DoD's $51.4M Contract with Bechtel National for Threat Reduction Services Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $51,405,641 ($51.4M)
Contractor: Bechtel National, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-06-22
End Date: 2011-09-30
Contract Duration: 2,291 days
Daily Burn Rate: $22.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200510!502094!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0011 !A!N! !Y!0011 !02 !20050622!20060331!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE ST STE 1 !SAN FRANCISCO !CA!94105!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !-000000019830!N!N!000000000000!B599!OTHER SPECIAL STUDIES&ANALYSES !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !541690!E! !5!B!M!D!A!D!20070828!B! ! !N!Z!D!U!R!1!001!N!1B!Z!Y!Z! ! !N!C!N! ! ! !Z!Z!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 $51.4 million to BECHTEL NATIONAL, INC. for work described as: 200510!502094!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0011 !A!N! !Y!0011 !02 !20050622!20060331!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE ST STE 1 !SAN FRANCISCO !CA!94105!48376!059!51!MCLEAN !FAIR… Key points: 1. Contract awarded to Bechtel National, Inc. for $51.4 million. 2. Services fall under 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). 3. Awarded by the Defense Threat Reduction Agency (DTRA) under the Department of Defense. 4. Contract type is Cost Plus Award Fee, indicating performance-based incentives. 5. Full and open competition was utilized for this award.
Value Assessment
Rating: fair
The contract value is $51.4 million. Without specific benchmarks for similar threat reduction services, assessing the pricing relative to the market is difficult. The Cost Plus Award Fee structure suggests potential for cost overruns if performance incentives are not carefully managed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Cost Plus Award Fee structure can lead to higher costs if not tightly controlled, potentially impacting the effectiveness of price discovery.
Taxpayer Impact: The use of full and open competition is positive for taxpayer value. However, the Cost Plus Award Fee structure requires careful oversight to ensure costs remain reasonable and do not inflate the final taxpayer burden.
Public Impact
Supports national security by funding threat reduction activities. Engages a major defense contractor, Bechtel National, Inc. Funds services within the professional, scientific, and technical sector. Awarded by a key defense agency, DTRA.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure requires diligent oversight to control costs.
- Lack of specific performance metrics makes it hard to assess value for money.
- Long contract duration (2005-2011) could lead to scope creep or evolving needs.
Positive Signals
- Awarded under full and open competition, promoting a competitive environment.
- Contractor is a well-established entity in large-scale projects.
- Supports critical defense missions for national security.
Sector Analysis
This contract falls under professional, scientific, and technical services, specifically related to defense threat reduction. Spending in this sector can vary widely based on geopolitical factors and specific agency needs. Benchmarks are difficult without more granular service definitions.
Small Business Impact
The contract was awarded to Bechtel National, Inc., a large corporation. There is no indication of small business participation in this specific award based on the provided data.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a degree of transparency. However, the Cost Plus Award Fee structure necessitates robust oversight from the Defense Threat Reduction Agency to ensure cost control and effective performance.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Cost Plus Award Fee structure requires close monitoring.
- Potential for cost escalation due to award fee incentives.
- Broad service category may lack specific performance metrics.
- Long contract duration could lead to evolving requirements and scope creep.
Tags
all-other-professional-scientific-and-te, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.4 million to BECHTEL NATIONAL, INC.. 200510!502094!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0011 !A!N! !Y!0011 !02 !20050622!20060331!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE ST STE 1 !SAN FRANCISCO !CA!94105!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !-000000019830!N!N!000000000000!B599!OTHER SPECIAL STUDIES&ANALYSES !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !541690!E! !5!B!M!D!A!D!20070
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 $51.4 million.
What is the period of performance?
Start: 2005-06-22. End: 2011-09-30.
What specific threat reduction activities does this contract cover, and how do they align with DTRA's mission?
The contract is categorized under 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) and awarded by the Defense Threat Reduction Agency (DTRA). While the exact nature of 'threat reduction' is broad, it typically involves activities aimed at mitigating or eliminating weapons of mass destruction (WMD) threats, including non-proliferation, counter-terrorism, and arms control support. The alignment with DTRA's mission is inherent in the agency's name and focus on reducing global WMD threats.
How does the Cost Plus Award Fee structure impact the potential for cost overruns and taxpayer risk?
The Cost Plus Award Fee (CPAF) structure reimburses the contractor for allowable costs plus a base fee, plus an award fee that is earned based on performance. This structure incentivizes performance but also carries a risk of cost overruns if performance targets are set too high or if costs are not rigorously managed. Taxpayers bear the risk of higher-than-expected costs if the award fee component drives up the total contract price significantly.
What is the strategic importance of this contract for the Defense Threat Reduction Agency's overall objectives?
This contract is strategically important as it directly supports the Defense Threat Reduction Agency's core mission of reducing and eliminating WMD threats globally. By engaging Bechtel National, Inc. through a competitive process, DTRA secures essential services to achieve its objectives, whether related to non-proliferation, counter-terrorism, or arms control. The scale of the contract ($51.4M) suggests a significant undertaking critical to national security.
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: ONLY ONE SOURCE
Offers Received: 1
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
Start Date: 2005-06-22
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2024-11-22
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