Transportation contract for engineering services awarded to JACOBS ENGINEERING GROUP INC. for over $18 million

Contract Overview

Contract Amount: $18,024,198 ($18.0M)

Contractor: Jacobs Engineering Group Inc.

Awarding Agency: Department of Transportation

Start Date: 2009-08-11

End Date: 2017-07-18

Contract Duration: 2,898 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AE0009 BASIC AWARD TAS::69 8107::TAS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $18.0 million to JACOBS ENGINEERING GROUP INC. for work described as: AE0009 BASIC AWARD TAS::69 8107::TAS Key points: 1. The contract value of over $18 million represents a significant investment in engineering services for the Department of Transportation. 2. Competition dynamics for this contract were characterized by full and open competition, suggesting a robust bidding process. 3. The contract duration of approximately 8 years indicates a long-term need for these engineering services. 4. The firm-fixed-price contract type suggests that cost risks are largely borne by the contractor. 5. The absence of small business set-aside flags warrants further investigation into subcontracting opportunities. 6. The contract was awarded as a delivery order under a larger contract vehicle, implying a structured procurement process.

Value Assessment

Rating: good

The total award amount of $18,024,197.53 for engineering services over an eight-year period appears reasonable given the scope of work typically associated with federal transportation projects. Benchmarking against similar large-scale engineering contracts within the Department of Transportation would provide a more precise value-for-money assessment. The firm-fixed-price structure generally offers cost certainty for the government, though it relies on accurate initial estimates.

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. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive environment that should theoretically lead to fair pricing and selection of the best-value offer. This approach is generally favored for ensuring market-rate pricing and innovation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received, ensuring the government obtains the best possible value for its investment.

Public Impact

The primary beneficiaries of this contract are likely the various agencies and projects within the Department of Transportation requiring specialized engineering expertise. The services delivered encompass a broad range of engineering support, crucial for the planning, design, and potentially oversight of transportation infrastructure. The geographic impact is likely national, supporting the Federal Aviation Administration's mission across the United States. The contract supports a skilled workforce of engineers and technical professionals employed by JACOBS ENGINEERING GROUP INC. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of explicit small business participation data requires scrutiny to ensure equitable opportunities.
The long contract duration could present risks if project requirements or technological needs evolve significantly.

Positive Signals

Awarded under full and open competition, suggesting a competitive and fair procurement process.
Firm-fixed-price contract type provides cost predictability for the government.
The contractor, JACOBS ENGINEERING GROUP INC., is a well-established entity in the engineering sector.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader Construction and Professional Services industries. The market for federal engineering services is substantial, driven by ongoing infrastructure development, maintenance, and modernization efforts across various government agencies. Comparable spending benchmarks would involve analyzing other large engineering support contracts awarded by agencies like the Department of Defense, Department of Energy, and the General Services Administration.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While this doesn't preclude small business subcontracting, it means there was no mandatory requirement for it. Further analysis would be needed to determine if JACOBS ENGINEERING GROUP INC. has a history of subcontracting with small businesses on similar contracts, which is crucial for assessing the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the Federal Aviation Administration. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Aviation Administration Capital Investment Grants
Department of Transportation Infrastructure Projects
Engineering and Technical Services Contracts
Professional Services Schedule (PSS) Contracts

Risk Flags

Long contract duration may increase risk of scope creep or market irrelevance.
Lack of explicit small business subcontracting data requires monitoring.
Firm-fixed-price contracts can be susceptible to contractor cost overruns or uncompetitive pricing over time.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $18.0 million to JACOBS ENGINEERING GROUP INC.. AE0009 BASIC AWARD TAS::69 8107::TAS

Who is the contractor on this award?

The obligated recipient is JACOBS ENGINEERING GROUP INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $18.0 million.

What is the period of performance?

Start: 2009-08-11. End: 2017-07-18.

What is the track record of JACOBS ENGINEERING GROUP INC. in performing similar federal engineering contracts?

JACOBS ENGINEERING GROUP INC. is a large, established engineering and construction firm with a significant history of performing federal contracts across various agencies, including the Department of Transportation, Department of Defense, and NASA. Their portfolio often includes complex infrastructure projects, design services, and program management. While specific performance ratings for this particular contract (AE0009) are not detailed in the provided data, their overall presence suggests substantial experience. A deeper dive into their contract performance history within FPDS or agency-specific performance management systems would reveal specific past performance metrics, any awards or penalties, and the types of projects they have successfully executed. This context is crucial for understanding their capability to deliver on the current contract's requirements.

How does the total contract value compare to other engineering services contracts awarded by the FAA or DOT?

The total award value of approximately $18 million for this engineering services contract (AE0009) is a substantial figure, but its relative size depends on the specific nature of the services procured and the duration of the contract. For the Federal Aviation Administration (FAA) or the broader Department of Transportation (DOT), which manage large-scale infrastructure and aviation programs, contracts of this magnitude are not uncommon, especially for design, planning, and oversight of major projects. However, compared to the largest indefinite-delivery/indefinite-quantity (IDIQ) vehicles or major construction contracts, it might be considered mid-range. To provide a precise comparison, one would need to analyze the average award values for similar engineering services procured by the FAA/DOT over the contract's performance period (2009-2017) and consider the specific NAICS code (541330 - Engineering Services) to ensure apples-to-apples comparisons.

What are the primary risks associated with a firm-fixed-price contract of this duration?

The primary risk associated with a firm-fixed-price (FFP) contract, especially one spanning nearly eight years (2009-2017), is the potential for cost overruns for the contractor if initial estimates are inaccurate or if unforeseen circumstances arise. For the government, the risk is that the fixed price might become uncompetitive if market rates decrease significantly over the contract term, or if the scope of work needs substantial modification, which could lead to costly change orders. Scope creep is another significant risk; if the requirements are not clearly defined or are allowed to expand without proper change management, the contractor may incur costs beyond the agreed-upon fixed price, potentially leading to disputes or requests for equitable adjustments. Contractor performance risk also exists, where the contractor might cut corners to maintain profitability, impacting quality.

How effective is 'full and open competition' in ensuring value for taxpayer money in federal engineering contracts?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in federal contracting, including engineering services. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive bids that reflect fair market value. This competitive pressure incentivizes contractors to offer their best pricing and technical solutions. Furthermore, it promotes innovation as contractors strive to differentiate themselves. While effective, its success hinges on clear solicitation requirements, a robust evaluation process, and adequate market research to ensure a sufficient number of capable bidders participate. Without these elements, even a full and open solicitation might not yield optimal value.

What historical spending trends exist for engineering services within the Federal Aviation Administration?

Historical spending trends for engineering services within the Federal Aviation Administration (FAA) typically show a consistent demand driven by the need to maintain, upgrade, and expand the National Airspace System (NAS). Spending often correlates with major infrastructure initiatives, technological modernization programs (e.g., NextGen), and regulatory compliance requirements. The FAA procures engineering services for a wide array of needs, including air traffic control systems, airport development, environmental assessments, safety analysis, and facility design. Analyzing historical data from sources like the Federal Procurement Data System (FPDS) would reveal fluctuations in spending levels year-over-year, identify key contract vehicles used (like IDIQs or specific project-based awards), and highlight the dominant service categories and contractors within the engineering domain for the FAA.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)

Address: 1100 N GLEBE RD STE 500, ARLINGTON, VA, 22201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,024,198

Exercised Options: $18,024,198

Current Obligation: $18,024,198

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTFAWA07D00040

IDV Type: IDC

Timeline