DHS FEMA awards $9.85M for essential A&E services to Michael Baker Jr., Inc. over 6 years

Contract Overview

Contract Amount: $9,850,724 ($9.9M)

Contractor: Michael Baker JR., Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2004-03-11

End Date: 2010-09-30

Contract Duration: 2,394 days

Daily Burn Rate: $4.1K/day

Number of Offers Received: 1

Pricing Type: FIXED PRICE AWARD FEE

Sector: Other

Official Description: ESSENTAL A&E PROGRAM SERVIES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $9.9 million to MICHAEL BAKER JR., INC. for work described as: ESSENTAL A&E PROGRAM SERVIES Key points: 1. Contract awarded for essential architectural and engineering services, indicating a need for specialized technical expertise. 2. The contract duration of approximately 6.5 years suggests a long-term requirement for ongoing support. 3. Fixed Price Award Fee contract type implies performance incentives tied to specific deliverables. 4. The award was made to a single contractor, raising questions about the extent of competition. 5. The contract value of nearly $10 million over its term requires scrutiny for value for money. 6. Geographic location in the District of Columbia may indicate a focus on national capital region infrastructure or operations.

Value Assessment

Rating: fair

The contract value of $9.85 million over 2394 days averages to approximately $4,115 per day. Without specific details on the scope of 'essential A&E services,' it is difficult to benchmark against similar contracts. The fixed-price award fee structure suggests that the final cost could vary based on performance, making a direct comparison challenging. However, the daily rate appears moderate for specialized engineering services, but a deeper dive into the deliverables is needed to confirm value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded as a Delivery Order, and the data indicates it was a sole-source award. This means that only one contractor, Michael Baker Jr., Inc., was solicited or considered for this specific requirement. Without a competitive bidding process, it is difficult to ascertain if the government received the best possible pricing or if alternative solutions were explored.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the absence of competition limits price negotiation and market discovery.

Public Impact

The primary beneficiaries are likely the Department of Homeland Security and the Federal Emergency Management Agency, receiving critical engineering and architectural support. Services delivered are essential for planning, design, and potentially oversight of infrastructure projects or operational facilities. The geographic impact is centered in the District of Columbia, suggesting support for federal facilities or initiatives within the nation's capital. The contract supports specialized engineering jobs, likely benefiting highly skilled professionals within Michael Baker Jr., Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially reduces taxpayer value.
Lack of transparency in the procurement process due to sole-source nature.
Long contract duration could lead to cost overruns if not managed effectively.

Positive Signals

Award to a single, presumably qualified, contractor ensures continuity of essential services.
Fixed Price Award Fee structure incentivizes contractor performance.
The contract addresses 'essential' services, indicating a critical need for the government.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a significant part of the professional, scientific, and technical services industry. This sector provides a wide range of design, consulting, and project management services for infrastructure, defense, and public works. Federal spending in this area is crucial for maintaining and developing government facilities and capabilities. Comparable spending benchmarks would typically involve analyzing other large-scale A&E contracts awarded by federal agencies for similar types of services and durations.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The prime contractor, Michael Baker Jr., Inc., is likely a large business, and any subcontracting opportunities would be at their discretion, not mandated by a set-aside program.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and program managers within the Federal Emergency Management Agency (FEMA) and the Department of Homeland Security (DHS). As a fixed-price award fee contract, performance metrics and deliverables would be closely monitored to determine award fee payments. Transparency would depend on DHS's public reporting practices for contract awards and performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Homeland Security - General Services
Federal Emergency Management Agency - Disaster Relief and Support
Architectural and Engineering Services - Federal Procurement
Professional, Scientific, and Technical Services Contracts

Risk Flags

Sole-source award raises concerns about competition and potential value for money.
Lack of detailed service description makes it difficult to assess scope and necessity.
Long contract duration requires robust oversight to manage performance and costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $9.9 million to MICHAEL BAKER JR., INC.. ESSENTAL A&E PROGRAM SERVIES

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 $9.9 million.

What is the period of performance?

Start: 2004-03-11. End: 2010-09-30.

What specific 'essential A&E services' were procured under this contract, and what was the justification for a sole-source award?

The contract data identifies the service as 'ESSENTIAL A&E PROGRAM SERVIES' under NAICS code 541330 (Engineering Services). However, the specific nature of these services (e.g., structural engineering, environmental assessments, facility design, program management support) is not detailed. The justification for a sole-source award is also not provided in the data. Typically, sole-source awards are justified when only one responsible source can satisfy the agency's needs, such as in cases of urgent and compelling requirements, unique capabilities, or follow-on work to a previous contract where competition is not feasible. Without further documentation, it's impossible to confirm the validity of the sole-source justification or the precise scope of work.

How does the average daily cost of approximately $4,115 compare to market rates for similar engineering services in the DC area?

Benchmarking the average daily cost of $4,115 requires detailed information about the specific engineering disciplines, seniority of personnel, and complexity of the tasks performed. For highly specialized engineering services in a high-cost-of-living area like Washington D.C., this rate might be within a reasonable range. However, without knowing the mix of labor (e.g., engineers, drafters, project managers) and the specific technical requirements, a definitive comparison is difficult. Industry standard rates can vary significantly, and federal contracts often have specific pricing structures. A more thorough analysis would involve comparing this rate against publicly available GSA schedules, other agency contracts for similar services, or industry salary surveys for relevant engineering roles.

What performance metrics were used to determine the 'Award Fee' component of this contract?

The contract type is 'FIXED PRICE AWARD FEE' (PT: 'FIXED PRICE AWARD FEE'), indicating that a portion of the payment was contingent upon the contractor meeting or exceeding certain performance standards. The specific performance metrics, evaluation criteria, and fee structure are not detailed in the provided summary data. Typically, for A&E services, award fees are tied to factors such as the quality of deliverables, adherence to schedules, cost control (where applicable within a fixed-price structure), responsiveness to government requests, and overall project management effectiveness. The contracting officer would have established a Performance Evaluation Plan outlining these criteria and the associated fee amounts for different levels of performance.

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

Michael Baker Jr., Inc. is a well-established engineering and consulting firm with a significant history of performing work for various federal agencies, including the Department of Defense, Department of Transportation, and likely DHS and FEMA. Their track record generally involves providing a wide range of engineering services, including infrastructure design, environmental consulting, and program management. While specific performance details for this particular $9.85 million contract are not fully available, the company's longevity and continued awards suggest a generally satisfactory performance history with the federal government. A deeper dive into contract databases like FPDS or SAM.gov would reveal more granular details on past performance, including any reported issues or commendations.

Given the sole-source nature, what mechanisms were in place to ensure fair pricing and prevent potential overcharges?

In sole-source procurements, ensuring fair and reasonable pricing often relies on techniques such as obtaining certified cost or pricing data from the contractor, conducting market research to establish independent government cost estimates, and performing detailed cost/price analysis. The contracting officer is responsible for negotiating the price and ensuring it is fair and reasonable. For this contract, the 'FIXED PRICE AWARD FEE' structure implies that while the base price is fixed, the final amount paid could be adjusted based on performance. The government would have likely used historical pricing data, commercial item pricing (if applicable), or detailed cost breakdowns from the contractor to validate the proposed price. However, the absence of competition inherently reduces the leverage for price negotiation.

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: $241,001,235

Exercised Options: $203,095,243

Current Obligation: $9,850,724

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSFEHQ04D0025

IDV Type: IDC

Timeline