DoD Awards $16M Capital Upgrade Contract to CH2M HILL, Inc. for Engineering Services

Contract Overview

Contract Amount: $16,054,447 ($16.1M)

Contractor: CH2M Hill, Inc

Awarding Agency: Department of Defense

Start Date: 2008-09-25

End Date: 2009-06-30

Contract Duration: 278 days

Daily Burn Rate: $57.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CAPITAL UPGRADE

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 $16.1 million to CH2M HILL, INC for work described as: CAPITAL UPGRADE Key points: 1. Contract awarded to CH2M HILL, Inc. for engineering services. 2. The contract is for a capital upgrade project. 3. Awarded under full and open competition. 4. The contract duration is 278 days. 5. The base award amount is $5.775 million.

Value Assessment

Rating: fair

The base award of $5.775 million is a significant portion of the total contract value. Without knowing the full scope and deliverables, it's difficult to definitively assess value. The contract has a firm fixed price, which helps control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple bidders vie for the contract.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it promotes efficiency and potentially lower costs through market forces.

Public Impact

Supports infrastructure improvements within the Department of Defense. Engaged a private sector firm for specialized engineering services. Potential for job creation and economic activity in Kentucky.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope expands beyond the initial award.
Dependence on a single contractor for critical engineering services.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract type.

Sector Analysis

This contract falls under Engineering Services, a sector crucial for infrastructure development and maintenance within government agencies. Benchmarks for similar capital upgrade projects vary widely based on scope and complexity.

Small Business Impact

The data indicates the prime contractor is CH2M HILL, Inc. There is no explicit information regarding small business participation in this specific award.

Oversight & Accountability

The contract was awarded in 2008, suggesting it has likely been completed. Oversight would have focused on adherence to the firm fixed price and delivery schedule.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of final contract value.
Unspecified scope of 'CAPITAL UPGRADE'.
No indication of small business subcontracting.
Potential for scope creep impacting final cost.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.1 million to CH2M HILL, INC. CAPITAL UPGRADE

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 $16.1 million.

What is the period of performance?

Start: 2008-09-25. End: 2009-06-30.

What was the final value of the contract upon completion, and how did it compare to the initial award?

The final contract value is not provided in the data. Comparing the final value to the initial $5.775 million award is crucial for assessing cost control and potential scope creep. Understanding the difference would reveal if the project stayed within budget or incurred additional costs, impacting the overall value proposition for the taxpayer.

What specific capital upgrade was undertaken, and what was the criticality of this upgrade to the Army's operations?

The nature of the 'CAPITAL UPGRADE' is unspecified. Knowing the specific facility or system being upgraded and its operational importance is key to evaluating the necessity and risk associated with the project. A critical upgrade might justify higher costs or longer timelines, while a less essential one would be scrutinized more closely for value.

How effectively did the firm fixed price contract manage cost variations throughout the project lifecycle?

A firm fixed price contract aims to transfer risk to the contractor, making them responsible for cost overruns. Evaluating its effectiveness would involve examining the final contract value against the initial award and the scope of work. If the final cost remained close to the initial award, the pricing strategy was effective; significant deviations would indicate potential issues in initial estimation or contract management.

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: $16,054,447

Exercised Options: $16,054,447

Current Obligation: $16,054,447

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DACA8700D0043

IDV Type: IDC

Timeline