DoD Awards $633M Phased Construction Services Contract to Black & Veatch for Alaska Projects
Contract Overview
Contract Amount: $6,333,131 ($6.3M)
Contractor: Black & Veatch Special Projects Corp.
Awarding Agency: Department of Defense
Start Date: 2019-04-05
End Date: 2026-12-31
Contract Duration: 2,827 days
Daily Burn Rate: $2.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CLR039C CONSTRUCTION PHASED SERVICES
Place of Performance
Location: CLEAR, DENALI County, ALASKA, 99704
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $6.3 million to BLACK & VEATCH SPECIAL PROJECTS CORP. for work described as: CLR039C CONSTRUCTION PHASED SERVICES Key points: 1. Significant contract value of $633.3 million for phased construction services. 2. Competition was full and open, suggesting a competitive bidding process. 3. Risk is moderate due to the long duration (2019-2026) and phased nature of services. 4. The sector is construction, specifically engineering services for the Department of Defense.
Value Assessment
Rating: good
The contract value of $633.3 million for engineering services is substantial. Benchmarking against similar large-scale DoD construction contracts would be necessary for a precise pricing assessment, but the firm fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive bidding process for this large contract aims to ensure taxpayer funds are used efficiently for critical infrastructure projects.
Public Impact
Impacts military infrastructure development in Alaska. Supports engineering and construction jobs. Ensures operational readiness through facility upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to scope creep or cost overruns if not managed effectively.
- Geographic remoteness of Alaska can increase logistical costs and complexity.
- Potential for unforeseen site conditions impacting project timelines and budgets.
Positive Signals
- Firm fixed-price contract provides cost predictability.
- Full and open competition suggests a competitive market for these services.
- Phased approach allows for flexibility and adaptation to evolving needs.
Sector Analysis
This contract falls within the engineering services sector, a critical component of construction and infrastructure development. Spending in this area for the Department of Defense is often substantial, driven by modernization and maintenance needs for military installations.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. While Black & Veatch is a large prime contractor, opportunities for small businesses may exist as subcontractors on this project.
Oversight & Accountability
The phased nature of the contract and its long duration necessitate robust oversight from the Department of the Army to ensure adherence to scope, budget, and schedule, and to manage risks effectively.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long-term contract duration increases exposure to market volatility and changing requirements.
- Alaska's unique environmental and logistical challenges can impact cost and schedule.
- Potential for scope creep if not tightly managed.
- Reliance on a single prime contractor for a large scope of work.
Tags
engineering-services, department-of-defense, ak, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.3 million to BLACK & VEATCH SPECIAL PROJECTS CORP.. CLR039C CONSTRUCTION PHASED SERVICES
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 $6.3 million.
What is the period of performance?
Start: 2019-04-05. End: 2026-12-31.
What specific types of construction or engineering services are included in this phased contract, and how do they align with the Army's strategic infrastructure goals in Alaska?
The contract is for 'CLR039C CONSTRUCTION PHASED SERVICES,' suggesting a broad scope of engineering and construction activities. Without further details, it's difficult to specify. However, such contracts typically support facility design, construction, renovation, and maintenance. Alignment with strategic goals would depend on the Army's specific modernization or expansion plans for its Alaskan installations, potentially related to operational readiness, housing, training facilities, or logistical support.
Given the firm fixed-price structure and long duration, what mechanisms are in place to manage potential cost increases due to inflation or unforeseen site conditions in Alaska?
Firm fixed-price contracts generally place the risk of cost overruns on the contractor. However, contracts can include escalation clauses for labor or materials, or provisions for equitable adjustments if unforeseen site conditions (like permafrost issues common in Alaska) are encountered. Robust change order management and contingency planning by the Army are crucial to mitigate these risks.
How will the effectiveness of Black & Veatch's performance be measured throughout the phased delivery, and what are the key performance indicators (KPIs) for this contract?
Effectiveness is typically measured through adherence to project milestones, quality of work, budget compliance, and safety records. Key performance indicators might include on-time delivery of design documents, successful completion of construction phases, adherence to specifications, and minimal rework. The Army's contracting officer's representative (COR) would be responsible for monitoring these KPIs and providing performance evaluations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6800 W 115TH STREET SUITE 2200, OVERLAND PARK, KS, 66211
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $6,333,131
Exercised Options: $6,333,131
Current Obligation: $6,333,131
Actual Outlays: $71,743
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $1,193,954
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W912DY17D0053
IDV Type: IDC
Timeline
Start Date: 2019-04-05
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-12-22
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