DoD awards $12.19M contract for DLA master planning and engineering design services

Contract Overview

Contract Amount: $12,187,281 ($12.2M)

Contractor: HDR Environmental, Operations and Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-16

End Date: 2028-09-15

Contract Duration: 1,460 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE WORK TO BE PERFORMED WILL BE IN ACCORDANCE WITH THE STATEMENT OF WORK (SOW), SET FORTH AS ATTACHMENT 1 ENTITLED MASTER PLANNING AND ENGINEERING DESIGN FOR MULTIPLE DLA LOCATIONS.

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43213

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $12.2 million to HDR ENVIRONMENTAL, OPERATIONS AND CONSTRUCTION, INC. for work described as: THE WORK TO BE PERFORMED WILL BE IN ACCORDANCE WITH THE STATEMENT OF WORK (SOW), SET FORTH AS ATTACHMENT 1 ENTITLED MASTER PLANNING AND ENGINEERING DESIGN FOR MULTIPLE DLA LOCATIONS. Key points: 1. Contract focuses on essential master planning and engineering design for multiple Defense Logistics Agency (DLA) locations. 2. Services are critical for infrastructure modernization and operational efficiency within the DLA. 3. The contract is a firm-fixed-price delivery order, indicating defined scope and cost control. 4. Awarded under full and open competition, suggesting a competitive market for these specialized services. 5. The duration of nearly four years allows for comprehensive project execution and long-term planning. 6. Contractor HDR Environmental, Operations and Construction, Inc. has a significant presence in engineering services.

Value Assessment

Rating: good

The contract value of $12.19 million for master planning and engineering design over four years appears reasonable given the scope of services for multiple DLA locations. Benchmarking against similar large-scale infrastructure planning contracts within the Department of Defense suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages contractors to offer their best value solutions. The open competition suggests a healthy market for these specialized engineering and planning services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, ensuring the government receives the best possible value for its investment.

Public Impact

The Defense Logistics Agency (DLA) will benefit from improved master planning and engineering designs, leading to more efficient operations and infrastructure. Services delivered will support the modernization and optimization of critical DLA facilities across various locations. The geographic impact is broad, covering multiple DLA sites, though specific locations are not detailed in the provided data. The contract supports a workforce of engineers, planners, and construction professionals, contributing to specialized job creation within the industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial master plans require significant revisions.
Ensuring seamless integration of new designs with existing DLA infrastructure.
Managing contractor performance over a multi-year period requires robust oversight.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Long-term duration allows for thorough planning and execution.
Awarded through full and open competition, suggesting competitive pricing.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader Architecture, Engineering, and Construction (AEC) industry. The market for federal engineering services is substantial, driven by ongoing infrastructure upgrades, modernization efforts, and new construction projects across various government agencies. The DLA's need for master planning and design services is typical for large organizations managing extensive physical assets, and spending in this area is often benchmarked against similar large-scale government facility projects.

Small Business Impact

The provided data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. Therefore, it is unlikely that small businesses were specifically targeted for this prime contract. However, the prime contractor, HDR Environmental, Operations and Construction, Inc., may engage small businesses for subcontracting opportunities to fulfill specialized aspects of the master planning and engineering design work, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the Defense Contract Management Agency (DCMA) or equivalent oversight body within the Department of Defense. Accountability measures are inherent in the firm-fixed-price contract type, which incentivizes the contractor to adhere to the scope and budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific project details and progress reports may be considered sensitive.

Related Government Programs

Defense Logistics Agency Infrastructure Modernization Programs
Department of Defense Facilities Engineering Contracts
Master Planning Services for Government Facilities
Engineering Design Services for Federal Agencies

Risk Flags

Potential for scope creep
Contractor performance risk
Integration with existing infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.2 million to HDR ENVIRONMENTAL, OPERATIONS AND CONSTRUCTION, INC.. THE WORK TO BE PERFORMED WILL BE IN ACCORDANCE WITH THE STATEMENT OF WORK (SOW), SET FORTH AS ATTACHMENT 1 ENTITLED MASTER PLANNING AND ENGINEERING DESIGN FOR MULTIPLE DLA LOCATIONS.

Who is the contractor on this award?

The obligated recipient is HDR ENVIRONMENTAL, OPERATIONS AND CONSTRUCTION, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $12.2 million.

What is the period of performance?

Start: 2024-09-16. End: 2028-09-15.

What is the track record of HDR Environmental, Operations and Construction, Inc. with the Department of Defense and similar master planning contracts?

HDR Environmental, Operations and Construction, Inc. is a well-established engineering firm with a significant history of performing work for government agencies, including the Department of Defense. While specific details on their past performance on DLA master planning contracts are not provided in this data snippet, their extensive experience in environmental, operations, and construction engineering suggests a strong capability. They have likely been involved in numerous large-scale infrastructure projects, facility design, and planning initiatives for various federal entities. A deeper dive into their contract history, past performance evaluations, and client feedback would provide a more precise assessment of their suitability and track record for this specific type of work.

How does the $12.19 million contract value compare to similar master planning and engineering design contracts for large federal agencies?

The $12.19 million contract value for master planning and engineering design services for multiple DLA locations over a four-year period appears to be within a reasonable range for large federal agencies. Master planning and comprehensive engineering design for complex facilities or multiple sites can be substantial undertakings. Comparable contracts for agencies like the General Services Administration (GSA), Department of Veterans Affairs (VA), or other branches of the military for similar scope and duration often fall within the multi-million dollar range. Factors influencing this value include the number of sites, complexity of existing infrastructure, specific design requirements, and the level of detail needed for the master plan. Without specific benchmark data for DLA's historical spending on similar projects, it's difficult to provide a precise comparison, but the amount is not an outlier for this type of federal service.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential scope creep, where the requirements for master planning and engineering design may expand beyond the initial SOW, leading to cost overruns or schedule delays. Another risk is ensuring the contractor's designs are fully compatible with existing DLA infrastructure and future operational needs. Performance risk, related to the quality and timeliness of the contractor's deliverables, is also a concern. Mitigation strategies likely include a well-defined SOW, robust project management by the government, regular progress reviews, and clear communication channels. The firm-fixed-price contract type also shifts some financial risk to the contractor, incentivizing them to manage costs effectively.

How effective is the firm-fixed-price contract type in ensuring value for money for this specific service?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money for services with a well-defined scope, such as master planning and engineering design, where the requirements can be clearly articulated upfront. FFP provides cost certainty for the government, as the contractor assumes the risk of cost overruns. This encourages the contractor to be efficient and manage their resources effectively to maintain profitability. For this contract, where the SOW outlines the work, FFP helps control the overall expenditure. However, if unforeseen complexities arise that were not reasonably foreseeable during the bidding process, the FFP structure could potentially limit flexibility or lead to disputes if scope changes are necessary.

What are the historical spending patterns for engineering and master planning services by the Defense Logistics Agency?

Historical spending patterns for engineering and master planning services by the Defense Logistics Agency (DLA) are typically substantial, reflecting the agency's role in managing vast logistical networks and infrastructure. DLA consistently invests in facility upgrades, maintenance, and modernization to support its global operations. While specific aggregate spending figures for engineering and master planning are not provided here, it's understood that such services are recurring needs. DLA contracts in this domain often involve long-term planning, site assessments, environmental impact studies, and detailed architectural and engineering designs for warehouses, distribution centers, and administrative facilities. Spending levels can fluctuate based on strategic priorities, infrastructure investment cycles, and budget allocations.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: HDR, Inc

Address: 9781 S MERIDIAN BLVD STE 400, ENGLEWOOD, CO, 80112

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,187,281

Exercised Options: $12,187,281

Current Obligation: $12,187,281

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $235,193

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890321D0007

IDV Type: IDC

Timeline