DoD's $24.6M Laboratory Equipment Planning contract awarded to Black & Veatch shows fair value with moderate competition
Contract Overview
Contract Amount: $24,639,832 ($24.6M)
Contractor: Black & Veatch Special Projects Corp.
Awarding Agency: Department of Defense
Start Date: 2013-04-05
End Date: 2018-05-04
Contract Duration: 1,855 days
Daily Burn Rate: $13.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: LABORATORY EQUIPMENT PLANNING IGF::OT::IGF
Plain-Language Summary
Department of Defense obligated $24.6 million to BLACK & VEATCH SPECIAL PROJECTS CORP. for work described as: LABORATORY EQUIPMENT PLANNING IGF::OT::IGF Key points: 1. Contract value of $24.6M over 5 years suggests a steady, long-term need for specialized planning services. 2. The contract was competed after excluding sources, indicating a potentially limited but justified competition. 3. Performance period of 1855 days (approx. 5 years) aligns with typical project lifecycles for large-scale planning. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code covers a broad range of activities, making direct benchmarking challenging. 5. The cost-plus-fixed-fee (CPFF) contract type allows for flexibility but requires careful oversight to manage costs. 6. No small business set-aside was utilized, suggesting the primary contractor was selected based on capability rather than size preference.
Value Assessment
Rating: fair
The contract's total value of $24.6 million over approximately five years averages to about $4.9 million annually. Benchmarking this against similar large-scale laboratory planning and equipment integration contracts is difficult due to the specialized nature of the services. However, the cost-plus-fixed-fee structure implies that costs were expected to fluctuate, with the fixed fee representing the contractor's profit. Without detailed cost breakdowns, a precise value-for-money assessment is limited, but the duration and scope suggest a reasonable, albeit not exceptionally low, price point for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the government intended to compete the contract, certain sources were excluded from the outset, possibly due to specific technical requirements, prior performance, or security concerns. The number of bidders is not specified, but the exclusion of sources suggests a narrower competitive pool than a truly open competition. This approach can sometimes lead to higher prices if the excluded sources represent significant competition.
Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers compared to a scenario with broader participation. However, if the exclusions were justified by specific needs, the resulting price might still represent fair value for the specialized expertise required.
Public Impact
The primary beneficiary is the Department of Defense, specifically the Defense Threat Reduction Agency, which receives critical planning support for laboratory equipment. The services delivered likely involve strategic planning, procurement support, installation oversight, and integration of complex laboratory systems. The geographic impact is likely concentrated within DoD facilities where new or upgraded laboratories are being established or modernized. Workforce implications include the need for specialized technical planners and project managers, potentially both within the contractor's organization and the government's oversight teams.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition could potentially inflate costs.
- Cost-plus-fixed-fee contracts require diligent oversight to prevent cost overruns.
- The broad NAICS code makes it difficult to ascertain if the most specialized expertise was secured.
Positive Signals
- Long contract duration suggests a stable, ongoing need and successful performance.
- Award to a known entity (Black & Veatch) implies a level of trust and past performance.
- The fixed fee component provides some cost predictability for the government.
Sector Analysis
The contract falls within the Professional, Scientific, and Technical Services sector, specifically under the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990). This sector is characterized by a wide array of specialized expertise. Spending in this area often supports government research, development, and operational planning. Comparable spending benchmarks are difficult to establish precisely due to the niche nature of laboratory equipment planning, but large federal contracts in professional services can range from millions to billions of dollars annually.
Small Business Impact
The contract data indicates that this was not a small business set-aside (ss: false, sb: false). This suggests that the requirement was likely beyond the scope or capability of small businesses, or that the government sought specialized expertise available from larger firms. There is no explicit information on subcontracting plans, but for a contract of this nature and value, it is plausible that Black & Veatch may engage small businesses for specific components or support services, though this is not guaranteed.
Oversight & Accountability
Oversight for this contract would primarily reside with the contracting officer and the Defense Contract Management Agency (DCMA) within the Department of Defense. The cost-plus-fixed-fee structure necessitates rigorous monitoring of expenditures to ensure costs are reasonable and allocable to the contract. Transparency is typically managed through contract reporting systems and periodic reviews. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Defense Threat Reduction Agency (DTRA) Operations Support
- Department of Defense Facilities Planning
- Scientific and Technical Services Contracts
- Laboratory Modernization Projects
- Professional Services for Government Agencies
Risk Flags
- Limited competition raises concerns about potential price inflation.
- Cost-plus-fixed-fee contracts require robust government oversight to manage costs effectively.
- The broad NAICS code may obscure the specific expertise procured.
Tags
defense, department-of-defense, defense-threat-reduction-agency, professional-scientific-and-technical-services, laboratory-equipment-planning, cost-plus-fixed-fee, full-and-open-competition-after-exclusion-of-sources, delivery-order, large-contract, professional-services, scientific-services, technical-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.6 million to BLACK & VEATCH SPECIAL PROJECTS CORP.. LABORATORY EQUIPMENT PLANNING IGF::OT::IGF
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 $24.6 million.
What is the period of performance?
Start: 2013-04-05. End: 2018-05-04.
What is the track record of Black & Veatch with the Department of Defense for similar services?
Black & Veatch Special Projects Corp. has a significant history of working with the Department of Defense across various large-scale projects, including infrastructure, environmental services, and specialized technical support. While specific data on their past performance solely on laboratory equipment planning for DoD isn't detailed here, their extensive experience with complex government contracts suggests a strong capability. Analyzing past performance reviews and contract awards would provide a clearer picture of their reliability and expertise in delivering similar services within the defense sector. Their ability to secure this contract, even with limited competition, implies a positive assessment of their prior work by the agency.
How does the average annual cost of this contract compare to similar large-scale laboratory planning projects within the federal government?
The average annual cost of this contract is approximately $4.9 million ($24.6M / 5 years). Comparing this to similar large-scale laboratory planning projects across the federal government is challenging due to the highly specialized nature of laboratory equipment planning and the variability in project scope, complexity, and duration. Contracts for major federal laboratory construction or modernization can easily run into tens or hundreds of millions of dollars. This $4.9M annual figure appears moderate for a significant planning role within the DoD, suggesting it might cover a specific phase or a set of facilities rather than an entire new base laboratory build-out. Without more granular data on the specific deliverables and the scale of the laboratories involved, a precise benchmark is difficult.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for laboratory equipment planning?
The primary risks associated with a CPFF contract for laboratory equipment planning revolve around cost control and contractor incentive. For the government, the main risk is that the contractor may not be sufficiently incentivized to control costs, as the fixed fee is guaranteed regardless of the final project cost (within reason). This can lead to cost overruns if the contractor is inefficient or if unforeseen issues arise, which are then passed on to the government. For the contractor, the risk lies in accurately estimating the costs to ensure the fixed fee remains profitable. If costs exceed estimates significantly, their profit margin shrinks. Effective oversight, detailed cost tracking, and clear definition of work are crucial to mitigate these risks.
What is the potential impact of 'excluding sources' on the overall effectiveness and cost of the procurement?
The 'full and open competition after exclusion of sources' clause indicates that while the competition was intended to be broad, certain potential bidders were disqualified from the start. This exclusion could stem from specific technical requirements, security clearances, past performance issues, or proprietary technology needs. The impact on effectiveness can be positive if the excluded sources were genuinely unsuitable, ensuring the awardee possesses the precise capabilities needed. However, it can negatively impact cost by reducing the number of competitive bids, potentially leading to a higher price than if a wider pool of bidders had participated. It also raises questions about whether the exclusion was fully justified and transparent.
How does the $24.6M total obligation relate to historical spending patterns for laboratory equipment planning within the Defense Threat Reduction Agency?
Analyzing the $24.6 million total obligation requires context within the Defense Threat Reduction Agency's (DTRA) broader budget and historical spending on laboratory infrastructure and planning. DTRA's mission involves countering weapons of mass destruction, which necessitates advanced laboratory capabilities. Therefore, significant investment in planning and equipping these facilities is expected. Without access to DTRA's historical procurement data for similar services, it's difficult to definitively state whether $24.6M represents a typical, increased, or decreased level of spending. However, given the specialized and critical nature of DTRA's work, this amount suggests a substantial, long-term commitment to maintaining and upgrading its laboratory assets.
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: $28,118,371
Exercised Options: $24,741,392
Current Obligation: $24,639,832
Subaward Activity
Number of Subawards: 24
Total Subaward Amount: $25,071,688
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: 2013-04-05
Current End Date: 2018-05-04
Potential End Date: 2018-05-04 00:00:00
Last Modified: 2022-12-06
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