DHS awarded $84M for engineering services to Michael Baker Jr., Inc. over 5 years

Contract Overview

Contract Amount: $84,054,512 ($84.1M)

Contractor: Michael Baker JR., Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2004-03-11

End Date: 2009-03-10

Contract Duration: 1,825 days

Daily Burn Rate: $46.1K/day

Number of Offers Received: 1

Pricing Type: FIXED PRICE AWARD FEE

Sector: Other

Official Description: MAPPING PROGRAM MOD

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22304

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $84.1 million to MICHAEL BAKER JR., INC. for work described as: MAPPING PROGRAM MOD Key points: 1. The contract's value of $84 million over five years suggests a significant need for ongoing engineering support. 2. The fixed-price award fee structure aims to incentivize performance while managing cost certainty. 3. The duration of the contract indicates a long-term relationship for critical services. 4. The award was made by FEMA, highlighting its role in disaster preparedness and response. 5. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering services. 6. The contract was a delivery order under a larger indefinite-delivery indefinite-quantity (IDIQ) vehicle, suggesting a pre-competed framework.

Value Assessment

Rating: good

Benchmarking the $84 million contract value against similar engineering services contracts awarded by FEMA or DHS is challenging without more specific service details. However, the duration of five years for this amount suggests a moderate annual spend, likely falling within typical ranges for large-scale engineering support. The fixed-price award fee structure is a common approach to balance cost control with performance incentives. Further analysis would require comparing the specific deliverables and unit costs to industry benchmarks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data indicates this was a 'DELIVERY ORDER,' which typically implies it was issued under a pre-existing contract vehicle. The competition level for the original IDIQ contract is not specified here. If the IDIQ was competed broadly, this delivery order might benefit from that initial competition. However, without knowing the specifics of the IDIQ's competition, it's difficult to definitively assess the price discovery for this particular order.

Taxpayer Impact: The level of competition for the underlying IDIQ contract directly impacts taxpayer value. A well-competed IDIQ generally leads to better pricing. If this delivery order was placed on a sole-source basis under an IDIQ, taxpayers may not have received the most competitive pricing.

Public Impact

The primary beneficiaries are likely the Federal Emergency Management Agency (FEMA) and potentially other components within the Department of Homeland Security (DHS), receiving essential engineering expertise. The services delivered are engineering-related, crucial for infrastructure assessment, planning, and potentially post-disaster recovery efforts. The geographic impact is likely nationwide, given FEMA's mandate, though specific project locations would depend on operational needs. The contract supports the engineering workforce, potentially creating or sustaining jobs for engineers and related technical professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific competition details for this delivery order makes it hard to confirm optimal value for taxpayers.
The fixed-price award fee structure requires careful monitoring to ensure contractor performance meets expectations and justifies the fee.
The long duration of the contract could lead to scope creep or evolving requirements that may not be optimally priced if not managed proactively.

Positive Signals

The contract is with a known entity, Michael Baker Jr., Inc., suggesting a degree of established capability and track record.
The fixed-price award fee structure provides a framework for performance-based payments, aligning contractor incentives with agency goals.
The award by FEMA indicates support for critical national security and disaster response functions.

Sector Analysis

Engineering services, categorized under NAICS code 541330, represent a significant sector within professional, scientific, and technical services. This contract fits within the broader federal spending on infrastructure, emergency management, and technical consulting. Comparable spending benchmarks would involve analyzing other large engineering support contracts awarded by federal agencies, particularly those involved in disaster response and resilience.

Small Business Impact

The data does not indicate if this contract included small business set-asides or subcontracting requirements. Michael Baker Jr., Inc. is a large engineering firm, suggesting that if subcontracting opportunities exist, they would likely be for specialized services or specific project needs. Further investigation into the contract's subcontracting plan would be necessary to assess its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Emergency Management Agency (FEMA) contracting officers and program managers. Accountability measures are embedded within the fixed-price award fee structure, which links payment to performance. Transparency would depend on the agency's reporting practices regarding contract awards and performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

FEMA Disaster Relief Fund
DHS Infrastructure Protection Programs
Army Corps of Engineers Civil Works Projects
GSA Public Buildings Service Contracts

Risk Flags

Competition Level Unknown
Performance Metrics Not Specified
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $84.1 million to MICHAEL BAKER JR., INC.. MAPPING PROGRAM MOD

Who is the contractor on this award?

The obligated recipient is MICHAEL BAKER JR., INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $84.1 million.

What is the period of performance?

Start: 2004-03-11. End: 2009-03-10.

What is the specific nature of the engineering services provided under this contract?

The provided data identifies the North American Industry Classification System (NAICS) code as 541330, which corresponds to 'Engineering Services.' This broad category can encompass a wide range of activities, including civil, mechanical, electrical, environmental, and structural engineering. Given the awarding agency is FEMA, the services likely relate to disaster preparedness, response, recovery, mitigation, infrastructure assessment, planning, design, and potentially construction oversight. Without more granular details from the contract's statement of work, the precise engineering disciplines and project types remain unspecified. However, the substantial value and duration suggest complex, long-term support critical to FEMA's mission.

How does the $84 million contract value compare to similar engineering services contracts awarded by FEMA or DHS?

Directly comparing the $84 million contract value requires access to a comprehensive database of FEMA and DHS engineering contracts, including their scope, duration, and specific services. However, as a five-year contract, this represents an average annual value of approximately $16.8 million. This figure appears substantial and indicative of a significant support requirement, potentially for large-scale disaster recovery efforts or ongoing infrastructure resilience programs. Larger federal agencies often award multi-year, multi-million dollar contracts for specialized engineering expertise, especially in fields like emergency management where rapid response and long-term planning are crucial. Further benchmarking would necessitate analyzing contracts with similar NAICS codes and service descriptions.

What are the key performance indicators (KPIs) and award fee criteria for Michael Baker Jr., Inc. under this contract?

The provided data specifies the contract type as 'FIXED PRICE AWARD FEE' (FPAF). This structure implies that the contractor, Michael Baker Jr., Inc., is eligible for award fees based on meeting or exceeding specific performance objectives outlined in the contract's Performance Work Statement (PWS). While the exact KPIs are not detailed in the summary data, they typically relate to factors such as timeliness of delivery, quality of work, cost control, responsiveness, and adherence to technical specifications. The contracting officer would evaluate the contractor's performance against these criteria periodically, assigning a rating that determines the amount of the award fee earned, up to a predetermined maximum. These criteria are crucial for ensuring the government receives optimal value and that the contractor is incentivized to perform effectively.

What is the historical spending pattern for engineering services by FEMA or DHS, and how does this contract fit?

FEMA and DHS historically spend significant amounts on engineering services, particularly in the context of disaster response, recovery, and mitigation. Spending often fluctuates based on the frequency and severity of natural disasters. Contracts like this one, valued at $84 million over five years, represent a substantial, ongoing investment in maintaining and enhancing the nation's resilience infrastructure. This contract likely fits into FEMA's broader strategy for ensuring engineering capacity is available to support its mission. Analyzing historical spending would reveal trends in contract types (e.g., IDIQ vs. fixed-price), average contract values, and the types of engineering services most frequently procured, providing context for the significance of this particular award.

What are the potential risks associated with a long-term (5-year) engineering services contract of this magnitude?

Long-term contracts of this magnitude carry several potential risks. Firstly, the risk of cost escalation exists if the fixed-price structure does not adequately account for inflation or unforeseen market changes over the five-year period. Secondly, there's a risk of scope creep, where the requirements may expand beyond the original intent, potentially leading to cost overruns or delays if not managed rigorously. Thirdly, contractor performance may degrade over time if oversight is not consistently maintained. Finally, technological advancements or changes in federal policy could render certain aspects of the contracted services less relevant or efficient, posing a risk of suboptimal value realization. Proactive contract management, clear communication, and robust oversight are essential to mitigate these risks.

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

Contractor Details

Parent Company: Michael Baker International, LLC (UEI: 079171269)

Address: 4301 DUTCH RIDGE ROAD, BEAVER, PA, 15009

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $364,179,449

Exercised Options: $307,320,461

Current Obligation: $84,054,512

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSFEHQ04D0025

IDV Type: IDC

Timeline