AECOM Technical Services awarded $42M engineering services contract by USAID for global support

Contract Overview

Contract Amount: $41,972,646 ($42.0M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Agency for International Development

Start Date: 2016-09-30

End Date: 2026-09-25

Contract Duration: 3,647 days

Daily Burn Rate: $11.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF TASK ORDER #1 UNDER THE NEW A&E IDIQ SERVICES CONTRACT

Plain-Language Summary

Agency for International Development obligated $42.0 million to AECOM TECHNICAL SERVICES, INC. for work described as: IGF::CL::IGF TASK ORDER #1 UNDER THE NEW A&E IDIQ SERVICES CONTRACT Key points: 1. Contract provides engineering and technical services, indicating a need for specialized expertise. 2. Full and open competition suggests a robust bidding process. 3. Cost Plus Fixed Fee pricing structure requires careful monitoring of costs to ensure value. 4. Long duration of the contract (nearly 10 years) implies a sustained need for these services. 5. The contract's broad scope supports international development efforts. 6. Focus on engineering services aligns with infrastructure and development projects.

Value Assessment

Rating: fair

The contract value of $41.97 million over its nearly 10-year duration suggests a moderate annual spend. Benchmarking this against similar large-scale, long-term engineering support contracts for international development agencies is crucial. The Cost Plus Fixed Fee (CPFF) structure, while allowing flexibility, can sometimes lead to higher costs if not managed tightly, as the contractor is reimbursed for allowable costs plus a fixed fee. Without specific performance metrics or detailed cost breakdowns, assessing the true value-for-money is challenging, but the extended period indicates sustained demand and perceived utility.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This approach generally fosters a competitive environment, potentially leading to better pricing and service offerings. The number of bidders is not specified, but the open competition suggests multiple entities vied for this significant contract, which is a positive sign for price discovery and market responsiveness.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and a wider pool of qualified contractors, increasing the likelihood of receiving high-quality services at a reasonable cost.

Public Impact

Beneficiaries include developing nations receiving infrastructure and technical support through USAID programs. Services delivered encompass engineering design, technical assistance, and project management for international development initiatives. Geographic impact is global, supporting USAID's worldwide mission. Workforce implications include employment for engineers, technical specialists, and support staff within AECOM and potentially local partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing requires diligent oversight to prevent cost overruns and ensure the fixed fee remains appropriate.
The long contract duration necessitates ongoing performance monitoring to ensure continued relevance and effectiveness.
Scope creep could be a risk given the broad nature of engineering services; clear task order definitions are essential.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded a qualified contractor.
The contract supports critical international development goals, aligning with U.S. foreign policy objectives.
AECOM's established presence in engineering services indicates a level of expertise and capacity.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector is vital for infrastructure development, environmental solutions, and complex project management globally. The market for such services is substantial, driven by government investments in development aid, infrastructure upgrades, and specialized technical consulting. USAID's spending in this area reflects a commitment to leveraging engineering expertise to achieve development outcomes.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large IDIQ task order, it is unlikely to have been exclusively set aside for small businesses. However, AECOM, as the prime contractor, may have subcontracting opportunities for small businesses as part of its performance obligations, contributing to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID), likely through its contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates robust financial oversight to ensure allowable costs are reasonable and the fixed fee is justified. Transparency is typically managed through contract reporting requirements and performance reviews. While an Inspector General might have jurisdiction depending on the nature of any potential fraud or mismanagement, day-to-day oversight is agency-driven.

Related Government Programs

USAID Global Health Supply Chain Program
Department of State - Foreign Assistance
Army Corps of Engineers - Engineering and Construction Contracts
Millennium Challenge Corporation - Development Projects

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing requires diligent oversight.
Long contract duration necessitates sustained performance monitoring.
Potential for scope creep in broad engineering services.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $42.0 million to AECOM TECHNICAL SERVICES, INC.. IGF::CL::IGF TASK ORDER #1 UNDER THE NEW A&E IDIQ SERVICES CONTRACT

Who is the contractor on this award?

The obligated recipient is AECOM TECHNICAL 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 $42.0 million.

What is the period of performance?

Start: 2016-09-30. End: 2026-09-25.

What is AECOM Technical Services' track record with USAID and similar federal agencies for engineering services?

AECOM Technical Services, Inc. has a significant history of performing engineering and technical services for various U.S. federal agencies, including USAID. Their portfolio often includes large-scale infrastructure projects, environmental consulting, and program management support, particularly in international contexts. Analyzing their past performance ratings, any past performance issues or awards, and the scale of previous contracts with USAID and other agencies would provide a clearer picture of their capabilities and reliability for this specific task order. A review of contract databases and agency performance reports would be necessary for a comprehensive assessment.

How does the annual spending on this contract compare to other USAID engineering service contracts?

The approximate annual spending for this contract, averaging around $4.2 million ($41.97M / ~9.8 years), needs to be benchmarked against similar engineering services contracts managed by USAID. USAID often awards large, multi-year contracts for technical assistance and engineering support across various sectors like health, infrastructure, and energy. Comparing this contract's annual value to the average and median values of other IDIQ task orders or standalone contracts for comparable services (e.g., infrastructure design, technical advisory) would reveal if it represents a typical, high, or low investment for the scope and duration.

What are the primary risk indicators associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risk indicators for a CPFF contract of this scale ($41.97M over nearly 10 years) revolve around cost control and contractor incentive. CPFF contracts reimburse the contractor for allowable costs plus a predetermined fixed fee. Risks include potential for cost overruns if the contractor's cost estimating or management is weak, as the government bears the cost risk. There's also a reduced incentive for the contractor to control costs aggressively compared to fixed-price contracts, as their profit (the fixed fee) is guaranteed regardless of final cost. Ensuring robust oversight, clear definition of allowable costs, and rigorous auditing are critical to mitigate these risks and ensure value for taxpayer money.

How effective has USAID been in achieving its development objectives through contracts like this one?

Assessing the effectiveness of USAID's development objectives through specific contracts requires detailed program evaluations and performance data, which are not directly available in the provided contract data. However, USAID's mission is to partner with countries to end extreme poverty and promote resilient, democratic societies. Contracts for engineering services are instrumental in achieving these goals by supporting infrastructure development, improving access to essential services, and building local capacity. The long-term nature and significant value of this contract suggest it supports substantial, ongoing development initiatives. Success would be measured by the tangible improvements in the target countries' infrastructure, economic conditions, and governance.

What has been the historical spending trend for engineering services by USAID over the past five years?

To determine the historical spending trend for engineering services by USAID, one would need to analyze aggregate contract data over the past five fiscal years. This analysis would involve querying federal procurement databases (like USASpending.gov or FPDS) for contracts categorized under relevant NAICS codes (e.g., 541330 - Engineering Services) awarded by USAID. The trend would be visualized by summing the total obligations for these contracts year-over-year. This would indicate whether USAID's investment in engineering services has been increasing, decreasing, or remaining relatively stable, providing context for the significance of the $41.97M award.

Are there specific geographic regions or types of projects that this contract is intended to support?

The provided data indicates this is a task order under a broader IDIQ contract for AECOM Technical Services, Inc., awarded by the Agency for International Development (USAID). While the specific task order details are limited, USAID's mission is global, focusing on development assistance in various regions facing challenges in infrastructure, health, economic growth, and governance. Therefore, it is highly probable that this contract supports projects across multiple USAID-operating regions, potentially including areas in Africa, Asia, Latin America, and the Middle East, depending on USAID's strategic priorities and funding allocations for engineering and technical support.

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

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 300 S GRAND AVE, SUITE 1100, LOS ANGELES, CA, 90071

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $48,852,193

Exercised Options: $48,852,193

Current Obligation: $41,972,646

Actual Outlays: $16,008,115

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $14,867,708

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: AID294I1600001

IDV Type: IDC

Timeline