DOT awards $13.6M for ZME Underground Utility Project to Jacobs Engineering Group Inc

Contract Overview

Contract Amount: $13,605,941 ($13.6M)

Contractor: Jacobs Engineering Group Inc.

Awarding Agency: Department of Transportation

Start Date: 2022-03-22

End Date: 2028-09-30

Contract Duration: 2,384 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENROUTE BIL FUNDED PROJECT TASK - ZME UNDERGROUND UTILITY PROJECT

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03062

State: New Hampshire Government Spending

Plain-Language Summary

Department of Transportation obligated $13.6 million to JACOBS ENGINEERING GROUP INC. for work described as: ENROUTE BIL FUNDED PROJECT TASK - ZME UNDERGROUND UTILITY PROJECT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger contract, indicating a phased approach to project execution. 3. The fixed-price contract type aims to control costs for the government. 4. Project duration spans over six years, suggesting a long-term infrastructure development. 5. The engineering services sector is critical for infrastructure projects, with this contract representing a significant investment. 6. The project is located in New Hampshire, potentially bringing local economic benefits.

Value Assessment

Rating: good

The contract value of $13.6 million for engineering services for an underground utility project appears reasonable given the six-year duration and the nature of infrastructure work. Benchmarking against similar large-scale utility and engineering projects would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control, but the total cost will depend on the successful completion of all delivery orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically involves a broad solicitation to all eligible bidders. This method is designed to maximize the pool of potential offerors and foster a competitive environment. The number of bidders is not specified, but the open competition suggests that multiple firms likely had the opportunity to propose their services, potentially leading to more favorable pricing and innovative solutions for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a level playing field, encouraging competitive pricing, and ensuring that the government receives the best value for its investment through a wide range of proposals.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, ensuring the development and maintenance of critical infrastructure. The project will deliver essential engineering services for underground utility upgrades. The geographic impact is focused on New Hampshire, where the project is situated. The contract is expected to support jobs within the engineering and construction sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration could introduce risks related to scope creep or changing technological requirements.
Reliance on a single contractor for multiple delivery orders might limit flexibility if unforeseen issues arise.
Potential for cost overruns if initial estimates do not fully account for complex underground utility work.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, indicating a robust selection process.
The contractor, Jacobs Engineering Group Inc., is a well-established firm with experience in large-scale projects.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a vital component of the construction and infrastructure industry. This sector encompasses firms that provide specialized engineering expertise for planning, designing, and overseeing complex projects. The market for engineering services is substantial, driven by government investments in infrastructure, transportation, and utilities. This specific project addresses underground utility needs, a critical but often overlooked aspect of infrastructure development.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Jacobs Engineering Group Inc. is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific needs of the project, which could impact the broader small business ecosystem in the region.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration (FAA) contracting officers and project managers. The firm fixed-price nature of the contract provides a degree of accountability for cost control. Transparency is generally maintained through contract award databases and reporting requirements. Depending on the nature of the project and potential issues, an Inspector General may have jurisdiction if fraud, waste, or abuse is suspected.

Related Government Programs

Federal Aviation Administration Capital Improvement Plan
Airport Infrastructure Projects
Utility Modernization Programs
Engineering and Architectural Services Contracts

Risk Flags

Long-term contract duration may increase risk of cost escalation or scope changes.
Complexity of underground utility work can lead to unforeseen challenges and delays.
Reliance on a single prime contractor for a multi-year project requires robust oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $13.6 million to JACOBS ENGINEERING GROUP INC.. ENROUTE BIL FUNDED PROJECT TASK - ZME UNDERGROUND UTILITY PROJECT

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 $13.6 million.

What is the period of performance?

Start: 2022-03-22. End: 2028-09-30.

What is the track record of Jacobs Engineering Group Inc. in performing similar federal contracts, particularly for underground utility projects?

Jacobs Engineering Group Inc. is a major global provider of technical, professional, and construction services. They have a significant history of performing large-scale engineering and infrastructure projects for various government agencies, including the Department of Transportation and the FAA. Their portfolio often includes complex utility work, environmental services, and program management. While specific data on past performance for identical underground utility projects funded by the FAA is not detailed here, their extensive experience in related fields suggests a strong capability. A deeper dive into their contract performance history, including past performance evaluations and any reported issues on similar projects, would provide a more comprehensive understanding of their suitability for this specific task order.

How does the $13.6 million contract value compare to similar underground utility projects managed by the FAA or other federal agencies?

Benchmarking the $13.6 million contract value requires comparing it to similar projects in terms of scope, complexity, duration, and geographic location. Underground utility projects can vary significantly in cost based on factors like soil conditions, depth of excavation, type of utilities being installed or upgraded (e.g., power, water, communication), and the specific site environment (e.g., active airport operations). Without detailed project specifications, a direct comparison is challenging. However, for a multi-year project involving significant engineering design and oversight for critical infrastructure, $13.6 million appears to be within a reasonable range for a federal contract of this nature. Further analysis would involve examining the cost per linear foot or per utility type installed across comparable projects.

What are the primary risks associated with a six-year contract for underground utility work, and how are they being mitigated?

The primary risks associated with a six-year contract for underground utility work include potential cost overruns due to unforeseen site conditions (e.g., encountering unexpected geological formations, hazardous materials, or existing undocumented utilities), scope creep as project requirements evolve over time, and contractor performance issues. Mitigation strategies typically involve robust initial site investigations, detailed engineering designs, contingency planning within the budget, and strong contract management by the agency. The firm fixed-price contract type aims to shift some cost risk to the contractor, incentivizing them to manage costs effectively. Regular progress reviews, milestone payments tied to deliverables, and clear change order processes are also crucial for managing risks over the long duration.

What is the expected impact of this contract on the local economy in New Hampshire, specifically regarding job creation and small business opportunities?

This $13.6 million contract is expected to have a positive impact on the local economy in New Hampshire by creating jobs in engineering, project management, skilled trades, and potentially construction support roles. As Jacobs Engineering Group Inc. is the prime contractor, they will likely leverage local resources and potentially hire local personnel. While the contract itself is not a small business set-aside, there is an opportunity for local small businesses to participate as subcontractors, providing specialized services or materials. The extent of this impact will depend on Jacobs' subcontracting strategy and the availability of qualified local small businesses. The project's duration suggests sustained economic activity over several years.

How does the Federal Aviation Administration (FAA) typically structure and oversee large engineering service contracts like this one?

The FAA typically structures large engineering service contracts through various mechanisms, including indefinite-delivery/indefinite-quantity (IDIQ) contracts, task orders, and direct awards. This specific contract is a delivery order, suggesting it falls under a pre-existing master contract, likely awarded through a competitive process itself. Oversight is usually conducted by contracting officers (COs) and contract specialists who ensure compliance with contract terms, manage modifications, and process payments. Project managers or technical representatives (TRs) oversee the technical aspects, monitor progress, ensure quality, and approve deliverables. Regular reporting, site visits, and performance reviews are standard oversight practices to ensure the project stays on schedule, within budget, and meets quality standards.

What are the implications of the 'ZME Underground Utility Project' designation for the scope and nature of the engineering services required?

The designation 'ZME Underground Utility Project' implies that the engineering services required will focus on the planning, design, and potentially oversight of the installation, repair, or upgrade of underground utility systems. 'ZME' could be an internal project code or an acronym specific to the FAA or the location, but the core focus is on subterranean infrastructure. This typically involves tasks such as site surveys, geotechnical investigations, utility mapping, system design (including conduits, pipes, cables), coordination with other utilities, environmental impact assessments, permitting, and construction administration. The engineering services would ensure that the new or upgraded utilities are safe, reliable, compliant with regulations, and integrated effectively with existing infrastructure.

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: $13,605,941

Exercised Options: $13,605,941

Current Obligation: $13,605,941

Actual Outlays: $9,472,574

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