FEMA awards $82.9M task order to Michael Baker Jr. for engineering services

Contract Overview

Contract Amount: $82,906,971 ($82.9M)

Contractor: Michael Baker JR., Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2006-09-30

End Date: 2007-09-30

Contract Duration: 365 days

Daily Burn Rate: $227.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: 4TH TASK ORDER FOR CORE SERVICES UNDER BASE CONTRACT.

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22304

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $82.9 million to MICHAEL BAKER JR., INC. for work described as: 4TH TASK ORDER FOR CORE SERVICES UNDER BASE CONTRACT. Key points: 1. This task order represents a significant investment in core engineering services for FEMA. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The cost-plus award fee structure incentivizes performance but requires careful monitoring of costs. 4. The duration of the task order (365 days) indicates a focused, short-term project. 5. The specific engineering services (NAICS 541330) are critical for disaster response and recovery infrastructure. 6. The awardee, Michael Baker Jr., Inc., has a track record in government contracting.

Value Assessment

Rating: good

The total award amount of $82.9 million for a 365-day task order for engineering services appears substantial. Benchmarking against similar task orders for engineering services under FEMA or other agencies would provide a clearer picture of value for money. The cost-plus award fee (CPAF) contract type allows for flexibility but can lead to higher costs if not managed diligently. Without specific performance metrics and comparison data, it's difficult to definitively assess the value, but the competitive award suggests a reasonable price was sought.

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. This typically leads to a wider range of proposals and potentially more competitive pricing. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: A competitive award process generally benefits taxpayers by driving down prices and ensuring the government receives the best possible value for its investment.

Public Impact

The primary beneficiaries are likely the Department of Homeland Security (FEMA) and the communities they serve, through improved infrastructure and disaster response capabilities. The services delivered are engineering-focused, crucial for planning, designing, and potentially overseeing the repair or construction of infrastructure. The geographic impact could be widespread, depending on where FEMA requires engineering support for its missions. Workforce implications include employment opportunities for engineers and related professionals within Michael Baker Jr., Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contracts can sometimes lead to cost overruns if not closely monitored.
The specific nature of engineering services can involve complex variables that may impact final costs.
Dependence on a single task order for a significant portion of services could pose a risk if the base contract is not extended or renewed.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Michael Baker Jr., Inc. is an established firm with experience in government contracts.
The task order is for core services, indicating a need for ongoing support.

Sector Analysis

The engineering services sector is a critical component of government contracting, supporting a wide array of federal agencies. NAICS code 541330, 'Engineering Services,' encompasses a broad range of activities from preliminary studies to design and construction oversight. Federal spending in this sector is substantial, driven by infrastructure needs, defense projects, and disaster recovery efforts. This contract fits within the broader category of professional services supporting federal missions, with comparable spending benchmarks varying widely based on project scope and complexity.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Michael Baker Jr., Inc., is likely a large business. There is no explicit information on subcontracting plans for small businesses within this specific task order, which could be a missed opportunity to engage the small business ecosystem. Future analysis could explore subcontracting reports associated with the base contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. As a cost-plus award fee contract, performance metrics and cost controls would be key areas of oversight. Transparency is generally facilitated through contract award databases and reporting requirements. The Department of Homeland Security's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

FEMA Disaster Relief Fund
Department of Homeland Security - Professional Services Contracts
Engineering and Architectural Services - Federal Government
Infrastructure Support Services

Risk Flags

Cost-Plus Award Fee (CPAF) contract type requires diligent oversight to manage costs.
Potential for cost overruns inherent in CPAF structure.
Need for clear performance metrics to justify award fees.
Duration of task order may indicate a specific phase or type of service, requiring context.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $82.9 million to MICHAEL BAKER JR., INC.. 4TH TASK ORDER FOR CORE SERVICES UNDER BASE CONTRACT.

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 $82.9 million.

What is the period of performance?

Start: 2006-09-30. End: 2007-09-30.

What is the track record of Michael Baker Jr., Inc. with federal contracts, particularly with FEMA?

Michael Baker Jr., Inc. has a significant history of contracting with the U.S. federal government across various agencies, including the Department of Defense, Department of Transportation, and the General Services Administration. Their work often involves engineering, design, and construction management services. With FEMA, they have likely been involved in projects related to disaster preparedness, response, and recovery, providing essential engineering expertise for infrastructure assessment and rebuilding efforts. A detailed review of their past performance ratings and any past performance issues or commendations with FEMA and other federal agencies would be necessary for a comprehensive assessment. Their extensive experience suggests a familiarity with federal procurement regulations and project execution requirements.

How does the $82.9 million value of this task order compare to similar engineering services contracts awarded by FEMA?

The $82.9 million value for a single 365-day task order for engineering services is substantial. To benchmark this effectively, one would need to compare it against other FEMA task orders for similar engineering disciplines (e.g., civil, structural, environmental engineering) awarded over comparable timeframes. FEMA's spending can fluctuate significantly based on the scale and frequency of declared disasters. If this task order is for routine support services, it might be on the higher end. However, if it's tied to a major disaster recovery effort, the cost could be more in line with industry standards for large-scale engineering support. Accessing historical FEMA contract data and filtering for engineering services would provide the necessary context for a robust comparison.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract structure for engineering services?

The primary risks with a CPAF contract for engineering services revolve around cost control and potential for contractor inefficiency if incentives are not well-aligned. While CPAF aims to incentivize performance by offering award fees based on meeting or exceeding certain criteria, it can also lead to higher overall costs compared to fixed-price contracts if the base fee is generous or the award criteria are not sufficiently stringent. Contractors may focus on achieving award fee targets rather than optimizing cost-efficiency. For the government, effective oversight is crucial to ensure that the award fee is truly earned and that costs remain reasonable. There's also a risk that the contractor might inflate costs to ensure a higher base fee calculation, although the award fee is intended to mitigate this by rewarding performance.

What is the typical duration for engineering services task orders of this magnitude, and does this duration suggest a specific type of project?

A 365-day duration for an $82.9 million task order for engineering services is relatively short for the total value, suggesting that the funds may be allocated for intensive, focused work rather than long-term, phased projects. Typically, large-scale engineering efforts, especially those involving design, permitting, and oversight for major infrastructure or disaster recovery, can span multiple years. A one-year duration might indicate task orders for rapid needs assessments, emergency design services, specialized technical support, or the initial phases of a larger program. It could also imply that this is one of several task orders under a larger base contract, with subsequent task orders covering later phases or different aspects of the overall requirement.

How does the 'full and open competition' award method impact the potential for cost savings and quality of services for FEMA?

Awarding this task order through 'full and open competition' is generally beneficial for FEMA and taxpayers. This method ensures that a wide range of qualified contractors can bid, fostering a competitive environment that typically drives down prices and encourages innovation. By allowing all responsible sources to participate, FEMA increases its chances of finding the most cost-effective solution and the contractor best suited for the specific engineering needs. The competition inherently pressures bidders to offer competitive pricing and demonstrate superior technical capabilities to win the contract. This process helps ensure that FEMA receives high-quality engineering services at a fair market price, maximizing the value of the awarded funds.

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: ARCHITECT-ENGINEER FAR 6.102

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

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: $334,856,490

Exercised Options: $253,224,390

Current Obligation: $82,906,971

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSFEHQ04D0025

IDV Type: IDC

Timeline