accountability measures are inherent in the firm-fixed-price contract, with penalties for non-performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction Projects
Base Realignment and Closure (BRAC) Projects
Department of Defense Facilities Modernization
General Services Administration (GSA) Construction Contracts

Risk Flags

Long contract duration may increase risk of cost escalation or scope creep if not managed tightly.
Firm-fixed-price contracts can sometimes lead to higher initial bids to account for contractor risk.
Potential for contractor performance issues over an extended project timeline.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.6 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC.. IGF::OT::IGF CONSTRUCT COALITION COMPOUND BILLETING

Who is the contractor on this award?

The obligated recipient is WSP USA ENVIRONMENT & INFRASTRUCTURE INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $53.6 million.

What is the period of performance?

Start: 2012-04-16. End: 2021-05-31.

What is the track record of WSP USA Environment & Infrastructure Inc. with the Department of Defense on similar construction projects?

WSP USA Environment & Infrastructure Inc. has a substantial history of working with the Department of Defense on various infrastructure and construction projects. As a large, global engineering and professional services consultancy, they have been involved in numerous large-scale endeavors, including military base development, facility upgrades, and environmental services. Their track record typically includes managing complex projects with significant budgets and long durations. Specific to construction, they often act as prime contractors or major subcontractors, leveraging their expertise in design, engineering, and project management. Reviewing their past performance ratings and any documented issues on similar DoD contracts would provide a clearer picture of their reliability and effectiveness in executing projects of this magnitude and complexity.

How does the awarded amount of $53.6 million compare to the estimated cost or budget for this type of construction project?

Without access to the government's initial cost estimates or detailed project specifications, a direct comparison of the awarded amount to the budget is challenging. However, the fact that the contract was awarded under full and open competition with 10 bids suggests that the awarded price of $53.6 million was deemed competitive and likely within a reasonable range of the government's expectations. The firm-fixed-price nature of the contract implies that the contractor took on the risk of cost overruns. To provide a more precise benchmark, one would need to analyze the scope of work, the specific types of facilities being constructed, the geographic location (which impacts labor and material costs), and compare these factors to similar projects awarded by the DoD or other federal agencies over the same period.

What are the primary risk indicators associated with this contract, considering its long duration and firm-fixed-price structure?

The primary risk indicators for this contract stem from its long duration (over 9 years) and firm-fixed-price (FFP) structure. For the government, the main risk is that the FFP might have been set too high if the contractor's cost projections were overly conservative, or if market conditions change drastically over the project's lifespan, leading to potential disputes or claims if not managed carefully. For the contractor, the risk lies in accurately estimating all costs over such an extended period, including potential inflation, labor shortages, material price volatility, and unforeseen site conditions. Poor project management by the contractor could lead to delays and quality issues, even under an FFP contract. Robust oversight, clear performance metrics, and proactive risk management by the contracting officer's representative are crucial to mitigate these risks.

How effective is the firm-fixed-price contract type in ensuring value for money for this specific construction project?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money for construction projects when the scope of work is well-defined and risks can be reasonably anticipated. For this $53.6 million contract with the Department of the Army, the FFP structure places the primary burden of cost control and risk management on the contractor, WSP USA. This incentivizes the contractor to perform efficiently and manage resources effectively to maintain profitability. The government benefits from cost certainty, as the final price is largely fixed, barring significant contract modifications. However, the effectiveness hinges on the initial pricing accuracy and the contractor's ability to navigate potential cost fluctuations over the project's long duration. If the initial price was inflated due to perceived risks, the value for money might be less optimal than if a more competitive bidding process drove the price down.

What are the historical spending patterns for commercial and institutional building construction by the Department of the Army?

The Department of the Army consistently allocates significant funds towards the construction and maintenance of its facilities, which fall under the broad category of commercial and institutional buildings. Historical spending patterns reveal a substantial and ongoing investment in infrastructure to support military readiness, personnel housing, training facilities, and operational command centers. This spending fluctuates based on geopolitical needs, modernization initiatives, and infrastructure degradation. The Army's budget typically includes specific line items for military construction (MILCON), which encompass a wide array of building projects. Analyzing past five to ten years of Army appropriations and contract awards within the NAICS code 236220 (Commercial and Institutional Building Construction) would show a trend of multi-billion dollar annual expenditures, with individual contracts often reaching tens or hundreds of millions of dollars, especially for major base developments or upgrades.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912ER10R0089

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 751 ARBOR WAY, STE 180, BLUE BELL, PA, 19422

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

Financial Breakdown

Contract Ceiling: $53,566,601

Exercised Options: $53,566,601

Current Obligation: $53,566,601

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912ER11D0002

IDV Type: IDC

Timeline