USAID's $87.6M Design & Construction Management Contract Awarded to Black & Veatch
Contract Overview
Contract Amount: $87,637,087 ($87.6M)
Contractor: Black & Veatch Special Projects Corp.
Awarding Agency: Agency for International Development
Start Date: 2010-09-30
End Date: 2022-08-19
Contract Duration: 4,341 days
Daily Burn Rate: $20.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: DESIGN AND CONSTRUCTION MANAGEMENT SERVICES TAS::72 1037::TAS
Plain-Language Summary
Agency for International Development obligated $87.6 million to BLACK & VEATCH SPECIAL PROJECTS CORP. for work described as: DESIGN AND CONSTRUCTION MANAGEMENT SERVICES TAS::72 1037::TAS Key points: 1. Significant contract value for engineering services. 2. Full and open competition was utilized. 3. Long contract duration of over 11 years. 4. Cost Plus Fixed Fee pricing structure. 5. No small business participation noted.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly. Benchmarking against similar large-scale design and construction management contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the long duration and cost-plus nature may obscure true value for money.
Taxpayer Impact: Taxpayer funds are committed over a long period for complex services. Effective oversight is crucial to ensure value and prevent cost escalation.
Public Impact
Supports critical international development projects. Long-term engagement implies ongoing need for these services. Potential for significant impact on project outcomes. Lack of small business involvement may limit broader economic impact.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration
- Cost Plus Fixed Fee pricing
- No small business participation
Positive Signals
- Full and open competition
- Significant contract value
Sector Analysis
This contract falls within the Engineering Services sector, specifically for design and construction management. Spending in this area is often project-driven and can vary significantly based on agency priorities and global events.
Small Business Impact
The data indicates no small business participation in this contract. This could be due to the specialized nature of the services or a lack of targeted outreach to small businesses.
Oversight & Accountability
The long duration and cost-plus structure necessitate strong oversight from USAID to ensure performance, manage costs, and hold Black & Veatch accountable for deliverables.
Related Government Programs
- Engineering Services
- Agency for International Development Contracting
- Agency for International Development Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Long contract duration may indicate inflexibility
- Lack of small business participation
- Limited transparency on specific service costs
Tags
engineering-services, agency-for-international-development, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Agency for International Development awarded $87.6 million to BLACK & VEATCH SPECIAL PROJECTS CORP.. DESIGN AND CONSTRUCTION MANAGEMENT SERVICES TAS::72 1037::TAS
Who is the contractor on this award?
The obligated recipient is BLACK & VEATCH SPECIAL PROJECTS CORP..
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 $87.6 million.
What is the period of performance?
Start: 2010-09-30. End: 2022-08-19.
What specific types of design and construction management services are covered under this contract, and how do they align with USAID's mission objectives?
The contract covers design and construction management services, likely supporting USAID's infrastructure development and program implementation in various countries. These services are crucial for ensuring that projects are built efficiently, safely, and to required specifications, directly contributing to the agency's mission of advancing global development and humanitarian assistance.
Given the Cost Plus Fixed Fee structure and long duration, what mechanisms are in place to mitigate cost overruns and ensure efficient resource utilization?
Effective oversight, detailed performance metrics, and regular audits are essential. USAID must actively monitor expenditures, scrutinize cost justifications, and ensure that the fixed fee remains appropriate for the scope of work. Regular reviews of project progress against budget are critical to identify and address potential cost escalations early.
How does the absence of small business participation impact the overall value and diversity of the contracting ecosystem for USAID's engineering needs?
The lack of small business participation may limit opportunities for innovative solutions and potentially higher costs if larger firms have less competitive pressure. It also misses chances to foster growth within the small business sector, which is often crucial for specialized engineering tasks and local economic development.
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: 6
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6601 COLLEGE BLVD, OVERLAND PARK, KS, 66211
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $88,596,320
Exercised Options: $88,596,320
Current Obligation: $87,637,087
Actual Outlays: $23,491
Subaward Activity
Number of Subawards: 30
Total Subaward Amount: $39,205,420
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: AID294I001000205
IDV Type: IDC
Timeline
Start Date: 2010-09-30
Current End Date: 2022-08-19
Potential End Date: 2022-08-19 00:00:00
Last Modified: 2022-08-19
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