USAID's $30M Engineering Services Contract Awarded to Black & Veatch for Global Infrastructure Support

Contract Overview

Contract Amount: $30,176,382 ($30.2M)

Contractor: Black & Veatch Special Projects Corp.

Awarding Agency: Agency for International Development

Start Date: 2015-02-04

End Date: 2018-12-30

Contract Duration: 1,425 days

Daily Burn Rate: $21.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: INP II B&V A&E SERVICES IGF::CL::IGF

Plain-Language Summary

Agency for International Development obligated $30.2 million to BLACK & VEATCH SPECIAL PROJECTS CORP. for work described as: INP II B&V A&E SERVICES IGF::CL::IGF Key points: 1. Contract value represents a significant investment in global development infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Contract duration of nearly four years indicates a long-term need for these specialized services. 4. The Cost Plus Fixed Fee (CPFF) structure requires careful monitoring to ensure cost control. 5. Engineering services are critical for the planning and execution of international development projects. 6. This contract aligns with USAID's mission to foster sustainable development and humanitarian assistance.

Value Assessment

Rating: good

The contract value of approximately $30 million for engineering services over a period of nearly four years appears reasonable given the scope of international development projects. Benchmarking against similar large-scale A&E contracts for global infrastructure support would provide a more precise value-for-money assessment. The CPFF pricing structure, while common for complex projects, necessitates robust oversight to prevent cost overruns and ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified firms had the opportunity to bid. This approach generally fosters competitive pricing and encourages innovation. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition that likely benefited the agency in securing favorable terms.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining the best value through competitive pricing and a wider pool of qualified contractors.

Public Impact

Beneficiaries include developing nations receiving infrastructure improvements and technical assistance. Services delivered encompass engineering design, technical advisory, and construction oversight for development projects. Geographic impact is global, supporting USAID's worldwide development initiatives. Workforce implications include employment for engineers, project managers, and technical specialists, both domestically and potentially in host countries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not managed diligently.
Ensuring equitable distribution of benefits across diverse global development projects.
Monitoring contractor performance to guarantee adherence to project timelines and quality standards.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Contract duration indicates a sustained need and potential for long-term impact.
Specialized engineering services are crucial for effective development project implementation.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional services industry supporting government and private sector initiatives. The market for such services is highly specialized, often requiring firms with extensive experience in international development, complex project management, and adherence to diverse regulatory environments. Spending in this category is often driven by infrastructure development needs, humanitarian aid, and national security requirements, with contracts ranging from small architectural studies to large-scale program management.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large-scale engineering services contract likely awarded through full and open competition, the primary contractor, Black & Veatch, is a large business. Subcontracting opportunities for small businesses may exist, but this would depend on the prime contractor's subcontracting plan and the specific needs of the projects undertaken.

Oversight & Accountability

Oversight for this contract would typically be managed by the Agency for International Development's contracting officers and program managers. Accountability measures would include performance reviews, milestone tracking, and financial audits. Transparency is generally maintained through contract award databases and public reporting, though specific project details might be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

USAID Global Infrastructure Projects
International Development Assistance
Engineering and Architectural Services
Professional Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires robust oversight to manage costs.
Long contract duration increases exposure to changing geopolitical and regulatory environments.
Potential for scope creep in complex international development projects.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $30.2 million to BLACK & VEATCH SPECIAL PROJECTS CORP.. INP II B&V A&E SERVICES IGF::CL::IGF

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 $30.2 million.

What is the period of performance?

Start: 2015-02-04. End: 2018-12-30.

What is the historical spending pattern of the Agency for International Development (USAID) on engineering and architectural services?

USAID's historical spending on engineering and architectural services (NAICS code 541330) has been substantial, reflecting its mission to support global development and humanitarian efforts. While specific annual figures fluctuate based on global needs and program priorities, the agency consistently allocates significant resources to these services. These funds are crucial for designing and overseeing infrastructure projects, providing technical assistance, and ensuring the effective implementation of development programs across various sectors like health, education, and economic growth. Analyzing trends over the past decade would reveal periods of increased investment tied to major global initiatives or disaster response efforts, as well as shifts in the types of engineering services procured, such as a growing emphasis on sustainable and resilient infrastructure.

How does the Cost Plus Fixed Fee (CPFF) contract type influence contractor performance and cost control for USAID projects?

The Cost Plus Fixed Fee (CPFF) contract type used for this award allows the contractor (Black & Veatch) to be reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often employed for complex projects where the scope of work is not precisely defined at the outset, or when research and development activities are involved. For USAID, CPFF can facilitate the initiation of critical projects without the risk of the contractor being unable to complete them due to unforeseen costs. However, it places a significant emphasis on robust government oversight to manage costs effectively. USAID must diligently monitor expenditures, ensure costs are reasonable and allocable, and verify that the fixed fee adequately compensates the contractor for the risks undertaken. Without stringent oversight, CPFF contracts can be susceptible to cost overruns, as the contractor has less direct financial incentive to control expenses compared to fixed-price contracts.

What is Black & Veatch's track record with USAID and other federal agencies for similar engineering services contracts?

Black & Veatch Special Projects Corp. has a significant track record of performing engineering and technical services for various U.S. federal agencies, including USAID. Their experience often spans complex international projects, infrastructure development, and specialized technical support. For USAID specifically, the firm has likely been involved in numerous projects related to water, sanitation, energy, and other critical infrastructure in developing countries. A review of federal procurement databases (like FPDS or SAM.gov) would reveal the extent and nature of their past awards, including contract values, performance ratings, and any past performance issues. Generally, large engineering firms like Black & Veatch are awarded substantial contracts due to their demonstrated capabilities, established infrastructure, and ability to manage large-scale, high-risk projects globally.

What are the potential risks associated with a nearly four-year contract for global engineering services?

A nearly four-year contract for global engineering services carries several potential risks. Firstly, the long duration increases the exposure to geopolitical instability, changes in host country regulations, or unforeseen environmental factors that could impact project execution. Secondly, with a Cost Plus Fixed Fee (CPFF) structure, there's an inherent risk of cost escalation if project requirements evolve or if initial cost estimates were inaccurate, requiring diligent financial oversight from USAID. Thirdly, maintaining consistent quality and performance from the contractor over an extended period can be challenging, necessitating ongoing performance monitoring and management. Finally, changes in U.S. foreign policy or USAID's strategic priorities could lead to project scope adjustments or even termination, impacting both the contractor and the intended beneficiaries.

How does the 'full and open competition' award method impact the value received by taxpayers for this engineering services contract?

The 'full and open competition' award method is designed to maximize value for taxpayers by ensuring that the contract is awarded to the most capable and cost-effective offeror. By allowing all responsible sources to submit bids, USAID broadens the potential pool of contractors, thereby increasing the likelihood of receiving competitive pricing. This competitive pressure incentivizes bidders to offer their best terms and technical solutions. Furthermore, a wider competition can lead to innovation as firms vie to differentiate themselves. While the specific number of bidders isn't detailed, the 'full and open' designation suggests that the agency sought to leverage market forces to secure optimal value, reducing the risk of paying inflated prices and ensuring that taxpayer funds are used efficiently for critical development projects.

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: 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: $56,705,569

Exercised Options: $56,705,569

Current Obligation: $30,176,382

Actual Outlays: $116,327

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $1,219,271

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AID294I001000205

IDV Type: IDC

Timeline