DOE Awards $49.1M Contract for Sludge Facility Engineering Services to CH2M HILL
Contract Overview
Contract Amount: $49,140,874 ($49.1M)
Contractor: CH2M Hill Constructors, Inc.
Awarding Agency: Department of Energy
Start Date: 2015-03-30
End Date: 2024-03-31
Contract Duration: 3,289 days
Daily Burn Rate: $14.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: IGF::OT::IGF ARCHITECT-ENGINEERING SERVICES FOR THE SLUDGE PROCESSING FACILITY BUILDOUTS PROJECT
Place of Performance
Location: OAK RIDGE, ROANE County, TENNESSEE, 37830
Plain-Language Summary
Department of Energy obligated $49.1 million to CH2M HILL CONSTRUCTORS, INC. for work described as: IGF::OT::IGF ARCHITECT-ENGINEERING SERVICES FOR THE SLUDGE PROCESSING FACILITY BUILDOUTS PROJECT Key points: 1. Contract awarded to CH2M HILL CONSTRUCTORS, INC. for engineering services. 2. Significant contract value of $49.14 million over a 9-year period. 3. Full and open competition was utilized for this award. 4. The contract falls under the Engineering Services sector.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. However, the fixed fee component provides some cost certainty. Benchmarking against similar large-scale engineering projects is necessary for a full assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible contractors to bid.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it promotes market efficiency and can result in lower overall costs for government services.
Public Impact
Environmental remediation and infrastructure improvement are key public benefits. Long-term contract duration indicates a sustained need for these services. Potential for job creation within the engineering and construction sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Long contract duration (9 years) increases exposure to potential scope creep or changing requirements.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- Significant investment in critical infrastructure projects.
Sector Analysis
This contract is within the Engineering Services sector, which supports various government infrastructure projects. Spending in this sector can fluctuate based on federal infrastructure priorities and funding levels.
Small Business Impact
The data indicates that CH2M HILL CONSTRUCTORS, INC. received the award. There is no explicit information provided regarding small business participation or subcontracting goals within this contract.
Oversight & Accountability
The Department of Energy is the awarding and overseeing agency. The contract's long duration necessitates ongoing oversight to ensure performance, cost control, and adherence to project scope.
Related Government Programs
- Engineering Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (9 years).
- Lack of specific small business participation details.
- Potential for cost overruns if not managed effectively.
Tags
engineering-services, department-of-energy, tn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $49.1 million to CH2M HILL CONSTRUCTORS, INC.. IGF::OT::IGF ARCHITECT-ENGINEERING SERVICES FOR THE SLUDGE PROCESSING FACILITY BUILDOUTS PROJECT
Who is the contractor on this award?
The obligated recipient is CH2M HILL CONSTRUCTORS, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $49.1 million.
What is the period of performance?
Start: 2015-03-30. End: 2024-03-31.
What specific sludge processing facility buildouts are included in this project, and what is the projected impact on environmental safety?
The contract details are for 'IGF ARCHITECT-ENGINEERING SERVICES FOR THE SLUDGE PROCESSING FACILITY BUILDOUTS PROJECT.' While the exact facilities are not specified, the nature of the work suggests improvements to hazardous waste management and environmental safety at Department of Energy sites. A detailed review of project scope documents would clarify the specific buildouts and their environmental safety implications.
How does the Cost Plus Fixed Fee structure compare to other contract types for similar large-scale engineering projects in terms of cost efficiency and risk?
Cost Plus Fixed Fee (CPFF) contracts offer flexibility for complex projects where scope is not fully defined, but they carry a higher risk of cost overruns compared to fixed-price contracts. The fixed fee provides some incentive for the contractor to control costs, but the government bears the majority of the cost risk. For projects with well-defined scopes, fixed-price contracts are often more cost-efficient for the government.
What mechanisms are in place to ensure the long-term effectiveness and adaptability of the engineering solutions provided under this 9-year contract?
Effectiveness and adaptability are typically managed through contract clauses requiring performance metrics, regular reviews, and change order processes. For a 9-year contract, the Department of Energy likely has provisions for periodic re-evaluation of project needs and technological advancements. Ensuring clear communication channels and performance-based incentives will be crucial for maintaining effectiveness over the contract's lifespan.
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
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc.
Address: 9189 S JAMAICA ST, ENGLEWOOD, CO, 80112
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,140,874
Exercised Options: $49,140,874
Current Obligation: $49,140,874
Actual Outlays: $30,508,151
Subaward Activity
Number of Subawards: 61
Total Subaward Amount: $25,329,467
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-03-30
Current End Date: 2024-03-31
Potential End Date: 2024-03-31 00:00:00
Last Modified: 2024-08-06
More Contracts from CH2M Hill Constructors, Inc.
- Arctic Research Support and Logistics Services — $154.6M (National Science Foundation)
- Technical Assistance for the Individual Assistance Program. TA Support for Multiple Functions Associated With Implementation of the Fema Direct Housing Operations (dhops). Includes Hauling and Installation and Limited Maintenance of, UP to, an Additional 5500 Temporary Housing Units in Support of the Recovery Mission — $131.1M (Department of Homeland Security)
- Gcc-Mac Mclb Albany — $111.4M (Department of Defense)
- This IS a Continuation of W9124J-17-C-0043, Awarded on July 1, 2017, DUE to the Transfer of Contract Administration. the Period of Performance IS July 1, 2017 to September 28, 2050 (399 Months) — $90.1M (Department of Defense)
- Construction; Identify Potential Temporary Housing Solutions, Resources, and Requirement in Louisiana for People Displaced AS a Result of Hurricane Katrina, to Incl. Design Construction, and Installation of Temporary Housing Structures, and Operate and Manage Staging Areas — $89.2M (Department of Homeland Security)
Other Department of Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)