DoD's $52.4M Alternate Care Facility contract awarded to AECOM for emergency relief services

Contract Overview

Contract Amount: $52,379,488 ($52.4M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-04-06

End Date: 2020-10-30

Contract Duration: 207 days

Daily Burn Rate: $253.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ALTERNATE CARE FACILITY (ACF): GATEWAY SHOPPING CENTER - MEMPHIS, TN

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38109

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $52.4 million to AECOM TECHNICAL SERVICES, INC. for work described as: ALTERNATE CARE FACILITY (ACF): GATEWAY SHOPPING CENTER - MEMPHIS, TN Key points: 1. Contract awarded for emergency relief services, indicating a response to an urgent need. 2. The contract was not competed, raising questions about potential cost efficiencies and market fairness. 3. A single award suggests limited market engagement or a specific capability requirement. 4. The firm-fixed-price structure aims to control costs, but the lack of competition may have inflated the price. 5. The contract duration of 207 days aligns with a short-term emergency response. 6. The geographic focus on Tennessee highlights a specific regional need addressed by this contract.

Value Assessment

Rating: questionable

The contract's value of $52.4 million for an Alternate Care Facility (ACF) is substantial. Without comparable ACF contracts or detailed cost breakdowns, it's difficult to definitively benchmark value. However, the lack of competition is a significant red flag, often leading to higher prices than would be achieved in a competitive bidding process. The firm-fixed-price nature provides some cost certainty, but the absence of multiple bids prevents a thorough assessment of whether the price reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, or in urgent situations where competition is not feasible. The lack of competition limits the government's ability to explore a range of solutions and potentially secure more favorable pricing through a bidding process.

Taxpayer Impact: The absence of competition means taxpayers may have paid a premium, as there was no market pressure to drive down costs. This also limits transparency into the pricing structure and justification for the awarded amount.

Public Impact

The primary beneficiaries are likely the Department of Defense and potentially state or local health agencies in Tennessee requiring surge capacity for medical care. The service delivered is the establishment and operation of an Alternate Care Facility, crucial for managing public health emergencies. The geographic impact is concentrated in Memphis, Tennessee, addressing a specific regional need. Workforce implications could include the hiring of construction, healthcare, and support staff for the ACF.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to inflated pricing.
Sole-source award limits transparency and potential for cost savings.
Urgent need justification for sole-source award requires scrutiny.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Contract addresses critical emergency relief needs.
Award to AECOM, a known entity in technical services, suggests some level of pre-existing capability.

Sector Analysis

The healthcare infrastructure sector, particularly in emergency preparedness and response, saw increased activity and spending during public health crises. Contracts for Alternate Care Facilities (ACFs) are designed to rapidly expand medical capacity. While specific market size data for ACF construction and management is not readily available, it falls under broader emergency management and construction services, which are significant markets. This contract represents a specific, albeit large, investment in surge capacity within this sector.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large prime contractor like AECOM suggests that small businesses were likely not involved in the prime contract. Further investigation would be needed to determine if any subcontracting opportunities were made available.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight mechanisms. Given it's a definitive contract, standard reporting and auditing procedures would apply. Transparency is limited due to the sole-source nature, but contract performance and financial expenditures would be subject to internal DoD review and potentially Inspector General oversight if issues arise.

Related Government Programs

Emergency Management Services
Healthcare Infrastructure
Disaster Relief Operations
Federal Construction Contracts

Risk Flags

Sole-source award raises concerns about competition and potential cost overruns.
Lack of transparency in the procurement process.
Need for detailed justification for not competing the contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.4 million to AECOM TECHNICAL SERVICES, INC.. ALTERNATE CARE FACILITY (ACF): GATEWAY SHOPPING CENTER - MEMPHIS, TN

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 $52.4 million.

What is the period of performance?

Start: 2020-04-06. End: 2020-10-30.

What specific circumstances necessitated a sole-source award for this Alternate Care Facility?

The provided data indicates the contract was 'NOT COMPETED' and awarded as a 'SOLE SOURCE'. This typically occurs in situations of urgent and compelling need where only one responsible source is available or capable of meeting the requirement. For an Alternate Care Facility (ACF) during a public health emergency, this could be due to the immediate need for surge capacity, the specialized nature of setting up such a facility rapidly, or the limited availability of contractors with the requisite expertise and capacity to deploy quickly. The specific justification would be documented in the contract award file, often citing FAR 6.302-2 (Urgent and Compelling Need) or similar exceptions to full and open competition.

How does the $52.4 million cost compare to similar Alternate Care Facility projects?

Benchmarking the $52.4 million cost for this Alternate Care Facility (ACF) is challenging without more specific details on the facility's size, scope of services, duration, and location-specific costs. However, during the COVID-19 pandemic, numerous ACFs were established, with costs varying widely. Some smaller, temporary facilities might cost in the low millions, while larger, more complex installations could reach tens of millions. The fact that this was a sole-source award to AECOM Technical Services, Inc. for a 207-day period suggests a significant undertaking. Without access to the detailed cost breakdown or data on comparable sole-source ACF awards, it's difficult to definitively state if this represents good or poor value for money. However, the lack of competition inherently raises concerns about potential overpricing compared to a competitively bid project.

What is AECOM Technical Services, Inc.'s track record with similar government contracts?

AECOM Technical Services, Inc. is a large, well-established government contractor with a significant history of performing complex technical, engineering, and support services for various federal agencies, including the Department of Defense. They have a broad portfolio that includes infrastructure development, environmental services, and program management. While specific details on their past ACF projects are not provided here, their extensive experience suggests they possess the capabilities to manage large-scale projects. However, the track record for this specific contract is tied to its sole-source nature and the performance during the 207-day period, which would require a deeper dive into performance reports and any associated contract modifications or disputes.

What were the key performance indicators (KPIs) for this contract, and how was performance measured?

The provided data does not specify the key performance indicators (KPIs) or the exact methods used for performance measurement for this contract. Typically, for an Alternate Care Facility (ACF) contract, KPIs would likely focus on aspects such as the facility's readiness and availability, operational efficiency, patient capacity, adherence to health and safety standards, response times for services, and overall management of resources. Performance measurement would likely involve regular progress reports from the contractor, site inspections, and potentially feedback from the end-users (e.g., military medical personnel or public health officials). The firm-fixed-price nature suggests that meeting the defined scope and deliverables within the agreed price was paramount.

How does this $52.4M contract fit into the broader context of DoD spending on emergency preparedness and response?

This $52.4 million contract for an Alternate Care Facility (ACF) represents a specific investment within the Department of Defense's (DoD) broader budget for emergency preparedness and response. The DoD maintains readiness for various contingencies, including natural disasters and public health crises, which can involve setting up temporary medical facilities. While $52.4 million is a significant sum for a single contract, it must be viewed in the context of the DoD's overall annual budget, which runs into hundreds of billions of dollars. Spending on emergency response can fluctuate year-to-year based on global events and domestic needs. This contract likely falls under specific appropriations for contingency operations or disaster relief, aimed at augmenting civilian healthcare capacity when needed.

Industry Classification

NAICS: Health Care and Social Assistance › Community Food and Housing, and Emergency and Other Relief Services › Emergency and Other Relief Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912EQ20R0004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $52,379,488

Exercised Options: $52,379,488

Current Obligation: $52,379,488

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $164,658,749

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline