ARCADIS INC. awarded $106M in engineering services contracts by the Department of Defense

Contract Overview

Contract Amount: $106,130,986 ($106.1M)

Contractor: Arcadis Inc.

Awarding Agency: Department of Defense

Start Date: 2006-03-23

End Date: 2015-06-30

Contract Duration: 3,386 days

Daily Burn Rate: $31.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $106.1 million to ARCADIS INC. for work described as: Key points: 1. Contract awarded via full and open competition after exclusion of sources, suggesting a deliberate selection process. 2. The contract spans over 9 years, indicating a long-term need for engineering services. 3. Firm Fixed Price contract type suggests predictable costs for the government. 4. The contract was awarded by the Department of the Army, a major component of the DoD. 5. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering services. 6. The contract was awarded in Virginia, a state with significant federal contracting activity.

Value Assessment

Rating: good

The total award amount of $106 million over a 9-year period averages to approximately $11.7 million per year. Without specific benchmarks for comparable engineering services contracts of this duration and scope, it's difficult to definitively assess value for money. However, the firm fixed-price nature of the contract provides cost certainty. Further analysis would require benchmarking against similar long-term, large-scale engineering support contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded prior to the solicitation. The specific reasons for exclusion are not detailed, but this approach can sometimes limit the pool of potential bidders. The number of bids received is not specified, making it hard to gauge the true level of competition.

Taxpayer Impact: The exclusion of sources, even within an open competition framework, may have limited the potential for the most competitive pricing. Taxpayers benefit from competition, and any restriction on the bidder pool could potentially lead to higher costs than a truly unrestricted open competition.

Public Impact

The Department of the Army benefits from specialized engineering services to support its infrastructure and operational needs. These services likely contribute to the planning, design, and potentially oversight of various military construction and facility projects. The geographic impact is primarily within the purview of the Department of the Army's operations, which are global but often involve significant domestic infrastructure. The contract supports a professional workforce of engineers and technical specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' clause.
Long contract duration (over 9 years) may introduce risks related to changing technological needs or economic conditions.
Lack of specific details on the exclusion criteria makes it difficult to assess fairness.

Positive Signals

Firm Fixed Price contract type offers cost predictability.
Awarded by a major federal agency (Department of Defense) indicates a significant and potentially stable need for services.
Long-term contract suggests a sustained relationship and potential for efficiency gains through familiarity.

Sector Analysis

The engineering services sector is a critical component of the federal contracting landscape, supporting a wide array of government functions from infrastructure development to research and development. The NAICS code 541330 specifically covers establishments primarily engaged in providing architectural, engineering, and related services. The Department of Defense is a significant consumer of these services, requiring expertise for military installations, equipment design, and complex projects. Market size for federal engineering services is substantial, with billions of dollars obligated annually across various agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The primary contractor, ARCADIS INC., is likely a large business, and any subcontracting would be at their discretion or driven by specific project needs rather than a set-aside requirement.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Army's contracting and program management offices. Accountability measures are typically embedded within the contract's performance work statement, requiring adherence to specifications, timelines, and quality standards. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Engineering and Technical Services
Army Corps of Engineers Contracts
Architectural and Engineering Services
Professional Services Contracts
Long-Term Government Contracts

Risk Flags

Limited competition due to source exclusion.
Long contract duration may increase risk.
Potential for scope creep if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $106.1 million to ARCADIS INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is ARCADIS 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 $106.1 million.

What is the period of performance?

Start: 2006-03-23. End: 2015-06-30.

What specific types of engineering services were procured under this contract?

The contract falls under NAICS code 541330, which denotes Engineering Services. While the specific sub-disciplines are not detailed in the provided data, this typically encompasses a broad range of activities including civil, mechanical, electrical, structural, and environmental engineering. Given the awarding agency is the Department of the Army, these services could relate to military base infrastructure, facility design and renovation, environmental remediation, logistical support systems, or specialized defense project engineering. The firm fixed-price nature suggests well-defined scopes of work for which costs can be reliably estimated.

How does the $106 million award compare to typical spending on engineering services by the Department of the Army?

The $106 million award represents a significant, long-term investment in engineering services. The Department of the Army, through entities like the Army Corps of Engineers, obligates tens of billions of dollars annually on various construction and engineering-related contracts. This particular contract, spanning over nine years, is substantial but likely represents a portion of the Army's overall engineering needs. To provide a precise comparison, one would need to analyze historical spending trends for similar long-duration, high-value engineering support contracts awarded by the Army, considering inflation and the evolving nature of defense infrastructure requirements.

What are the potential risks associated with a contract of this duration (over 9 years)?

Contracts spanning over nine years carry inherent risks. Firstly, there's the risk of technological obsolescence; the engineering solutions or requirements defined at the outset may become outdated by the contract's end. Secondly, economic volatility can impact the value of a fixed-price contract over such a long period, potentially leading to contractor requests for adjustments or reduced profitability. Thirdly, changes in government priorities or strategic direction could alter the need for the specific services contracted. Finally, maintaining consistent oversight and performance management over an extended period requires sustained effort and can be challenging.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for the procurement process and potential outcomes?

This procurement method suggests a nuanced approach to competition. 'Full and open competition' is the standard preferred by Congress to ensure the widest possible participation. However, the addition of 'after exclusion of sources' indicates that prior to the solicitation, certain potential offerors were deemed ineligible or unsuitable. The reasons for exclusion are critical and could range from past performance issues, inability to meet specific pre-qualification criteria, or national security concerns. While it aims to ensure only qualified entities participate, it inherently narrows the competitive pool compared to unrestricted full and open competition, potentially impacting the number of bids received and the ultimate price competitiveness.

What is the significance of the 'FIRM FIXED PRICE' contract type in this context?

The Firm Fixed Price (FFP) contract type is significant because it places the primary burden of cost control and management risk on the contractor, ARCADIS INC. Under an FFP agreement, the price is set and not subject to adjustment based on the contractor's cost experience. This provides the Department of the Army with maximum cost certainty and predictability. It incentivizes the contractor to perform efficiently and manage its resources effectively to maintain profitability. For a long-duration contract like this, FFP is often preferred when the scope of work is well-defined and the risks are manageable by the contractor.

How might the location of the award (Virginia) influence the contract or its execution?

The award to Virginia is notable given the state's high concentration of federal government agencies and defense contractors. This proximity can facilitate communication, site visits, and oversight activities between the contractor and the Department of the Army. It may also indicate that ARCADIS INC. has a significant presence or established operations in the region, potentially leveraging local talent and resources. While not a determining factor in the technical quality of services, the geographic concentration can sometimes streamline logistical aspects of contract management and performance.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arcadis N.V. (UEI: 403896368)

Address: 901 S BOND ST, BALTIMORE, MD, 21231

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $109,734,792

Exercised Options: $109,734,792

Current Obligation: $106,130,986

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline