Interior Department awards $12.5M engineering contract for park rehabilitation, focusing on compliance and structural integrity

Contract Overview

Contract Amount: $12,478,048 ($12.5M)

Contractor: HDR Engineering, Inc.

Awarding Agency: Department of the Interior

Start Date: 2024-09-26

End Date: 2026-12-31

Contract Duration: 826 days

Daily Burn Rate: $15.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GRCA 318719 - CD/SS/COMPLIANCE REHABILIT

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80202

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $12.5 million to HDR ENGINEERING, INC. for work described as: GRCA 318719 - CD/SS/COMPLIANCE REHABILIT Key points: 1. Contract value appears reasonable given the scope of engineering services for a major rehabilitation project. 2. Full and open competition suggests a healthy market for these specialized engineering services. 3. Project duration of over two years indicates a significant undertaking requiring sustained effort. 4. Fixed-price contract type shifts performance risk to the contractor, potentially benefiting the government. 5. The National Park Service is the primary beneficiary, ensuring infrastructure meets safety and compliance standards. 6. Engineering services are critical for maintaining national park assets and visitor safety.

Value Assessment

Rating: good

The contract value of $12.5 million for engineering services related to compliance and rehabilitation appears to be within a reasonable range for a project of this nature. Benchmarking against similar large-scale infrastructure rehabilitation projects managed by the National Park Service or other federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government when the scope is well-defined, as it caps costs.

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 firms were likely solicited and submitted proposals. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages a wider pool of contractors to participate. This approach is designed to ensure the government receives the best value by leveraging market forces.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified contractors, ultimately maximizing the value of federal dollars spent.

Public Impact

The primary beneficiaries are visitors to national parks who will experience improved and safer infrastructure. Services delivered include engineering design, compliance assessments, and rehabilitation planning for park facilities. The geographic impact is focused on the specific national park(s) undergoing rehabilitation, with potential for broader application of lessons learned. The contract supports a specialized workforce of engineers, designers, and project managers within the contracting firm.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if rehabilitation needs are not fully defined upfront.
Ensuring timely completion within the fixed-price structure requires robust project management from the contractor.

Positive Signals

Firm fixed-price contract aligns incentives for cost control and timely delivery.
Full and open competition suggests a competitive market, likely leading to quality service at a fair price.
The contract duration allows for thorough planning and execution of complex rehabilitation tasks.

Sector Analysis

The engineering services sector is a vital component of federal contracting, supporting infrastructure development, maintenance, and modernization across various agencies. This contract falls within the broader engineering and architectural services market, which is characterized by specialized expertise and project-based work. Federal spending in this area is substantial, reflecting the government's ongoing need to manage and improve its vast physical assets. Comparable spending benchmarks would typically involve analyzing the average cost of similar rehabilitation projects or engineering support contracts within the National Park Service or Department of the Interior.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely a large business. There is no explicit information on subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is limited, though large prime contractors often utilize small businesses for specialized support services.

Oversight & Accountability

Oversight for this contract will primarily reside with the National Park Service contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of accountability by capping costs. Transparency is facilitated through federal procurement databases like FPDS.gov where contract awards are reported. Depending on the nature of the rehabilitation and potential issues, the Department of the Interior's Office of Inspector General may exercise jurisdiction if significant waste, fraud, or abuse is suspected.

Related Government Programs

National Park Service Infrastructure Improvement Programs
Federal Buildings and Facilities Construction
Engineering and Technical Services
Public Lands Management and Preservation

Risk Flags

Potential for scope creep
Contractor performance risk
Timeliness of delivery

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $12.5 million to HDR ENGINEERING, INC.. GRCA 318719 - CD/SS/COMPLIANCE REHABILIT

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 (National Park Service).

What is the total obligated amount?

The obligated amount is $12.5 million.

What is the period of performance?

Start: 2024-09-26. End: 2026-12-31.

What is the track record of HDR ENGINEERING, INC. with federal contracts, particularly with the Department of the Interior and National Park Service?

HDR ENGINEERING, INC. has a significant history of federal contracting, including numerous awards from various agencies. A review of federal procurement data would reveal their past performance, including contract values, types, and agencies served. For contracts specifically with the Department of the Interior and the National Park Service, their performance history would indicate their experience with similar projects, compliance requirements, and rehabilitation scopes. Analyzing past awards can highlight their reliability, ability to meet deadlines, and adherence to budget, providing insight into their suitability for this current contract. Their overall federal contracting portfolio can also suggest their capacity and expertise in engineering services.

How does the awarded amount of $12.5 million compare to similar engineering rehabilitation contracts for national parks?

The $12.5 million award for engineering services for compliance and rehabilitation needs to be benchmarked against similar projects to assess its value. Factors such as the size and complexity of the park, the scope of rehabilitation (e.g., structural, environmental, accessibility), and the duration of the project are critical for comparison. For instance, if similar-sized national parks have undergone comparable rehabilitation efforts, the average engineering contract value could range from $5 million to $20 million or more, depending on the specifics. The firm fixed-price nature of this contract also influences its comparison, as it implies a defined scope and risk allocation. A detailed analysis would involve examining contract databases for projects with similar NAICS codes (e.g., 541330 - Engineering Services) awarded by the NPS or DOI over the past few years.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks for this contract include potential scope creep if the full extent of rehabilitation needs is not accurately defined upfront, leading to cost overruns or delays, although the firm fixed-price structure aims to mitigate this by capping costs. Another risk is the contractor's ability to meet the compliance and rehabilitation standards required by the National Park Service, which could impact project quality and timelines. Performance risk is also present, where the contractor may fail to deliver services as specified. Mitigation strategies likely include robust project management by both the contractor and the NPS, clear definition of work requirements, regular progress reviews, and adherence to the contract's performance standards. The fixed-price nature shifts financial risk to the contractor, incentivizing efficient delivery.

What is the expected effectiveness of this contract in achieving its stated goals of compliance and rehabilitation?

The effectiveness of this contract hinges on the quality of engineering services provided by HDR ENGINEERING, INC. and the clarity of the rehabilitation goals set by the National Park Service. If the engineering designs are sound, the compliance assessments accurate, and the rehabilitation plans feasible, the contract should be highly effective in improving park infrastructure and ensuring it meets regulatory standards. The firm fixed-price contract incentivizes the contractor to complete the work efficiently. Success will also depend on the NPS's oversight and their ability to manage the project effectively, ensuring that the delivered solutions are sustainable and meet the long-term needs of the park. Positive outcomes would include enhanced visitor safety, preservation of historical or natural assets, and improved operational efficiency for park management.

How has federal spending on engineering services for park rehabilitation evolved over the past five years?

Federal spending on engineering services for park rehabilitation has likely seen fluctuations driven by infrastructure funding initiatives, budget appropriations, and the specific needs of agencies like the National Park Service. Historically, there has been a recognized need for increased investment in maintaining and upgrading aging park infrastructure. Trends may show an increase in spending as awareness of deferred maintenance grows and specific programs are funded. Analyzing historical data from sources like the Congressional Budget Office or agency budget justifications would provide a clearer picture of spending patterns, identifying any significant increases or decreases in federal outlays for such services. Factors like the Great American Outdoors Act could also influence recent spending trends.

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: ARCHITECT-ENGINEER FAR 6.102

Solicitation ID: 140P2024F0406

Pricing Type: FIRM FIXED PRICE (J)

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: $12,478,048

Exercised Options: $12,478,048

Current Obligation: $12,478,048

Actual Outlays: $10,767,695

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,591,467

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 140P2023D0008

IDV Type: IDC

Timeline