DoD's $78M PMO contract to Black & Veatch awarded via full and open competition after source exclusion
Contract Overview
Contract Amount: $77,941,840 ($77.9M)
Contractor: Black & Veatch Special Projects Corp.
Awarding Agency: Department of Defense
Start Date: 2012-09-20
End Date: 2020-10-13
Contract Duration: 2,945 days
Daily Burn Rate: $26.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: PMO (LEVEL OF EFFORT)
Plain-Language Summary
Department of Defense obligated $77.9 million to BLACK & VEATCH SPECIAL PROJECTS CORP. for work described as: PMO (LEVEL OF EFFORT) Key points: 1. Contract awarded using Cost Plus Fixed Fee pricing structure. 2. Contract duration of 2945 days indicates a long-term engagement. 3. The contract was competed full and open after exclusion of sources, suggesting a specific rationale for the exclusion. 4. The NAICS code 541990 points to a broad range of professional, scientific, and technical services. 5. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The contractor, Black & Veatch Special Projects Corp., has a significant contract value associated with this award.
Value Assessment
Rating: fair
Benchmarking the value for this specific contract is challenging without knowing the exact scope of 'PMO (LEVEL OF EFFORT)' services. The Cost Plus Fixed Fee (CPFF) structure can sometimes lead to higher costs if not carefully managed, as it incentivizes the contractor to incur costs to achieve a fixed fee. Comparing it to similar PMO support contracts within the Defense Threat Reduction Agency (DTRA) or across the Department of Defense (DoD) would be necessary for a more precise value assessment. The total award amount of approximately $78 million over nearly 8 years suggests a substantial, ongoing need for these services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be broad, certain sources were excluded from the outset. The specific reasons for this exclusion are not detailed in the provided data but could relate to security, specialized capabilities, or prior performance issues. The number of bidders is not specified, but the exclusion suggests a potentially smaller pool than a truly unrestricted full and open competition.
Taxpayer Impact: The exclusion of sources may limit the potential for the most competitive pricing if it unnecessarily restricts the bidder pool. Taxpayers benefit from competition, and any limitations on that competition could potentially lead to higher costs than if all qualified vendors were allowed to bid.
Public Impact
The primary beneficiaries are likely Department of Defense agencies requiring Program Management Office (PMO) support, particularly within the Defense Threat Reduction Agency. The services delivered are broadly categorized under 'All Other Professional, Scientific, and Technical Services,' suggesting a wide range of support functions. The geographic impact is likely focused on areas where DTRA operates or requires program management oversight, potentially global. Workforce implications include the direct employment of personnel by Black & Veatch Special Projects Corp. to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contracts can sometimes lead to cost overruns if not rigorously managed.
- The 'exclusion of sources' in the competition method warrants further investigation into the rationale and its impact on competition.
- The broad nature of 'All Other Professional, Scientific, and Technical Services' makes it difficult to assess specific performance metrics without more detail.
Positive Signals
- Awarded through a full and open competition (albeit with exclusions), indicating an effort to leverage market capabilities.
- The long contract duration (2945 days) suggests a stable, ongoing requirement and potentially a successful partnership.
- The contractor, Black & Veatch Special Projects Corp., is a known entity in government contracting, implying established capabilities.
Sector Analysis
The contract falls within the Professional, Scientific, and Technical Services sector, specifically under NAICS code 541990. This sector is characterized by a wide array of specialized services supporting government and commercial clients. The Department of Defense is a major consumer of these services, particularly for program management, engineering, and technical support. Comparable spending benchmarks would involve analyzing other large PMO support contracts awarded by DoD agencies to understand typical pricing and contract structures within this domain.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically tied to small business set-asides for this particular award. The primary contractor, Black & Veatch Special Projects Corp., is likely a large business. Any subcontracting opportunities would depend on the prime contractor's own subcontracting plan and the nature of the services required, rather than a mandated small business set-aside.
Oversight & Accountability
Oversight for this contract would primarily reside with the contracting agency, the Defense Threat Reduction Agency (DTRA), and the Department of Defense. Specific oversight mechanisms would include contract performance reviews, financial audits (especially given the CPFF structure), and adherence to program milestones. Accountability measures would be tied to the terms and conditions of the contract, including deliverables and performance standards. Transparency would be facilitated through contract databases like FPDS, though detailed performance reports are often not publicly available.
Related Government Programs
- Defense Threat Reduction Agency (DTRA) Support Services
- Program Management Support Contracts
- Professional, Scientific, and Technical Services (DoD)
- Cost Plus Fixed Fee Contracts
- Delivery Orders under IDIQ Contracts
Risk Flags
- Competition Method Justification
- Cost Overrun Potential (CPFF)
- Scope Definition Clarity
Tags
dod, defense-threat-reduction-agency, black-and-veatch-special-projects-corp, pmo-support, professional-scientific-and-technical-services, cost-plus-fixed-fee, delivery-order, full-and-open-competition-after-exclusion-of-sources, long-term-contract, non-small-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $77.9 million to BLACK & VEATCH SPECIAL PROJECTS CORP.. PMO (LEVEL OF EFFORT)
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 $77.9 million.
What is the period of performance?
Start: 2012-09-20. End: 2020-10-13.
What specific types of PMO services were provided under this contract?
The provided data categorizes this contract under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' and describes the work as 'PMO (LEVEL OF EFFORT).' This broad classification suggests a wide range of potential program management support activities. These could include, but are not limited to, project planning and scheduling, resource management, risk assessment and mitigation, budget tracking, technical analysis, documentation, and coordination among various stakeholders. Without more specific details from the contract's statement of work, it is difficult to pinpoint the exact nature of the PMO services. However, given the awarding agency (DTRA), the services likely relate to defense programs, potentially involving threat reduction initiatives, weapons systems development, or operational support.
How does the Cost Plus Fixed Fee (CPFF) pricing structure typically perform in terms of cost control compared to other contract types?
The Cost Plus Fixed Fee (CPFF) contract type is designed to provide the contractor with reimbursement for allowable costs plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or involves a high degree of uncertainty, making fixed-price contracts unsuitable. While the fixed fee provides some incentive for the contractor to control costs (as their profit is capped), it can also lead to cost overruns if the initial cost estimates are inaccurate or if the scope expands significantly. Unlike fixed-price contracts where the contractor bears the risk of cost overruns, in CPFF, the government ultimately bears the risk of cost increases above the estimated amount. This contrasts with firm-fixed-price (FFP) contracts, where the contractor assumes most of the cost risk, or cost-plus-incentive-fee (CPIF) contracts, which include mechanisms to adjust the fee based on performance against cost targets.
What are the implications of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' for taxpayers?
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation suggests that while the competition was intended to be broad, certain potential bidders were deliberately excluded. The reasons for exclusion are not specified but could include factors like national security, specialized technical requirements, or past performance issues. For taxpayers, this method presents a mixed bag. On one hand, it aims for competition, which generally drives down prices and improves value. On the other hand, if the exclusion is overly broad or not well-justified, it could limit the number of qualified bidders, potentially reducing the competitive pressure and leading to higher costs than a truly unrestricted competition. The key for taxpayers is understanding the justification for the exclusion; if it's necessary for program integrity or security, the potential cost increase might be acceptable. If not, it represents a potential inefficiency.
What is the typical duration for contracts of this nature within the DoD?
The duration of this contract is 2945 days, which is approximately 8 years. This is a relatively long duration for a single contract award, even for support services. Within the Department of Defense, contracts for professional, scientific, and technical services, especially those involving program management support, can often be long-term, particularly if they are awarded under indefinite-delivery/indefinite-quantity (IDIQ) vehicles or involve complex, ongoing programs. However, durations exceeding 5 years are less common for a single delivery order unless it's structured as a multi-year contract or has significant option periods. The length suggests a stable, long-term requirement for the services provided by Black & Veatch Special Projects Corp. to the Defense Threat Reduction Agency.
How does the contractor's track record with this agency influence the contract's value?
The provided data does not include specific details on Black & Veatch Special Projects Corp.'s prior track record with the Defense Threat Reduction Agency (DTRA) or the Department of Defense. However, in government contracting, a contractor's past performance is a critical evaluation factor. A strong track record of successful delivery, adherence to schedule and budget, and positive past performance reviews typically allows agencies to have greater confidence in the contractor's ability to meet requirements. This confidence can translate into more favorable contract terms or a smoother execution process. Conversely, a poor track record could lead to increased scrutiny, more stringent oversight, or higher perceived risk, potentially impacting the perceived value or even the pricing. Without specific performance data, it's assumed that the award reflects a satisfactory or better past performance assessment.
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
Solicitation ID: HDTRA107R0004
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $116,619,776
Exercised Options: $116,619,776
Current Obligation: $77,941,840
Subaward Activity
Number of Subawards: 102
Total Subaward Amount: $76,588,763
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDTRA108D0007
IDV Type: IDC
Timeline
Start Date: 2012-09-20
Current End Date: 2020-10-13
Potential End Date: 2020-10-13 00:00:00
Last Modified: 2025-12-04
More Contracts from Black & Veatch Special Projects Corp.
- Design and Construction Management Services TAS::72 1037::TAS — $87.6M (Agency for International Development)
- Biological Threat Reduction Program (btrp) Ukraine — $77.2M (Department of Defense)
- Program Management — $52.0M (Department of Defense)
- Program Mangement. Igf::ot::igf — $40.4M (Department of Defense)
- NEW Field Facility Sites — $33.7M (Department of Defense)
View all Black & Veatch Special Projects Corp. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)