DoD's $22.4M water infrastructure contract awarded to CH2M HILL, INC. for California projects

Contract Overview

Contract Amount: $22,451,026 ($22.5M)

Contractor: CH2M Hill, Inc

Awarding Agency: Department of Defense

Start Date: 2014-02-06

End Date: 2019-02-10

Contract Duration: 1,830 days

Daily Burn Rate: $12.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 2014 WATER/WASTE WATER CAPITAL IMPROVEMENT PROJECTS

Place of Performance

Location: FORT IRWIN, SAN BERNARDINO County, CALIFORNIA, 92310

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $22.5 million to CH2M HILL, INC for work described as: 2014 WATER/WASTE WATER CAPITAL IMPROVEMENT PROJECTS Key points: 1. Contract value appears reasonable given the scope of capital improvement projects. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Long performance period indicates a substantial, multi-year undertaking. 5. Focus on water infrastructure aligns with critical public service needs. 6. Contract awarded to a single prime contractor, CH2M HILL, INC.

Value Assessment

Rating: good

The contract value of $22.4 million for water infrastructure capital improvements over five years seems aligned with the scale of such projects. Benchmarking against similar large-scale water system upgrades by federal agencies suggests this is within a typical range. The firm fixed-price structure provides cost certainty, which is a positive indicator of value for money, assuming the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this method generally fosters a competitive environment, which should lead to more favorable pricing and terms for the government. The open nature suggests the government sought the best possible solution and price.

Taxpayer Impact: Taxpayers benefit from the potential for lower prices and better quality services due to a competitive bidding process. Full and open competition increases the likelihood that the government is receiving fair market value for its investment.

Public Impact

Benefits military personnel and their families by ensuring reliable water supply and waste water management at installations. Delivers essential capital improvements to water and wastewater systems, enhancing public health and environmental protection. Geographic impact is concentrated in California, supporting regional infrastructure needs. Workforce implications include potential job creation for engineers, construction workers, and project managers in the California region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count makes it difficult to fully assess the intensity of competition.
Long contract duration could introduce risks if project requirements evolve significantly over time.
Reliance on a single prime contractor may concentrate risk if performance issues arise.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a robust selection process.
Focus on critical infrastructure addresses essential service needs.
Award to an established contractor like CH2M HILL, INC. may indicate a track record of capability.

Sector Analysis

This contract falls within the Engineering Services and Construction sector, specifically focusing on water and wastewater infrastructure. The market for such services is substantial, driven by aging infrastructure across the nation and increasing regulatory requirements. Federal spending in this area often supports military installations and other government facilities, complementing broader municipal and private sector investments in water systems.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities offered by the prime contractor, CH2M HILL, INC. The extent of these opportunities is not detailed but is a common practice in large federal contracts.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. The firm fixed-price nature and defined delivery order structure provide some inherent accountability. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly accessible. Inspector General involvement would be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

Military Construction Program
Environmental Infrastructure Program
Public Works and Facilities Management
Water and Sewer System Construction

Risk Flags

Potential for unforeseen site conditions impacting schedule and cost.
Long contract duration may not fully account for future technological advancements or regulatory changes.
Dependence on a single prime contractor could pose a risk if performance falters.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.5 million to CH2M HILL, INC. 2014 WATER/WASTE WATER CAPITAL IMPROVEMENT PROJECTS

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 $22.5 million.

What is the period of performance?

Start: 2014-02-06. End: 2019-02-10.

What is the track record of CH2M HILL, INC. with similar federal water infrastructure contracts?

CH2M HILL, INC. (now Jacobs Engineering Group after acquisition) has a significant history of performing large-scale federal contracts, including extensive work on water and wastewater infrastructure for various agencies like the Department of Defense, EPA, and Army Corps of Engineers. Their experience often includes design, construction, and program management for complex projects. Reviewing past performance evaluations and contract histories for similar projects would provide a clearer picture of their reliability, cost control, and quality of work in federal service. Specific data on past performance for this exact type of project would be needed for a definitive assessment.

How does the awarded amount compare to the estimated cost or budget for this project?

The provided data does not include the estimated cost or budget for this project, making a direct comparison impossible. The awarded amount of $22.4 million represents the government's commitment based on the contractor's proposal and the negotiated price. Without knowing the initial government estimate or the number of bids received, it's difficult to definitively assess if the awarded amount represents exceptional value or if it was potentially higher than anticipated. Further analysis would require access to pre-solicitation estimates and bid tabulation data.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for water infrastructure capital improvement projects, typical KPIs would likely include adherence to project schedules, completion within budget (especially critical for fixed-price contracts), quality of construction meeting specified standards, compliance with environmental regulations, and successful system integration and testing. Performance would also be assessed based on the reliability and functionality of the improved water and wastewater systems post-completion. The contracting officer's representative would monitor these aspects throughout the contract duration.

What is the historical spending trend for similar water infrastructure contracts by the Department of the Army?

Historical spending by the Department of the Army on water infrastructure contracts is substantial, reflecting the ongoing need to maintain and upgrade facilities at numerous installations. While specific aggregate data for 'Water/Waste Water Capital Improvement Projects' isn't provided here, the Army consistently invests in utility systems, including water and sewer infrastructure, often through programs managed by the Army Corps of Engineers or facility engineering commands. Spending can fluctuate based on infrastructure condition assessments, modernization initiatives, and specific installation needs. This $22.4 million contract represents one component of that broader, ongoing investment.

Are there any known risks associated with CH2M HILL, INC. or the specific nature of this contract?

Without access to detailed performance records or specific risk assessments for this contract, identifying concrete risks is challenging. General risks for large infrastructure projects include potential delays due to unforeseen site conditions, material cost fluctuations (though mitigated by fixed-price), labor availability, and permitting issues. For CH2M HILL, INC., as with any large contractor, risks could theoretically include financial stability, past performance issues on other contracts, or potential disputes. However, the award under full and open competition and the firm fixed-price structure suggest that the contracting agency assessed these risks as manageable at the time of award.

Industry Classification

NAICS: Utilities › Water, Sewage and Other Systems › Water Supply and Irrigation Systems

Product/Service Code: WATER PURIFICATION/SEWAGE TREATMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)

Address: 6060 S WILLOW DR, ENGLEWOOD, CO, 80111

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $44,966,376

Exercised Options: $44,966,376

Current Obligation: $22,451,026

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DACA8702D0037

IDV Type: IDC

Timeline