Interior Department awards $2.18M engineering contract for Bannock Pumping Plant, highlighting infrastructure needs

Contract Overview

Contract Amount: $2,181,620 ($2.2M)

Contractor: HDR Engineering Inc

Awarding Agency: Department of the Interior

Start Date: 2022-01-17

End Date: 2026-06-30

Contract Duration: 1,625 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENGINEERING SERVICES - BANNOK PUMPING PLANT

Place of Performance

Location: ENGLEWOOD, DOUGLAS County, COLORADO, 80112

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $2.2 million to HDR ENGINEERING INC for work described as: ENGINEERING SERVICES - BANNOK PUMPING PLANT Key points: 1. Contract value of $2.18 million for engineering services suggests a significant investment in critical infrastructure. 2. The firm fixed-price contract type indicates a defined scope and budget, potentially mitigating cost overruns. 3. A single award for this delivery order implies a focused approach to addressing specific engineering requirements. 4. The duration of over four years suggests a complex project requiring sustained engineering expertise. 5. The contract's focus on engineering services points to a need for specialized technical skills in infrastructure development or maintenance. 6. The awarding agency, Bureau of Indian Affairs and Bureau of Indian Education, suggests a focus on projects impacting tribal communities or educational facilities.

Value Assessment

Rating: good

The contract value of $2.18 million for engineering services appears reasonable given the project's scope and duration. Benchmarking against similar large-scale engineering projects for water infrastructure or pumping plants would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control. Without specific per-unit cost data or detailed project deliverables, a definitive value assessment is challenging, but the overall investment aligns with the complexity implied by a multi-year engineering effort.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to yield fair market prices and encourage innovation. The fact that there was one award suggests that HDR Engineering Inc. was selected as the most advantageous offer based on the evaluation criteria. The level of competition is a positive sign for price discovery and ensuring the government receives optimal value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures that the most qualified and cost-effective provider is selected, maximizing the return on public investment.

Public Impact

The primary beneficiaries are likely the communities and operations that rely on the Bannock Pumping Plant, ensuring reliable water supply or management. The services delivered include specialized engineering expertise for the design, planning, or oversight of the pumping plant's infrastructure. The geographic impact is localized to the area served by the Bannock Pumping Plant, potentially within a specific region or tribal lands. The contract supports a workforce of engineers and technical specialists, contributing to employment in the engineering services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project requirements are not clearly defined and managed throughout the multi-year duration.
Dependence on a single contractor for a critical infrastructure component could pose risks if performance issues arise.
The long duration may lead to challenges in adapting to evolving technological standards or regulatory changes in engineering.

Positive Signals

The firm fixed-price contract provides cost certainty and incentivizes efficient project completion.
Full and open competition suggests a robust selection process, likely resulting in a highly qualified contractor.
The extended performance period allows for thorough engineering and potentially phased implementation, ensuring quality.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader Construction and Infrastructure industry. The market for engineering services is substantial, driven by government investments in public works, utilities, and defense. Comparable spending benchmarks would involve analyzing other large-scale engineering contracts for water management systems, power generation facilities, or transportation infrastructure awarded by federal agencies. The $2.18 million value is moderate for a multi-year engineering project of this nature.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss: false'. The primary awardee, HDR Engineering Inc., is a large firm. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though large prime contractors often engage small businesses in their supply chains.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Bureau of Indian Affairs and Bureau of Indian Education. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified engineering services. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Bureau of Indian Affairs Infrastructure Projects
Bureau of Indian Education Facilities Management
Water Resource Management Contracts
Federal Pumping Station Maintenance
Engineering Consulting Services

Risk Flags

Long contract duration may increase risk of scope creep or technological obsolescence.
Dependence on a single contractor for critical infrastructure services.
Potential for performance issues over the extended contract period.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.2 million to HDR ENGINEERING INC. ENGINEERING SERVICES - BANNOK PUMPING PLANT

Who is the contractor on this award?

The obligated recipient is HDR ENGINEERING INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2022-01-17. End: 2026-06-30.

What is the specific scope of engineering services HDR Engineering Inc. is contracted to provide for the Bannock Pumping Plant?

The provided data indicates the contract is for 'ENGINEERING SERVICES - BANNOK PUMPING PLANT' with a North American Industry Classification System (NAICS) code of 541330 for Engineering Services. While the specific deliverables are not detailed, engineering services typically encompass a range of activities such as feasibility studies, design, planning, environmental assessments, construction oversight, and project management. For a pumping plant, this could involve upgrades to existing systems, design of new components, ensuring compliance with water quality and environmental regulations, and optimizing operational efficiency. The firm fixed-price nature suggests a well-defined scope, but further details would be found in the contract's statement of work.

How does the $2.18 million contract value compare to similar engineering projects for water infrastructure?

The $2.18 million contract value for engineering services for the Bannock Pumping Plant is a moderate figure for a multi-year project. Large-scale water infrastructure projects, such as dam construction, major pipeline installations, or comprehensive treatment plant upgrades, can easily run into tens or hundreds of millions of dollars for engineering alone. However, for specialized engineering related to a specific component like a pumping plant, especially if it involves upgrades or modernization rather than entirely new construction, $2.18 million over four years is within a reasonable range. Benchmarking against contracts for similar pumping station upgrades or specialized water management systems awarded by agencies like the Army Corps of Engineers or Bureau of Reclamation would provide more precise comparisons.

What are the key risks associated with a four-year engineering services contract?

A significant risk with a four-year engineering services contract is the potential for scope creep, where project requirements expand beyond the initial agreement, leading to cost overruns or delays, despite the firm fixed-price structure. Another risk is contractor performance; if HDR Engineering Inc. faces internal challenges or fails to meet quality standards, it could jeopardize the project's success. Technological obsolescence is also a concern; engineering designs developed early in the contract might become outdated by the time of implementation if not carefully managed. Furthermore, reliance on a single contractor for an extended period can create dependency, making it difficult to switch providers if necessary. Effective project management, clear communication, and robust oversight are crucial to mitigate these risks.

What is the significance of the contract being awarded by the Bureau of Indian Affairs and Bureau of Indian Education?

The awarding agencies, the Bureau of Indian Affairs (BIA) and the Bureau of Indian Education (BIE), indicate that this engineering contract is likely related to infrastructure or facilities that serve Native American tribes or educational institutions. This could involve ensuring reliable water supply for tribal communities, supporting agricultural needs, or maintaining essential services at BIE-operated schools. The focus suggests a commitment to improving living conditions, economic opportunities, and educational environments for these populations. The specific nature of the Bannock Pumping Plant and its role within these contexts would determine the precise impact, but the award underscores the federal government's responsibility in providing and maintaining critical infrastructure for tribal entities and their members.

How does the 'firm fixed price' contract type benefit the government and taxpayers?

A firm fixed-price (FFP) contract type is generally considered advantageous for the government and taxpayers when the scope of work is well-defined and understood. Under an FFP contract, the contractor, HDR Engineering Inc. in this case, agrees to a total price for the specified services, and this price is not subject to adjustment based on the contractor's cost experience. This provides maximum price certainty for the government, as the total expenditure is known upfront. It also incentivizes the contractor to control costs and perform efficiently to maximize their profit margin. For taxpayers, this means greater predictability in budgeting and a reduced risk of unexpected cost increases, assuming the initial scope accurately reflects the project's needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: HDR, Inc

Address: 1917 S 67TH ST, OMAHA, NE, 68106

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,181,620

Exercised Options: $2,181,620

Current Obligation: $2,181,620

Actual Outlays: $1,948,388

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $247,170

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140A1218D0019

IDV Type: IDC

Timeline