DOD awards $21.6M for construction management, with Greenman-Pedersen Inc. leading engineering services
Contract Overview
Contract Amount: $21,648,097 ($21.6M)
Contractor: Greenman-Pedersen Inc
Awarding Agency: Department of Defense
Start Date: 2019-09-27
End Date: 2026-07-23
Contract Duration: 2,491 days
Daily Burn Rate: $8.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION MANAGEMENT SUPPORT SERVICES FOR BRIDGEWORK.
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10278
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $21.6 million to GREENMAN-PEDERSEN INC for work described as: CONSTRUCTION MANAGEMENT SUPPORT SERVICES FOR BRIDGEWORK. Key points: 1. Contract value of $21.6 million over its period of performance suggests a significant need for specialized construction management. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, indicating a pre-established relationship and streamlined procurement process. 3. The firm fixed-price contract type shifts cost risk to the contractor, potentially leading to more predictable project expenses. 4. The duration of nearly 7 years points to a long-term, complex project requiring sustained oversight and management. 5. The absence of small business set-aside flags suggests the primary contract vehicle may not have prioritized small business participation, or the scope was too large. 6. The North American Industry Classification System (NAICS) code 541330 confirms the focus on engineering services, a critical component of large infrastructure projects.
Value Assessment
Rating: good
The contract value of $21.6 million over approximately 7 years averages to roughly $3 million per year. This figure appears reasonable for comprehensive construction management support on major infrastructure projects, especially those involving complex engineering and long durations. Benchmarking against similar large-scale bridge construction management contracts would provide a more precise value-for-money assessment, but the annual spend is within expected ranges for such specialized services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and service quality. The use of a delivery order under an IDIQ suggests that the initial competition for the IDIQ vehicle itself was robust.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, driving down costs through competitive pressure and ensuring the government receives the best value for its investment.
Public Impact
The Department of the Army benefits from expert construction management, ensuring the successful and efficient execution of bridge construction projects. The services delivered include critical engineering and management oversight, vital for the safety and longevity of infrastructure. The contract is geographically focused on New York (NY), implying direct impact on local infrastructure development and potentially local workforce employment. The project supports the broader mission of the Department of Defense by maintaining and improving essential infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen complexities arise in bridge construction, despite the firm-fixed-price structure.
- Dependence on a single contractor for a prolonged period could lead to complacency or reduced responsiveness over time.
- The long duration might not fully account for evolving construction technologies or material innovations that could offer better value.
- Limited visibility into the specific sub-contracting plans for small businesses, if any, under this large prime contract.
Positive Signals
- Firm-fixed-price contract type provides cost certainty and transfers risk to the contractor.
- Awarded under full and open competition, suggesting a competitive process that likely yielded favorable terms.
- Long contract duration allows for sustained focus and expertise on complex bridge projects.
- The contractor, Greenman-Pedersen Inc., likely possesses specialized expertise in engineering and construction management for infrastructure.
- Delivery order mechanism under an IDIQ streamlines the process for subsequent needs, potentially reducing administrative burden.
Sector Analysis
The engineering services sector, particularly for large-scale infrastructure like bridges, is characterized by specialized firms capable of managing complex projects from design through construction. This contract falls within the broader construction and engineering services market, which is substantial and driven by government and private sector investment in infrastructure. The $21.6 million award is significant, indicating a project of considerable scale and complexity, likely involving substantial public funds and requiring rigorous oversight.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary contract vehicle or the nature of the work itself was not tailored for small business participation. While the prime contractor may engage small businesses as subcontractors, there is no explicit requirement or set-aside mentioned, potentially limiting direct opportunities for small firms in this specific award.
Oversight & Accountability
The contract is managed by the Department of the Army, which has established oversight mechanisms for its procurement and project execution. As a delivery order under an IDIQ, oversight likely involves monitoring performance against the contract terms, adherence to schedules, and quality of services. Transparency is generally maintained through contract databases like FPDS, though specific project-level oversight details are not provided. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Army Corps of Engineers Construction Projects
- Federal Highway Administration Bridge Programs
- Department of Transportation Infrastructure Grants
- Public Works and Infrastructure Development Contracts
Risk Flags
- Long contract duration increases exposure to market volatility (materials, labor).
- Firm-fixed-price contracts can lead to change order creep if scope is not tightly managed.
- Potential for contractor performance issues over an extended period.
- Dependence on a single IDIQ vehicle for multiple delivery orders could concentrate risk.
Tags
construction, engineering-services, department-of-defense, department-of-the-army, new-york, delivery-order, firm-fixed-price, full-and-open-competition, infrastructure, bridge-construction, large-contract, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.6 million to GREENMAN-PEDERSEN INC. CONSTRUCTION MANAGEMENT SUPPORT SERVICES FOR BRIDGEWORK.
Who is the contractor on this award?
The obligated recipient is GREENMAN-PEDERSEN 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 $21.6 million.
What is the period of performance?
Start: 2019-09-27. End: 2026-07-23.
What is the track record of Greenman-Pedersen Inc. with federal contracts, particularly in construction management and engineering services?
Greenman-Pedersen Inc. (GPI) has a history of federal contracting, primarily within the engineering and construction management domain. While specific details on all their federal awards are extensive, their presence in this sector suggests experience with government projects. Analyzing their past performance on similar-sized contracts, especially those involving bridge construction or complex infrastructure for agencies like the Department of Defense or Department of Transportation, would provide insight into their reliability, quality of work, and ability to manage large-scale projects within budget and schedule. Their award of this significant contract by the Department of the Army indicates a positive assessment of their capabilities and past performance by the agency.
How does the $21.6 million contract value compare to similar construction management support services for bridge projects awarded by the Department of Defense?
The $21.6 million contract value for construction management support services for bridgework awarded to Greenman-Pedersen Inc. appears to be a substantial investment. To benchmark its value, one would compare it to other contracts of similar scope, duration, and complexity awarded by the Department of Defense or other federal agencies for bridge construction management. For instance, contracts for major military base infrastructure upgrades or significant transportation projects managed by the Army Corps of Engineers could serve as comparators. Without specific data on comparable contracts, it's difficult to definitively state if $21.6 million is high or low, but it suggests a project of considerable scale requiring extensive engineering and management expertise over its multi-year performance period.
What are the primary risks associated with a nearly 7-year firm-fixed-price contract for construction management support services on bridge projects?
A firm-fixed-price (FFP) contract for a long duration like nearly 7 years presents specific risks. For the government, the primary risk is that the contractor may not be incentivized to find efficiencies beyond what's necessary to meet contract minimums, potentially leading to less innovation. If the initial pricing was based on optimistic assumptions, the contractor might struggle to maintain profitability, potentially impacting performance or leading to change order requests. For the contractor, the risk lies in accurately estimating all costs over such a long period. Unforeseen material price escalations, labor shortages, or complex site conditions not anticipated during bidding could erode profit margins. Effective project management and clear scope definition are crucial to mitigate these risks for both parties.
What is the expected effectiveness of Greenman-Pedersen Inc. in delivering construction management support for bridge projects based on the contract details?
The effectiveness of Greenman-Pedersen Inc. (GPI) in delivering construction management support for bridge projects is anticipated to be good, given the contract's characteristics. The award under full and open competition suggests that GPI was selected from a pool of qualified bidders, implying a competitive evaluation of their technical capabilities and price. The firm-fixed-price nature of the contract incentivizes GPI to manage costs efficiently to maintain profitability. Furthermore, the long duration (nearly 7 years) allows for sustained focus and development of specialized expertise relevant to the specific bridge projects. The Department of the Army's decision to award this significant contract to GPI indicates confidence in their ability to meet the demanding requirements of complex infrastructure projects.
How has federal spending on engineering services (NAICS 541330) for infrastructure projects trended in recent years, and where does this $21.6M contract fit?
Federal spending on engineering services (NAICS 541330) has generally seen robust growth in recent years, driven by increased infrastructure investment initiatives and the need to maintain and upgrade aging public works. Agencies like the Department of Defense, Department of Transportation, and Army Corps of Engineers are significant contributors to this spending. A $21.6 million contract for construction management support services for bridge projects fits within this trend as a substantial, albeit specific, allocation towards infrastructure development. It represents a significant portion of annual spending for a particular project or set of projects, highlighting the ongoing federal commitment to improving critical transportation infrastructure. Trends indicate continued demand for these specialized services.
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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 325 W MAIN ST, BABYLON, NY, 11702
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,648,097
Exercised Options: $21,648,097
Current Obligation: $21,648,097
Actual Outlays: $2,139,912
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W912DS18D0003
IDV Type: IDC
Timeline
Start Date: 2019-09-27
Current End Date: 2026-07-23
Potential End Date: 2026-07-23 00:00:00
Last Modified: 2024-12-11
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