Transportation contract for engineering services in Montana awarded to DJ&A, P.C. for over $2 million

Contract Overview

Contract Amount: $2,095,107 ($2.1M)

Contractor: DJ&A, P.C.

Awarding Agency: Department of Transportation

Start Date: 2020-09-10

End Date: 2026-09-30

Contract Duration: 2,211 days

Daily Burn Rate: $948/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: UT FLAP SLA 10(1) MILL CREEK CANYON ROAD 6982AF19D000006/6982AF20F000109 SCOPING TASK ORDER

Place of Performance

Location: MISSOULA, MISSOULA County, MONTANA, 59801

State: Montana Government Spending

Plain-Language Summary

Department of Transportation obligated $2.1 million to DJ&A, P.C. for work described as: UT FLAP SLA 10(1) MILL CREEK CANYON ROAD 6982AF19D000006/6982AF20F000109 SCOPING TASK ORDER Key points: 1. The contract value of approximately $2.1 million for engineering services appears reasonable given the duration and scope. 2. Full and open competition was utilized, suggesting a competitive bidding process that should drive fair pricing. 3. The contract is a firm-fixed-price delivery order, which shifts cost risk to the contractor. 4. The project is located in Montana, indicating a specific geographic focus for these engineering services. 5. The North American Industry Classification System (NAICS) code 541330 points to a specialized engineering services sector. 6. The contract duration of over 2200 days (approximately 6 years) suggests a long-term need for these services.

Value Assessment

Rating: good

The contract value of $2,095,107.42 for engineering services over a period of approximately six years appears to be within a reasonable range for such a project. Benchmarking against similar large-scale engineering contracts for infrastructure projects would provide further context, but the firm-fixed-price nature suggests that the government has secured a defined cost for the services. The absence of significant modifications or change orders, if applicable, would further support the value proposition.

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.' While this indicates an initial intent for broad competition, the 'after exclusion of sources' clause suggests that certain potential bidders may have been excluded for specific reasons, which warrants further investigation. The number of bidders is not specified, but the 'full and open' nature generally implies multiple interested parties, which is positive for price discovery.

Taxpayer Impact: The use of full and open competition, even with potential exclusions, is generally beneficial for taxpayers as it encourages a wider pool of contractors to bid, potentially leading to lower prices and better service offerings.

Public Impact

The primary beneficiaries are likely the residents and users of transportation infrastructure in Montana who will benefit from improved road conditions. The services delivered include specialized engineering expertise for infrastructure projects. The geographic impact is concentrated in Montana, specifically related to the Mill Creek Canyon Road project. The contract supports a specialized workforce within the engineering services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause in the competition type requires clarification to ensure no viable competitors were unfairly barred.
The long contract duration could present risks if project requirements or technological needs change significantly over time.
Lack of specific performance metrics or quality assurance details in the provided data makes it difficult to assess the contractor's performance history.
The specific nature of the engineering services and their criticality to the road project could pose risks if not executed flawlessly.

Positive Signals

The firm-fixed-price contract type transfers cost overrun risks to the contractor, providing budget certainty for the government.
The use of full and open competition, even with exclusions, suggests an effort to leverage market competition for best value.
The contract is awarded to DJ&A, P.C., a known entity in engineering services, implying some level of established capability.
The long duration allows for sustained focus and completion of complex engineering tasks without frequent re-competition.

Sector Analysis

The engineering services sector, particularly for transportation infrastructure, is a critical component of the broader construction and public works industry. This contract falls under NAICS code 541330 (Engineering Services), which encompasses firms providing specialized engineering expertise for projects like road construction and maintenance. The market for these services is competitive, with numerous firms capable of undertaking such work. Federal spending in this area is often driven by infrastructure needs and government investment in public works.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it specify subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is not evident from this information. Further analysis of the contract's subcontracting plan would be necessary to determine any implications for small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Highway Administration (FHWA), a division of the Department of Transportation. The agency responsible for awarding the contract would have mechanisms in place for monitoring performance, ensuring compliance with contract terms, and managing payments. Transparency would be facilitated through contract databases like FPDS-NG. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Highway Administration Grants
National Highway System Program
Transportation Infrastructure Investment Act
Public Roads Administration Contracts

Risk Flags

Competition Exclusion Clause
Long Contract Duration Risk
Lack of Performance Data
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.1 million to DJ&A, P.C.. UT FLAP SLA 10(1) MILL CREEK CANYON ROAD 6982AF19D000006/6982AF20F000109 SCOPING TASK ORDER

Who is the contractor on this award?

The obligated recipient is DJ&A, P.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.1 million.

What is the period of performance?

Start: 2020-09-10. End: 2026-09-30.

What is the specific nature of the engineering services required for the Mill Creek Canyon Road project?

The provided data indicates the contract is for 'SCOPING TASK ORDER' related to Mill Creek Canyon Road. This suggests the engineering services likely involve preliminary studies, design, planning, and potentially environmental assessments required before major construction can commence. Specific tasks could include topographical surveys, geotechnical investigations, traffic analysis, environmental impact studies, and the development of detailed engineering plans and specifications for the road project. The 'scoping' aspect implies defining the parameters and requirements of the larger project.

How does the awarded amount of approximately $2.1 million compare to similar engineering contracts for road projects of this scale?

Without specific details on the scope and complexity of the Mill Creek Canyon Road project, a direct comparison of the $2.1 million award is challenging. However, for a multi-year engineering services contract (over 6 years) involving scoping and planning for a significant road project, this amount appears to be within a reasonable range. Larger infrastructure projects often involve substantial engineering costs, which can represent a significant percentage of the total project budget. Benchmarking against similar projects managed by the Federal Highway Administration or state Departments of Transportation would provide a more precise valuation.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' contract type?

The 'Full and Open Competition After Exclusion of Sources' designation suggests that while the competition was intended to be broad, certain sources were intentionally excluded. The primary risk is that these exclusions might have been arbitrary or based on criteria that unfairly limited the competitive pool, potentially leading to a less optimal price or solution for the government. It is crucial to understand the justification for these exclusions to ensure that the government did not forgo potentially superior offers or better pricing due to an unnecessarily restricted competition. This clause warrants scrutiny to ensure fairness and maximum value.

What is the track record of DJ&A, P.C. in performing similar federal engineering contracts?

DJ&A, P.C. is a professional engineering and land surveying firm. While the provided data confirms they were awarded this contract, their specific track record with federal contracts of this magnitude and type would require further investigation through databases like the Federal Procurement Data System (FPDS). A review of their past performance on similar projects, including client satisfaction, adherence to schedule and budget, and any history of disputes or contract issues, would be essential for a comprehensive assessment of their reliability and capability for this task.

How does the firm-fixed-price contract type benefit the government in this scenario?

The firm-fixed-price (FFP) contract type is highly beneficial for the government in this scenario because it establishes a ceiling price for the work to be performed. Under an FFP contract, the contractor, DJ&A, P.C., assumes the majority of the cost risk. This means that if the contractor's costs exceed the agreed-upon price, they are responsible for absorbing those overruns. This provides the Department of Transportation with significant budget certainty and predictability, as the final cost of the engineering services is largely fixed, barring any approved contract modifications.

What are the historical spending patterns for engineering services by the Federal Highway Administration in Montana?

Analyzing historical spending patterns for engineering services by the Federal Highway Administration (FHWA) in Montana would provide context for this $2.1 million contract. This would involve examining past contract awards for similar services (NAICS 541330) within the state over several fiscal years. Understanding the average contract values, typical durations, and the number of competitors in past procurements would help determine if this current award is an outlier, consistent with trends, or indicative of increasing costs or demand for engineering services in Montana's transportation sector.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3203 S RUSSELL ST, MISSOULA, MT, 59801

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,095,107

Exercised Options: $2,095,107

Current Obligation: $2,095,107

Actual Outlays: $1,871,922

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 6982AF19D000006

IDV Type: IDC

Timeline