Bechtel National awarded $68.2M contract for Other Special Studies & Analyses, primarily for Russia-related support

Contract Overview

Contract Amount: $68,192,466 ($68.2M)

Contractor: Bechtel National, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-09-11

End Date: 2009-01-31

Contract Duration: 1,969 days

Daily Burn Rate: $34.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: 200312!000718!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0011 !A!N! !N!0010 !20030911!20041215!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE STREET !SAN FRANCISCO !CA!94105!* !* !RS!* !* !RUSSIA !+000015807424!N!N!000000000000!B599!OTHER SPECIAL STUDIES & ANALYSES !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !541690!E! !5!B!M! !A!D!20070828!B! ! !N!Z!A!U!R!2!003!F! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $68.2 million to BECHTEL NATIONAL, INC. for work described as: 200312!000718!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0011 !A!N! !N!0010 !20030911!20041215!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE STREET !SAN FRANCISCO !CA!94105!* !* !RS!* !* … Key points: 1. Contract value of $68.2 million for specialized analytical services. 2. Competition was full and open, suggesting a competitive bidding process. 3. Contract duration of nearly 5 years indicates a significant, long-term requirement. 4. The primary focus on Russia suggests a strategic national security interest. 5. The contract type (Cost Plus Award Fee) allows for performance-based incentives. 6. The North American Industry Classification System (NAICS) code 541990 covers a broad range of professional services.

Value Assessment

Rating: fair

The contract value of $68.2 million over approximately five years averages to about $13.6 million per year. Benchmarking this against similar contracts for specialized analytical services is difficult without more specific details on the services rendered. However, the duration and scope suggest a substantial investment. The Cost Plus Award Fee (CPAF) structure implies that the contractor's performance is monitored and can influence the final payment, which is a common approach for complex services where outcomes are not entirely predictable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of three bidders (no) suggests a moderate level of competition for this specialized service. While three bidders is better than a sole-source award, a higher number of bidders would typically lead to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, potentially driving down prices and improving service quality through competitive pressure.

Public Impact

The primary beneficiary appears to be the Defense Threat Reduction Agency (DTRA), which is utilizing these services. The services delivered are categorized as 'Other Special Studies & Analyses', with a specific geographic focus on Russia. The contract likely supports national security objectives related to threat reduction and strategic analysis concerning Russia. Workforce implications are not explicitly detailed but would involve specialized analysts and researchers employed by Bechtel National, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The broad NAICS code (541990) makes it challenging to pinpoint the exact nature of the services and assess value for money without further detail.
The Cost Plus Award Fee (CPAF) contract type can lead to higher costs if award fees are consistently maximized, even if base costs are controlled.
The specific deliverables and performance metrics are not detailed, making it difficult to assess the effectiveness of the services provided.
The geographic focus on Russia, while strategic, may also indicate a high-risk environment for operations and analysis.

Positive Signals

The contract was awarded through full and open competition, indicating a fair and transparent procurement process.
The Cost Plus Award Fee (CPAF) structure incentivizes contractor performance and can lead to better outcomes if managed effectively.
The contractor, Bechtel National, Inc., is a large and established company with significant experience in government contracting.
The contract duration suggests a stable and ongoing requirement, providing continuity for critical analytical support.

Sector Analysis

This contract falls under the 'Professional, Scientific, and Technical Services' sector, specifically within the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990). This sector is characterized by a wide range of specialized expertise, often supporting government agencies in areas like research, analysis, consulting, and technical support. The market size for such services is substantial, driven by complex government needs, particularly in defense and national security. This contract's focus on Russia aligns with a critical area of geopolitical analysis and threat assessment within the broader defense spending landscape.

Small Business Impact

There is no indication that this contract involved small business set-asides. As a large prime contract awarded to Bechtel National, Inc., a major corporation, the primary impact on small businesses would likely be through subcontracting opportunities. However, the nature of 'Other Special Studies & Analyses' may not lend itself to extensive subcontracting, or if it does, the specific subcontractors are not detailed here. Further analysis would be needed to determine if small businesses are participating in the supply chain for this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The Department of Defense (DoD) contracting regulations and the terms of the Cost Plus Award Fee contract itself provide the framework for accountability. Transparency is facilitated by the contract award data, but detailed performance reports and specific oversight activities are typically not publicly disclosed for national security-related contracts.

Related Government Programs

Defense Threat Reduction Agency (DTRA) Operations
National Security Analysis Contracts
Russia-Specific Intelligence and Analysis
Geopolitical Risk Assessment Services
Cost Plus Award Fee Contracts
Professional, Scientific, and Technical Services

Risk Flags

Potential for cost creep due to CPAF structure if not tightly managed.
Lack of specific service details hinders precise value assessment.
Long contract duration may risk obsolescence if requirements change.
Geopolitical focus on Russia implies inherent national security risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $68.2 million to BECHTEL NATIONAL, INC.. 200312!000718!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0011 !A!N! !N!0010 !20030911!20041215!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE STREET !SAN FRANCISCO !CA!94105!* !* !RS!* !* !RUSSIA !+000015807424!N!N!000000000000!B599!OTHER SPECIAL STUDIES & ANALYSES !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !541690!E! !5!B!M! !A!D!20070828!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 Contract Management Agency).

What is the total obligated amount?

The obligated amount is $68.2 million.

What is the period of performance?

Start: 2003-09-11. End: 2009-01-31.

What specific analytical services were provided under this contract, and how do they align with DTRA's mission?

The contract data indicates the service category as 'OTHER SPECIAL STUDIES & ANALYSES' (PSC code B599) and specifies a geographic focus on 'RUSSIA'. While the precise nature of the studies is not detailed, it is reasonable to infer that these services supported DTRA's mission of countering weapons of mass destruction (WMD) and related threats. This could include analysis of Russian WMD programs, proliferation risks, arms control treaty compliance, or strategic military developments. The 'Cost Plus Award Fee' (CPAF) structure suggests that the services involved complex tasks where performance outcomes could be measured and rewarded, implying a need for specialized expertise in areas relevant to national security and threat reduction concerning Russia.

How does the awarded amount of $68.2 million compare to similar contracts for Russia-focused analytical support?

Direct comparison of the $68.2 million award to similar contracts is challenging without more granular data on the specific services and timeframes of comparable awards. However, the duration of nearly five years (September 2003 to January 2009) means the average annual value was approximately $13.6 million. Contracts supporting national security analysis, especially those with a focus on specific geopolitical adversaries like Russia, can command significant funding due to the specialized expertise, security clearances, and sensitive nature of the work involved. Given the strategic importance of monitoring Russia, this funding level appears plausible for comprehensive analytical support over an extended period.

What are the key risks associated with a Cost Plus Award Fee (CPAF) contract for specialized analysis?

The primary risk with a CPAF contract is the potential for cost overruns if the award fee criteria are not tightly managed or are overly generous. While CPAF aims to incentivize performance, it can lead to higher overall costs compared to fixed-price contracts if the contractor consistently achieves high performance ratings. For specialized analysis, another risk is ensuring that the defined performance metrics accurately capture the true value and effectiveness of the analytical work, which can be subjective. There's also a risk that the focus shifts towards achieving award fee targets rather than the most critical analytical insights if not properly overseen.

What is Bechtel National, Inc.'s track record with government contracts, particularly in defense and analysis?

Bechtel National, Inc. is a subsidiary of the Bechtel Group, a major global engineering, construction, and project management company with extensive experience working for the U.S. government, including the Department of Defense. They have a long history of managing large, complex projects, often in sensitive or challenging environments. While their primary reputation is in large-scale engineering and construction, they also undertake significant program management and technical support roles for government agencies. Their involvement in defense-related contracts, including those requiring specialized analysis or support services, is substantial, indicating a proven capability to handle government requirements.

How has spending on 'Other Special Studies & Analyses' related to Russia evolved over time?

Historical spending data specifically isolating 'Other Special Studies & Analyses' related to Russia is not readily available in this dataset. However, overall U.S. government spending on defense and intelligence analysis related to Russia has fluctuated significantly based on geopolitical conditions. Periods of heightened tension or specific strategic initiatives (like WMD threat reduction) typically see increased investment in analytical capabilities. This contract, awarded in 2003, falls within a period where understanding and countering potential threats from Russia was a significant focus for U.S. national security agencies like DTRA.

What are the implications of the contract's duration (1969 days) for program continuity and potential cost efficiencies?

A contract duration of 1969 days (approximately 5.4 years) provides significant program continuity, allowing for the development of deep expertise and long-term strategic insights related to Russia. This stability can be cost-efficient by reducing the overhead associated with frequent contract transitions, recompeting processes, and onboarding new personnel. It allows the contractor to build institutional knowledge and potentially refine analytical methodologies over time. However, a very long duration also carries the risk of the contract becoming outdated if the geopolitical landscape or analytical requirements shift significantly, necessitating contract modifications or termination.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bechtel Group, Inc.

Address: 5275 WESTVIEW DR, FREDERICK, MD, 21703

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: DTRA0101D0011

IDV Type: IDC

Timeline