DoD's $21.3M Iraq Renovation Contract Awarded to Black & Veatch for Technical Services
Contract Overview
Contract Amount: $21,304,557 ($21.3M)
Contractor: Black & Veatch Special Projects Corp.
Awarding Agency: Department of Defense
Start Date: 2018-03-16
End Date: 2021-04-26
Contract Duration: 1,137 days
Daily Burn Rate: $18.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF CONDUCT LABORATORY RENOVATIONS, PROCURE AND INSTALL EQUIPMENT, AND CONDUCT TRAINING IN IRAQ.
Plain-Language Summary
Department of Defense obligated $21.3 million to BLACK & VEATCH SPECIAL PROJECTS CORP. for work described as: IGF::OT::IGF CONDUCT LABORATORY RENOVATIONS, PROCURE AND INSTALL EQUIPMENT, AND CONDUCT TRAINING IN IRAQ. Key points: 1. Contract focused on laboratory renovations, equipment, and training in Iraq, indicating a specialized need. 2. The award was made under 'Full and Open Competition After Exclusion of Sources,' suggesting a complex procurement process. 3. A duration of 1137 days points to a substantial, long-term project. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 5. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services,' a broad category. 6. The contract was awarded by the Defense Threat Reduction Agency (DTRA), highlighting its national security implications.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its specific geographic focus and specialized nature. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee. Without detailed cost breakdowns and performance metrics, it's difficult to definitively assess value for money. However, the fixed fee component provides some incentive for efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method implies that while the competition was intended to be open, specific circumstances or sources were excluded, potentially limiting the breadth of competition. The exact reasons for exclusion are not detailed, but such processes can sometimes indicate a need for specialized capabilities or security considerations that narrow the field of eligible bidders.
Taxpayer Impact: The limited competition may have resulted in a higher price than if a broader range of bidders had been considered. Taxpayers may have paid a premium due to the restricted pool of potential contractors.
Public Impact
The primary beneficiaries are the U.S. Department of Defense and its agencies, specifically the Defense Threat Reduction Agency, which receives enhanced laboratory capabilities and training. Services delivered include the renovation of laboratory facilities, procurement and installation of specialized equipment, and provision of training. The geographic impact is concentrated in Iraq, supporting U.S. military and security operations in the region. Workforce implications include employment for personnel involved in construction, technical services, and training delivery, both domestically and potentially in Iraq.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize cost growth if not rigorously managed.
- Limited competition due to exclusion of sources may impact price competitiveness.
- The specialized nature of laboratory renovations and equipment in a foreign, potentially high-risk environment presents execution challenges.
Positive Signals
- Awarded by a specialized agency (DTRA) suggests alignment with critical national security objectives.
- The contract duration indicates a significant commitment and likely a well-defined scope of work.
- The use of professional, scientific, and technical services aligns with complex operational requirements.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically supporting defense and national security objectives. The market for such services is characterized by high barriers to entry, requiring specialized expertise, security clearances, and experience in complex, often hazardous, operating environments. Comparable spending benchmarks are difficult to establish due to the unique geographic and operational context, but large-scale infrastructure and technical support contracts for defense agencies can run into hundreds of millions or billions of dollars.
Small Business Impact
The data indicates that small business participation was not a primary focus, as the contract was awarded to Black & Veatch Special Projects Corp., a large entity, and there is no indication of small business set-asides or subcontracting requirements being explicitly mentioned. The absence of 'sb': true suggests that small business subcontracting goals were likely not a significant component or were not tracked in this specific data extract. This contract may not directly benefit the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Defense Threat Reduction Agency's contracting officers and potentially the Department of Defense's Inspector General. Given the location of the work in Iraq, oversight would also involve on-the-ground monitoring and reporting mechanisms to ensure compliance with contract terms, quality standards, and security protocols. Transparency is often limited for contracts involving sensitive national security operations.
Related Government Programs
- DoD Laboratory Modernization Programs
- Foreign Military Construction Contracts
- Defense Threat Reduction Agency (DTRA) Support Contracts
- Professional, Scientific, and Technical Services for National Security
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- Limited competition may affect price competitiveness.
- Security and logistical risks in Iraq.
- Complexity of specialized laboratory renovations and equipment installation.
Tags
defense, department-of-defense, iraq, laboratory-renovation, professional-scientific-technical-services, cost-plus-fixed-fee, limited-competition, defense-threat-reduction-agency, black-and-veatch, foreign-operations, infrastructure-development, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.3 million to BLACK & VEATCH SPECIAL PROJECTS CORP.. IGF::OT::IGF CONDUCT LABORATORY RENOVATIONS, PROCURE AND INSTALL EQUIPMENT, AND CONDUCT TRAINING IN IRAQ.
Who is the contractor on this award?
The obligated recipient is BLACK & VEATCH SPECIAL PROJECTS CORP..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Threat Reduction Agency).
What is the total obligated amount?
The obligated amount is $21.3 million.
What is the period of performance?
Start: 2018-03-16. End: 2021-04-26.
What is the track record of Black & Veatch Special Projects Corp. with similar government contracts, particularly in overseas environments?
Black & Veatch Special Projects Corp. has a significant history of executing large-scale government contracts, including those for the Department of Defense and other federal agencies, often in challenging overseas locations. Their portfolio includes infrastructure development, engineering, procurement, and construction (EPC) services for various U.S. government entities. While specific details on past performance for laboratory renovations in Iraq are not provided in this data, their general experience suggests a capacity to handle complex projects. A deeper dive into their contract history, including past performance evaluations and any reported issues or successes on similar projects, would be necessary for a comprehensive assessment.
How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types in terms of cost efficiency for this type of project?
The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or when there is uncertainty in the cost of performance, such as in research and development or complex construction projects in unstable environments. It reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. While it allows for flexibility, it carries a higher risk of cost growth compared to fixed-price contracts if costs escalate beyond initial estimates. For laboratory renovations and equipment installation in Iraq, CPFF might have been chosen to accommodate unforeseen challenges. However, fixed-price or cost-plus-incentive-fee contracts could potentially offer better value if risks were more quantifiable and performance incentives could be clearly defined.
What specific risks are associated with executing a laboratory renovation and equipment installation project in Iraq under a CPFF contract?
Executing a project of this nature in Iraq presents several significant risks. Security risks are paramount, including potential threats to personnel and assets, requiring robust security measures. Logistical challenges are also substantial, involving the transportation of materials, equipment, and personnel into a complex operational environment. Furthermore, political and economic instability can impact project timelines and costs. Under a CPFF contract, these risks translate into potential cost overruns if security incidents, logistical delays, or unforeseen site conditions increase the contractor's allowable costs. Effective risk mitigation strategies and vigilant oversight are crucial to manage these factors.
What are the potential implications of 'Full and Open Competition After Exclusion of Sources' on the overall cost and quality of the delivered services?
The 'Full and Open Competition After Exclusion of Sources' clause suggests that while the competition was intended to be open, certain sources were deliberately excluded. The reasons for exclusion are critical; if based on legitimate technical requirements, specialized capabilities, or security mandates, it might not negatively impact quality or cost. However, if the exclusions were arbitrary or overly restrictive, it could limit the pool of potential bidders, potentially leading to higher prices and reduced innovation. The quality aspect depends heavily on the remaining bidders' capabilities and the effectiveness of the evaluation criteria. Without knowing the specific rationale for exclusion, it's difficult to definitively assess the impact on cost and quality.
How does this contract align with broader U.S. strategic objectives in Iraq, particularly concerning defense and security infrastructure?
This contract aligns with broader U.S. strategic objectives by supporting the enhancement of critical infrastructure necessary for defense and security operations in Iraq. By renovating laboratories and providing necessary equipment and training, the U.S. aims to bolster the capabilities of its own forces or potentially partner nations in areas such as threat detection, analysis, and response. Such investments are often part of a larger strategy to stabilize the region, counter threats, and maintain a U.S. presence or influence. The involvement of the Defense Threat Reduction Agency specifically points to a focus on mitigating unconventional threats.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HDTRA107R0004
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6601 COLLEGE BLVD, SHAWNEE MISSION, KS, 66211
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,614,870
Exercised Options: $21,304,557
Current Obligation: $21,304,557
Actual Outlays: $2,240,691
Subaward Activity
Number of Subawards: 17
Total Subaward Amount: $32,831,445
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDTRA108D0007
IDV Type: IDC
Timeline
Start Date: 2018-03-16
Current End Date: 2021-04-26
Potential End Date: 2021-04-26 00:00:00
Last Modified: 2025-08-06
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