DoD's $43.8M Engineering Services Contract Awarded to CH2M HILL, INC. Under Full and Open Competition
Contract Overview
Contract Amount: $43,764,529 ($43.8M)
Contractor: CH2M Hill, Inc
Awarding Agency: Department of Defense
Start Date: 2007-07-01
End Date: 2012-08-31
Contract Duration: 1,888 days
Daily Burn Rate: $23.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: WATER
Place of Performance
Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223, UNITED STATES OF AMERICA
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $43.8 million to CH2M HILL, INC for work described as: WATER Key points: 1. The contract, valued at $43.8 million, was awarded to CH2M HILL, INC. by the Department of the Army. 2. It falls under the Engineering Services sector (NAICS 541330), a critical area for infrastructure and project management. 3. The award was made under a full and open competition, suggesting a competitive bidding process. 4. The contract duration was 1888 days, indicating a significant, long-term project.
Value Assessment
Rating: good
The contract value of $43.8 million for engineering services appears reasonable given the 1888-day duration. Benchmarking against similar large-scale engineering projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The presence of multiple bids (no: 3) supports this.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds were likely used efficiently, with pricing driven by market forces rather than sole-source limitations.
Public Impact
Supports critical infrastructure development and maintenance for the Department of Defense. Provides specialized engineering expertise for complex projects. Contributes to the economic activity within the engineering services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in the provided data.
- Potential for cost overruns in long-term, complex engineering projects.
- Dependence on a single contractor for a significant duration.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type can help control costs.
- Significant contract value indicates a substantial project need.
Sector Analysis
This contract falls within the Engineering Services sector, which is vital for government infrastructure projects. Spending in this sector can fluctuate based on defense needs and infrastructure investment cycles.
Small Business Impact
The data indicates that small businesses were not primary awardees, as the contract was awarded to CH2M HILL, INC. Further analysis would be needed to determine if small businesses participated as subcontractors.
Oversight & Accountability
Oversight would typically involve project management reviews, performance monitoring, and financial audits to ensure the contractor meets contractual obligations and delivers value for taxpayer money.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (1888 days) increases risk of scope creep or changing requirements.
- Potential for cost overruns if initial estimates were inaccurate, despite FFP.
- Limited visibility into subcontractor participation and small business impact.
- Lack of specific performance metrics makes objective evaluation difficult.
Tags
engineering-services, department-of-defense, ky, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.8 million to CH2M HILL, INC. WATER
Who is the contractor on this award?
The obligated recipient is CH2M HILL, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $43.8 million.
What is the period of performance?
Start: 2007-07-01. End: 2012-08-31.
What specific engineering services were provided under this contract, and how did they align with the Department of the Army's strategic objectives?
The provided data identifies the contract under NAICS code 541330 (Engineering Services) but lacks specifics on the exact services rendered. These could range from design and planning to construction oversight and environmental engineering. Alignment with strategic objectives would depend on the Army's specific mission requirements at the time, such as base infrastructure upgrades, new facility construction, or specialized technical support.
What was the competitive landscape for this specific engineering service requirement, and were there any challenges in attracting a broader range of bidders?
The contract was awarded under 'Full and Open Competition' with three bids received. While this indicates some level of competition, the specific nature of the engineering services required might have limited the pool of qualified bidders. Factors such as specialized expertise, security clearances, or past performance requirements could influence the number and type of companies able to compete effectively.
How effectively was the Firm Fixed Price contract type utilized to manage risks and ensure cost control for this long-duration project?
A Firm Fixed Price (FFP) contract is designed to provide cost certainty for the government. For this 1888-day project, the FFP structure likely aimed to lock in costs and incentivize the contractor to manage expenses efficiently. However, the success of FFP on long-term projects depends heavily on the accuracy of initial cost estimations and the contractor's ability to absorb unforeseen challenges without significant change orders.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CH2M Hill Companies, Ltd. (UEI: 027620574)
Address: 9191 S JAMAICA ST, ENGLEWOOD, CO, 80112
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $43,764,529
Exercised Options: $43,764,529
Current Obligation: $43,764,529
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DACA8700D0043
IDV Type: IDC
Timeline
Start Date: 2007-07-01
Current End Date: 2012-08-31
Potential End Date: 2012-08-31 00:00:00
Last Modified: 2015-08-18
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