DOD Awards $4.98M Engineering Services Contract to Black & Veatch for Construction Support
Contract Overview
Contract Amount: $4,979,657 ($5.0M)
Contractor: Black & Veatch Special Projects Corp.
Awarding Agency: Department of Defense
Start Date: 2021-04-14
End Date: 2026-10-30
Contract Duration: 2,025 days
Daily Burn Rate: $2.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: TASK 1 ENGINEERING SVS DURING CONST
Place of Performance
Location: LEAWOOD, JOHNSON County, KANSAS, 66211
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $5.0 million to BLACK & VEATCH SPECIAL PROJECTS CORP. for work described as: TASK 1 ENGINEERING SVS DURING CONST Key points: 1. Contract awarded to Black & Veatch Special Projects Corp. for engineering services. 2. The contract is for support during construction activities. 3. The award was made by the Department of the Army, part of the Department of Defense. 4. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 5. The period of performance spans from April 2021 to October 2026.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs than fixed-price contracts if not managed carefully. The awarded amount of $4.98M is a ceiling, and the final cost will depend on actual expenses.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms within the CPFF structure warrant scrutiny to ensure cost-effectiveness.
Taxpayer Impact: Taxpayer funds are being used for engineering services supporting construction. The CPFF structure requires careful oversight to ensure value for money.
Public Impact
Supports critical construction projects within the Department of Defense. Ensures specialized engineering expertise is available for complex military infrastructure. The long performance period suggests ongoing or phased construction needs. Potential impact on local economy in Kansas where the work is performed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can inflate costs.
- Long performance period (over 5 years) increases risk of scope creep or changing requirements.
- No specific small business set-aside mentioned.
Positive Signals
- Awarded under full and open competition, suggesting fair market access.
- Experienced contractor (Black & Veatch) likely brings valuable expertise.
- Supports essential defense infrastructure.
Sector Analysis
Engineering services are crucial for the construction sector, particularly for large-scale government projects. This contract falls under professional, scientific, and technical services, with NAICS code 541330 (Engineering Services). Benchmarks for similar contracts would typically consider project complexity, duration, and specific engineering disciplines required.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, large businesses were eligible and likely competed for this award, potentially limiting opportunities for small businesses in this specific procurement.
Oversight & Accountability
The Department of Defense, specifically the Department of the Army, is responsible for oversight. The CPFF structure necessitates robust monitoring of costs and performance to ensure accountability and prevent wasteful spending.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long performance period (over 5 years).
- No specific small business participation noted.
- Potential for cost overruns due to CPFF structure.
- Lack of detailed service description.
Tags
engineering-services, department-of-defense, ks, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.0 million to BLACK & VEATCH SPECIAL PROJECTS CORP.. TASK 1 ENGINEERING SVS DURING CONST
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 $5.0 million.
What is the period of performance?
Start: 2021-04-14. End: 2026-10-30.
What specific engineering services are being provided under this contract, and how do they align with the overall construction project goals?
The contract specifies 'TASK 1 ENGINEERING SVS DURING CONST,' indicating general engineering support for construction. Without further details, it's difficult to ascertain the precise services. These could range from design review and site assessment to quality control and project management. Alignment with construction goals would depend on the specific project's phase and requirements, necessitating detailed task orders and performance metrics.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this project, and how are they being mitigated?
The primary risk of CPFF is the contractor's incentive to increase costs to maximize profit, potentially leading to budget overruns. Mitigation strategies typically involve stringent cost monitoring, detailed audits, clear definition of allowable costs, and performance incentives tied to efficiency. The government must actively manage the contract to ensure costs remain reasonable and justified.
How does the $4.98 million award amount compare to industry benchmarks for similar engineering support during construction projects of this scale?
Comparing the $4.98 million award requires context on the project's scope, complexity, duration, and specific engineering needs. As a ceiling value for a CPFF contract over potentially five years, it could be reasonable for a significant construction effort. However, without detailed project specifications, a precise benchmark is difficult. Industry averages for large-scale construction engineering support can vary widely, making direct comparison challenging without more data.
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: ARCHITECT-ENGINEER FAR 6.102
Pricing Type: COST PLUS FIXED FEE (U)
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: $4,979,657
Exercised Options: $4,979,657
Current Obligation: $4,979,657
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W912DY16D0017
IDV Type: IDC
Timeline
Start Date: 2021-04-14
Current End Date: 2026-10-30
Potential End Date: 2026-10-30 00:00:00
Last Modified: 2026-01-08
More Contracts from Black & Veatch Special Projects Corp.
- Design and Construction Management Services TAS::72 1037::TAS — $87.6M (Agency for International Development)
- PMO (level of Effort) — $77.9M (Department of Defense)
- Biological Threat Reduction Program (btrp) Ukraine — $77.2M (Department of Defense)
- Program Management — $52.0M (Department of Defense)
- Program Mangement. Igf::ot::igf — $40.4M (Department of Defense)
View all Black & Veatch Special Projects Corp. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)