DoD awards $145M engineering services contract for Malmstrom AFB weapons storage facility
Contract Overview
Contract Amount: $14,511,744 ($14.5M)
Contractor: Black & Veatch Special Projects Corp.
Awarding Agency: Department of Defense
Start Date: 2018-05-23
End Date: 2027-05-23
Contract Duration: 3,287 days
Daily Burn Rate: $4.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MULTI DISCIPLINE A-E SERVICES FOR WEAPONS STORAGE FACILITY, MALMSTROM AFB, MT
Place of Performance
Location: MALMSTROM AFB, CASCADE County, MONTANA, 59402
State: Montana Government Spending
Plain-Language Summary
Department of Defense obligated $14.5 million to BLACK & VEATCH SPECIAL PROJECTS CORP. for work described as: MULTI DISCIPLINE A-E SERVICES FOR WEAPONS STORAGE FACILITY, MALMSTROM AFB, MT Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Significant duration of over 9 years suggests a long-term need for services. 3. The contract's value is substantial, requiring careful oversight for cost-effectiveness. 4. Engineering services are critical for maintaining and upgrading defense infrastructure. 5. The fixed-price nature of the contract shifts some risk to the contractor. 6. Sole-source award raises questions about potential overpayment compared to a competitive environment.
Value Assessment
Rating: fair
The contract value of $145 million for engineering services over nearly 9 years is substantial. Without comparable sole-source contracts for similar scope and complexity, a precise value-for-money assessment is difficult. However, the absence of competition inherently removes a key mechanism for ensuring the lowest possible price. Benchmarking against industry standards for large-scale engineering projects would be necessary to determine if the pricing is reasonable, but such data is not readily available for this specific sole-source award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one contractor, Black & Veatch Special Projects Corp., was solicited. This approach is typically used when only one source is capable of meeting the requirement, or in cases of urgent need. The lack of competition means that the government did not benefit from multiple bids, which could have driven down the price through a competitive bidding process. This limits the government's ability to ensure it received the best possible value.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without multiple offers, there is less assurance that the price reflects the most economical option available in the market.
Public Impact
The primary beneficiaries are the Department of Defense and the personnel stationed at Malmstrom Air Force Base, who will have access to a secure and functional weapons storage facility. The contract delivers essential engineering, design, and potentially construction management services for a critical military asset. The geographic impact is concentrated at Malmstrom Air Force Base in Montana. The contract supports specialized engineering and technical jobs, likely benefiting the contractor's workforce and potentially local subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potentially increases costs for taxpayers.
- Long contract duration (over 9 years) increases the risk of cost overruns or scope creep if not managed tightly.
- Lack of transparency in the sole-source justification makes it difficult to assess the necessity of this approach.
- Potential for contractor lock-in due to the long-term nature of the engagement.
Positive Signals
- Award to a known entity, Black & Veatch Special Projects Corp., may indicate confidence in their capabilities for this specialized work.
- Firm Fixed Price contract structure shifts cost risk to the contractor, encouraging efficiency.
- The contract addresses a critical national defense infrastructure need.
- Long-term nature allows for sustained focus and development of expertise on the project.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), which is a significant component of the broader professional, scientific, and technical services industry. This sector supports a wide range of government and private projects, particularly in infrastructure, defense, and energy. Spending in this area is often driven by modernization efforts, new construction, and maintenance of existing assets. Comparable spending benchmarks for large-scale defense infrastructure projects can vary widely based on scope, location, and specific requirements.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to a large, established firm like Black & Veatch suggests that the primary focus was on specialized capabilities rather than small business participation. This could mean limited opportunities for small businesses to directly participate in this specific contract, though they might be involved further down the supply chain.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army and the contracting activity at Malmstrom Air Force Base. Accountability measures would be embedded in the contract's performance standards and reporting requirements. Transparency is limited due to the sole-source nature, but contract award details are publicly available. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.
Related Government Programs
- Military Construction
- Weapons Systems Maintenance
- Base Infrastructure Modernization
- Engineering and Design Services
- Department of Defense Facilities Management
Risk Flags
- Sole-source award
- Long contract duration
- Lack of competitive bidding
Tags
defense, department-of-defense, air-force, malmstrom-afb, montana, engineering-services, definitive-contract, firm-fixed-price, sole-source, infrastructure, weapons-storage, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.5 million to BLACK & VEATCH SPECIAL PROJECTS CORP.. MULTI DISCIPLINE A-E SERVICES FOR WEAPONS STORAGE FACILITY, MALMSTROM AFB, MT
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 $14.5 million.
What is the period of performance?
Start: 2018-05-23. End: 2027-05-23.
What is the track record of Black & Veatch Special Projects Corp. with the Department of Defense for similar engineering services?
Black & Veatch Special Projects Corp. has a significant history of performing large-scale engineering and construction projects for the U.S. government, including the Department of Defense. Their portfolio often includes complex facilities, infrastructure upgrades, and specialized technical services. While specific details on past performance for weapons storage facilities at Air Force bases would require deeper research into contract databases and performance reports, their general experience suggests they are a capable provider for such requirements. However, the absence of competition for this specific contract means that direct comparisons of their pricing and performance against other potential bidders for this project are not available.
How does the $145 million contract value compare to similar weapons storage facility projects at other military installations?
Directly comparing the $145 million contract value to similar projects is challenging without detailed scope and location information for comparable facilities. Weapons storage facilities can vary significantly in size, security requirements, and the complexity of the engineering and construction involved. Furthermore, the $145 million covers engineering services over a period of more than nine years, which includes design, planning, and potentially oversight, rather than just construction. Sole-source awards also tend to have less transparent pricing than competitively bid contracts, making direct value benchmarking difficult. A comprehensive analysis would require identifying projects with highly similar specifications and assessing their total contract values and durations.
What are the primary risks associated with a sole-source award for a critical defense infrastructure project of this magnitude?
The primary risk associated with a sole-source award for a project of this magnitude is the potential for inflated costs due to the lack of competitive pressure. Without multiple bidders vying for the contract, the contractor may have less incentive to offer the most competitive pricing. Other risks include a potential reduction in innovation, as there is no competitive drive to propose novel or more cost-effective solutions. Furthermore, the government has fewer options if performance issues arise, as the contract is already with a single, pre-selected provider. Ensuring robust oversight and clear performance metrics becomes even more critical in sole-source situations to mitigate these risks.
What is the expected impact of this contract on the operational readiness and security of Malmstrom Air Force Base's weapons storage capabilities?
This contract is expected to have a significant positive impact on the operational readiness and security of Malmstrom Air Force Base's weapons storage capabilities. By providing essential engineering services, it ensures that the facility is designed, maintained, and potentially upgraded to meet the stringent requirements for storing and securing weapons systems. This includes aspects like environmental controls, physical security, safety protocols, and compliance with military standards. The long-term nature of the contract suggests a commitment to sustaining and enhancing these critical capabilities over the lifespan of the facility, thereby supporting the base's overall mission effectiveness and national security posture.
How has federal spending on engineering services for defense infrastructure evolved over the past five years, and where does this contract fit in?
Federal spending on engineering services for defense infrastructure has generally remained robust, driven by the need to modernize aging facilities, address evolving threats, and maintain operational readiness across military branches. While specific figures fluctuate annually based on budget allocations and strategic priorities, the Department of Defense consistently represents a major client for engineering services. This $145 million contract for Malmstrom AFB fits within this trend as a significant investment in critical infrastructure. Its sole-source nature, however, distinguishes it from many other contracts that undergo competitive bidding processes, highlighting a specific procurement strategy for this particular requirement.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $14,511,744
Exercised Options: $14,511,744
Current Obligation: $14,511,744
Subaward Activity
Number of Subawards: 27
Total Subaward Amount: $4,940,172
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-05-23
Current End Date: 2027-05-23
Potential End Date: 2027-05-23 00:00:00
Last Modified: 2025-09-29
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