DoD's $25.9M engineering services contract awarded to AECOM Technical Services, Inc. for P684 project

Contract Overview

Contract Amount: $25,918,814 ($25.9M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-01-20

End Date: 2027-03-31

Contract Duration: 1,896 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AES: PDA FOR P684

Place of Performance

Location: KINGS BAY, CAMDEN County, GEORGIA, 31547

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $25.9 million to AECOM TECHNICAL SERVICES, INC. for work described as: AES: PDA FOR P684 Key points: 1. Value for money appears reasonable given the firm-fixed-price structure and long-term duration. 2. Full and open competition suggests a healthy market for these engineering services. 3. The contract's duration and scope present moderate performance risks. 4. This contract supports critical infrastructure maintenance and development for the Navy. 5. AECOM's position as a large incumbent contractor is reinforced by this award. 6. The contract is categorized under Engineering Services, a broad but essential sector.

Value Assessment

Rating: good

The contract's firm-fixed-price (FFP) structure provides cost certainty for the government, aligning contractor incentives with efficient delivery. While a direct comparison to similar contracts is limited without more granular data on the specific P684 project scope, the total award value of $25.9 million over approximately five years (January 2022 to March 2027) suggests a moderate annual spend. Benchmarking against industry standards for large-scale engineering services indicates that this pricing is likely competitive, especially given the full and open competition.

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 bids. The specific number of bidders is not provided, but the designation suggests a competitive environment where multiple firms likely vied for the opportunity. This level of competition is generally favorable for price discovery and ensures the government can select from a range of qualified providers.

Taxpayer Impact: Full and open competition typically leads to more favorable pricing for taxpayers by fostering a competitive bidding process that drives down costs.

Public Impact

The Department of the Navy benefits from essential engineering services for its P684 project. This contract supports infrastructure maintenance and development, ensuring operational readiness. The geographic impact is primarily within Georgia, where the contract is managed. The contract likely involves a skilled engineering workforce, contributing to employment in the sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep on long-term engineering projects if not managed tightly.
Reliance on a single large contractor could create dependency risks.
Ensuring consistent quality across a multi-year engagement requires robust oversight.

Positive Signals

Firm-fixed-price contract structure incentivizes cost control.
Full and open competition suggests a robust market and potential for competitive pricing.
Long-term award provides stability for project planning and execution.

Sector Analysis

Engineering services represent a significant segment of the federal contracting market, encompassing a wide range of specialized technical expertise. This contract falls within the broader professional, scientific, and technical services sector. The Department of Defense is a major consumer of these services, utilizing them for design, construction oversight, environmental consulting, and program management across its vast infrastructure and operational needs. Comparable spending benchmarks would typically be assessed against other large-scale, multi-year engineering support contracts awarded by federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). AECOM Technical Services, Inc. is a large business. While there is no direct small business set-aside, large prime contractors are often required to subcontract a portion of the work to small businesses. The extent of small business participation will depend on AECOM's subcontracting plan and the specific requirements of the P684 project, which could provide opportunities for smaller firms in specialized engineering roles.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Department of Defense Engineering Services
Professional, Scientific, and Technical Services
Infrastructure Support Contracts
Large A&E Contracts

Risk Flags

Long contract duration may increase risk of scope creep or changing requirements.
Lack of specific performance metrics in public data limits detailed performance risk assessment.
Potential for cost overruns if not managed diligently, despite fixed-price structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.9 million to AECOM TECHNICAL SERVICES, INC.. AES: PDA FOR P684

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 $25.9 million.

What is the period of performance?

Start: 2022-01-20. End: 2027-03-31.

What is the specific nature of the P684 project and its importance to the Department of the Navy?

The provided data does not detail the specific nature of the P684 project. However, given that the contract is for engineering services awarded by the Department of the Navy and managed by AECOM Technical Services, Inc., it is highly probable that P684 relates to a significant infrastructure, facility, or systems engineering requirement. This could encompass anything from the design and construction oversight of new naval facilities, upgrades to existing bases, environmental remediation projects, or specialized engineering support for naval platforms. The importance of such projects to the Navy lies in maintaining operational readiness, ensuring the safety and functionality of its assets, and supporting its strategic mission. Without further project-specific documentation, the exact scope and criticality remain inferred.

How does AECOM Technical Services, Inc.'s past performance on similar contracts inform the risk assessment for this award?

AECOM Technical Services, Inc. is a large, established government contractor with extensive experience in providing engineering and technical services across various federal agencies, including the Department of Defense. While specific past performance ratings for this exact contract are not detailed in the provided data, AECOM's track record generally includes managing complex, large-scale engineering projects. Their history suggests a capacity to handle the scope and duration of this contract. However, risk assessment should always consider the specific project context. Potential risks could include challenges in managing large teams, unforeseen technical complexities, or coordination issues across different project phases. A thorough review of AECOM's performance on comparable multi-year, high-value engineering contracts would be necessary for a definitive risk assessment.

What is the typical annual spending for engineering services contracts of this magnitude within the Department of the Navy?

The total award for this contract is $25.9 million over an estimated period of 1896 days (approximately 5.2 years), from January 20, 2022, to March 31, 2027. This translates to an average annual spend of roughly $4.98 million ($25.9M / 5.2 years). For large-scale engineering services contracts within the Department of the Navy, particularly those supporting major infrastructure or complex systems, an annual spend in this range is considered moderate to substantial. The Navy procures a vast array of engineering services, and while some contracts can reach hundreds of millions annually, this $5 million average annual figure is typical for significant, but not necessarily the largest, multi-year engineering support efforts.

Are there any specific performance metrics or key performance indicators (KPIs) associated with this contract that are publicly available?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, such details are outlined within the contract's statement of work (SOW) and are not always publicly disclosed in summary award data. For engineering services contracts, common KPIs might relate to project completion timelines, adherence to budget, quality of deliverables (e.g., design accuracy, report completeness), safety compliance, and responsiveness to government requests. The firm-fixed-price nature of this contract implies that AECOM is responsible for delivering the specified services within the agreed-upon price, and performance failures could lead to penalties or non-payment, indirectly incentivizing adherence to performance standards.

How does the 'GA' (Georgia) designation for the state impact the contract's execution and oversight?

The 'GA' designation indicates that the contract is associated with or managed within the state of Georgia. This could mean that the primary place of performance for the engineering services is in Georgia, or that the contracting activity or a significant portion of the project management resides there. For execution, it might imply leveraging local engineering talent or resources within Georgia. For oversight, it means that the Department of the Navy's contracting officers and program managers responsible for this contract may be located in or overseeing activities within Georgia. This geographic focus can influence logistical considerations, communication protocols, and potentially the specific regulatory or environmental contexts relevant to the project's location.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 S GRAND AVE STE 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: $25,918,814

Exercised Options: $25,918,814

Current Obligation: $25,918,814

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $738,573

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6945020D0052

IDV Type: IDC

Timeline