DoD's $44.4M Contract for Technical Services Awarded to CH2M HILL, INC. Under Full and Open Competition
Contract Overview
Contract Amount: $44,391,224 ($44.4M)
Contractor: CH2M Hill, Inc
Awarding Agency: Department of Defense
Start Date: 2016-08-05
End Date: 2021-04-26
Contract Duration: 1,725 days
Daily Burn Rate: $25.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: IGF::OT::IGF WEST AFRICA
Plain-Language Summary
Department of Defense obligated $44.4 million to CH2M HILL, INC for work described as: IGF::OT::IGF WEST AFRICA Key points: 1. The contract value is substantial at $44.4 million, indicating significant service requirements. 2. CH2M HILL, INC. secured the award, suggesting strong capabilities in "All Other Professional, Scientific, and Technical Services." 3. The contract was awarded under full and open competition, promoting a competitive bidding process. 4. The sector is Defense, with the Defense Threat Reduction Agency as the awarding agency.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee (CPAF), which can incentivize performance but may lead to higher costs if not managed carefully. Benchmarking CPAF contracts requires detailed performance data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, allowing any qualified vendor to bid. This method generally fosters price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it aims to secure the best value through multiple bids.
Public Impact
Taxpayers benefit from a competitive bidding process for a significant defense contract. The Defense Threat Reduction Agency receives specialized technical services crucial for its mission. CH2M HILL, INC. gains substantial revenue and strengthens its position in the defense contracting market.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with CPAF contract type.
- Lack of specific performance metrics makes it difficult to assess value for money.
- Limited information on the specific services provided under 'All Other Professional, Scientific, and Technical Services'.
Positive Signals
- Awarded under full and open competition.
- Long contract duration (over 4 years) suggests a stable, ongoing need.
- Awarding agency is a key entity within the Department of Defense.
Sector Analysis
This contract falls under professional, scientific, and technical services, a broad category often supporting defense operations. Spending in this sector can vary widely based on national security needs and technological advancements.
Small Business Impact
The data does not indicate any specific set-aside for small businesses, suggesting that large businesses were likely the primary bidders and recipients of this contract.
Oversight & Accountability
The contract was awarded by the Department of Defense, which has established oversight mechanisms. However, the effectiveness of oversight for CPAF contracts depends on rigorous performance monitoring and auditing.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Contract type (CPAF) can lead to higher costs.
- Lack of specific service details limits full understanding of value.
- No indication of small business participation.
- Potential for performance-related cost increases under award fee structure.
Tags
all-other-professional-scientific-and-te, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.4 million to CH2M HILL, INC. IGF::OT::IGF WEST AFRICA
Who is the contractor on this award?
The obligated recipient is CH2M HILL, 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 $44.4 million.
What is the period of performance?
Start: 2016-08-05. End: 2021-04-26.
What specific technical services were provided under this contract, and how did they directly support the Defense Threat Reduction Agency's mission?
The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' While the awarding agency is the Defense Threat Reduction Agency, the specific deliverables are not detailed. These services likely encompass a range of specialized support, potentially including scientific analysis, technical consulting, or research and development activities crucial for threat reduction operations.
How effectively did the full and open competition process ensure competitive pricing and prevent potential cost overruns, especially given the Cost Plus Award Fee structure?
Full and open competition is designed to foster competitive pricing by allowing multiple vendors to bid. However, the Cost Plus Award Fee (CPAF) structure introduces inherent variability. While competition sets a baseline, the 'award fee' component means the final cost can exceed initial estimates if performance targets are met or exceeded, necessitating robust government oversight to manage costs effectively.
What is the long-term strategic value of this contract to the Department of Defense, and are there plans for follow-on contracts or similar engagements?
The contract's duration of over 1700 days suggests a significant, ongoing need for the services provided. Its strategic value lies in supporting the Defense Threat Reduction Agency's critical mission. Without further information on specific outcomes or agency priorities, it's difficult to ascertain long-term value or future plans, though the substantial investment implies continued importance.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HDTRA107R0004
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc
Address: 2411 DULLES CORNER PARK STE 500, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $53,777,586
Exercised Options: $53,777,586
Current Obligation: $44,391,224
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDTRA108D0008
IDV Type: IDC
Timeline
Start Date: 2016-08-05
Current End Date: 2021-04-26
Potential End Date: 2021-04-26 00:00:00
Last Modified: 2023-05-24
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