Army Awards $72.5M for Engineering Services to Stone & Webster, Inc. with Full and Open Competition

Contract Overview

Contract Amount: $72,504,104 ($72.5M)

Contractor: Aptim Federal Services, LLC

Awarding Agency: Department of Defense

Start Date: 2003-07-25

End Date: 2012-04-30

Contract Duration: 3,202 days

Daily Burn Rate: $22.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200310!001396!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0006 !A!N! !N!0006 !20030725!20051231!072398084!072398084!180038382!N!STONE & WEBSTER, INC !100 TECHNOLOGY CENTER DRIV!STOUGHTON !MA!02072!67980!021!25!STOUGHTON !NORFOLK !MASS !+000007300000!N!N!000000000000!AD21!RDTE/SERVICES-BASIC RESEARCH !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!U!2!004!B! !C!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: CANTON, NORFOLK County, MASSACHUSETTS, 02021

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $72.5 million to APTIM FEDERAL SERVICES, LLC for work described as: 200310!001396!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0006 !A!N! !N!0006 !20030725!20051231!072398084!072398084!180038382!N!STONE & WEBSTER, INC !100 TECHNOLOGY CENTER DRIV!STOUGHTON !MA!02072!67980!021!25!STOUGHTON !NORFOLK !MASS !+000007300000!N!N!000000000000!AD21… Key points: 1. Contract awarded for engineering services to support Army industrial operations. 2. Significant value of $72.5 million over a 9-year period. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The sector is Defense, specifically engineering services. 5. Risk associated with long-term contracts and potential cost overruns.

Value Assessment

Rating: fair

The contract value of $72.5 million over 9 years averages to approximately $8 million annually. Benchmarking this against similar large-scale engineering service contracts for defense industrial operations is difficult without more specific service details, but the duration suggests a potentially complex and ongoing need.

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 were likely considered. This method generally promotes price discovery and can lead to more competitive pricing compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process, potentially reducing overall costs.

Public Impact

Taxpayers benefit from a competitive bidding process for essential defense engineering services. The Army secures long-term support for its industrial operations. Potential for job creation in the engineering and support sectors. Ensures continued operational capability for Army industrial facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration increases risk of scope creep and cost escalation.
Cost-plus fixed fee contract type can incentivize contractor to increase costs.
Potential for performance issues over a long contract term.

Positive Signals

Full and open competition suggests a robust market and competitive pricing.
Contract supports critical Army industrial operations.
Experienced contractor likely selected through competitive process.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense industrial operations. Spending in this area is crucial for maintaining military readiness and infrastructure. Benchmarks for such long-term, large-value contracts are highly variable based on specific requirements and the defense landscape.

Small Business Impact

While the contract was awarded to Stone & Webster, Inc., there is no explicit information provided regarding small business participation or subcontracting goals. Further investigation would be needed to determine the extent of small business involvement.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency (DCMA), indicating established oversight. However, the long duration and cost-plus fixed fee structure warrant continuous monitoring to ensure cost control and performance align with objectives.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration (over 9 years).
Potential for cost overruns and scope creep.
Lack of specific detail on services provided.
No explicit mention of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.5 million to APTIM FEDERAL SERVICES, LLC. 200310!001396!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0006 !A!N! !N!0006 !20030725!20051231!072398084!072398084!180038382!N!STONE & WEBSTER, INC !100 TECHNOLOGY CENTER DRIV!STOUGHTON !MA!02072!67980!021!25!STOUGHTON !NORFOLK !MASS !+000007300000!N!N!000000000000!AD21!RDTE/SERVICES-BASIC RESEARCH !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!U!2!004!B! !C!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Who is the contractor on this award?

The obligated recipient is APTIM FEDERAL SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $72.5 million.

What is the period of performance?

Start: 2003-07-25. End: 2012-04-30.

What specific engineering services are being provided under this contract, and how do they align with current Army industrial modernization needs?

The provided data indicates 'RDTE/SERVICES-BASIC RESEARCH' and 'Engineering Services' (NAICS 541330) as the service type. To assess alignment, a detailed review of the contract's Statement of Work (SOW) is necessary. This would reveal if the services directly support current Army industrial modernization goals, such as upgrading facilities, developing new manufacturing processes, or enhancing research capabilities, rather than routine maintenance or outdated technologies.

Given the Cost Plus Fixed Fee (CPFF) contract type and a duration of over 9 years, what are the primary risks to cost control and potential for contractor inefficiency?

The CPFF structure inherently carries a risk of cost escalation, as the contractor is reimbursed for allowable costs plus a fixed fee. Over a long duration like 9 years, the risk of scope creep, unforeseen technical challenges, and potential inefficiencies increases. Robust oversight, clear performance metrics, and stringent change control processes are critical to mitigate these risks and ensure the government receives value for its investment.

How effectively did the 'full and open competition' process ensure the best value was achieved for these long-term engineering services, considering the contractor's performance history?

Full and open competition is designed to maximize value by encouraging broad participation and price comparison. To assess effectiveness, one would need to examine the number of bids received, the range of proposed prices, and the evaluation criteria used. Additionally, reviewing Stone & Webster's past performance on similar contracts, particularly regarding cost adherence and quality of service, would provide further insight into whether the chosen contractor truly represented the best value over the contract's extended period.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chicago Bridge & Iron Company N.V. (UEI: 386491765)

Address: 1725 DUKE ST, STE 400, ALEXANDRIA, VA, 22314

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAA0902D0006

IDV Type: IDC

Timeline