DOE's $271M AECOM Contract for Energy & Construction Services in South Carolina
Contract Overview
Contract Amount: $271,068,027 ($271.1M)
Contractor: AECOM Energy & Construction, Inc.
Awarding Agency: Department of Energy
Start Date: 2000-07-15
End Date: 2012-09-30
Contract Duration: 4,460 days
Daily Burn Rate: $60.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Energy
Place of Performance
Location: AIKEN, AIKEN County, SOUTH CAROLINA, 29802
Plain-Language Summary
Department of Energy obligated $271.1 million to AECOM ENERGY & CONSTRUCTION, INC. for work described as: Key points: 1. Contract awarded to AECOM Energy & Construction, Inc. for significant energy and construction services. 2. Full and open competition was utilized, suggesting a robust price discovery process. 3. The contract duration was substantial, spanning over 12 years. 4. The contract type was Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 5. The contract was awarded by the Department of Energy.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee structure requires careful monitoring to ensure costs remain reasonable. Benchmarking against similar large-scale construction and energy projects is crucial for assessing value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, allowing multiple bidders to participate. This method generally leads to better price discovery and potentially more competitive pricing.
Taxpayer Impact: The use of full and open competition aims to maximize taxpayer value by ensuring the government receives the best possible price and quality.
Public Impact
Significant federal investment in energy and construction infrastructure. Potential for job creation and economic impact in South Carolina. Long-term commitment to a specific contractor for critical services.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly.
- Long contract duration may not adapt well to evolving technologies or needs.
- Lack of small business participation noted.
Positive Signals
- Full and open competition ensures a broad range of potential bidders.
- Contract addresses critical energy and construction needs.
- Clear awardee with defined scope.
Sector Analysis
This contract falls within the broad energy and construction sector, often characterized by large-scale projects and significant capital investment. Benchmarks for similar long-term, high-value contracts in this sector are essential for detailed cost analysis.
Small Business Impact
The data indicates that small businesses were not directly involved as the prime contractor. Further analysis would be needed to determine if small businesses were utilized as subcontractors.
Oversight & Accountability
The Department of Energy managed this contract. Oversight would focus on cost control, performance against milestones, and adherence to contract terms, especially given the CPFF structure.
Related Government Programs
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (over 12 years).
- No direct small business prime participation.
- Potential for cost overruns if not managed stringently.
- Risk of scope creep over the contract's life.
Tags
department-of-energy, sc, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $271.1 million to AECOM ENERGY & CONSTRUCTION, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is AECOM ENERGY & CONSTRUCTION, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $271.1 million.
What is the period of performance?
Start: 2000-07-15. End: 2012-09-30.
What was the final cost compared to the initial estimated cost, and how did the fixed fee component compare to industry standards for similar projects?
Without the final cost data and a breakdown of the fixed fee, a precise value assessment is difficult. However, the Cost Plus Fixed Fee structure necessitates rigorous oversight to ensure the fixed fee was reasonable and that costs were managed effectively throughout the contract's lifecycle. Benchmarking the fixed fee against similar large-scale energy and construction projects would provide a clearer picture of its competitiveness.
What were the primary risks associated with a Cost Plus Fixed Fee contract of this magnitude and duration, and how were they mitigated?
The primary risks include potential cost overruns if the 'cost plus' element is not tightly controlled and scope creep. For a long-duration contract, there's also the risk of technological obsolescence or changing project requirements. Mitigation strategies would typically involve robust government oversight, detailed performance metrics, clear change order processes, and regular audits of incurred costs.
How effectively did the full and open competition process ensure the best value for taxpayers, considering the contract's long duration and specific service type?
Full and open competition is designed to maximize value by fostering a competitive environment. For this contract, it likely ensured a wide pool of qualified bidders. However, the long duration means the initial competitive pricing might not reflect later market conditions or evolving needs. Continuous performance monitoring and contract management are crucial to ensure sustained value throughout its lifespan.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: AECOM (UEI: 153561212)
Address: 106 NEWBERRY ST SW, AIKEN, SC, 29801
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $282,665,873
Exercised Options: $282,665,873
Current Obligation: $271,068,027
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2000-07-15
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2022-03-17
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