Construction management services contract awarded to Stantec Consulting Services Inc. for over $38.9 million

Contract Overview

Contract Amount: $38,961,931 ($39.0M)

Contractor: Stantec Consulting Services Inc.

Awarding Agency: Agency for International Development

Start Date: 2009-10-01

End Date: 2012-06-30

Contract Duration: 1,003 days

Daily Burn Rate: $38.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: CONSTRUCTION MANAGEMENT SERVICES

Plain-Language Summary

Agency for International Development obligated $39.0 million to STANTEC CONSULTING SERVICES INC. for work described as: CONSTRUCTION MANAGEMENT SERVICES Key points: 1. The contract was awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 3. The duration of the contract was 1003 days, indicating a medium-term project. 4. The award amount of over $38.9 million places this contract within a significant spending category. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a specialized field. 6. The contract was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns and comparison to similar construction management projects. The Cost Plus Fixed Fee (CPFF) structure means the final cost is influenced by actual expenses plus a predetermined fee. While CPFF can be appropriate for projects with uncertain scope, it carries inherent risks of cost overruns if not managed diligently. The fixed fee component, however, provides some predictability for the contractor's profit.

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. The presence of 7 bidders suggests a reasonably competitive environment for this type of service. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices through market forces. The multiple bids received suggest that the government had options, increasing the likelihood of securing services at a competitive rate.

Public Impact

The Agency for International Development (USAID) is the primary beneficiary, utilizing these services for its projects. The services provided fall under engineering and construction management, supporting infrastructure development or project execution. The geographic impact is not specified but likely relates to USAID's operational areas globally. The contract supports specialized professional services, potentially impacting the engineering and construction management workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust oversight to manage costs effectively and prevent overruns.
The fixed fee component, while providing profit certainty for the contractor, needs to be justified against the scope of work.
Lack of specific details on the project scope makes it difficult to assess the true value for money.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Multiple bidders (7) participated, suggesting a healthy level of interest and competition.
The contract is for specialized engineering services, indicating a need for expert support.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the construction and infrastructure industry. The global market for construction management services is substantial, driven by public and private sector investments in infrastructure, buildings, and development projects. This contract represents a portion of the federal government's spending on professional services to support its mission, likely related to international development projects managed by USAID.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). There is no information provided regarding subcontracting plans or actual performance related to small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is unclear without further details on subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development (USAID). As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures and ensure the fixed fee remains appropriate for the services rendered. Transparency would be enhanced by public reporting of performance metrics and financial status, though specific details are not provided here. Inspector General jurisdiction would apply if USAID has an IG.

Related Government Programs

USAID Construction Projects
International Development Contracts
Engineering Services Contracts
Federal Construction Management

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Lack of specific project details limits comprehensive value-for-money assessment.
No explicit small business subcontracting requirements mentioned.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $39.0 million to STANTEC CONSULTING SERVICES INC.. CONSTRUCTION MANAGEMENT SERVICES

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 $39.0 million.

What is the period of performance?

Start: 2009-10-01. End: 2012-06-30.

What was the specific scope of work for these construction management services?

The provided data does not detail the specific scope of work for the construction management services. However, given the awarding agency (Agency for International Development) and the NAICS code (541330 - Engineering Services), it can be inferred that these services likely supported infrastructure development, project oversight, or technical assistance related to USAID's international programs. The contract duration of 1003 days suggests a project of significant scale or complexity requiring sustained management and technical expertise throughout its lifecycle.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar services?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or is expected to change significantly during performance. In such cases, it allows the contractor to be reimbursed for actual costs incurred, plus a predetermined fixed fee representing their profit. This contrasts with Firm-Fixed-Price (FFP) contracts, where the price is set regardless of actual costs, incentivizing contractor efficiency but carrying higher risk for the contractor if costs escalate. For construction management, CPFF can be suitable for early-stage projects or those in unstable environments where unforeseen issues are likely. However, it requires robust government oversight to prevent cost escalation and ensure the fixed fee remains reasonable relative to the effort.

What is the typical cost range for construction management services of this magnitude?

Determining a typical cost range for construction management services of this magnitude ($38.9 million award) is complex without knowing the specific project type, location, and services rendered. However, construction management fees often range from 5% to 15% of the total construction project cost, depending on the project's complexity, risk, and the level of services required. For a contract valued at $38.9 million, this suggests the underlying construction project could be significantly larger. Benchmarking requires comparing this contract to similar USAID projects or other federal construction management contracts of comparable scope and duration.

What are the potential risks associated with a Cost Plus Fixed Fee contract for construction management?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. Since the contractor is reimbursed for actual costs, there can be less incentive to control expenses compared to a fixed-price contract. The government bears the risk of cost increases. Additionally, defining and agreeing upon the 'fixed fee' can be contentious, and ensuring it accurately reflects the contractor's effort and risk is crucial. Effective oversight, detailed cost accounting, and clear performance metrics are essential to mitigate these risks and ensure value for money.

How does the number of bidders (7) impact the potential value for taxpayers?

Having seven bidders for this contract is a positive indicator for taxpayers. A larger pool of competitors generally leads to more competitive pricing as firms vie for the award. It suggests that the market has sufficient capacity and interest in providing these services to the Agency for International Development. This level of competition increases the likelihood that the government secured the services at a fair market price, reducing the risk of paying an inflated cost compared to a situation with fewer bidders.

What is the significance of this contract being a 'Delivery Order'?

The designation of this award as a 'Delivery Order' implies that it was issued under a pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract. IDIQ contracts allow agencies to procure a range of supplies or services over a set period, with specific quantities and delivery dates defined by individual orders. This approach provides flexibility for agencies to respond to evolving needs. For taxpayers, it means this $38.9 million is part of a larger contract vehicle, and the overall value and efficiency depend on the terms of the base IDIQ contract and how effectively subsequent delivery orders are managed.

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: $44,251,083

Exercised Options: $44,251,083

Current Obligation: $38,961,931

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AID294I000800202

IDV Type: IDC

Timeline