DoD awards $21.3M engineering services contract to Stanley Consultants, Inc. for Lagrange Lock project

Contract Overview

Contract Amount: $21,310,158 ($21.3M)

Contractor: Stanley Consultants, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-27

End Date: 2025-07-30

Contract Duration: 1,037 days

Daily Burn Rate: $20.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: LAGRANGE NEW 1200' LOCK AE TASK ORDER

Place of Performance

Location: VERSAILLES, BROWN County, ILLINOIS, 62378

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $21.3 million to STANLEY CONSULTANTS, INC. for work described as: LAGRANGE NEW 1200' LOCK AE TASK ORDER Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price delivery order, which shifts cost risk to the contractor. 3. Project duration of 1037 days indicates a significant, long-term commitment. 4. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 5. The contract is a single award, with one delivery order issued. 6. The contract is not set aside for small businesses, nor does it indicate subcontracting plans.

Value Assessment

Rating: good

The contract value of $21.3 million for engineering services over approximately 2.8 years appears reasonable given the scope of a major infrastructure project like the Lagrange Lock. Without specific benchmarks for similar lock modernization projects, a direct per-unit cost comparison is difficult. However, the firm-fixed-price structure suggests the government has negotiated a definitive price, limiting potential cost overruns.

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 number of bidders is not specified, but this method generally fosters price discovery and encourages competitive pricing. The agency likely sought proposals that offered the best value, considering both technical approach and cost.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to yield the most competitive pricing and a wider range of innovative solutions.

Public Impact

The primary beneficiaries are the Department of Defense and potentially commercial/recreational users of the waterway system, through the modernization of critical infrastructure. The contract will deliver essential engineering services for the rehabilitation or upgrade of the Lagrange Lock. The geographic impact is localized to the Illinois waterway system where the Lagrange Lock is situated. The contract will likely involve a workforce of engineers, project managers, and potentially support staff employed by Stanley Consultants, Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the full extent of the lock's condition is not fully understood at the outset.
Dependence on the contractor's ability to manage complex engineering challenges and timelines effectively.
Risk associated with the long duration of the contract, which could be impacted by changing economic conditions or regulatory environments.

Positive Signals

Firm-fixed-price contract structure mitigates cost overrun risk for the government.
Awarded under full and open competition, suggesting a competitive process likely resulted in a fair price.
The contractor, Stanley Consultants, Inc., has a track record in engineering services, implying relevant expertise.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to civil engineering and infrastructure projects. The market for such services is driven by government and private sector needs for design, planning, and oversight of large-scale construction and modernization efforts. Spending in this sector is often tied to infrastructure investment cycles and national security priorities, such as maintaining critical waterways.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of small business subcontracting requirements. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through direct subcontracting by Stanley Consultants, Inc., if they choose to engage them.

Oversight & Accountability

Oversight will likely be managed by the contracting officer and the project management team within the Department of the Army. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Inland Waterways Navigation System
Army Corps of Engineers Civil Works Projects
Infrastructure Modernization Programs
Lock and Dam Construction/Rehabilitation

Risk Flags

Long contract duration may increase exposure to market volatility.
Potential for unforeseen site conditions impacting scope and cost.
Reliance on contractor's specialized engineering expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.3 million to STANLEY CONSULTANTS, INC.. LAGRANGE NEW 1200' LOCK AE TASK ORDER

Who is the contractor on this award?

The obligated recipient is STANLEY CONSULTANTS, 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 $21.3 million.

What is the period of performance?

Start: 2022-09-27. End: 2025-07-30.

What is the historical spending by the Department of the Army on engineering services for lock and dam projects?

The Department of the Army, primarily through the Army Corps of Engineers, consistently invests significant funds in civil works projects, including the maintenance, repair, and modernization of locks and dams. Historical spending data reveals a multi-billion dollar annual commitment to the Inland Waterways System. For instance, in recent fiscal years, appropriations for civil works have ranged from $5 billion to over $10 billion annually, with a substantial portion allocated to navigation infrastructure. Specific figures for engineering services contracts within this category can fluctuate based on the scale of ongoing projects, such as the Lagrange Lock task order. Analyzing past budgets and contract awards for similar projects would provide a benchmark for the $21.3 million awarded here, helping to assess if it aligns with historical investment levels for comparable modernization efforts.

How does the firm-fixed-price contract type impact cost certainty for this project?

A firm-fixed-price (FFP) contract type, like the one awarded for the Lagrange Lock engineering services, places the primary responsibility for cost control on the contractor, Stanley Consultants, Inc. Under an FFP agreement, the total price is fixed and not subject to adjustment based on the contractor's cost experience. This provides the Department of the Army with a high degree of cost certainty, as the government knows the maximum amount it will pay. The contractor assumes the risk of cost overruns; if their actual costs exceed the agreed-upon price, their profit margin will decrease. Conversely, if they manage costs effectively and complete the work for less than the fixed price, their profit will increase. This structure incentivizes the contractor to perform efficiently and manage resources diligently to maximize their profit within the fixed price.

What is Stanley Consultants, Inc.'s track record with Department of Defense contracts, particularly in engineering services?

Stanley Consultants, Inc. has a history of performing engineering and construction management services for various government agencies, including the Department of Defense. A review of federal procurement data indicates that the company has been awarded numerous contracts over the years, encompassing a range of engineering disciplines relevant to infrastructure projects. While specific details on past performance for similar lock and dam projects would require deeper analysis, their sustained presence in the federal contracting space suggests a capacity to meet the requirements of agencies like the Department of the Army. Assessing their past performance ratings, any past performance issues, and the scale of previously awarded DoD contracts would provide a more comprehensive understanding of their suitability and reliability for this significant task order.

What are the potential risks associated with the 1037-day duration of this contract?

The 1037-day duration (approximately 2.8 years) for the Lagrange Lock engineering services contract introduces several potential risks. Firstly, there's the risk of scope creep, where unforeseen issues or changes in requirements during the project lifecycle could lead to contract modifications and increased costs, despite the firm-fixed-price structure. Secondly, long-duration contracts are susceptible to market fluctuations in material costs and labor availability, which could impact the contractor's profitability if not adequately managed. Thirdly, regulatory or environmental requirements could change over the project's lifespan, necessitating design revisions or additional work. Finally, there's the risk of contractor performance degradation over time, although this is mitigated by ongoing oversight and the potential for performance-based incentives or penalties.

How does the NAICS code 541330 (Engineering Services) inform the assessment of this contract's value?

The NAICS code 541330, 'Engineering Services,' categorizes the primary business activity of the contract. This classification helps in benchmarking the contract's value against industry standards and government spending patterns for similar services. Engineering services encompass a broad range of activities, including design, consulting, and project management for infrastructure, industrial, and other complex projects. The $21.3 million award for the Lagrange Lock task order, under this code, suggests a significant undertaking requiring specialized expertise in areas like civil, structural, and potentially mechanical engineering. By comparing this award to other contracts classified under NAICS 541330, particularly those awarded by the Department of Defense or Army Corps of Engineers for similar infrastructure, analysts can better assess whether the price is competitive and reflects fair market value for the services rendered.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 225 IOWA AVE, MUSCATINE, IA, 52761

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,310,158

Exercised Options: $21,310,158

Current Obligation: $21,310,158

Actual Outlays: $3,905,486

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $11,161,745

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912BV19D0023

IDV Type: IDC

Timeline