DoD's $121.5M Levee Repair Contract Awarded to AECOM Technical Services, Inc. for Missouri Project

Contract Overview

Contract Amount: $121,498,255 ($121.5M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-05-19

End Date: 2021-11-29

Contract Duration: 559 days

Daily Burn Rate: $217.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: L-536 INTERIM/FINAL LEVEE REPAIRS

Place of Performance

Location: WATSON, ATCHISON County, MISSOURI, 64496

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $121.5 million to AECOM TECHNICAL SERVICES, INC. for work described as: L-536 INTERIM/FINAL LEVEE REPAIRS Key points: 1. Contract value of $121.5 million for levee repairs indicates significant investment in infrastructure resilience. 2. Full and open competition suggests a potentially competitive bidding process, aiming for optimal pricing. 3. The contract's duration of 559 days points to a substantial, multi-phase project. 4. Awarded under a Cost Plus Fixed Fee (CPFF) structure, requiring careful monitoring of costs against the fixed fee. 5. The project's focus on levee repairs highlights critical infrastructure protection and disaster preparedness. 6. AECOM Technical Services, Inc. is a large, established contractor with experience in complex engineering projects.

Value Assessment

Rating: good

The contract value of $121.5 million for levee repairs is substantial. Without specific benchmarks for similar interim/final levee repair projects of this scale and complexity, a direct value-for-money assessment is challenging. However, the CPFF contract type necessitates close oversight to ensure costs remain reasonable and the fixed fee is justified by the scope of work. The number of bidders (7) suggests a degree of competition that could contribute to fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. Seven bids were received, suggesting a healthy level of interest and competition for this project. This broad competition is generally favorable for price discovery and potentially leads to more competitive pricing for the government.

Taxpayer Impact: A competitive bidding process for this significant infrastructure project likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the communities and ecosystems protected by the repaired levees, reducing flood risk. Services delivered include interim and final repairs to critical levee infrastructure. The geographic impact is focused on Missouri, specifically within the area served by the levee system. The project likely involves a workforce of engineers, construction workers, and project managers, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can incentivize contractors to increase costs to maximize profit if not closely monitored.
The duration of the contract (559 days) presents potential risks related to schedule delays and cost overruns.
Ensuring the 'interim/final' repair scope is clearly defined and managed is crucial to avoid scope creep or incomplete work.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
AECOM Technical Services, Inc. is a large, experienced contractor with a track record in large-scale infrastructure projects.
The project addresses critical infrastructure needs, enhancing public safety and resilience.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy civil construction related to water management and flood control infrastructure. The market for levee repair and maintenance is driven by federal, state, and local government needs for disaster preparedness and infrastructure resilience. Spending in this area can fluctuate based on weather events and infrastructure funding initiatives. Comparable spending benchmarks would typically involve other large-scale civil engineering projects awarded by agencies like the Army Corps of Engineers.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded through full and open competition, there may be opportunities for small businesses to participate as subcontractors to AECOM Technical Services, Inc. However, the extent of small business subcontracting is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely involving contracting officers, project managers, and potentially an Inspector General's office. The CPFF contract type necessitates rigorous financial oversight to ensure costs are reasonable and allocable to the contract. Transparency would be enhanced through contract award databases and reporting requirements, though specific details on ongoing oversight mechanisms are not provided.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Federal Emergency Management Agency (FEMA) Hazard Mitigation Grants
Infrastructure Investment and Jobs Act (IIJA) Funding
Department of the Army Construction Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight.
Potential for schedule delays in long-duration construction projects.
Scope definition for 'interim/final' repairs needs clear management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $121.5 million to AECOM TECHNICAL SERVICES, INC.. L-536 INTERIM/FINAL LEVEE REPAIRS

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 Army).

What is the total obligated amount?

The obligated amount is $121.5 million.

What is the period of performance?

Start: 2020-05-19. End: 2021-11-29.

What is AECOM Technical Services, Inc.'s track record with similar large-scale federal infrastructure projects, particularly those involving levee construction or repair?

AECOM Technical Services, Inc. is a major global provider of professional, technical, and management support services, with extensive experience in large-scale infrastructure projects. They have a significant history of working with federal agencies, including the Department of Defense and the Army Corps of Engineers, on complex civil works, environmental remediation, and construction projects. While specific details on all past levee repair contracts are not readily available in this summary, their broad portfolio suggests they possess the technical expertise and capacity to manage projects of this magnitude. Their past performance on similar projects would be a key factor in the government's decision-making process during the procurement phase.

How does the awarded amount of $121.5 million compare to the estimated cost or market rates for similar interim/final levee repair projects?

Benchmarking the $121.5 million award for this specific interim/final levee repair project against market rates is challenging without detailed project specifications, scope of work, and geographic cost variations. However, large-scale civil infrastructure projects, especially those involving critical flood control measures, are inherently expensive due to material costs, specialized labor, engineering requirements, and regulatory compliance. The fact that it was awarded under full and open competition with seven bidders suggests that the pricing was considered competitive within the market for such specialized services at the time of award. Further analysis would require comparing the contract's unit costs for specific repair elements (e.g., per linear foot of repair, per cubic yard of material) against industry cost data.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for a project of this nature and duration?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for a 559-day project like levee repair, is the potential for cost escalation. While the contractor is reimbursed for allowable costs, the fixed fee provides a set profit margin. This structure can incentivize contractors to incur higher costs if the oversight is not rigorous, as their fee remains constant. For the government, the risk lies in ensuring that all incurred costs are reasonable, allocable, and necessary for the project's completion. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value.

What is the historical spending pattern for levee repair and maintenance contracts by the Department of the Army or similar agencies?

Historical spending on levee repair and maintenance by the Department of the Army, particularly through the Army Corps of Engineers, is substantial and often cyclical, influenced by federal appropriations, infrastructure priorities, and the occurrence of natural disasters. Agencies like the Army Corps of Engineers manage vast portfolios of civil works projects, including flood control structures like levees. Spending can range from millions to billions annually, depending on the scale of ongoing projects, new construction, and emergency repairs. This specific $121.5 million contract represents a significant, but not unprecedented, investment within the broader context of federal flood control infrastructure management.

How does the number of bidders (7) in this full and open competition impact the potential for cost savings for the government?

A total of seven bids in a full and open competition is generally considered a healthy level of competition. A higher number of bidders typically increases the likelihood that the government will receive competitive pricing, as contractors vie for the award. This scenario allows the government to select the offer that represents the best value, considering both price and technical factors. The presence of multiple bidders provides a stronger basis for price negotiation and reduces the risk of awarding a contract at an inflated price due to a lack of market interest. Therefore, seven bidders suggest a good potential for cost savings compared to a situation with only one or two offers.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9128F19R0043

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM (UEI: 153561212)

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: $121,498,255

Exercised Options: $121,498,255

Current Obligation: $121,498,255

Actual Outlays: $5,988,311

Subaward Activity

Number of Subawards: 62

Total Subaward Amount: $302,542,226

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128F20D0008

IDV Type: IDC

Timeline