Jacobs Engineering Group Inc. awarded $60M for architectural and engineering support services by the IRS

Contract Overview

Contract Amount: $59,975,274 ($60.0M)

Contractor: Jacobs Engineering Group Inc.

Awarding Agency: Department of the Treasury

Start Date: 2012-04-16

End Date: 2014-02-28

Contract Duration: 683 days

Daily Burn Rate: $87.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF OTHER FUNCTIONS ARCHITECT-ENGINEER (A-E) SERVICES I.E. ARCHITECTURAL AND ENGINEERING SUPPORT SERVICES CONTRACT (A/ESSC)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $60.0 million to JACOBS ENGINEERING GROUP INC. for work described as: IGF::OT::IGF OTHER FUNCTIONS ARCHITECT-ENGINEER (A-E) SERVICES I.E. ARCHITECTURAL AND ENGINEERING SUPPORT SERVICES CONTRACT (A/ESSC) Key points: 1. Contract value of $59.98M over its period of performance. 2. Awarded under full and open competition, indicating a broad market search. 3. The contract was a delivery order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 4. The fixed-price contract type aims to control costs for the government. 5. The contract duration was 683 days. 6. The North American Industry Classification System (NAICS) code 541310 points to architectural services. 7. The Small Business Administration (SBA) designation was not applicable or not specified. 8. The contract was awarded to a single vendor, Jacobs Engineering Group Inc.

Value Assessment

Rating: fair

The contract value of approximately $60 million for architectural and engineering support services over a period of roughly two years appears to be within a reasonable range for large-scale government projects. Benchmarking against similar contracts is challenging without more specific details on the scope of services and deliverables. However, the firm-fixed-price structure suggests an effort to manage costs, though the final value could fluctuate based on the specific delivery orders issued under this contract. The contract was awarded to a single entity, Jacobs Engineering Group Inc., which suggests they were the selected provider from a competitive process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The data indicates there were 10 offers received, suggesting a healthy level of interest and competition for this requirement. The competitive process is designed to ensure that the government receives the best value by allowing multiple firms to propose their solutions and pricing, leading to potentially lower costs and higher quality services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace where contractors are incentivized to offer competitive pricing and superior services to win government contracts. This process helps prevent overspending and ensures that public funds are used efficiently.

Public Impact

The primary beneficiary of this contract is the Internal Revenue Service (IRS), which receives essential architectural and engineering support. Services delivered include architectural and engineering support, crucial for the maintenance, renovation, or construction of IRS facilities. The geographic impact is likely concentrated around IRS facilities in Virginia, where the contract was administered. The contract supports a professional workforce in the architectural and engineering sector, potentially creating or sustaining jobs for skilled professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work expands beyond initial estimates under the fixed-price contract.
Reliance on a single contractor for critical architectural and engineering services could pose a risk if performance issues arise.
Limited visibility into the specific sub-contracting opportunities for small businesses, as the contract was not set aside.
The duration of the contract (683 days) might indicate a long-term need, but the specific project timelines are not detailed.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The firm-fixed-price contract type provides cost certainty for the government.
Jacobs Engineering Group Inc. is a large, established firm with a track record in engineering and construction services.
The contract supports essential infrastructure needs for a major federal agency (IRS).

Sector Analysis

The architectural services sector is a critical component of the construction and infrastructure industry. This contract falls under NAICS code 541310, which encompasses establishments primarily engaged in planning and designing buildings and other structures. The market for government architectural and engineering services is substantial, driven by the need to maintain, upgrade, and build federal facilities. Comparable spending benchmarks would typically involve analyzing the average cost of similar A-E services for federal agencies, considering factors like project complexity, location, and duration. The total award of $59.98 million indicates a significant project requiring specialized expertise.

Small Business Impact

This contract was not specifically set aside for small businesses, as indicated by 'sb': false. This means that large businesses were eligible to compete and potentially win the award. While there is no explicit requirement for subcontracting to small businesses mentioned in the provided data, large prime contractors are often encouraged or required by agency policy to engage small businesses for a portion of the work. The impact on the small business ecosystem would depend on whether Jacobs Engineering Group Inc. voluntarily includes small businesses in its subcontracting plans for this project.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the IRS. The firm-fixed-price nature of the contract provides a degree of accountability by setting a ceiling on costs. Transparency is generally facilitated through contract award databases like FPDS.gov, where basic information is publicly available. Specific performance reviews and audits would be internal oversight mechanisms to ensure the contractor meets the terms and conditions of the contract.

Related Government Programs

IRS Facility Management Contracts
Federal Architectural and Engineering Services
General Services Administration (GSA) Schedules for A-E Services
Department of Defense (DoD) Construction and Engineering Contracts

Risk Flags

Potential for scope creep in fixed-price contracts.
Reliance on a single contractor for critical services.
Limited visibility into small business subcontracting.
Contract duration may indicate long-term dependency.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $60.0 million to JACOBS ENGINEERING GROUP INC.. IGF::OT::IGF OTHER FUNCTIONS ARCHITECT-ENGINEER (A-E) SERVICES I.E. ARCHITECTURAL AND ENGINEERING SUPPORT SERVICES CONTRACT (A/ESSC)

Who is the contractor on this award?

The obligated recipient is JACOBS ENGINEERING GROUP INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $60.0 million.

What is the period of performance?

Start: 2012-04-16. End: 2014-02-28.

What was the specific scope of architectural and engineering services provided under this contract?

The provided data indicates the contract was for 'ARCHITECT-ENGINEER (A-E) SERVICES I.E. ARCHITECTURAL AND ENGINEERING SUPPORT SERVICES CONTRACT (A/ESSC)'. While the exact scope is not detailed, this typically includes services such as architectural design, structural engineering, mechanical, electrical, and plumbing (MEP) engineering, site planning, and construction administration. For the IRS, these services could relate to the design, renovation, or maintenance of their office buildings, data centers, or other facilities. The delivery order nature suggests specific projects were defined and executed under this overarching contract.

How does the awarded amount of $59.98 million compare to typical spending for similar IRS architectural and engineering support contracts?

Without access to a comprehensive database of all IRS A-E contracts and their specific scopes, a direct comparison is difficult. However, $59.98 million over approximately two years for a large federal agency like the IRS suggests a significant engagement. Large-scale facility projects, renovations, or new constructions can easily reach these figures. The IRS manages a vast portfolio of real estate, and contracts of this magnitude are not uncommon for major infrastructure support. Benchmarking would require analyzing contracts with similar NAICS codes (541310) awarded by agencies of comparable size and mission.

What are the potential risks associated with a firm-fixed-price contract for architectural and engineering services?

While firm-fixed-price (FFP) contracts are designed to provide cost certainty, they can introduce risks for both the government and the contractor. For the government, if the scope of work is not clearly defined or if unforeseen issues arise during design or construction, the contractor may be less inclined to absorb additional costs, potentially leading to disputes or a need for contract modifications. Conversely, if the contractor significantly underestimates the effort or costs, they risk losing money. For A-E services, scope creep or complex site conditions can be challenging to manage under an FFP structure without careful change order management.

What was the track record of Jacobs Engineering Group Inc. with the IRS or similar federal agencies prior to this award?

The provided data does not include specific details on Jacobs Engineering Group Inc.'s prior track record with the IRS or other federal agencies. However, Jacobs Engineering Group is a well-established global provider of technical, professional, and construction services. They have a significant history of working on large-scale government and infrastructure projects across various sectors, including defense, energy, and transportation. A deeper dive into contract databases would be necessary to ascertain their specific performance history with the IRS and the success of their previous engagements.

How many offers were received, and what does this number imply about the competition level?

The data indicates that 10 offers were received for this contract. A number of 10 offers suggests a reasonably competitive environment. It implies that multiple firms were interested in and capable of performing the required architectural and engineering support services. This level of competition is generally considered healthy, as it provides the government with a good selection of potential solutions and pricing, increasing the likelihood of obtaining best value. It also indicates that the requirement was well-understood and accessible to a segment of the market.

What is the significance of the contract being a 'Delivery Order'?

The term 'Delivery Order' typically signifies that this contract was issued under a larger, pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. IDIQ contracts establish terms and conditions, including pricing, for services that may be needed over a period of time. Delivery orders are then used to specify the exact quantity, delivery schedule, and price for a particular task or project under that umbrella contract. This approach allows agencies to procure services more efficiently and rapidly when needs arise, without having to conduct a full, separate competition for each individual task.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Solicitation ID: TIRNO11R00006

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)

Address: 1100 N GLEBE RD STE 500, ARLINGTON, VA, 22201

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

Financial Breakdown

Contract Ceiling: $60,000,000

Exercised Options: $59,975,274

Current Obligation: $59,975,274

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: TIRNO12D00002

IDV Type: IDC

Timeline