Transportation contract for construction inspectors awarded to AtkinsRealis USA Inc. for over $8.5 million

Contract Overview

Contract Amount: $8,518,874 ($8.5M)

Contractor: Atkinsrealis USA Inc

Awarding Agency: Department of Transportation

Start Date: 2023-03-17

End Date: 2026-12-01

Contract Duration: 1,355 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NEW TASK ORDER TO PROCURE THE SERVICES OF CONSTRUCTION INSPECTORS ON PROJECTS PR ER PRMNT RPR (7) & PR ER PRMNT RPR(11) LEVEL II & LEVEL III TO ASSIST (EFLHD) FIELD PERSONNEL WITH ONSITE INSPECTION OF WORKS.

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00918

Plain-Language Summary

Department of Transportation obligated $8.5 million to ATKINSREALIS USA INC for work described as: NEW TASK ORDER TO PROCURE THE SERVICES OF CONSTRUCTION INSPECTORS ON PROJECTS PR ER PRMNT RPR (7) & PR ER PRMNT RPR(11) LEVEL II & LEVEL III TO ASSIST (EFLHD) FIELD PERSONNEL WITH ONSITE INSPECTION OF WORKS. Key points: 1. Value for money assessed through comparison with similar engineering services contracts. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract duration and the specific nature of inspection services. 4. Performance context relies on the successful execution of inspection duties for critical infrastructure projects. 5. Sector positioning within engineering services for transportation infrastructure is a key aspect.

Value Assessment

Rating: good

The contract value of $8.5 million for construction inspection services appears reasonable given the 3-year duration and the scope of work involving Level II and III inspections. Benchmarking against similar engineering services contracts for infrastructure projects in the region would provide a more precise value assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be favorable for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The level of competition is a positive indicator for price discovery and potentially achieving a more competitive price for the government. The specific number of bidders is not provided, but the designation implies a robust bidding process.

Taxpayer Impact: A full and open competition process generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services.

Public Impact

The Federal Highway Administration (FHWA) benefits from enhanced oversight of construction projects. Construction inspection services will be delivered to ensure project quality and compliance. The geographic impact is focused on Puerto Rico, supporting critical infrastructure development. Workforce implications include the need for skilled construction inspectors, potentially creating opportunities for local professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if inspection requirements are not clearly defined.
Dependence on contractor's ability to provide qualified and consistent inspection personnel.
Risk of delays if inspection findings lead to rework or disputes.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a competitive market for these services.
Long-term contract duration allows for consistent oversight of multiple projects.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting transportation infrastructure projects. The market for construction inspection services is driven by government spending on roads, bridges, and other public works. Comparable spending benchmarks would involve analyzing other federal, state, and local government contracts for similar inspection and engineering support services, particularly in regions undergoing significant infrastructure development.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests that the primary award was not targeted towards small businesses. However, the prime contractor, AtkinsRealis USA Inc., may engage small businesses as subcontractors to fulfill certain aspects of the work, which would be detailed in their subcontracting plan. The impact on the small business ecosystem depends on the extent of any subcontracting opportunities created.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Highway Administration's project managers and contracting officers. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver services to specification. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for the Department of Transportation may have jurisdiction for audits and investigations if any irregularities are suspected.

Related Government Programs

Federal Highway Administration Construction Projects
Department of Transportation Engineering Services
Puerto Rico Infrastructure Development

Risk Flags

Potential for delays
Contractor performance risk
Scope definition clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $8.5 million to ATKINSREALIS USA INC. NEW TASK ORDER TO PROCURE THE SERVICES OF CONSTRUCTION INSPECTORS ON PROJECTS PR ER PRMNT RPR (7) & PR ER PRMNT RPR(11) LEVEL II & LEVEL III TO ASSIST (EFLHD) FIELD PERSONNEL WITH ONSITE INSPECTION OF WORKS.

Who is the contractor on this award?

The obligated recipient is ATKINSREALIS USA INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $8.5 million.

What is the period of performance?

Start: 2023-03-17. End: 2026-12-01.

What is the track record of AtkinsRealis USA Inc. in delivering similar construction inspection services for federal infrastructure projects?

AtkinsRealis USA Inc., a subsidiary of SNC-Lavalin, has a significant history of providing engineering, design, and construction management services across various infrastructure sectors, including transportation. While specific details on past performance for construction inspection on projects identical to PR ER PRMNT RPR (7) & PR ER PRMNT RPR(11) are not provided in this data snippet, the company's broad experience suggests a capacity to handle such requirements. Federal procurement databases often contain past performance evaluations for contractors on previous awards. A deeper dive into their contract history with the Department of Transportation and other federal agencies would reveal their success rate, any performance issues, and client satisfaction levels on comparable projects. This would provide a clearer picture of their reliability and expertise in fulfilling the on-site inspection duties required.

How does the awarded amount of $8.5 million compare to the estimated value or budget for these construction inspection services?

The provided data indicates an awarded amount of $8,518,874.11 for the services of construction inspectors. Without access to the government's initial cost estimates or the specific budget allocated for these task orders (PR ER PRMNT RPR (7) & PR ER PRMNT RPR(11)), it is challenging to definitively assess if this award represents a high or low value. However, the fact that it was awarded under 'Full and Open Competition' suggests that the bidding process likely resulted in a price that was deemed competitive and acceptable by the contracting agency. To provide a more precise comparison, one would need to analyze the government's independent government cost estimate (IGCE) or compare this award to similar contracts for construction inspection services in Puerto Rico or other regions with comparable labor and material costs.

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

Primary risks for this contract include potential delays in project timelines due to inspection findings, the contractor's ability to consistently provide qualified Level II and Level III inspectors, and the possibility of scope creep if inspection requirements are not meticulously defined and managed. Mitigation strategies are likely embedded within the contract terms. The firm fixed-price (FFP) nature of the contract shifts the financial risk of cost overruns to the contractor, incentivizing efficient service delivery. Clear statement of work (SOW) and performance work statement (PWS) are crucial for defining inspection criteria and preventing scope creep. The Federal Highway Administration's oversight personnel are responsible for monitoring contractor performance, ensuring adherence to the SOW, and addressing any issues promptly to keep projects on track.

What is the expected effectiveness of these construction inspection services in ensuring the quality and timely completion of the specified projects?

The effectiveness of these construction inspection services hinges on the qualifications of the inspectors, the clarity of the inspection protocols, and the responsiveness of the contracting agency to reported issues. By engaging AtkinsRealis USA Inc. through a full and open competition for Level II and Level III inspections, the FHWA aims to ensure that qualified personnel are on-site to monitor work quality, adherence to specifications, and safety standards. The firm fixed-price contract structure provides a financial incentive for the contractor to perform these duties diligently. The ultimate effectiveness will be measured by the reduction in construction defects, compliance with project requirements, and the overall contribution to the timely completion of the underlying infrastructure projects in Puerto Rico.

How does historical spending on engineering and construction inspection services by the Federal Highway Administration in Puerto Rico compare to this award?

Analyzing historical spending patterns for the Federal Highway Administration (FHWA) in Puerto Rico is crucial for contextualizing this $8.5 million contract. Without specific historical data readily available in this dataset, a comprehensive comparison is not possible. However, federal agencies typically maintain records of past contract awards. To perform this analysis, one would need to query databases like FPDS or USASpending.gov for FHWA contracts related to engineering services, construction management, and inspection services awarded in Puerto Rico over the past several fiscal years. Comparing the volume, value, and types of services procured historically would reveal whether this current award is an outlier, a continuation of a trend, or a significant increase/decrease in investment in such services for the region.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4030 W BOY SCOUT BLVD STE 700, TAMPA, FL, 33607

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

Financial Breakdown

Contract Ceiling: $8,518,874

Exercised Options: $8,518,874

Current Obligation: $8,518,874

Actual Outlays: $5,779,247

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693C7322D000002

IDV Type: IDC

Timeline