Philippines Chemical Security Project Awarded $27M to Black & Veatch for Technical Services
Contract Overview
Contract Amount: $27,020,470 ($27.0M)
Contractor: Black & Veatch Special Projects Corp.
Awarding Agency: Department of Defense
Start Date: 2021-03-25
End Date: 2025-05-21
Contract Duration: 1,518 days
Daily Burn Rate: $17.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES CHEMICAL SECURITY CAPABILITIES ENHANCEMENT PROJECT
Plain-Language Summary
Department of Defense obligated $27.0 million to BLACK & VEATCH SPECIAL PROJECTS CORP. for work described as: GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES CHEMICAL SECURITY CAPABILITIES ENHANCEMENT PROJECT Key points: 1. Significant investment in chemical security capabilities for the Philippines. 2. Black & Veatch, a major player in engineering and construction, secured the contract. 3. The project falls under 'All Other Professional, Scientific, and Technical Services', a broad category. 4. Full and open competition was utilized, suggesting a competitive bidding process.
Value Assessment
Rating: fair
The contract value of $27M is substantial for technical services. Benchmarking against similar international security enhancement projects would be necessary to fully assess pricing reasonableness. The 'Cost Plus Fixed Fee' structure requires careful monitoring of actual costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Taxpayer funds are being used to enhance chemical security capabilities in a partner nation, contributing to global security efforts.
Public Impact
Enhances international cooperation in chemical threat reduction. Strengthens the Philippines' capacity to manage and secure chemical materials. Potential for technology transfer and knowledge sharing in chemical security. Contributes to broader U.S. foreign policy and national security objectives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
- Scope creep is a potential risk in long-term technical services projects.
- Ensuring effective knowledge transfer and sustainability of capabilities post-project.
Positive Signals
- Awarded via full and open competition.
- Addresses a critical national security need.
- Involves a reputable contractor with relevant experience.
Sector Analysis
This contract falls under professional, scientific, and technical services, specifically related to defense and security. Spending in this sector is often driven by geopolitical needs and technological advancements in threat mitigation.
Small Business Impact
The contract was awarded to Black & Veatch Special Projects Corp., a large business. There is no indication of small business participation in this specific award, which is common for large, specialized defense contracts.
Oversight & Accountability
Oversight will be crucial, particularly given the 'Cost Plus Fixed Fee' structure and the project's duration. The Department of Defense and DTRA will need robust mechanisms to track expenditures and ensure performance against objectives.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract structure.
- Long project duration (over 4 years).
- Broad service category ('All Other Professional, Scientific, and Technical Services').
- Lack of specific detail on deliverables and performance metrics.
- Potential for scope creep.
Tags
all-other-professional-scientific-and-te, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.0 million to BLACK & VEATCH SPECIAL PROJECTS CORP.. GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES CHEMICAL SECURITY CAPABILITIES ENHANCEMENT PROJECT
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 $27.0 million.
What is the period of performance?
Start: 2021-03-25. End: 2025-05-21.
What specific chemical security capabilities are being enhanced, and how will their effectiveness be measured?
The specific capabilities being enhanced are not detailed in the provided data. Effectiveness measurement would likely involve pre- and post-project assessments of threat detection, response protocols, and material security. Key performance indicators should be established to track improvements in these areas over the project lifecycle.
What are the primary risks associated with a 'Cost Plus Fixed Fee' contract for this type of project?
The primary risks with a Cost Plus Fixed Fee (CPFF) contract include potential cost overruns if the contractor's actual costs exceed estimates, leading to a higher final price than initially anticipated. There's also a risk of reduced incentive for the contractor to control costs aggressively, as their fee is fixed regardless of the final cost.
How does this project align with broader U.S. foreign policy goals in the Indo-Pacific region?
This project aligns with U.S. foreign policy goals by strengthening a key regional partner's security infrastructure, thereby promoting stability and deterring potential adversaries. It demonstrates U.S. commitment to assisting allies in addressing critical security threats, fostering goodwill and enhancing collective security in the Indo-Pacific.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HDTRA120R0053
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6800 W 115TH STREET SUITE 2200, OVERLAND PARK, 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: $32,382,343
Exercised Options: $32,382,343
Current Obligation: $27,020,470
Actual Outlays: $4,769,402
Subaward Activity
Number of Subawards: 33
Total Subaward Amount: $23,274,845
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDTRA118D0003
IDV Type: IDC
Timeline
Start Date: 2021-03-25
Current End Date: 2025-05-21
Potential End Date: 2025-05-21 00:00:00
Last Modified: 2026-01-28
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