DoD awards $101.4M for Typhoon Mawar recovery, AECOM Technical Services to provide facilities support in Guam

Contract Overview

Contract Amount: $101,443,298 ($101.4M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-06-16

End Date: 2025-04-30

Contract Duration: 684 days

Daily Burn Rate: $148.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: TYPHOON MAWAR RECOVERY AT VARIOUS LOCATIONS IN JOINT REGION MARIA

Place of Performance

Location: SANTA RITA, GUAM County, GUAM, 96915

Plain-Language Summary

Department of Defense obligated $101.4 million to AECOM TECHNICAL SERVICES, INC. for work described as: TYPHOON MAWAR RECOVERY AT VARIOUS LOCATIONS IN JOINT REGION MARIA Key points: 1. Contract focuses on critical recovery efforts following a major typhoon, highlighting essential infrastructure support. 2. AECOM Technical Services, a large incumbent, secured this significant award, suggesting established presence and capability. 3. The contract's cost-plus award fee structure incentivizes performance but requires careful monitoring of costs. 4. Facilities support services are vital for maintaining operational readiness and post-disaster resilience. 5. The award duration of 684 days indicates a substantial, long-term commitment to recovery and ongoing support. 6. Geographic focus on Guam underscores the strategic importance of the region and its vulnerability to natural disasters.

Value Assessment

Rating: good

Benchmarking the value of this contract is challenging without specific task order details and comparable recovery efforts. However, the scale of the award suggests a significant need for comprehensive facilities support in the aftermath of Typhoon Mawar. The cost-plus award fee (CPAF) structure allows for flexibility in addressing unforeseen recovery needs, but necessitates robust oversight to ensure cost efficiency. AECOM's experience in similar large-scale support contracts will be a key factor in assessing value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of 3 bids suggests a competitive environment, though the specific details of the bidding process and the capabilities of the other bidders are not provided. Full and open competition generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for essential recovery services, reducing the risk of overpayment for critical support.

Public Impact

Military personnel and their families stationed in Guam will benefit from restored and maintained facilities. Essential services such as base operations, infrastructure repair, and facility management will be delivered. The geographic impact is concentrated in Guam, a critical strategic location in the Indo-Pacific. The contract supports the local workforce in Guam through potential subcontracting and direct employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contracts can lead to cost overruns if not managed diligently.
Reliance on a single large contractor for critical recovery operations may pose risks if performance falters.
The long duration of the contract requires sustained oversight to ensure continued value and performance.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
AECOM Technical Services has a demonstrated track record in large-scale facilities support and recovery operations.
The contract addresses a critical need for post-typhoon recovery, ensuring operational continuity and safety.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of physical infrastructure. The market for these services is substantial, particularly for government entities operating in remote or strategically important locations like Guam. This award is a significant component of the Department of Defense's efforts to ensure readiness and resilience in the Indo-Pacific region, especially following natural disasters.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, large prime contractors like AECOM Technical Services are often required to meet small business subcontracting goals. The extent to which small businesses will participate in this recovery effort through subcontracting will be a key factor in assessing the broader economic impact on the small business ecosystem in Guam and beyond.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy, with specific task order managers responsible for monitoring performance, costs, and adherence to contract terms. The cost-plus award fee structure necessitates rigorous financial oversight and performance evaluations. Transparency will depend on the agency's reporting practices regarding contract performance and expenditures. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Typhoon Recovery Operations
Base Operations Support
Facilities Maintenance and Repair
Disaster Response Services
Department of Defense Infrastructure Projects

Risk Flags

Cost Overrun Risk
Performance Deficiency
Logistical Challenges
Long-Term Contract Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $101.4 million to AECOM TECHNICAL SERVICES, INC.. TYPHOON MAWAR RECOVERY AT VARIOUS LOCATIONS IN JOINT REGION MARIA

Who is the contractor on this award?

The obligated recipient is AECOM TECHNICAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $101.4 million.

What is the period of performance?

Start: 2023-06-16. End: 2025-04-30.

What is AECOM Technical Services' track record with similar large-scale facilities support contracts, particularly in disaster recovery scenarios?

AECOM Technical Services, Inc. has a substantial history of performing large-scale facilities support and base operations contracts for the Department of Defense and other government agencies. They have been involved in numerous projects requiring rapid response and sustained support in challenging environments, including post-disaster recovery. Their experience often includes managing complex logistics, infrastructure repair, and essential services. While specific details of past disaster recovery contracts are not provided here, their consistent presence as a prime contractor in this domain suggests a proven capability to handle the scope and demands of the Typhoon Mawar recovery effort. Further analysis would involve examining past performance evaluations and contract modifications for similar awards to assess their reliability and efficiency in critical situations.

How does the pricing structure (Cost Plus Award Fee) compare to other disaster recovery contracts of similar scale?

The Cost Plus Award Fee (CPAF) structure is common for complex, evolving requirements like disaster recovery, where the full scope of work and associated costs may not be precisely known at the outset. This structure allows the contractor to recover allowable costs plus a fee that is adjusted based on performance against pre-defined metrics. Compared to fixed-price contracts, CPAF offers greater flexibility but can potentially lead to higher costs if not managed with stringent oversight. Other disaster recovery contracts might utilize Cost Plus Incentive Fee (CPIF) or even Time and Materials (T&M) for specific tasks. The 'award fee' component incentivizes the contractor to exceed performance expectations, which can be beneficial for critical recovery operations, but the government must ensure the award criteria are well-defined and performance is objectively measured to control overall expenditure.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential cost overruns due to the CPAF structure, performance deficiencies in executing complex recovery tasks, and logistical challenges in a remote location like Guam. Mitigation strategies typically involve robust government oversight, including detailed cost monitoring, regular performance reviews against established metrics, and clear communication channels. The contract's duration necessitates sustained vigilance. The 'award fee' mechanism itself acts as a performance incentive, encouraging the contractor to manage risks effectively to achieve higher fee payouts. Furthermore, the full and open competition process, with multiple bidders, suggests a baseline level of contractor capability and a competitive drive to perform well. Specific risk mitigation plans would be detailed within the contract's performance work statement and associated management plans.

How effective is the current contract in addressing the long-term recovery needs following Typhoon Mawar?

The effectiveness of this contract in addressing long-term recovery needs hinges on several factors. The award amount of $101.4 million and a duration of 684 days (nearly two years) suggest a significant commitment to comprehensive recovery. The focus on facilities support services implies a broad scope, likely encompassing repairs, restoration, and potentially upgrades to critical infrastructure. However, the true measure of effectiveness will be in the successful execution of specific tasks, the quality of repairs, the restoration of essential services, and the overall impact on base operational readiness and resilience. Regular performance assessments, user feedback from the affected installations, and post-recovery evaluations will be crucial in determining the contract's long-term success in meeting the recovery objectives.

What are the historical spending patterns for facilities support services in Guam or similar Indo-Pacific installations?

Historical spending on facilities support services in Guam and similar Indo-Pacific installations tends to be substantial due to the strategic importance, remote location, and often harsh environmental conditions (including typhoons). These regions frequently require significant investment in maintaining and upgrading infrastructure to ensure operational readiness and resilience. Spending patterns are influenced by the scale of military presence, the age of existing facilities, and the frequency of natural disasters. Contracts often involve long-term base operations and maintenance, construction, and specialized support services. While specific historical data for Guam is not provided here, it is reasonable to infer that annual spending on facilities support runs into tens or hundreds of millions of dollars, reflecting the ongoing need for robust infrastructure management in these critical areas. This $101.4M award for recovery aligns with the expected scale of investment required for significant post-typhoon restoration.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support 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

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 300 S GRAND AVE, SUITE 1100, LOS ANGELES, CA, 90071

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $101,443,298

Exercised Options: $101,443,298

Current Obligation: $101,443,298

Actual Outlays: $3,801,113

Subaward Activity

Number of Subawards: 42

Total Subaward Amount: $61,602,966

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6274216D3555

IDV Type: IDC

Timeline