Bechtel National awarded $214M contract for engineering and technical services, with a significant portion allocated to Russia-related efforts
Contract Overview
Contract Amount: $214,432,573 ($214.4M)
Contractor: Bechtel National, Inc.
Awarding Agency: Department of Defense
Start Date: 2002-09-20
End Date: 2005-11-20
Contract Duration: 1,157 days
Daily Burn Rate: $185.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: 200212!000848!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0011 !A!N! !N!0005 !20020920!20070601!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE STREET !SAN FRANCISCO !CA!94105!* !* !RS!* !* !RUSSIA !+000078296922!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !5!B!M! !A!A!20070601!B! ! !A! !A!U!V!2!002!A! !Z!Y!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001!
Plain-Language Summary
Department of Defense obligated $214.4 million to BECHTEL NATIONAL, INC. for work described as: 200212!000848!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0011 !A!N! !N!0005 !20020920!20070601!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE STREET !SAN FRANCISCO !CA!94105!* !* !RS!* !* … Key points: 1. Contract value of $214.4 million for engineering and technical services. 2. Significant focus on Russia-related activities, indicating specialized geopolitical or security objectives. 3. Contract awarded to Bechtel National, Inc., a company with a substantial presence in large-scale engineering projects. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code suggests a broad scope of work. 5. A Cost Plus Incentive Fee (CPIF) contract type implies performance-based incentives for the contractor. 6. The contract duration of approximately 3 years suggests a medium-term project.
Value Assessment
Rating: good
The contract value of $214.4 million for engineering and technical services appears substantial, but without specific deliverables or benchmarks, a precise value-for-money assessment is challenging. The CPIF contract type suggests an attempt to align contractor incentives with performance, which can be a positive indicator. Benchmarking against similar large-scale, geographically specific technical services contracts would be necessary for a more definitive assessment of pricing and value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers. The presence of multiple bidders suggests a healthy market for these types of specialized engineering and technical services.
Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.
Public Impact
The primary beneficiaries are likely government agencies requiring specialized engineering and technical support, particularly those involved in international affairs or security. Services delivered encompass a broad range of professional, scientific, and technical expertise. A significant geographic impact is implied, with specific mention of efforts related to Russia. The contract supports a workforce of skilled engineers, scientists, and technical professionals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The broad NAICS code (541990) could lead to scope creep if not managed carefully.
- CPIF contracts can sometimes lead to cost overruns if incentive structures are not well-defined or if unforeseen challenges arise.
- Geopolitical sensitivities related to Russia could introduce unique risks and complexities.
Positive Signals
- Awarded through full and open competition, suggesting a competitive bidding process.
- Bechtel National, Inc. is a large, established contractor with experience in complex projects.
- The CPIF contract type aims to incentivize contractor performance and efficiency.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, which is a broad category encompassing a wide array of specialized expertise. The specific focus on engineering and technical services, with a notable emphasis on Russia, suggests a niche within this sector, potentially related to defense, security, or international cooperation programs. Comparable spending benchmarks would depend heavily on the specific nature of the technical services provided.
Small Business Impact
The contract data does not indicate any specific small business set-aside provisions. Given the large contract value and the nature of the services, it is unlikely that small businesses would be the primary awardees, though they may participate as subcontractors. Further analysis would be needed to determine subcontracting opportunities for small businesses.
Oversight & Accountability
Oversight mechanisms would typically involve contract officers, program managers, and potentially inspectors general within the Department of Defense. Transparency would depend on the classification of the services and the specific reporting requirements outlined in the contract. The CPIF structure implies performance monitoring to ensure incentive goals are met.
Related Government Programs
- Defense Threat Reduction Agency (DTRA) Programs
- International Security Cooperation Programs
- Engineering and Technical Support Services
- Geopolitical Risk Management Services
Risk Flags
- Potential for cost overruns inherent in CPIF contracts.
- Complexity and geopolitical sensitivity of Russia-related work.
- Broad scope indicated by NAICS code may require stringent management.
- Reliance on contractor's technical expertise for critical services.
Tags
defense, engineering-services, technical-services, russia, bechtel-national-inc, defense-threat-reduction-agency, cost-plus-incentive-fee, full-and-open-competition, professional-scientific-and-technical-services, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $214.4 million to BECHTEL NATIONAL, INC.. 200212!000848!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0011 !A!N! !N!0005 !20020920!20070601!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE STREET !SAN FRANCISCO !CA!94105!* !* !RS!* !* !RUSSIA !+000078296922!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !5!B!M! !A!A!20070601!B
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 $214.4 million.
What is the period of performance?
Start: 2002-09-20. End: 2005-11-20.
What specific technical services were provided under this contract, particularly those related to Russia?
The provided data indicates the contract was for 'ENGINEERING TECHNICAL SERVICES' under NAICS code 541990 ('All Other Professional, Scientific, and Technical Services'). The specific nature of these services, especially those pertaining to Russia, is not detailed in the summary data. However, given the awarding agency (Defense Threat Reduction Agency - DTRA), it is plausible that the services involved technical expertise related to arms control, non-proliferation, threat reduction, or security cooperation initiatives in Russia. This could range from technical assessments and consultations to project management and implementation support for specific programs.
How does the $214.4 million contract value compare to similar engineering and technical services contracts awarded by the Department of Defense?
The $214.4 million contract value is substantial for a single award in the engineering and technical services category. However, without knowing the precise scope and duration, direct comparisons are difficult. The Department of Defense awards numerous large contracts for technical services, often in the hundreds of millions or even billions of dollars, particularly for complex defense systems, research and development, or large-scale infrastructure projects. Contracts with a specific geopolitical focus, like those involving Russia, might command higher values due to specialized expertise and risk. Benchmarking would require identifying contracts with similar NAICS codes, contract types (CPIF), and geographic or programmatic focus.
What are the key risks associated with a Cost Plus Incentive Fee (CPIF) contract of this magnitude?
A primary risk with CPIF contracts is the potential for cost overruns if the incentive fee structure is not carefully designed or if unforeseen circumstances significantly increase costs. While CPIF aims to incentivize efficiency, the 'cost-plus' element means the government bears the cost of performance, plus a fee. For a $214.4 million contract, effective oversight is crucial to monitor expenditures, ensure performance targets are met, and prevent contractor inefficiencies from escalating costs. Risks also include potential disputes over performance metrics and the definition of 'incentive' goals, which could lead to contractor dissatisfaction or litigation.
What is the historical spending pattern for Bechtel National, Inc. with the Defense Threat Reduction Agency?
The provided data represents a single contract award to Bechtel National, Inc. from the Defense Threat Reduction Agency (DTRA). To assess historical spending patterns, a broader dataset encompassing all contracts awarded by DTRA to this contractor over time would be necessary. This would reveal the frequency, value, and types of services previously contracted. Without this broader context, it's impossible to determine if this $214.4 million award represents a typical engagement or an outlier in their relationship with DTRA.
What are the implications of the contract's focus on Russia for national security or foreign policy objectives?
A contract of this size and nature, awarded by the Defense Threat Reduction Agency and specifically mentioning efforts related to Russia, likely has direct implications for national security and foreign policy. It suggests a continued U.S. government interest in managing or mitigating threats originating from or related to Russia, potentially in areas such as nuclear non-proliferation, chemical or biological weapons security, or strategic stability. The 'engineering technical services' could support verification regimes, threat assessments, or cooperative threat reduction programs. The specific focus underscores the ongoing importance of addressing security challenges and maintaining dialogue or oversight in the U.S.-Russia context.
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) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Bechtel Group, Inc. (UEI: 094878980)
Address: 5275 WESTVIEW DR, FREDERICK, MD, 21703
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: DTRA0101D0011
IDV Type: IDC
Timeline
Start Date: 2002-09-20
Current End Date: 2005-11-20
Potential End Date: 2005-11-20 00:00:00
Last Modified: 2015-05-29
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