DoD's $67M engineering services contract for Mosul Dam awarded to AECOM Technical Services, Inc. without competition

Contract Overview

Contract Amount: $67,231,060 ($67.2M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-05-27

End Date: 2018-05-31

Contract Duration: 734 days

Daily Burn Rate: $91.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::CT::IGF SUBJECT MATTER EXPERT SERVICES FOR MOSUL DAM, NINEVEH GOVERNORATE, IRAQ

Plain-Language Summary

Department of Defense obligated $67.2 million to AECOM TECHNICAL SERVICES, INC. for work described as: IGF::CT::IGF SUBJECT MATTER EXPERT SERVICES FOR MOSUL DAM, NINEVEH GOVERNORATE, IRAQ Key points: 1. The contract's value of $67.2 million for engineering services at the Mosul Dam raises questions about cost-effectiveness due to the lack of competitive bidding. 2. The sole-source nature of this award limits price discovery and potentially increases the financial burden on taxpayers. 3. AECOM Technical Services, Inc. secured this significant contract, highlighting their role in critical infrastructure projects in challenging environments. 4. The firm-fixed-price contract type suggests that cost overruns are primarily the contractor's responsibility, offering some financial predictability. 5. The duration of the contract (734 days) indicates a substantial, long-term commitment to the project. 6. The absence of small business set-asides or subcontracting requirements means the full value of the contract is with the prime contractor.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its specific nature and the lack of competitive bids. However, a $67.2 million award for engineering services, especially in a complex, high-risk environment like Iraq, warrants scrutiny. Without comparative pricing from other firms, it's difficult to ascertain if AECOM Technical Services, Inc. provided the best possible value for the government. The firm-fixed-price structure offers some cost control, but the absence of competition means the government did not benefit from potential price reductions that could arise from a bidding process.

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 potential bidders. This approach is typically used when only one source is capable of meeting the government's needs, often due to specialized expertise, urgent requirements, or unique circumstances. The lack of competition means that the government did not have the opportunity to solicit and evaluate offers from various companies, which could have led to a lower price or better terms.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competitive bidding. This limits the government's ability to ensure it is receiving the most economical solution.

Public Impact

The primary beneficiaries of this contract are the Iraqi government and the local population around the Mosul Dam, who rely on its stable operation for water management and flood control. The services delivered include critical engineering expertise to ensure the structural integrity and operational effectiveness of the Mosul Dam. The geographic impact is concentrated in the Nineveh Governorate of Iraq, specifically around the Mosul Dam, a vital piece of infrastructure. The contract supports specialized engineering jobs, likely benefiting highly skilled professionals within AECOM Technical Services, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to a higher price than could have been achieved through a competitive process.
The sole-source award raises concerns about the government's ability to secure the best value for taxpayer dollars.
Operating in a high-risk environment like Iraq presents inherent logistical and security challenges that could impact project delivery and cost.
The significant contract value necessitates robust oversight to ensure performance and prevent waste, fraud, and abuse.

Positive Signals

The contract is firm-fixed-price, which shifts cost overrun risk to the contractor, providing budget certainty.
AECOM Technical Services, Inc. is a large, established firm with experience in complex engineering projects, suggesting a capacity to deliver.
The focus on critical infrastructure like the Mosul Dam addresses a significant national security and humanitarian need.
The contract duration of over two years indicates a sustained effort to address long-term engineering challenges.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader construction and professional services market. The global market for engineering services is substantial, driven by infrastructure development, industrial projects, and specialized technical support. Contracts like this, particularly those involving international reconstruction and critical infrastructure in challenging geopolitical regions, often command significant values and require specialized expertise. Comparable spending benchmarks are difficult to establish without more specific project details, but large-scale infrastructure engineering in conflict zones typically represents a high-cost, high-risk segment of the market.

Small Business Impact

This contract does not appear to have included any small business set-aside provisions, nor is there information suggesting subcontracting opportunities for small businesses. The entire value of the contract is with AECOM Technical Services, Inc., a large corporation. This means the contract does not directly contribute to the government's goals of supporting the small business ecosystem through prime contracting or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management structures. Given the location and nature of the work, there may also be involvement from relevant Inspector General offices to ensure accountability and prevent fraud. Transparency is limited due to the sole-source nature and the operational environment. Specific oversight mechanisms, such as regular reporting requirements, site inspections, and performance reviews, would be detailed in the contract itself.

Related Government Programs

US Army Corps of Engineers Civil Works Projects
Department of State - Bureau of Near Eastern Affairs
USAID - Infrastructure Development Programs
Global Infrastructure Projects

Risk Flags

Sole-source award
High-risk operating environment
Critical infrastructure project

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $67.2 million to AECOM TECHNICAL SERVICES, INC.. IGF::CT::IGF SUBJECT MATTER EXPERT SERVICES FOR MOSUL DAM, NINEVEH GOVERNORATE, IRAQ

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 $67.2 million.

What is the period of performance?

Start: 2016-05-27. End: 2018-05-31.

What is AECOM Technical Services, Inc.'s track record with the Department of Defense and in similar international engineering projects?

AECOM Technical Services, Inc. has a significant history of contracting with the Department of Defense (DoD) and other federal agencies, often undertaking large-scale engineering, construction, and support services globally. Their portfolio includes extensive work in complex environments, such as supporting military operations, infrastructure development, and environmental remediation. For instance, they have been involved in projects related to base operations, facility management, and technical support in regions like Afghanistan and Iraq. Their experience in managing large, fixed-price contracts and navigating logistical challenges in austere conditions is substantial. This background suggests they possess the requisite capabilities and experience to manage a contract of this magnitude and complexity, although the specific performance on this Mosul Dam contract would require further review of project-specific reports and evaluations.

How does the $67.2 million contract value compare to similar engineering services contracts for critical infrastructure in post-conflict zones?

Direct comparisons for engineering services at a critical infrastructure site like the Mosul Dam in a post-conflict zone are challenging due to the unique risks, logistical complexities, and specialized expertise required. However, large-scale infrastructure rehabilitation and engineering support contracts in similar environments can range from tens to hundreds of millions of dollars. Factors influencing cost include the security situation, the extent of damage, the need for specialized equipment and personnel, and the duration of the project. Given the strategic importance of the Mosul Dam and the inherent difficulties of operating in Iraq, a $67.2 million contract for engineering services over approximately two years, awarded on a sole-source basis, is within the expected range for such high-risk, high-demand projects. Without competitive bids, it's difficult to definitively state if it represents optimal value, but the price reflects the challenging context.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

The primary risks associated with this contract include security threats to personnel and assets in Iraq, logistical challenges in delivering equipment and personnel, potential for political instability impacting project continuity, and the inherent technical complexities of maintaining a large dam. Furthermore, the sole-source nature of the award introduces a risk of inflated pricing. Mitigation strategies likely involve robust security protocols, detailed logistical planning, close coordination with the Iraqi government and coalition forces, comprehensive risk assessments, and potentially contingency planning for unforeseen technical issues or political developments. The firm-fixed-price contract type also mitigates financial risk for the government by placing cost overrun responsibility on the contractor, provided the scope of work remains unchanged.

How effective has AECOM Technical Services, Inc. been in delivering similar large-scale engineering projects for the U.S. government?

AECOM Technical Services, Inc. has a broad track record with the U.S. government, often performing well on large, complex projects. Their performance history typically includes a mix of successful project completions and occasional challenges, which is common for firms of their size operating in demanding environments. Reviews of their past contracts would reveal specific performance metrics, on-time delivery rates, and adherence to budget. While specific details for every contract are not publicly available, their continued selection for significant projects suggests a general level of competence and reliability. For this specific Mosul Dam contract, detailed performance evaluations would be found in internal DoD reporting or potentially in reports from relevant oversight bodies if issues arose.

What has been the historical spending pattern for engineering services related to the Mosul Dam or similar critical infrastructure in Iraq by the U.S. government?

Historical spending by the U.S. government on the Mosul Dam and similar critical infrastructure in Iraq has been substantial, particularly following periods of conflict or instability. Funds have been allocated through various agencies, including the Department of Defense (often via the Army Corps of Engineers), USAID, and the Department of State, for reconstruction, rehabilitation, and ongoing maintenance. Spending patterns can fluctuate based on security conditions, political priorities, and the availability of funding. The Mosul Dam, being one of the largest dams in the region and vital for water and power, has consistently been a focus for international assistance and investment aimed at ensuring its stability and functionality. The $67.2 million awarded to AECOM represents a significant, but not unprecedented, investment in maintaining this critical asset.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912ER16R0023

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM (UEI: 153561212)

Address: ONE CALIFORNIA PLAZA, 300 S GRAND AVE, SUITE 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: $67,231,060

Exercised Options: $67,231,060

Current Obligation: $67,231,060

Subaward Activity

Number of Subawards: 97

Total Subaward Amount: $15,843,137

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline