DoD's $35M Army Dam AE Support Services Contract Awarded to AECOM Technical Services, Inc

Contract Overview

Contract Amount: $34,872,597 ($34.9M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-03-29

End Date: 2019-08-30

Contract Duration: 519 days

Daily Burn Rate: $67.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF MOSUL DAM AE SUPPORT SERVICES

Plain-Language Summary

Department of Defense obligated $34.9 million to AECOM TECHNICAL SERVICES, INC. for work described as: IGF::OT::IGF MOSUL DAM AE SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. The contract duration of 519 days suggests a need for sustained engineering support. 3. Fixed-price contract type aims to control costs, but sole-source nature limits competitive pressure. 4. The specific nature of 'Dam AE Support Services' implies specialized engineering expertise is required. 5. The award value of over $34.8 million indicates a significant investment in infrastructure support. 6. Lack of competition may lead to higher-than-market prices for engineering services.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the sole-source award and lack of detailed performance metrics. However, the significant dollar amount for engineering services over a 519-day period warrants scrutiny. Without competitive bids, it's difficult to ascertain if AECOM Technical Services, Inc. provided the best possible value for the taxpayer. Further analysis would require comparing the scope of work and deliverables to similar sole-source contracts or publicly available engineering service rates.

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 specialized skills, or in urgent situations. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to less favorable pricing for the government compared to a competed contract.

Taxpayer Impact: Taxpayers may have paid a premium for these engineering services due to the absence of competitive bidding. The government did not benefit from the cost-saving pressures that typically arise from multiple companies vying for the contract.

Public Impact

The primary beneficiaries are the Department of the Army and potentially the infrastructure projects requiring dam engineering support. Services delivered include specialized engineering support for dams, crucial for maintaining operational readiness and safety. The geographic impact is likely concentrated around the specific dam facilities requiring support. Workforce implications include the employment of engineers and technical staff by AECOM Technical Services, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Lack of transparency in the justification for sole-source award.
Potential for cost overruns if not closely managed due to lack of competitive pressure.

Positive Signals

Fixed-price contract type provides some cost certainty for the government.
AECOM Technical Services, Inc. is a known entity in engineering services, suggesting some level of established capability.
The contract addresses a critical need for specialized dam engineering support.

Sector Analysis

The engineering services sector is vast, encompassing a wide range of specialized disciplines. Contracts for infrastructure support, particularly for critical assets like dams, represent a significant segment. The market for dam engineering services is likely characterized by a mix of large, established firms like AECOM and smaller, specialized consultancies. Benchmarking this contract's value against broader engineering service contracts is difficult without specific details on the scope of work, but its value suggests a substantial project.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. The award to a large prime contractor suggests that small businesses may not have been directly involved in this specific contract, or their involvement was not explicitly tracked or reported in the provided data.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve contract officers, program managers, and potentially inspectors general within the Department of Defense. Accountability measures would be tied to the contract's performance clauses and deliverables. Transparency is limited by the sole-source nature of the award and the lack of publicly available detailed performance reports. The Inspector General's office may have jurisdiction if any fraud, waste, or abuse is suspected.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Department of the Interior Bureau of Reclamation Dam Safety Program
Federal Highway Administration Engineering and Planning Support

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.9 million to AECOM TECHNICAL SERVICES, INC.. IGF::OT::IGF MOSUL DAM AE SUPPORT SERVICES

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 $34.9 million.

What is the period of performance?

Start: 2018-03-29. End: 2019-08-30.

What specific engineering services were provided under this contract, and how did they contribute to the Army's mission?

The contract, "IGF::OT::IGF MOSUL DAM AE SUPPORT SERVICES," indicates that AECOM Technical Services, Inc. provided Architecture and Engineering (AE) support services specifically for a dam, likely related to the Mosul Dam. These services could encompass a range of activities such as structural assessments, design modifications, construction oversight, safety evaluations, and maintenance planning. Such support is critical for ensuring the structural integrity, operational efficiency, and safety of vital water infrastructure, which in turn supports the Army's broader mission by maintaining critical assets and potentially contributing to regional stability if the dam has broader civilian or strategic importance. The exact nature of the contribution would depend on the specific dam's role and the challenges it faced during the contract period (March 2018 - August 2019).

How does the $34.8 million contract value compare to similar dam engineering support contracts awarded by the Department of Defense?

Comparing the $34.8 million value of this sole-source contract to similar dam engineering support contracts is challenging without more specific data points. However, for critical infrastructure like dams, especially those with potential security or operational risks (as might be implied by 'Mosul Dam'), significant investment is expected. Large-scale engineering support contracts for major infrastructure projects can easily run into tens or hundreds of millions of dollars over their lifecycle. The fact that this was a sole-source award to AECOM Technical Services, Inc. for a period of approximately 17 months (519 days) suggests a substantial and potentially urgent need for specialized expertise that the Army deemed unavailable or impractical to obtain through competition at that time. Further benchmarking would require access to databases detailing the scope, duration, and competition level of comparable contracts.

What are the primary risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risks associated with awarding a contract of this magnitude ($34.8 million) on a sole-source basis are related to cost and performance. Firstly, the lack of competition means the government may not have secured the most cost-effective solution, potentially paying a premium for the services. Without competing bids, there's less pressure on the contractor to offer competitive pricing. Secondly, sole-source awards can sometimes indicate a lack of available qualified vendors or an urgent need, which might imply higher inherent risks in the project itself. There's also a risk of contractor complacency or reduced innovation when competition is absent. Effective oversight and robust contract management become even more critical to mitigate these risks and ensure the government receives fair value and meets its objectives.

What is AECOM Technical Services, Inc.'s track record with the Department of Defense, particularly in engineering services?

AECOM Technical Services, Inc. is a well-established global provider of professional, technical, and management support services, including extensive experience in engineering and construction for government clients. They have a significant track record with the Department of Defense (DoD) and other federal agencies, often securing large contracts for infrastructure design, program management, environmental services, and base operations support. Their portfolio includes work on military bases, transportation systems, and critical infrastructure projects. While specific details on their performance for every contract are not publicly available, their continued success in winning competitive and sole-source contracts with the DoD suggests a generally positive assessment of their capabilities and past performance by the agency. This particular contract for dam support services aligns with their broader engineering expertise.

How does the fixed-price contract type influence the financial risk for both the government and the contractor in this sole-source scenario?

In this sole-source contract with AECOM Technical Services, Inc., the Firm Fixed Price (FFP) type shifts the primary financial risk to the contractor. Under an FFP contract, the contractor agrees to a set price for the defined scope of work, regardless of their actual costs. If AECOM's costs exceed the agreed-upon price, their profit margin decreases, or they could incur a loss. Conversely, if their costs are lower than anticipated, their profit increases. For the government, this provides cost certainty, as the total expenditure is capped at the contract price, assuming no change orders or modifications. However, the risk for the government in a sole-source FFP contract is that the initial fixed price might have been set higher than it would have been in a competitive environment, thus the government might be paying a premium for that cost certainty.

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

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: $34,872,597

Exercised Options: $34,872,597

Current Obligation: $34,872,597

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $2,099,627

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline