DoD's $14.8M Engineering Services Contract Awarded to Black & Veatch Special Projects Corp
Contract Overview
Contract Amount: $14,838,472 ($14.8M)
Contractor: Black & Veatch Special Projects Corp.
Awarding Agency: Department of Defense
Start Date: 2009-02-27
End Date: 2010-01-22
Contract Duration: 329 days
Daily Burn Rate: $45.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BASE TASKS 1 AND 2
Plain-Language Summary
Department of Defense obligated $14.8 million to BLACK & VEATCH SPECIAL PROJECTS CORP. for work described as: BASE TASKS 1 AND 2 Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of 329 days indicates a focused, short-term project. 3. Firm Fixed Price contract type helps manage cost certainty for the government. 4. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 5. The award was made by the Department of the Army, a component of the DoD. 6. The base value of the contract is over $14.8 million.
Value Assessment
Rating: fair
Benchmarking the value of this specific contract is challenging without more detailed scope information. However, the firm fixed-price nature suggests an attempt to control costs. The award amount of $14.8 million for engineering services over approximately one year appears within a reasonable range for complex projects, but a direct comparison to similar, precisely defined contracts would be necessary for a definitive value assessment. The absence of detailed performance metrics or cost breakdowns makes a thorough value-for-money evaluation difficult.
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 presence of 3 bids suggests a moderate level of competition for this engineering services requirement. While multiple bidders participated, the exact number of bids received (3) does not necessarily guarantee the most competitive pricing, but it does provide a basis for price discovery and selection among qualified offerors.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and a wider selection of qualified contractors, potentially reducing overall project costs.
Public Impact
The Department of Defense benefits from specialized engineering expertise to support its operations. The contract delivers essential engineering services, likely related to infrastructure, facilities, or technical projects. The geographic impact is likely within areas of DoD operational interest, though not specified. The contract supports a workforce skilled in engineering and project management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed scope of work makes it difficult to assess if the fixed price adequately covers all potential project complexities.
- Limited competition (3 bidders) may have restricted the range of innovative solutions or cost-saving proposals.
- The specific nature of the engineering services is not detailed, raising questions about potential scope creep or unforeseen requirements.
Positive Signals
- Awarded under full and open competition, ensuring a broad base of potential contractors.
- Firm Fixed Price contract type provides cost certainty for the government.
- The contractor, Black & Veatch Special Projects Corp., is a known entity in the engineering sector.
Sector Analysis
Engineering services, categorized under NAICS code 541330, represent a significant sector supporting various government and private initiatives. This contract fits within the broader defense engineering services market, which is characterized by complex requirements, high technical standards, and substantial investment. Comparable spending benchmarks for similar defense engineering projects would typically range from millions to tens of millions of dollars, depending on the scale and complexity.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which incentivizes the contractor to complete the work within budget. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports or Inspector General involvement would depend on specific project outcomes or identified issues.
Related Government Programs
- Department of Defense Engineering Contracts
- Army Corps of Engineers Projects
- Professional, Scientific, and Technical Services Contracts
- Infrastructure Development Contracts
Risk Flags
- Potential for scope creep due to unspecified engineering services.
- Limited competition may impact optimal pricing.
- Value for money assessment is difficult without detailed performance data.
Tags
engineering-services, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, black-and-veatch-special-projects-corp, naics-541330, defense-contracts, project-management, us-federal-government
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.8 million to BLACK & VEATCH SPECIAL PROJECTS CORP.. BASE TASKS 1 AND 2
Who is the contractor on this award?
The obligated recipient is BLACK & VEATCH SPECIAL PROJECTS CORP..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $14.8 million.
What is the period of performance?
Start: 2009-02-27. End: 2010-01-22.
What specific types of engineering services were provided under this contract?
The provided data identifies the contract under NAICS code 541330, which corresponds to 'Engineering Services.' However, the specific nature of these services is not detailed. Typically, engineering services for the Department of Defense can encompass a wide range of activities, including but not limited to architectural and engineering design, construction management, environmental engineering, systems engineering, and technical consulting for military installations, equipment, or operational needs. Without further information on the Statement of Work (SOW) or task orders issued against this contract, it is impossible to specify the exact services rendered by Black & Veatch Special Projects Corp.
How does the $14.8 million award compare to typical spending for similar engineering services by the Department of the Army?
Comparing the $14.8 million award requires context regarding the scope, duration, and complexity of the engineering services. For the Department of the Army, engineering contracts can vary significantly. A 329-day contract of this value might be considered moderate for a specialized project, such as design for a new facility or complex systems integration. However, larger infrastructure projects or extensive research and development support could easily exceed this amount. Without specific details on the project's deliverables and the market rates for comparable services at the time of award, a precise benchmark is difficult. Generally, the Army procures a wide spectrum of engineering services, with contract values ranging from thousands to hundreds of millions of dollars.
What are the potential risks associated with a firm fixed-price contract for engineering services?
Firm Fixed Price (FFP) contracts, while offering cost certainty to the government, can introduce risks for both parties. For the contractor, the primary risk is underestimating the costs or encountering unforeseen complexities, which could lead to reduced profit margins or even a loss if the scope is not well-defined. For the government, the risk lies in the potential for the contractor to cut corners on quality or scope to maintain profitability, especially if the SOW is ambiguous. In engineering services, where innovation and problem-solving are key, an overly rigid FFP contract might disincentivize the contractor from proposing more efficient or effective solutions that fall outside the initially defined scope, potentially limiting the overall value achieved.
What is the track record of Black & Veatch Special Projects Corp. with federal contracts?
Black & Veatch Special Projects Corp. is a known entity that has secured numerous federal contracts across various agencies, including the Department of Defense. Their portfolio typically includes large-scale engineering, procurement, and construction (EPC) projects, as well as specialized technical services. While this specific contract was for $14.8 million over approximately one year, the company has a history of managing significantly larger and more complex federal projects. Their track record generally indicates experience in delivering major infrastructure and defense-related engineering solutions, suggesting a capacity to handle substantial government requirements.
How does the competition level (3 bidders) impact the value for taxpayers?
A competition level of three bidders for this contract suggests a moderate degree of market interest and capability. While more bidders could potentially drive prices lower, three offers generally provide sufficient basis for price comparison and selection among qualified firms. This level of competition is often seen as a balance between ensuring a competitive environment and avoiding overly burdensome solicitation processes. For taxpayers, this means that while the absolute lowest price might not have been achieved compared to a scenario with numerous bidders, the price is likely influenced by market forces and the need for the contractor to be competitive against at least two other capable firms.
What is the significance of the 'DO' award type?
The 'DO' award type typically signifies a 'DO Rating' under the Defense Priorities and Allocations System (DPAS). This rating grants the contractor priority assistance in obtaining necessary materials and services to fulfill the contract, particularly when it is deemed essential for national defense. For this engineering services contract, a DO rating implies that the project is considered critical by the Department of Defense, allowing Black & Veatch Special Projects Corp. to expedite the acquisition of resources required for its timely completion, thereby ensuring the project's contribution to national defense objectives.
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: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Black & Veatch Holding Company (UEI: 788948115)
Address: 6601 COLLEGE BLVD, SHAWNEE MISSIO, KS
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $14,838,472
Exercised Options: $14,838,472
Current Obligation: $14,838,472
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY05D0022
IDV Type: IDC
Timeline
Start Date: 2009-02-27
Current End Date: 2010-01-22
Potential End Date: 2010-01-22 00:00:00
Last Modified: 2010-09-21
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