USAID Awards $19M Construction Management Task Order to AECOM Under FY17 Contract

Contract Overview

Contract Amount: $19,021,579 ($19.0M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Agency for International Development

Start Date: 2017-09-20

End Date: 2026-09-25

Contract Duration: 3,292 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: IGF::CL::IGF CONSTRUCTION MANAGEMENT TASK ORDER (TO) UNDER AECOM TO MANAGE THE FY17 AWARDED CONSTRUCTION TASK ORDERS.

Plain-Language Summary

Agency for International Development obligated $19.0 million to AECOM TECHNICAL SERVICES, INC. for work described as: IGF::CL::IGF CONSTRUCTION MANAGEMENT TASK ORDER (TO) UNDER AECOM TO MANAGE THE FY17 AWARDED CONSTRUCTION TASK ORDERS. Key points: 1. This task order is for construction management services, a critical component of infrastructure development. 2. AECOM, a large established firm, is the awardee, indicating significant prior experience. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The sector is Engineering Services, supporting broader infrastructure projects.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, which offers less price certainty than fixed-price contracts. Benchmarking against similar 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 under full and open competition, suggesting a competitive bidding process. However, the specific pricing mechanisms and how they were evaluated to ensure fair market value are not detailed.

Taxpayer Impact: Taxpayer funds are being used for construction management, which is essential for project success but represents a cost that must be justified by efficient project execution and delivery.

Public Impact

Supports infrastructure development projects managed by USAID. Ensures construction projects are completed according to specifications and timelines. Potential for cost savings through effective project oversight and management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Lack of detailed cost breakdown makes value assessment difficult.
Long duration of the task order (over 9 years) increases risk of scope creep or changing requirements.

Positive Signals

Awarded under full and open competition.
AECOM is an established firm with relevant experience.
Task order supports critical infrastructure development.

Sector Analysis

Engineering Services (NAICS 541330) are crucial for planning, designing, and overseeing construction projects. Spending in this sector can vary widely based on infrastructure needs and federal investment priorities. This contract falls within a typical range for large-scale construction management.

Small Business Impact

The awardee, AECOM, is a large business. There is no indication that small businesses were subcontracted for this specific task order, which could be an area for improvement in future solicitations.

Oversight & Accountability

Oversight will be critical given the Cost Plus Fixed Fee structure and the long duration of the task order. USAID's contracting officers will need to ensure rigorous monitoring of costs and performance to protect taxpayer interests.

Related Government Programs

Engineering Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration increases risk.
Lack of detailed cost breakdown for value assessment.
No explicit mention of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $19.0 million to AECOM TECHNICAL SERVICES, INC.. IGF::CL::IGF CONSTRUCTION MANAGEMENT TASK ORDER (TO) UNDER AECOM TO MANAGE THE FY17 AWARDED CONSTRUCTION TASK ORDERS.

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 $19.0 million.

What is the period of performance?

Start: 2017-09-20. End: 2026-09-25.

How does the fixed fee component compare to industry benchmarks for similar construction management services, and what is the potential for fee escalation?

Assessing the fixed fee's competitiveness requires detailed knowledge of the specific services rendered and prevailing market rates for construction management. Without a breakdown of the fee's basis (e.g., percentage of direct costs, fixed amount per phase), it's challenging to benchmark. Cost Plus Fixed Fee contracts inherently carry a risk of fee escalation if the direct costs significantly exceed initial projections, though the fee itself is fixed.

What specific mechanisms are in place to mitigate cost overruns inherent in a Cost Plus Fixed Fee contract, especially over a nearly decade-long period?

Mitigation strategies typically include robust cost accounting standards, detailed reporting requirements, regular audits, and clear performance metrics. For long-term contracts, phased reviews and potential re-negotiation points for scope or fee adjustments based on performance and market changes are crucial. USAID's contracting team must actively manage these elements to ensure cost control.

How will the effectiveness of AECOM's construction management be measured, and what are the key performance indicators (KPIs) tied to project delivery and cost efficiency?

Effectiveness is usually measured against KPIs such as on-time project completion, adherence to budget (including managing the 'cost plus' aspect), quality of work, safety record, and stakeholder satisfaction. Specific KPIs should be clearly defined in the contract, with regular performance reviews to track progress and address any deviations promptly.

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: $25,000,000

Exercised Options: $25,000,000

Current Obligation: $19,021,579

Actual Outlays: $4,279,207

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $15,123,908

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