Transportation contract for engineering services awarded to Jacobs Engineering Group Inc. for over $14.3 million

Contract Overview

Contract Amount: $14,385,627 ($14.4M)

Contractor: Jacobs Engineering Group Inc.

Awarding Agency: Department of Transportation

Start Date: 2020-02-13

End Date: 2028-09-30

Contract Duration: 3,152 days

Daily Burn Rate: $4.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONDITION ASSESSMENTS&LIFECYCLE ASSESSMENT REPORTS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $14.4 million to JACOBS ENGINEERING GROUP INC. for work described as: CONDITION ASSESSMENTS&LIFECYCLE ASSESSMENT REPORTS Key points: 1. Contract value appears reasonable given the duration and scope of engineering services. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include performance under a firm-fixed-price contract over a long duration. 4. This contract supports critical infrastructure assessment and lifecycle management. 5. Engineering services sector is characterized by specialized expertise and significant government reliance. 6. Contract duration of over 8 years necessitates careful performance monitoring.

Value Assessment

Rating: good

The contract value of $14.3 million over approximately 8.5 years averages to about $1.68 million per year. This appears to be within a reasonable range for complex engineering services supporting federal infrastructure. Benchmarking against similar large-scale engineering support contracts for agencies like DOT would provide a more precise value-for-money assessment, but initial indications suggest fair pricing for the anticipated scope.

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 bids. This process typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the method of competition suggests a robust price discovery mechanism.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting lower prices and higher quality services through a wider pool of potential contractors.

Public Impact

Benefits the Department of Transportation and the Federal Aviation Administration by ensuring the integrity and longevity of critical infrastructure. Services delivered include condition assessments and lifecycle management reports for federal assets. Geographic impact is likely nationwide, given the scope of federal infrastructure managed by the FAA. Workforce implications include the need for specialized engineering talent, potentially supporting a segment of the engineering industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 8 years) increases the risk of cost overruns if not managed effectively.
Firm-fixed-price structure could incentivize cost-cutting that might compromise quality if oversight is insufficient.
Reliance on a single contractor for critical assessments over an extended period requires diligent performance management.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
Contractor Jacobs Engineering Group Inc. is a large, established firm with significant experience in engineering services.
The contract focuses on essential lifecycle assessment and condition reporting, crucial for infrastructure maintenance.

Sector Analysis

The engineering services sector is a vital component of the federal procurement landscape, supporting a wide array of government functions from infrastructure development to research and development. This contract falls within the professional, scientific, and technical services category, which is a significant area of federal spending. The market is characterized by a mix of large, established firms and smaller specialized companies. Federal spending in this sector often benchmarks against private industry rates, adjusted for the complexities and requirements of government contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded through full and open competition, it is unlikely to have significant direct subcontracting opportunities specifically mandated for small businesses, though the prime contractor may engage them. The absence of a small business set-aside suggests the scope and nature of the services were deemed more suitable for larger, potentially more specialized firms.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of Transportation and the Federal Aviation Administration. The firm-fixed-price nature of the contract implies that the government pays a set amount regardless of the contractor's actual costs, shifting some risk to the contractor. Transparency is facilitated by the contract award process itself, and the Federal Aviation Administration is subject to oversight from the DOT's Office of Inspector General, which can audit contract performance and expenditures.

Related Government Programs

Federal Aviation Administration Infrastructure Programs
Department of Transportation Asset Management
Engineering and Technical Services Contracts
Lifecycle Assessment Services
Condition Assessment Contracts

Risk Flags

Long contract duration may increase risk of cost escalation or performance degradation.
Firm-fixed-price contract requires careful monitoring to ensure quality is not compromised for profit.
Potential for scope creep if requirements are not clearly defined and managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $14.4 million to JACOBS ENGINEERING GROUP INC.. CONDITION ASSESSMENTS&LIFECYCLE ASSESSMENT REPORTS

Who is the contractor on this award?

The obligated recipient is JACOBS ENGINEERING GROUP INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.4 million.

What is the period of performance?

Start: 2020-02-13. End: 2028-09-30.

What is the track record of Jacobs Engineering Group Inc. with the Department of Transportation and the Federal Aviation Administration?

Jacobs Engineering Group Inc. is a major global provider of technical, professional, and construction services. While specific details on their past performance with the FAA or DOT for this exact type of service are not provided in the summary data, the company has a long history of working with government agencies on large-scale infrastructure and engineering projects. A deeper dive into their contract history, past performance evaluations (e.g., CPARS reports), and any documented disputes or awards would be necessary for a comprehensive assessment of their track record. However, their status as a large, established firm suggests they have experience navigating government contracting requirements.

How does the annual value of this contract compare to similar engineering services contracts within the federal government?

The approximate annual value of this contract is around $1.68 million ($14.3M / 8.5 years). This figure needs to be benchmarked against comparable contracts for engineering services, particularly those involving lifecycle assessment and condition reporting for large federal agencies. Contracts for similar services can vary widely based on the complexity of the assets being assessed, the geographic scope, and the specific deliverables required. Without access to a database of comparable federal contracts, it's difficult to provide a precise benchmark. However, for specialized engineering support, this annual figure appears to be within a plausible range for a significant federal agency like the FAA.

What are the primary risks associated with a firm-fixed-price contract of this duration?

The primary risks associated with a firm-fixed-price (FFP) contract of this duration (over 8 years) include potential cost overruns for the contractor if unforeseen issues arise, which could lead to reduced quality or contractor default. For the government, the risk is that the fixed price may become uncompetitive over time if market rates decrease or if the scope needs significant adjustment. There's also a risk that the contractor might cut corners to maintain profitability, potentially impacting the quality of the assessments. Effective oversight, clear performance metrics, and mechanisms for contract modification are crucial to mitigate these risks.

How effective are condition assessments and lifecycle reports in ensuring the long-term viability of federal infrastructure?

Condition assessments and lifecycle reports are critical tools for ensuring the long-term viability of federal infrastructure. They provide essential data for proactive maintenance, capital planning, and risk management. By identifying potential issues early, agencies can address them before they become major problems, preventing costly emergency repairs and extending the useful life of assets. Lifecycle reports help in understanding the total cost of ownership and planning for future replacements or upgrades. The effectiveness hinges on the quality of the assessments, the accuracy of the data, and the agency's commitment to acting upon the recommendations provided.

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

Historical spending trends for engineering services by the Federal Aviation Administration (FAA) generally show a consistent need for such support due to the complexity and scale of the national airspace system and related infrastructure. The FAA relies heavily on engineering expertise for air traffic control systems, airport development, safety standards, and facility maintenance. While specific year-over-year spending figures for engineering services are not provided here, it's a category that typically represents a substantial portion of the agency's operational and capital budgets. Spending can fluctuate based on major modernization projects, regulatory changes, and infrastructure investment cycles.

What are the implications of 'full and open competition' for the taxpayer in the context of this contract?

The 'full and open competition' designation for this contract is generally positive for taxpayers. It means that the government sought bids from all responsible sources, which typically leads to a more competitive bidding environment. This competition encourages contractors to offer their best prices and technical solutions to win the contract. Consequently, taxpayers are more likely to benefit from cost savings compared to sole-source or limited competition awards. It also promotes transparency and ensures that the government is obtaining services at a fair market price, maximizing the value of taxpayer dollars.

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: ARCHITECT-ENGINEER FAR 6.102

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1100 NORTH GLEBE RD STE 500, ARLINGTON, VA, 22201

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

Financial Breakdown

Contract Ceiling: $14,385,627

Exercised Options: $14,385,627

Current Obligation: $14,385,627

Actual Outlays: $12,035,268

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 697DCK19D00002

IDV Type: IDC

Timeline