Army awards $11.3M for Fort Campbell utilities, with 3 bids received

Contract Overview

Contract Amount: $11,321,299 ($11.3M)

Contractor: CH2M Hill, Inc

Awarding Agency: Department of Defense

Start Date: 2004-07-01

End Date: 2006-08-04

Contract Duration: 764 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE

Sector: Other

Official Description: TAS::21 2020::TAS:: 200412!001276!2100!W91248!ACA, FORT CAMPBELL !DACA8700D0043 !A!N! !N!0005 ! !20040701!20050630!804427656!804427656!027620574!N!CH2M HILL CONSTRUCTORS, INC !9191 SOUTH JAMAICA STREET !ENGLEWOOD !CO!80112!28468!047!21!FORT CAMPBELL !CHRISTIAN !KENTUCKY !+000011294436!N!N!000000000000!Y249!OTHER UTILITIES !S1 !SERVICES !000 !* !237110!E! !5!A!S! ! !D!20050630!B! ! !A! !A!U!A!1!001!B! !C!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!Y! !N! ! ! !W34GM1!0001! !

Place of Performance

Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $11.3 million to CH2M HILL, INC for work described as: TAS::21 2020::TAS:: 200412!001276!2100!W91248!ACA, FORT CAMPBELL !DACA8700D0043 !A!N! !N!0005 ! !20040701!20050630!804427656!804427656!027620574!N!CH2M HILL CONSTRUCTORS, INC !9191 SOUTH JAMAICA STREET !ENGLEWOOD !CO!80112!28468!047!21!FORT … Key points: 1. Contract value represents a significant investment in essential base infrastructure. 2. Competition dynamics suggest a moderately contested procurement process. 3. Performance period spans over two years, indicating a need for sustained services. 4. The award falls within the engineering services sector, crucial for facility management. 5. Geographic concentration of the work at Fort Campbell, Kentucky.

Value Assessment

Rating: good

The contract value of $11.3 million for engineering services at Fort Campbell appears reasonable given the duration and scope. Benchmarking against similar utility and infrastructure support contracts for large military installations would provide further context. The fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. However, without specific details on the services rendered and their complexity, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bids received. The presence of multiple bidders indicates a degree of market interest and potential for competitive pricing. However, with only three bids, the level of competition might be considered moderate rather than robust. This suggests that while price discovery occurred, there may have been limited opportunities for the government to secure the absolute lowest price compared to a scenario with a larger number of competing firms.

Taxpayer Impact: A moderate level of competition means taxpayers likely benefited from a competitive price, but there's a possibility that more bidders could have driven prices even lower.

Public Impact

Fort Campbell military personnel and their families benefit from reliable utility services. The contract ensures the continued operation and maintenance of critical infrastructure at a major Army installation. Workforce implications include potential employment opportunities for skilled engineers and technicians in Kentucky. Geographic impact is concentrated at Fort Campbell, Kentucky, supporting regional economic activity through contractor operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen complexities in utility systems.
Dependence on a single contractor for critical base utilities could pose a risk if performance issues arise.
Limited competition (3 bidders) may have resulted in a higher-than-optimal price.

Positive Signals

Awarded under full and open competition, ensuring a broad market solicitation.
Fixed-price contract type shifts cost risk to the contractor.
Contract duration of over two years suggests a stable and predictable service provision.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a vital component of the broader construction and facilities management market. The federal government is a significant consumer of engineering services, particularly for maintaining and upgrading its vast infrastructure, including military bases. Spending in this sector is often driven by modernization efforts, new construction, and ongoing operational support. Comparable spending benchmarks would involve looking at other large-scale utility and infrastructure support contracts awarded to military installations of similar size and complexity.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to have a small business subcontracting plan explicitly mentioned. The prime contractor, CH2M Hill Constructors, Inc., is a large entity. This suggests that the primary focus was on securing the necessary expertise and capacity for a large-scale utility project, potentially limiting direct opportunities for small businesses as prime contractors on this specific award. However, the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army contracting and project management offices at Fort Campbell. The contract's fixed-price nature provides some cost control. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected. The duration and value suggest regular performance reviews and milestone tracking would be in place.

Related Government Programs

Fort Campbell Base Operations Support
Military Construction Projects
Department of Defense Utility Privatization Programs
Army Facilities Engineering Services

Risk Flags

Moderate competition level may have impacted final price.
Potential for contractor performance issues over the contract duration.
Lack of explicit small business set-aside or subcontracting noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.3 million to CH2M HILL, INC. TAS::21 2020::TAS:: 200412!001276!2100!W91248!ACA, FORT CAMPBELL !DACA8700D0043 !A!N! !N!0005 ! !20040701!20050630!804427656!804427656!027620574!N!CH2M HILL CONSTRUCTORS, INC !9191 SOUTH JAMAICA STREET !ENGLEWOOD !CO!80112!28468!047!21!FORT CAMPBELL !CHRISTIAN !KENTUCKY !+000011294436!N!N!000000000000!Y249!OTHER UTILITIES !S1 !SERVICES !000 !* !237110

Who is the contractor on this award?

The obligated recipient is CH2M HILL, 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 $11.3 million.

What is the period of performance?

Start: 2004-07-01. End: 2006-08-04.

What specific engineering services were included in this $11.3 million contract for Fort Campbell?

The provided data indicates the contract falls under NAICS code 541330 (Engineering Services) and the Product Service Code (PSC) is Y249 (OTHER UTILITIES). While the exact breakdown of services isn't detailed, this typically encompasses a range of activities related to the design, maintenance, repair, and management of utility systems. This could include electrical distribution, water treatment and distribution, wastewater management, heating, ventilation, and air conditioning (HVAC) systems, and potentially telecommunications infrastructure. The contract's duration of over two years suggests ongoing operational support and maintenance rather than a one-time design or construction project.

How does the number of bidders (3) compare to typical competition levels for similar Army utility contracts?

For large-scale engineering and utility support contracts at major military installations, receiving three bids under full and open competition is a moderate level of engagement. While it demonstrates that the opportunity attracted market interest, it's not considered highly competitive. Highly competitive procurements often see five or more bids, which generally leads to more robust price discovery and potentially lower prices for the government. Conversely, fewer than three bids might raise concerns about market capacity or the attractiveness of the solicitation. Therefore, three bidders suggest a reasonable, but not exceptional, level of competition for a contract of this nature and value.

What is the significance of the fixed-price contract type (PT: FIXED PRICE) for this award?

The fixed-price contract type is significant because it shifts the majority of the financial risk from the government to the contractor, CH2M Hill Constructors, Inc. Under a fixed-price agreement, the contractor is obligated to perform the specified work for a predetermined price, regardless of their actual costs. If the contractor's costs exceed the agreed-upon price, they absorb the loss. Conversely, if their costs are lower, they retain the profit. This structure incentivizes the contractor to manage costs efficiently and complete the work within budget, which is generally advantageous for the government in terms of cost certainty and predictability.

What does the contract duration (DUR: 764 days) imply about the nature of the services provided?

A contract duration of 764 days, which is approximately two years and one month, implies that the services required are ongoing and necessitate a sustained effort rather than a short-term, project-specific task. For utility services at a large installation like Fort Campbell, this duration suggests a need for continuous operation, maintenance, repair, and potentially minor upgrades to essential infrastructure. This extended period allows for a stable service provider, reduces the frequency of re-procurement actions, and enables the contractor to develop a deeper understanding of the base's specific utility needs and systems.

How does the contractor, CH2M Hill Constructors, Inc., fit into the broader landscape of federal engineering service providers?

CH2M Hill Constructors, Inc. (now part of Jacobs) has historically been a major player in the federal contracting space, particularly in engineering, construction, and environmental services. They have a significant track record of supporting large government projects, including infrastructure development and management for military installations, transportation systems, and environmental remediation. Their involvement in this Fort Campbell contract aligns with their established capabilities and past performance in providing essential services to government entities. Their size and experience suggest they possess the resources and expertise necessary to handle complex utility operations for a large military base.

What are the potential risks associated with awarding utility services to a single contractor for an extended period?

Awarding critical utility services to a single contractor for an extended period, as indicated by the 764-day duration, presents several potential risks. Firstly, there's a risk of vendor lock-in, where the government becomes highly dependent on the incumbent contractor, potentially reducing leverage in future negotiations. Secondly, performance degradation can occur over time if oversight is insufficient or if the contractor faces internal challenges. Thirdly, a lack of ongoing competition might disincentivize innovation or cost-saving measures by the contractor. Finally, unforeseen issues with the contractor's financial stability or operational capacity could disrupt essential services, impacting base operations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CH2M Hill Companies, Ltd. (UEI: 027620574)

Address: 9191 S JAMAICA ST, ENGLEWOOD, CO, 80112

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DACA8700D0043

IDV Type: IDC

Timeline