Jacobs Engineering Group Inc. awarded $13.5M for Iraq engineering support, highlighting long-term infrastructure needs

Contract Overview

Contract Amount: $13,496,465 ($13.5M)

Contractor: Jacobs Engineering Group Inc

Awarding Agency: Department of Defense

Start Date: 2008-09-30

End Date: 2010-07-31

Contract Duration: 669 days

Daily Burn Rate: $20.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ENGINEERING SUPPORT AT MULTIPLE LOCATIONS IN IRAQ

Plain-Language Summary

Department of Defense obligated $13.5 million to JACOBS ENGINEERING GROUP INC for work described as: ENGINEERING SUPPORT AT MULTIPLE LOCATIONS IN IRAQ Key points: 1. Contract value represents a significant investment in maintaining operational infrastructure in a complex environment. 2. The full and open competition suggests a healthy market for these specialized engineering services. 3. Duration of the contract (669 days) indicates a need for sustained support rather than short-term fixes. 4. The 'Time and Materials' pricing model can introduce cost variability if not closely managed. 5. Geographic focus on Iraq points to specific geopolitical and logistical challenges influencing service delivery. 6. This award falls within the broader category of remediation and support services for deployed forces.

Value Assessment

Rating: fair

The contract value of $13.5 million for engineering support in Iraq over approximately two years appears moderate given the operational context. Benchmarking against similar contracts for deployed engineering services in high-risk environments is challenging due to unique logistical and security costs. The 'Time and Materials' pricing structure necessitates careful oversight to ensure costs remain aligned with the value delivered and to prevent scope creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. This approach generally fosters competitive pricing and allows the government to select the best value offer. The number of bidders is not specified, but the competition type suggests a robust market for these services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives competitive offers, maximizing the value of taxpayer dollars.

Public Impact

U.S. military personnel and operations in Iraq benefit from the sustained engineering and remediation support. Essential infrastructure maintenance and potentially environmental remediation services are delivered. The geographic impact is concentrated in specific operational locations within Iraq. Workforce implications include employment for engineers, technicians, and support staff, potentially including local hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the 'Time and Materials' pricing model if not rigorously managed.
Logistical and security challenges in Iraq could impact project timelines and increase operational costs.
Dependency on a single contractor for critical support functions in a remote location.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Jacobs Engineering Group Inc. is an established firm with experience in large-scale engineering projects.
The contract duration implies a recognized need for consistent, long-term support.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense operations. The market for engineering support in complex, overseas environments is specialized, involving significant logistical, security, and technical expertise. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of deployed operations, but large-scale infrastructure and remediation projects often represent substantial government investments.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. As a large prime contract, it is unlikely to directly benefit small businesses unless they are engaged as subcontractors by Jacobs Engineering Group Inc. Further analysis would be needed to determine subcontracting plans and their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Air Force contracting command. Performance monitoring, invoicing review, and compliance checks are standard accountability measures. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction may apply if fraud, waste, or abuse is suspected.

Related Government Programs

Defense Base Realignment and Closure (BRAC)
Overseas Contingency Operations (OCO) Support
Environmental Remediation Services
Logistics and Base Operations Support

Risk Flags

Potential for cost overruns due to T&M pricing
Logistical and security risks in operational theater
Contract performance monitoring challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.5 million to JACOBS ENGINEERING GROUP INC. ENGINEERING SUPPORT AT MULTIPLE LOCATIONS IN IRAQ

Who is the contractor on this award?

The obligated recipient is JACOBS ENGINEERING GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $13.5 million.

What is the period of performance?

Start: 2008-09-30. End: 2010-07-31.

What is the track record of Jacobs Engineering Group Inc. in performing similar engineering support contracts in overseas contingency operations?

Jacobs Engineering Group Inc. has a substantial history of performing large-scale engineering, procurement, and construction (EPC) projects globally, including significant work for the U.S. Department of Defense in various operational theaters. Their experience often encompasses base operations support, infrastructure development, environmental services, and facility management in challenging environments. While specific details on past Iraq-based contracts of this exact nature require deeper database searches, their overall profile suggests a capacity to handle complex, long-term support requirements. Performance metrics from previous DoD contracts would offer further insight into their reliability and effectiveness in delivering services under demanding conditions.

How does the awarded amount of $13.5 million compare to the estimated value or typical costs for similar engineering support services in Iraq during the contract period?

Directly comparing the $13.5 million award to precise benchmarks for similar services in Iraq during 2008-2010 is challenging due to the unique and volatile nature of operating in that region. Factors such as heightened security costs, specialized logistics, and the specific scope of remediation services significantly influence pricing. However, considering the duration (669 days) and the 'Time and Materials' (T&M) pricing model, the value appears to be within a plausible range for sustained operational support. T&M contracts inherently carry risk of cost escalation if not managed tightly, making the effective management of labor hours and material costs critical to ensuring value for money.

What are the primary risks associated with a 'Time and Materials' contract for engineering support in a location like Iraq?

The primary risk with a 'Time and Materials' (T&M) contract, especially in a high-cost, high-risk environment like Iraq, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for actual labor hours and material costs incurred. This structure can incentivize longer project durations or less efficient work if not rigorously monitored. For taxpayers, this means the final cost can exceed initial estimates, making budget predictability difficult. Effective oversight, detailed reporting of hours and materials, and strong contract administration are crucial to mitigate these risks and ensure the government receives fair value.

What specific types of engineering support and remediation services are typically included under such contracts?

Contracts like this typically encompass a broad range of engineering and technical services essential for maintaining military or government facilities and operations. This can include civil engineering (e.g., structural repairs, road maintenance), mechanical and electrical engineering (e.g., HVAC, power generation), environmental engineering (e.g., hazardous material management, site cleanup, compliance), and construction management. Remediation services might involve addressing contamination, restoring damaged facilities, or implementing environmental protection measures. The specific scope is defined in the contract's Statement of Work (SOW), detailing the exact tasks, deliverables, and performance standards required.

How has federal spending on engineering and support services in overseas locations evolved since this contract was awarded in 2008?

Federal spending on engineering and support services in overseas locations, particularly in contingency operations theaters like Iraq and Afghanistan, saw significant increases in the years leading up to and following 2008, driven by ongoing military engagements. Post-2010, as troop levels shifted and operational focus changed, spending patterns have evolved. While direct operational support spending may have decreased in some areas, there has been a continued need for base sustainment, infrastructure modernization, and security-related services. Overall, the trend reflects a move towards more sustainable, long-term support models, with a greater emphasis on efficiency and risk management in contracting.

What are the implications of awarding a contract of this size and duration to a single large prime contractor like Jacobs Engineering Group Inc.?

Awarding a contract of this magnitude ($13.5M over 669 days) to a single large prime contractor like Jacobs Engineering Group Inc. offers benefits such as streamlined management, clear lines of responsibility, and the leveraging of the contractor's established resources and expertise. However, it also concentrates risk; if the contractor underperforms or faces unforeseen challenges, the impact on critical operations could be significant. It also raises questions about opportunities for smaller businesses, as the prime contractor would typically manage subcontracting. Ensuring robust oversight and performance management is paramount to maximizing the benefits and mitigating the risks associated with relying on a single entity for essential services.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1111 S ARROYO PKWY, PASADENA, CA, 91105

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,496,465

Exercised Options: $13,496,465

Current Obligation: $13,496,465

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA890308D8773

IDV Type: IDC

Timeline