Transportation contract for engineering services awarded to AECOM Technical Services, Inc. for over $2 million

Contract Overview

Contract Amount: $2,045,065 ($2.0M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2023-12-19

End Date: 2027-03-31

Contract Duration: 1,198 days

Daily Burn Rate: $1.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: PREPARATION OF THE PLANS, SPECIFICATIONS, AND ESTIMATE (PS&E) AND OTHER SUPPORTING DOCUMENTS FOR PROJECT VA ERFO FS GWJEF808 2020-2(1).

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $2.0 million to AECOM TECHNICAL SERVICES, INC. for work described as: PREPARATION OF THE PLANS, SPECIFICATIONS, AND ESTIMATE (PS&E) AND OTHER SUPPORTING DOCUMENTS FOR PROJECT VA ERFO FS GWJEF808 2020-2(1). Key points: 1. Contract value appears reasonable for the scope of engineering services required. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of nearly four years indicates a significant project timeline. 4. Fixed-price contract type may offer cost certainty but could limit flexibility. 5. Project is located in Virginia, potentially impacting local engineering firms. 6. The contract falls under engineering services, a common category for federal procurement.

Value Assessment

Rating: good

The contract value of approximately $2.05 million for engineering services over a nearly four-year period seems aligned with typical federal project costs for similar scopes. Benchmarking against other Federal Highway Administration (FHWA) contracts for PS&E preparation and engineering support would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests a defined scope and budget, which is generally favorable for cost control, assuming the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This approach typically fosters a competitive environment, potentially leading to better pricing and quality. The number of bidders is not specified, but the open competition suggests a robust process was intended.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and a wider pool of qualified contractors, which can lead to more efficient use of federal funds.

Public Impact

The primary beneficiary is the Department of Transportation, specifically the Federal Highway Administration, which will receive the engineering plans and specifications. The services delivered include the preparation of plans, specifications, and estimates (PS&E) for a transportation project. The geographic impact is concentrated in Virginia, where the project is located. The contract supports the engineering and construction workforce, likely involving civil engineers, drafters, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term engineering projects if not managed tightly.
Reliance on a single contractor for a multi-year project could pose risks if performance issues arise.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Full and open competition suggests a competitive award process.
Long contract duration allows for thorough project development and execution.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader Construction and Infrastructure industry. The federal government is a significant purchaser of engineering services for transportation projects, including road and bridge design. Spending in this sector is often driven by infrastructure investment initiatives. Comparable spending benchmarks would involve analyzing other FHWA contracts for similar PS&E preparation and engineering support services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if AECOM Technical Services, Inc. chooses to engage them. Without specific subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation and the Federal Highway Administration. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver the specified services within the agreed-upon price. Transparency is generally facilitated through federal procurement databases, though detailed project performance data may be less publicly accessible.

Related Government Programs

Federal Highway Administration Capital Improvement Projects
Transportation Infrastructure Engineering Services
State Department of Transportation Engineering Support Contracts

Risk Flags

Potential for scope creep in long-term engineering projects.
Risk of contractor performance issues impacting project timelines.
Need for robust government oversight to ensure quality and adherence to budget.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.0 million to AECOM TECHNICAL SERVICES, INC.. PREPARATION OF THE PLANS, SPECIFICATIONS, AND ESTIMATE (PS&E) AND OTHER SUPPORTING DOCUMENTS FOR PROJECT VA ERFO FS GWJEF808 2020-2(1).

Who is the contractor on this award?

The obligated recipient is AECOM TECHNICAL SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2023-12-19. End: 2027-03-31.

What is the track record of AECOM Technical Services, Inc. with the Federal Highway Administration?

AECOM Technical Services, Inc. has a significant history of contracting with federal agencies, including the Federal Highway Administration (FHWA). Analyzing their past performance with FHWA would involve reviewing contract databases for similar projects, assessing past performance evaluations, and identifying any instances of contract disputes or performance issues. Their extensive experience suggests a capacity to handle complex engineering tasks, but a detailed review of their specific project history with FHWA is necessary to fully understand their reliability and expertise in this domain. This includes examining the types of projects undertaken, their success rates, and any reported challenges or successes in delivering engineering services.

How does the awarded amount compare to similar engineering service contracts for transportation projects?

The awarded amount of approximately $2.05 million for the preparation of plans, specifications, and estimates (PS&E) and other supporting documents for a transportation project over a nearly four-year period needs to be benchmarked against similar contracts. Factors such as project complexity, geographic location, specific engineering disciplines required, and the duration of the contract significantly influence pricing. A comparison with other FHWA contracts for similar PS&E preparation services, especially those awarded through full and open competition, would reveal whether this contract represents a fair market value. Without access to a detailed database of comparable contracts, it's challenging to definitively state if the price is high or low, but the firm-fixed-price structure suggests an attempt to control costs.

What are the primary risks associated with this contract for the government?

The primary risks for the government in this contract revolve around potential performance issues and cost overruns, despite the firm-fixed-price structure. If the scope of work is not precisely defined, there's a risk of scope creep, leading to change orders that could increase the overall cost. Contractor performance is another key risk; if AECOM Technical Services, Inc. fails to deliver quality plans and specifications on time, it could delay the subsequent construction phases of the transportation project, incurring additional costs and schedule impacts. Furthermore, the long duration of the contract increases the exposure to potential contractor instability or shifts in project priorities. Effective project management and oversight are crucial to mitigate these risks.

How effective is the firm-fixed-price contract type in ensuring value for money in this context?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and unlikely to change significantly. For the preparation of plans, specifications, and estimates (PS&E), an FFP contract provides the government with cost certainty, as the contractor assumes the risk of cost overruns. This incentivizes the contractor to manage their resources efficiently to maximize profit. However, if the project scope is inherently uncertain or prone to changes, an FFP contract can lead to contractors building in significant contingencies, potentially inflating the price, or it may necessitate costly change orders. For this specific contract, the effectiveness hinges on the clarity and completeness of the initial scope definition.

What is the historical spending trend for engineering services by the Federal Highway Administration?

The Federal Highway Administration (FHWA) consistently spends significant amounts on engineering services to support its mission of improving transportation infrastructure. Historical spending trends show a substantial and often increasing investment in design, planning, and oversight services, driven by federal transportation funding authorizations and infrastructure initiatives. This spending is distributed across various contract types, including firm-fixed-price and cost-plus contracts, and awarded through different competition levels. Analyzing FHWA's historical spending data for engineering services, particularly for PS&E preparation and related support, would reveal patterns in contract values, durations, and the prevalence of specific service categories, providing context for the current contract's scale and nature.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: 693C7322R000030

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 S GRAND AVE STE 1100, 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: $2,045,065

Exercised Options: $2,045,065

Current Obligation: $2,045,065

Actual Outlays: $1,598,074

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $152,831

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693C7321D000003

IDV Type: IDC

Timeline