Engineering services contract for USAID awarded to Stantec Consulting Services Inc. for $18.7M

Contract Overview

Contract Amount: $18,693,217 ($18.7M)

Contractor: Stantec Consulting Services Inc.

Awarding Agency: Agency for International Development

Start Date: 2008-06-11

End Date: 2011-12-31

Contract Duration: 1,298 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TASK ORDER NO. 1 IS TO PREPARE DESIGNS AND REVIEW EXISTING SPECIFICATIONS

Plain-Language Summary

Agency for International Development obligated $18.7 million to STANTEC CONSULTING SERVICES INC. for work described as: TASK ORDER NO. 1 IS TO PREPARE DESIGNS AND REVIEW EXISTING SPECIFICATIONS Key points: 1. Contract awarded for design preparation and specification review, indicating a need for specialized engineering expertise. 2. The contract duration of approximately 3.5 years suggests a significant project scope. 3. Awarded under full and open competition, implying a broad market search for qualified bidders. 4. The cost-plus-fixed-fee pricing structure allows for flexibility but requires careful oversight of costs. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical sector for infrastructure and development. 6. This contract represents a portion of broader USAID efforts in international development and infrastructure support.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of 'designs and review of existing specifications.' However, the total award of $18.7 million over nearly four years suggests a substantial investment in engineering services. Comparing this to similar large-scale international engineering projects would provide better context. The cost-plus-fixed-fee structure necessitates close monitoring to ensure costs remain reasonable and do not escalate beyond initial expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the agency sought proposals from all responsible sources. The number of bidders is not specified, but this approach generally fosters a competitive environment, potentially leading to better pricing and service offerings. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified engineering firms for this type of work.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for public funds by encouraging multiple firms to bid, driving down costs and improving service quality.

Public Impact

The primary beneficiaries are likely USAID's international development programs, which will receive the engineering designs and reviewed specifications. The services delivered are crucial for planning and executing infrastructure projects in developing regions. Geographic impact is global, as USAID operates in numerous countries requiring engineering support for development initiatives. Workforce implications include the employment of engineers, designers, and technical specialists within Stantec Consulting Services Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not managed diligently.
The broad scope of 'designs and review' might lead to scope creep if not clearly defined.
Reliance on a single task order for a significant amount could indicate a concentrated project rather than diversified support.

Positive Signals

Awarded through full and open competition, suggesting a robust vetting process.
Stantec Consulting Services Inc. is a large, established firm with a track record in engineering.
The contract duration implies a commitment to a specific project or set of projects, allowing for focused effort.

Sector Analysis

Engineering services, categorized under NAICS code 541330, represent a significant market within the professional services sector. This contract fits within the broader landscape of government contracting for infrastructure development and technical consulting, particularly for agencies like USAID involved in international aid and development. Comparable spending benchmarks would involve looking at other large engineering service contracts awarded by federal agencies for similar international projects.

Small Business Impact

The data does not indicate any specific small business set-aside provisions for this contract. As a large contract awarded to a major firm, the primary impact on small businesses would likely be through subcontracting opportunities, if Stantec chooses to engage them. Without specific subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would fall under the Agency for International Development (USAID). As a cost-plus-fixed-fee contract, USAID's contracting officers and program managers would be responsible for monitoring expenditures, ensuring compliance with the contract terms, and verifying the quality and progress of the engineering services provided. Transparency would be facilitated through regular reporting requirements from the contractor.

Related Government Programs

USAID Infrastructure Projects
International Development Engineering Support
Global Design and Specification Services
Federal Engineering Consulting Contracts

Risk Flags

Cost-plus-fixed-fee contract type requires diligent cost oversight.
Scope definition for 'designs and review' needs clarity to prevent creep.
Potential for cost escalation inherent in CPFF contracts.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $18.7 million to STANTEC CONSULTING SERVICES INC.. TASK ORDER NO. 1 IS TO PREPARE DESIGNS AND REVIEW EXISTING SPECIFICATIONS

Who is the contractor on this award?

The obligated recipient is STANTEC CONSULTING SERVICES INC..

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $18.7 million.

What is the period of performance?

Start: 2008-06-11. End: 2011-12-31.

What is Stantec Consulting Services Inc.'s track record with USAID and other federal agencies for similar engineering contracts?

Stantec Consulting Services Inc. is a large, multinational engineering firm with extensive experience across various sectors, including infrastructure, environmental, and buildings. A review of federal procurement data would reveal their history of awards from USAID and other agencies. Their past performance on similar contracts, particularly those involving international development or complex design reviews, would be a key indicator of their capability and reliability. Analyzing their performance metrics, such as on-time delivery, budget adherence, and client satisfaction on previous USAID contracts, would provide further insight into their suitability for this task order.

How does the $18.7 million award compare to the typical cost of similar engineering design and specification review contracts for international development projects?

The $18.7 million award for engineering services over approximately 3.5 years is substantial, reflecting the complexity and scope often associated with international development projects. To benchmark this value, one would need to compare it against similar contracts awarded by USAID or other development-focused agencies (like the Department of State or Department of Defense's engineering commands) for projects of comparable scale and geographic focus. Factors such as the specific technical requirements, the level of detail needed in designs, and the geopolitical context of the project location would influence cost. Without these specifics, it's difficult to definitively state if $18.7 million represents excellent, fair, or concerning value.

What are the primary risks associated with a cost-plus-fixed-fee contract for engineering services, and how are they mitigated?

The primary risk with a Cost-Plus-Fixed-Fee (CPFF) contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. If costs escalate beyond projections, the government may end up paying more than anticipated. Mitigation strategies include robust oversight by the contracting officer, detailed cost monitoring and auditing, clear definition of the Statement of Work (SOW) to prevent scope creep, and requiring regular progress reports that justify incurred costs. The fixed fee incentivizes the contractor to control costs to maximize their profit margin, but effective government oversight remains critical.

What is the expected impact of these engineering services on USAID's overall mission effectiveness in the regions where projects are implemented?

High-quality engineering designs and thoroughly reviewed specifications are foundational to the successful implementation of infrastructure and development projects. Effective designs ensure that projects are technically sound, sustainable, and meet the specific needs of the beneficiary communities. By providing these critical services, this contract directly supports USAID's mission to foster lasting change in developing countries. Well-executed projects can lead to improved access to essential services (like water, sanitation, energy), economic growth, and enhanced resilience to environmental challenges, thereby significantly contributing to USAID's development objectives.

How has USAID's spending on engineering services evolved over the past five years, and does this contract represent a significant shift?

Analyzing USAID's historical spending on engineering services over the past five years would provide context for this $18.7 million award. Trends might indicate an increase or decrease in demand for such services, potentially driven by shifts in global development priorities, funding levels, or specific initiatives. If USAID's overall spending on engineering has been steadily increasing, this contract might represent a continuation of that trend. Conversely, if spending has been declining, this award could signify a renewed focus or a particularly large-scale project. Understanding these patterns helps assess if this contract is an anomaly or part of a larger strategic direction.

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

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Stantec Incorporated (UEI: 246422307)

Address: 1155 21ST NW STE 210, WASHINGTON, DC, 20036

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $54,753,203

Exercised Options: $30,027,893

Current Obligation: $18,693,217

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AID294I000800202

IDV Type: IDC

Timeline