GSA awards $72.3M engineering services contract to Apogee Engineering, LLC for 1927 days

Contract Overview

Contract Amount: $72,305,017 ($72.3M)

Contractor: Apogee Engineering, LLC

Awarding Agency: General Services Administration

Start Date: 2019-02-20

End Date: 2024-05-31

Contract Duration: 1,927 days

Daily Burn Rate: $37.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TASK ORDER AWARD

Place of Performance

Location: LANGLEY AFB, HAMPTON CITY County, VIRGINIA, 23665

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $72.3 million to APOGEE ENGINEERING, LLC for work described as: TASK ORDER AWARD Key points: 1. Contract value represents a significant investment in specialized engineering expertise. 2. Competition was conducted under a 'full and open' basis, suggesting broad market engagement. 3. The contract duration of over five years indicates a long-term need for these services. 4. Apogee Engineering, LLC, a key player in the engineering services sector, secured this award. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost monitoring. 6. Virginia is the primary state associated with this contract's performance.

Value Assessment

Rating: good

The contract value of $72.3 million over approximately 1927 days suggests a substantial commitment to engineering services. Benchmarking against similar large-scale engineering contracts is difficult without more specific service details. However, the duration and scope imply a need for specialized, ongoing support. The Cost Plus Fixed Fee (CPFF) structure, while common for complex projects, necessitates diligent oversight to ensure costs remain reasonable and aligned with the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised, and multiple responsible sources were considered. The presence of two bidders suggests a competitive environment, though the exact number of proposals received and the evaluation process would provide a clearer picture of the competition's intensity. A competitive award generally supports price discovery and can lead to more favorable terms for the government.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down costs and ensuring the government receives the best value through a competitive selection.

Public Impact

The primary beneficiaries are likely federal agencies requiring specialized engineering support, potentially across various domains. Services delivered encompass a broad range of engineering disciplines, crucial for government infrastructure and operational needs. The contract's performance is centered in Virginia, implying a localized impact on the regional economy and workforce. This contract supports a segment of the engineering workforce, providing employment opportunities for skilled professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
Limited competition (2 bidders) might indicate a niche market or high barriers to entry.
Long contract duration increases the risk of scope creep or evolving requirements not being adequately addressed.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent process.
Apogee Engineering, LLC is an established entity in the engineering services sector.
The contract duration indicates a stable, long-term need, allowing for focused service delivery.

Sector Analysis

The engineering services sector is a critical component of the federal procurement landscape, supporting a wide array of government functions from infrastructure development to defense systems. This contract, valued at over $72 million, falls within the substantial spending allocated to professional and technical services. The North American Industry Classification System (NAICS) code 541330 (Engineering Services) encompasses a broad range of activities, and this award signifies a significant engagement within that market. Comparable spending benchmarks would depend on the specific engineering disciplines involved, but the overall value places it as a substantial contract.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Apogee Engineering, LLC, may still engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required. The absence of a small business set-aside means the primary competition was open to all eligible firms, regardless of size.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA), specifically the Federal Acquisition Service. The contract type (Cost Plus Fixed Fee) necessitates robust financial oversight to monitor expenditures against the fixed fee and ensure compliance with cost accounting standards. Transparency is generally maintained through contract reporting mechanisms within federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Engineering Services
Professional and Technical Services
Federal Civilian Agencies
Defense Engineering Support
Infrastructure Development Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited number of bidders may indicate reduced competition.
Long contract duration increases risk of requirement changes.
Geographic concentration of performance.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $72.3 million to APOGEE ENGINEERING, LLC. TASK ORDER AWARD

Who is the contractor on this award?

The obligated recipient is APOGEE ENGINEERING, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $72.3 million.

What is the period of performance?

Start: 2019-02-20. End: 2024-05-31.

What is the track record of Apogee Engineering, LLC with federal contracts, particularly with the GSA?

Apogee Engineering, LLC has a history of securing federal contracts, primarily within the engineering and technical services domain. Their awards often align with defense and civilian agency needs. Information available through federal procurement databases like SAM.gov and FPDS typically details their past performance, including contract values, agencies served, and contract types. While specific details on their GSA performance require a deep dive into historical data, their presence as a recipient of this significant GSA award suggests a demonstrated capability and a positive track record in meeting federal requirements. Analyzing their past performance metrics, such as on-time delivery and quality of service, would provide a more comprehensive understanding of their reliability.

How does the awarded value of $72.3 million compare to typical engineering services contracts awarded by the GSA?

The awarded value of $72.3 million for this engineering services contract is substantial, placing it among the larger awards within this category. The GSA procures a wide range of services, and while smaller, more specialized engineering task orders are common, contracts in the tens of millions are indicative of significant, long-term projects. To provide a precise comparison, one would need to analyze the average contract value for NAICS code 541330 (Engineering Services) awarded by GSA over a specific period. However, generally speaking, a contract of this magnitude suggests a comprehensive scope of work, potentially involving multiple engineering disciplines or supporting a major program over its lifecycle. It signifies a considerable investment by the agency in specialized engineering expertise.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this duration?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, especially one spanning nearly five years (1927 days), revolve around cost control and potential for scope creep. For the government, the risk is that the contractor's actual costs could exceed initial estimates, even though the fee is fixed. This necessitates rigorous oversight and auditing of incurred costs to ensure they are reasonable, allocable, and allowable. For the contractor, the risk lies in underestimating costs, which could erode their profit margin if the fixed fee doesn't adequately cover unforeseen expenses. Scope creep is another significant risk; as the project evolves, changes in requirements could lead to increased costs and extended timelines, requiring careful change management and negotiation to maintain the integrity of the fixed fee.

What does the 'full and open competition after exclusion of sources' clause imply for the procurement process?

The 'full and open competition after exclusion of sources' clause indicates a procurement process that initially aimed for broad competition but subsequently excluded certain sources. This typically happens when specific requirements or prior contract performance necessitate a particular type of vendor or technology, or when a previous solicitation yielded insufficient competition. In this case, it means the competition was not entirely unrestricted from the outset but was open to all eligible sources that met the defined criteria after certain exclusions. The fact that two bidders participated suggests that while the pool might have been narrowed, there was still a competitive element, which is generally favorable for price discovery and value for the government compared to a sole-source award.

How does the geographic concentration in Virginia impact federal spending patterns and local economies?

The concentration of contract performance in Virginia has a notable impact on federal spending patterns and the local economy. Virginia is a major hub for federal contracting, particularly in defense and technology sectors, due to the proximity of numerous government agencies and military installations. This contract, awarded to Apogee Engineering, LLC, likely contributes to job creation and economic activity within the state's engineering and professional services sector. Federal spending in concentrated areas like Virginia can stimulate local businesses, support specialized workforces, and foster a robust ecosystem of contractors and subcontractors. However, it also raises questions about the geographic distribution of federal investments and potential over-reliance on specific regions.

What is the significance of the PSC (Product or Service Code) and NAICS code for this contract?

The Product or Service Code (PSC) is not provided in the data (PSC: ''). However, the North American Industry Classification System (NAICS) code 541330, 'Engineering Services,' is highly significant. This code categorizes the primary business activity for which the contract was awarded. It tells us that the contract is for professional engineering services, which can encompass a vast array of activities, including design, analysis, consulting, and project management across various disciplines like civil, mechanical, electrical, or aerospace engineering. This classification is crucial for understanding the nature of the work, benchmarking against similar contracts, and analyzing spending trends within the federal government's procurement of specialized technical expertise.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8610 EXPLORER DRIVE, SUITE 305, COLORADO SPRINGS, CO, 80920

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $144,071,904

Exercised Options: $135,140,074

Current Obligation: $72,305,017

Actual Outlays: $38,355,296

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $17,491,609

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS133

IDV Type: IDC

Timeline