GSA awards $16M construction management contract to AECOM for Volpe Center, spanning over 5 years

Contract Overview

Contract Amount: $16,009,591 ($16.0M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: General Services Administration

Start Date: 2020-09-16

End Date: 2026-08-31

Contract Duration: 2,175 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Construction

Official Description: CONSTRUCTION MANAGEMENT SERVICES FOR A NEW FEDERAL FACILITY, JOHN A. VOLPE NATIONAL TRANSPORTATION SYSTEMS CENTER, 55 BROADWAY, KENDALL SQUARE, CAMBRIDGE, MA 02142

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02142

State: Massachusetts Government Spending

Plain-Language Summary

General Services Administration obligated $16.0 million to AECOM TECHNICAL SERVICES, INC. for work described as: CONSTRUCTION MANAGEMENT SERVICES FOR A NEW FEDERAL FACILITY, JOHN A. VOLPE NATIONAL TRANSPORTATION SYSTEMS CENTER, 55 BROADWAY, KENDALL SQUARE, CAMBRIDGE, MA 02142 Key points: 1. Contract value appears reasonable for a multi-year, complex construction management project. 2. Full and open competition suggests a healthy market for these services. 3. Project duration and delivery order structure indicate potential for scope adjustments. 4. AECOM's extensive experience in federal projects positions them well for this role. 5. The contract is for engineering services, aligning with the facility's transportation research mission.

Value Assessment

Rating: good

The contract value of $16,009,591 for construction management services over approximately 5.8 years appears to be within a reasonable range for a federal facility project of this nature. Benchmarking against similar large-scale federal construction management contracts would provide a more precise value-for-money assessment. The Time and Materials pricing structure, while common, necessitates careful oversight to manage costs effectively and ensure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified firms had the opportunity to bid. This competitive process is expected to drive better pricing and service quality. The specific number of bidders is not provided, but the method of competition suggests a robust market for construction management services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower overall costs and higher quality services, maximizing the value of federal investments.

Public Impact

The primary beneficiary is the General Services Administration (GSA) and the Department of Transportation, which operates the Volpe Center. The contract delivers essential construction management services for the development of a new federal facility. The geographic impact is concentrated in Cambridge, Massachusetts, where the Volpe Center is located. The project will likely involve a workforce of construction managers, engineers, and administrative staff, potentially creating local employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Time and Materials pricing structure if not closely monitored.
Scope creep could extend the project timeline and increase costs beyond initial estimates.
Reliance on a single delivery order for a long-duration project may limit flexibility in adapting to changing needs.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
AECOM's extensive experience in federal construction management projects indicates a lower risk of execution failure.
The project supports a critical federal research facility, aligning with national transportation goals.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on construction management for federal facilities. The market for these services is substantial, driven by ongoing federal infrastructure development and modernization efforts. Comparable spending benchmarks would involve analyzing other large-scale federal building projects managed by GSA or other agencies, considering factors like project complexity, duration, and location.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary contractor, AECOM, will likely manage the majority of the construction management services. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight will be provided by the General Services Administration (GSA), likely through contracting officers and project managers. Accountability measures are inherent in the contract terms, performance standards, and payment schedules. Transparency is typically managed through GSA's public contract databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Building Construction
Engineering and Architectural Services
Transportation Infrastructure Projects
General Services Administration Contracts
Volpe National Transportation Systems Center

Risk Flags

Potential for cost overruns due to T&M contract type.
Long contract duration requires sustained oversight.
Lack of specific small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $16.0 million to AECOM TECHNICAL SERVICES, INC.. CONSTRUCTION MANAGEMENT SERVICES FOR A NEW FEDERAL FACILITY, JOHN A. VOLPE NATIONAL TRANSPORTATION SYSTEMS CENTER, 55 BROADWAY, KENDALL SQUARE, CAMBRIDGE, MA 02142

Who is the contractor on this award?

The obligated recipient is AECOM TECHNICAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $16.0 million.

What is the period of performance?

Start: 2020-09-16. End: 2026-08-31.

What is AECOM's track record with similar federal construction management contracts?

AECOM Technical Services, Inc. has a significant track record of performing federal construction management and engineering services. They have been awarded numerous contracts across various agencies, including GSA, Department of Defense, and others, for projects ranging from facility renovations to new construction. Their experience often includes managing complex schedules, budgets, and stakeholder requirements typical of large federal projects. A review of their past performance ratings and any past performance issues on similar contracts would provide a more detailed assessment of their suitability for this specific project.

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

The provided data indicates an award amount of $16,009,591. Without access to the original contract solicitation, independent government cost estimates, or the agency's budget allocation for this project, it is difficult to definitively compare the award amount to the estimated cost. However, the fact that it was awarded under full and open competition suggests that the bids received were considered competitive and likely within an acceptable range of the government's estimate. Further analysis would require access to internal GSA cost projections and the final negotiated price.

What are the primary risks associated with a Time and Materials (T&M) contract for construction management?

Time and Materials (T&M) contracts, like the one awarded here, carry inherent risks, primarily related to cost control. The government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or overhead. The main risk is potential cost escalation if the contractor's efficiency is low, if scope creep occurs without proper management, or if billing practices are not rigorously scrutinized. To mitigate these risks, the government must implement strong oversight, detailed tracking of hours and materials, and clear definitions of work to prevent uncontrolled cost growth.

How does the duration of this contract (over 5 years) impact project oversight and value?

A contract duration exceeding five years for construction management necessitates sustained and vigilant oversight from the contracting agency. It allows for comprehensive management of all project phases, from initial design through construction and closeout. For taxpayers, a longer duration can be beneficial if it ensures continuity and allows for the effective management of complex, multi-phase projects, potentially leading to better quality and cost control over the long term. However, it also increases the risk of contractor performance degradation, changes in agency needs, or economic fluctuations impacting costs, requiring adaptive management strategies and regular performance reviews.

What is the significance of the 'Public Buildings Service' as the specific agency within GSA?

The Public Buildings Service (PBS) is the arm of the General Services Administration responsible for the management, development, and operation of the federal government's inventory of more than 450 million square feet of office and other workspace. PBS oversees the design, construction, renovation, and leasing of federal buildings. Therefore, awarding a construction management contract for a new federal facility falls directly within PBS's core mission and expertise, indicating that the contract is being handled by the most relevant GSA component.

What does the NAICS code '541330' (Engineering Services) imply about the scope of this contract?

The North American Industry Classification System (NAICS) code 541330, 'Engineering Services,' indicates that the primary focus of this contract is on professional engineering expertise. For construction management, this typically includes services such as planning, design review, feasibility studies, construction oversight, quality assurance, and ensuring compliance with engineering standards and regulations. It suggests that the contractor is expected to provide technical and managerial expertise throughout the construction lifecycle, going beyond basic project coordination to encompass critical engineering decision-making and problem-solving.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 300 S GRAND AVE FL 9, LOS ANGELES, CA, 90071

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

Financial Breakdown

Contract Ceiling: $16,900,252

Exercised Options: $16,009,591

Current Obligation: $16,009,591

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $206,856

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F188CA

IDV Type: FSS

Timeline