Department of Labor awarded $25M for engineering support, but competition was limited

Contract Overview

Contract Amount: $24,965,023 ($25.0M)

Contractor: Pbdewberry

Awarding Agency: Department of Labor

Start Date: 2006-09-06

End Date: 2015-01-28

Contract Duration: 3,066 days

Daily Burn Rate: $8.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE)

Sector: Other

Official Description: ENGINEERING SUPPORT SERVICES FOR THE JOB CORPS DESIGN AND CONSTRUCTION PROGRAM

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $25.0 million to PBDEWBERRY for work described as: ENGINEERING SUPPORT SERVICES FOR THE JOB CORPS DESIGN AND CONSTRUCTION PROGRAM Key points: 1. The contract's value of $25 million over its duration suggests a significant investment in engineering support. 2. Limited competition for this contract raises questions about potential price overruns and value for money. 3. The long duration of the contract (over 8 years) may indicate a need for sustained support, but also a missed opportunity for periodic re-competition. 4. The award was made under the 'Not Competed' category, highlighting a lack of broad market engagement. 5. The contract's focus on architectural services within the Job Corps program points to a specialized need. 6. The contractor, PBDEWBERRY, has been awarded this significant sum, warranting scrutiny of their performance and pricing.

Value Assessment

Rating: fair

The total award of approximately $25 million over nearly 8.5 years averages to roughly $2.9 million annually. Without specific benchmarks for engineering support services for large-scale federal programs like Job Corps, it's difficult to definitively assess value. However, the lack of competition suggests that the government may not have secured the most competitive pricing. Comparing this to similar large-scale architectural and engineering support contracts for federal facilities could provide better context, but such data is not readily available in this summary.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'Not Competed' basis, indicating that a full and open competition was not conducted. This typically means that only one source was solicited or that justifications for excluding other sources were made. The lack of multiple bidders means that the government did not benefit from the price discovery mechanisms inherent in a competitive bidding process, potentially leading to higher costs.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure, as the contractor was not incentivized by the threat of losing the contract to a lower bidder.

Public Impact

The primary beneficiaries are likely the students and staff of the Job Corps program, who will receive improved facilities and infrastructure. The services delivered include architectural and engineering support crucial for the design and construction aspects of the Job Corps program. The geographic impact is likely nationwide, as the Job Corps program operates numerous centers across the United States. The contract supports a workforce of architects, engineers, and construction management professionals, both within the contractor's organization and potentially through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to inflated costs for taxpayers.
The extended contract duration without re-competition limits opportunities for performance improvement and cost reduction.
The 'Not Competed' status requires further investigation into the justification for not seeking broader market participation.
The significant dollar amount awarded to a single contractor warrants close monitoring of performance and deliverables.

Positive Signals

The contract addresses a critical need for engineering and architectural support for the Job Corps program.
The long-term nature of the award suggests a stable and reliable support structure for the program's infrastructure.
The contractor, PBDEWBERRY, has been entrusted with a significant responsibility, implying a level of confidence in their capabilities.

Sector Analysis

This contract falls within the Architectural Services (NAICS 541310) sector, which is a subset of the broader professional, scientific, and technical services industry. This industry is characterized by specialized expertise and project-based work. The total federal spending on architectural services can be substantial, supporting various government infrastructure and facility projects. This specific contract's value of $25 million over its term is significant for a single program, indicating the scale of the Job Corps program's design and construction needs.

Small Business Impact

The data indicates that small business participation was not a primary focus, as the contract was not competed and the 'small business' flag is false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that opportunities for small businesses to participate in this specific contract may have been limited, potentially missing out on leveraging the agility and innovation of the small business sector.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management. Given the 'Not Competed' status and significant dollar value, robust oversight mechanisms are crucial. This would include regular performance reviews, audits, and potentially the involvement of the Department of Labor's Inspector General to ensure accountability and prevent waste, fraud, and abuse. Transparency regarding the justification for the sole-source award and ongoing performance metrics would be key oversight elements.

Related Government Programs

Job Corps Program
Federal Facilities Design and Construction
Architectural and Engineering Services
Department of Labor Contracts

Risk Flags

Limited Competition
Potential for Overpricing
Lack of Transparency in Award
Extended Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $25.0 million to PBDEWBERRY. ENGINEERING SUPPORT SERVICES FOR THE JOB CORPS DESIGN AND CONSTRUCTION PROGRAM

Who is the contractor on this award?

The obligated recipient is PBDEWBERRY.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $25.0 million.

What is the period of performance?

Start: 2006-09-06. End: 2015-01-28.

What was the specific justification for awarding this contract on a 'Not Competed' basis?

The provided data indicates the contract was 'Not Competed' (ct: NOT COMPETED). Typically, federal agencies must justify sole-source or limited competition awards to ensure taxpayer funds are used efficiently and competitively. Common justifications include the existence of only one responsible source, urgent and compelling needs, or specific statutory authority. Without the agency's specific justification document, it's impossible to know the precise reason. However, the 'Not Competed' status strongly suggests that a full and open competition, which would involve soliciting bids from multiple qualified contractors, was bypassed. This raises concerns about whether the government explored all available options to secure the best value.

How does the annual cost of this contract compare to similar engineering support services for federal programs?

The contract awarded to PBDEWBERRY totals approximately $25 million over a period of 3066 days (roughly 8.4 years), equating to an average annual cost of about $2.97 million ($25,000,000 / 8.4 years). Benchmarking this figure against similar large-scale engineering and architectural support contracts for federal programs is challenging without access to a comprehensive database of comparable contracts and their specific scopes of work. However, given the specialized nature of supporting the Job Corps program's design and construction, and the lack of competition, this annual figure could be higher than what might be achieved through a competitive process. Further analysis would require detailed comparisons with contracts for similar federal facilities or educational programs.

What are the potential risks associated with awarding a contract of this magnitude on a sole-source basis?

Awarding a contract of $25 million on a sole-source basis carries several risks. Primarily, it eliminates the competitive pressure that typically drives down prices and encourages innovation. This can lead to the government paying more than necessary for the services received. Secondly, without the threat of losing future business to competitors, the incumbent contractor may have less incentive to maintain high performance standards or proactively identify cost-saving opportunities. There's also a risk of vendor lock-in, where the government becomes overly reliant on a single provider, making it difficult and costly to switch even if performance issues arise or better alternatives become available. Finally, a lack of transparency in the sole-source justification process can erode public trust and raise concerns about fairness and potential impropriety.

What is the track record of PBDEWBERRY in performing federal contracts, particularly those of similar size and scope?

PBDEWBERRY is a known entity in the federal contracting space, often providing architectural, engineering, and construction management services. While the provided data does not detail their specific track record on this particular Job Corps contract, their ability to secure a sole-source award of this magnitude suggests a history of performance that the Department of Labor found satisfactory or necessary. To fully assess their track record, one would need to examine past performance evaluations, any contract disputes or terminations, and their history of delivering projects on time and within budget for other federal agencies. A deeper dive into federal procurement databases like FPDS or SAM.gov would provide more granular details on their contract history and performance ratings.

How has federal spending on engineering support services for the Job Corps program evolved over time?

The provided data only captures a single contract award from 2006 to 2015. To understand the evolution of federal spending on engineering support services for the Job Corps program, a historical analysis of all related contracts over a longer period would be necessary. This would involve identifying all contracts awarded for similar services, tracking their award dates, values, and durations, and analyzing trends in spending. Factors influencing spending could include the number of Job Corps centers, renovation cycles, new construction initiatives, and changes in program funding priorities. Without this broader historical context, it's impossible to determine if current spending levels are increasing, decreasing, or remaining stable relative to past investments.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Solicitation ID: NEGOTIATED - SOLE SOURCE

Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE) (2)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dewberry Companies LC, the (UEI: 621316814)

Address: 2101 WILSON BLVD STE 200, ARLINGTON, VA, 08

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

Financial Breakdown

Contract Ceiling: $50,068,070

Exercised Options: $24,965,023

Current Obligation: $24,965,023

Contract Characteristics

Cost or Pricing Data: YES

Timeline