DOI awards HDR Engineering $221K for engineering services, with a fixed-price award fee structure

Contract Overview

Contract Amount: $221,143 ($221.1K)

Contractor: HDR Engineering, Inc.

Awarding Agency: Department of the Interior

Start Date: 2025-09-04

End Date: 2026-06-12

Contract Duration: 281 days

Daily Burn Rate: $787/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE AWARD FEE

Sector: Other

Official Description: 2025 COMPREHENSIVE REVIEWS GROUP 1

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80202

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $221,142.87 to HDR ENGINEERING, INC. for work described as: 2025 COMPREHENSIVE REVIEWS GROUP 1 Key points: 1. Value for money assessed through fixed-price award fee structure, incentivizing performance. 2. Competition dynamics indicate a full and open competition, suggesting market-driven pricing. 3. Risk indicators include contract duration and fixed-price nature, requiring careful performance monitoring. 4. Performance context is engineering services for Bureau of Indian Affairs and Education. 5. Sector positioning within professional, scientific, and technical services.

Value Assessment

Rating: good

The contract's fixed-price award fee structure aims to balance cost control with performance incentives. While the total award amount is relatively modest, the pricing will be benchmarked against similar engineering service contracts awarded by the Department of the Interior and other federal agencies. The fixed-price nature suggests that HDR Engineering has estimated costs, and the award fee component will reward exceeding performance expectations, potentially leading to better value than a cost-plus contract if performance is strong.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of open competition generally leads to a more robust price discovery process, as contractors are incentivized to offer competitive pricing to win the award. The specific number of bidders is not provided, but the category suggests a healthy competitive environment.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are likely being used efficiently, as the government has access to the broadest possible range of offers and pricing.

Public Impact

Beneficiaries include the Bureau of Indian Affairs and Bureau of Indian Education, receiving essential engineering support. Services delivered are engineering expertise crucial for infrastructure and program support. Geographic impact is likely focused on areas served by the Bureau of Indian Affairs and Bureau of Indian Education. Workforce implications involve skilled engineering professionals contributing to federal projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project requirements are not clearly defined upfront.
Reliance on a single contractor for critical engineering services necessitates robust oversight.

Positive Signals

Fixed-price award fee structure provides cost certainty and performance incentives.
Full and open competition suggests a competitive market price was likely secured.
Contract duration aligns with project needs, allowing for focused execution.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services (NAICS 541330). This sector is characterized by a wide range of specialized firms competing for government contracts. The market size for federal engineering services is substantial, with agencies across the government procuring these services for infrastructure, research, and operational support. This contract represents a typical procurement for specialized engineering expertise within the Department of the Interior.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily includes small businesses in their subcontracting plan. Further review of the contract details would be needed to ascertain any indirect benefits or obligations.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Interior, likely through designated contracting officers and technical monitors. Accountability measures are embedded in the fixed-price award fee structure, which ties a portion of the payment to performance outcomes. Transparency is facilitated by the public nature of federal contract awards, allowing for general review, though specific performance details may be internal.

Related Government Programs

Department of the Interior Engineering Services Contracts
Bureau of Indian Affairs Support Services
Bureau of Indian Education Program Support
Federal Engineering Services Procurements

Risk Flags

Potential for cost overruns if not managed tightly within the fixed-price structure.
Performance metrics for award fee must be clearly defined and measurable.
Dependency on contractor expertise requires robust government oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $221,142.87 to HDR ENGINEERING, INC.. 2025 COMPREHENSIVE REVIEWS GROUP 1

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 $221,142.87.

What is the period of performance?

Start: 2025-09-04. End: 2026-06-12.

What is the historical spending pattern for HDR Engineering, Inc. with the Department of the Interior?

Analyzing historical spending patterns for HDR Engineering, Inc. with the Department of the Interior requires access to comprehensive federal procurement databases. Generally, a contractor's history with an agency can indicate reliability and performance. A consistent award history might suggest a strong working relationship and satisfaction with services rendered. Conversely, a history marked by disputes or underperformance could raise concerns. Without specific historical data for HDR Engineering, Inc. and the Department of the Interior, it's difficult to provide a precise analysis. However, agencies often consider past performance as a significant factor in future award decisions, especially for competitive procurements.

How does the fixed-price award fee structure compare to other contract types for similar engineering services?

The fixed-price award fee (FPAF) structure is a hybrid that offers some cost certainty to the government while incentivizing contractor performance. Unlike a firm-fixed-price (FFP) contract, where the price is set regardless of performance, FPAF includes a base fee and an award fee that the contractor can earn based on meeting or exceeding specific performance objectives. This contrasts with cost-plus contracts, which reimburse the contractor for allowable costs plus a fee, offering less cost certainty but potentially greater flexibility for complex or uncertain projects. For engineering services, FPAF can be effective when performance metrics are clearly definable and measurable, encouraging efficiency and quality beyond minimum requirements.

What are the key performance indicators (KPIs) likely used to determine the award fee for this contract?

For an engineering services contract like this one, key performance indicators (KPIs) for determining the award fee would likely focus on aspects critical to successful project delivery. These could include adherence to project schedules and timelines, quality of engineering deliverables (e.g., accuracy of designs, completeness of reports), effectiveness of communication and collaboration with agency stakeholders, cost control within the fixed-price framework, and compliance with all relevant regulations and standards. The specific KPIs would be detailed in the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO), providing objective criteria for evaluating HDR Engineering's performance against pre-defined benchmarks.

What is the typical duration and value range for similar engineering services contracts awarded by the Bureau of Indian Affairs?

The typical duration and value range for similar engineering services contracts awarded by the Bureau of Indian Affairs (BIA) can vary significantly based on the scope and complexity of the project. Contracts for specialized engineering support, such as those for infrastructure design, environmental assessments, or facility management, can range from several months to a few years in duration. Values can span from tens of thousands to millions of dollars. This particular contract, valued at approximately $221,142.87 with a duration of 281 days (roughly 9 months), appears to be on the smaller to mid-range side for specialized engineering support, suggesting a focused scope of work or a specific task order within a larger program.

Are there any known performance issues or past disputes associated with HDR Engineering, Inc. on federal contracts?

Assessing past performance issues or disputes for HDR Engineering, Inc. on federal contracts requires a deep dive into federal procurement data, including contract award histories, past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any publicly available records of disputes or litigation. Without direct access to this specific data, it is impossible to definitively state whether there are known issues. Agencies typically review past performance as part of the source selection process. If HDR Engineering has a history of successful contract completion and positive performance reviews, it strengthens their position. Conversely, documented performance problems or disputes could raise red flags for contracting officers.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140A1625R0029

Offers Received: 1

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Parent Company: HDR, Inc

Address: 1670 BROADWAY STE 3400, DENVER, CO, 80202

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: $221,143

Exercised Options: $221,143

Current Obligation: $221,143

Actual Outlays: $192,460

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 140A1624D0026

IDV Type: IDC

Timeline