Department of Defense awards $16.2M contract for capital upgrades to CH2M HILL, INC

Contract Overview

Contract Amount: $16,255,411 ($16.3M)

Contractor: CH2M Hill, Inc

Awarding Agency: Department of Defense

Start Date: 2009-09-07

End Date: 2010-06-30

Contract Duration: 296 days

Daily Burn Rate: $54.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CAPTIAL UPGRADES

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 $16.3 million to CH2M HILL, INC for work described as: CAPTIAL UPGRADES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract duration of 296 days is relatively short for capital upgrades. 4. The contract was awarded to CH2M HILL, INC., a known entity in engineering services. 5. The contract value is moderate within the context of large-scale capital projects. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: fair

The contract value of $16.2 million for capital upgrades appears reasonable given the scope of engineering services. Benchmarking against similar large-scale infrastructure projects would provide a clearer picture of value for money. The firm-fixed-price contract type helps control costs, but the final value is dependent on the specific deliverables and any potential change orders. Without detailed project specifications and comparison data, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 3 bidders indicates a degree of competition, which is generally positive for price discovery and innovation. However, the specific number of bidders does not inherently guarantee the most competitive outcome without knowing the quality and competitiveness of the bids submitted.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services.

Public Impact

The primary beneficiaries are likely the Department of Defense and its personnel at the specified Kentucky facility, who will receive improved infrastructure. The services delivered include engineering expertise for capital upgrades, ensuring facilities meet operational and safety standards. The geographic impact is localized to the facility in Kentucky where the upgrades are being implemented. The contract supports the workforce within the engineering services sector, specifically benefiting CH2M HILL, INC. and its employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite firm-fixed-price contract.
Dependence on a single contractor for critical capital upgrades.
Limited visibility into the specific technical challenges and solutions employed.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a robust bidding process.
Award to an established engineering firm implies technical capability.

Sector Analysis

The engineering services sector is a critical component of federal procurement, supporting a wide range of infrastructure and capital improvement projects across various agencies. This contract falls within the broader construction and engineering services market, which is characterized by a mix of large, established firms and smaller specialized companies. Federal spending in this area is often driven by the need to maintain and modernize aging infrastructure, as well as to support new defense or operational requirements. Comparable spending benchmarks would depend on the specific nature and scale of the capital upgrades.

Small Business Impact

This contract did not include a small business set-aside, nor is there an indication of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem for this specific procurement is likely minimal. Future procurements related to this project might offer opportunities for small businesses as subcontractors, but that is not explicitly detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program managers within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is generally facilitated through contract award databases, though detailed project execution and oversight specifics are often internal to the agency.

Related Government Programs

Department of Defense Capital Improvement Projects
Army Corps of Engineers Construction Contracts
Federal Engineering Services Procurement
Infrastructure Modernization Programs

Risk Flags

Potential for scope creep impacting final cost despite fixed-price.
Limited information on specific technical requirements and performance metrics.
No explicit mention of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.3 million to CH2M HILL, INC. CAPTIAL UPGRADES

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 $16.3 million.

What is the period of performance?

Start: 2009-09-07. End: 2010-06-30.

What was the specific nature of the 'capital upgrades' funded by this contract?

The provided data does not specify the exact nature of the 'capital upgrades.' These could range from structural repairs and renovations to the installation of new systems or modernization of existing facilities within a Department of Defense installation in Kentucky. Further details would require access to the contract's statement of work or project scope, which are not included in the abbreviated data. Understanding the specific upgrades is crucial for assessing the contract's impact and value.

How did CH2M HILL, INC.'s bid compare to other bidders in terms of price and technical merit?

The provided data indicates that there were 3 bidders for this contract, and it was awarded under full and open competition. However, it does not offer details on how CH2M HILL, INC.'s bid compared to the others in terms of price or technical merit. To assess this, one would need to review the source selection documentation, which typically includes a comparative analysis of the proposals received. Without this information, it's impossible to definitively state if CH2M HILL, INC. offered the best value or the lowest price.

What are the potential risks associated with a firm-fixed-price contract for capital upgrades of this magnitude?

While firm-fixed-price contracts offer cost certainty, risks can still arise. For capital upgrades, potential risks include scope creep, where the project's requirements expand beyond the initial agreement, potentially leading to change orders and increased costs. Contractor underestimation of complexity or unforeseen site conditions can also strain the fixed price. Furthermore, if the contractor cuts corners to maintain profitability under a fixed price, the quality or longevity of the upgrades could be compromised. Robust oversight and clear contract definition are essential to mitigate these risks.

What is the historical spending pattern for similar capital upgrade contracts by the Department of the Army in Kentucky?

The provided data does not include historical spending patterns for similar capital upgrade contracts by the Department of the Army in Kentucky. To analyze this, one would need to query federal procurement databases for contracts with similar descriptions (e.g., 'capital upgrades,' 'facility renovation,' 'construction') awarded by the Department of the Army within the state of Kentucky over a relevant period. Comparing the $16.2 million award to historical averages and ranges would help determine if this contract represents a typical, high, or low expenditure for such services.

What is the track record of CH2M HILL, INC. with Department of Defense contracts, particularly for engineering services?

CH2M HILL, INC. has a history of working with the Department of Defense on various engineering and infrastructure projects. While this specific data set doesn't detail their performance on this particular contract, their presence as a bidder and awardee in federal procurement suggests they possess the necessary qualifications and experience. A comprehensive assessment of their track record would involve reviewing past performance evaluations, contract completion history, and any documented issues or successes on similar projects with the DoD or other federal agencies.

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: $16,255,411

Exercised Options: $16,255,411

Current Obligation: $16,255,411

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DACA8700D0043

IDV Type: IDC

Timeline