DoD's $15M Engineering Services Contract for Hangar Maintenance Awarded to AtkinsRéalis USA Inc

Contract Overview

Contract Amount: $14,951,885 ($15.0M)

Contractor: Atkinsrealis USA Inc.

Awarding Agency: Department of Defense

Start Date: 2019-09-24

End Date: 2026-04-30

Contract Duration: 2,410 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ORGANIZATIONAL LEVEL MAINTENANCE HANGAR

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.0 million to ATKINSREALIS USA INC. for work described as: ORGANIZATIONAL LEVEL MAINTENANCE HANGAR Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2410 days (approx. 6.6 years) indicates a long-term need for these services. 3. The firm-fixed-price contract type aims to provide cost certainty for the government. 4. Services are categorized under Engineering Services (NAICS 541330), a common requirement for defense infrastructure. 5. The contract is a Delivery Order under a larger contract vehicle, typical for phased or ongoing requirements. 6. The awardee, AtkinsRéalis USA Inc., is a significant player in the engineering and construction sector.

Value Assessment

Rating: good

Benchmarking the value of this specific $14.95 million contract requires comparison to similar organizational level maintenance hangar projects. However, the firm-fixed-price structure suggests an effort to control costs. Without detailed breakdowns of services rendered and market rates for specialized engineering services in Virginia, a precise value-for-money assessment is challenging. The duration of the contract implies a sustained need, which, if met effectively, can represent good value over its lifecycle.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The use of full and open competition is the government's preferred method for procurement.

Taxpayer Impact: A competitive bidding process like full and open competition is intended to ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The Department of the Army benefits from the maintenance and upkeep of its organizational level maintenance hangars, ensuring operational readiness. Engineering services provided will likely encompass structural integrity assessments, repair planning, and potentially upgrades for these critical facilities. The geographic impact is focused on the location of the specific hangars being maintained, likely within a Department of Defense installation in Virginia. The contract supports the defense industrial base by engaging a private sector engineering firm for specialized maintenance tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits assessment of competitive intensity.
Details on specific engineering tasks and their necessity are not provided, making it hard to gauge scope creep potential.
Performance metrics and quality assurance details are absent, hindering evaluation of contractor performance risks.

Positive Signals

Firm-fixed-price contract type provides cost predictability.
Awarded under full and open competition, suggesting a robust bidding process.
Long contract duration indicates a stable, ongoing requirement being met.
The contractor, AtkinsRéalis USA Inc., is a known entity in the engineering sector, implying a degree of established capability.

Sector Analysis

Engineering services for defense infrastructure represent a significant segment of the broader construction and engineering market. This contract falls within the specialized field of facility maintenance and engineering support for military assets. Comparable spending benchmarks would involve analyzing other contracts for similar hangar maintenance or specialized engineering services awarded by the Department of Defense or other federal agencies, considering factors like facility size, age, and complexity of required engineering work.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, AtkinsRéalis USA Inc., is a large business. Any subcontracting opportunities would depend on the prime contractor's procurement strategy and needs, which are not detailed in this data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. Performance monitoring, quality assurance, and adherence to contract terms are key oversight functions. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

Department of Defense Facilities Maintenance
Military Hangar Construction and Repair
Engineering Services for Government Contracts
Army Base Operations Support
Defense Infrastructure Modernization

Risk Flags

Potential for cost overruns if market conditions change significantly over the contract's long duration.
Risk of scope creep if 'organizational level maintenance' is not precisely defined.
Contractor performance degradation over an extended period.
Lack of transparency regarding the number of bidders in the full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.0 million to ATKINSREALIS USA INC.. ORGANIZATIONAL LEVEL MAINTENANCE HANGAR

Who is the contractor on this award?

The obligated recipient is ATKINSREALIS USA 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 $15.0 million.

What is the period of performance?

Start: 2019-09-24. End: 2026-04-30.

What is the track record of AtkinsRéalis USA Inc. with similar Department of Defense contracts, particularly for facility maintenance?

AtkinsRéalis USA Inc. has a substantial history of performing various services for the Department of Defense, including engineering, construction, and maintenance. While specific data on hangar maintenance contracts is not detailed here, their broader portfolio suggests experience with large-scale government projects. Analyzing past performance on similar contracts, including on-time delivery, budget adherence, and quality of work, would provide a clearer picture of their suitability for this specific requirement. Past performance reviews and contract award histories would be crucial for a comprehensive assessment of their track record in this domain.

How does the awarded amount of approximately $15 million compare to the estimated market value for similar organizational level maintenance hangar engineering services?

Determining the precise market value comparison for this $14.95 million contract is challenging without specific details on the scope of work, the size and condition of the hangars, and the specific engineering services required (e.g., structural, electrical, HVAC). However, the fact that it was awarded under full and open competition suggests that the pricing was deemed competitive by the procuring agency. To benchmark effectively, one would need to analyze recent awards for similar services on comparable military installations, considering regional labor costs and material prices. The firm-fixed-price nature also implies that the government sought a defined cost for a defined scope.

What are the primary risks associated with a long-term (approx. 6.6 years) firm-fixed-price contract for engineering services on military hangars?

A primary risk with long-term firm-fixed-price contracts is the potential for the contractor to face unforeseen cost increases due to inflation, material price volatility, or changes in labor costs over the contract's duration. If these costs exceed projections, the contractor might seek change orders or face financial strain, potentially impacting performance. Conversely, the government risks paying a premium if market conditions improve significantly after the contract is awarded. For the government, scope creep is also a risk; if the definition of 'organizational level maintenance' expands beyond initial expectations, managing additional costs and ensuring fair pricing becomes critical. Contractor performance degradation over time is another concern, especially if incentives for sustained high performance are not robustly built into the contract.

How effective are firm-fixed-price contracts in ensuring value for money for specialized engineering services like hangar maintenance?

Firm-fixed-price (FFP) contracts are generally effective in providing cost certainty for the government when the scope of work is well-defined and risks are understood. For specialized engineering services like hangar maintenance, FFP can be advantageous if the requirements are clearly delineated, allowing the contractor to accurately price the work and assume the risk of cost overruns. This structure incentivizes the contractor to manage costs efficiently. However, if the scope is ambiguous or subject to significant change, FFP can lead to contractors inflating their bids to cover potential risks, or it can result in disputes and change orders, diminishing the intended value. The effectiveness hinges on the clarity of the SOW and the contractor's ability to accurately estimate costs.

What is the historical spending trend for engineering services related to military hangar maintenance within the Department of the Army?

Historical spending on engineering services for military hangar maintenance within the Department of the Army is likely substantial and fluctuates based on infrastructure needs, modernization efforts, and budget allocations. Analyzing historical data from sources like the Federal Procurement Data System (FPDS) would reveal trends in contract awards, average contract values, and the prevalence of different contract types (FFP, cost-plus, etc.) for such services. Spending patterns can be influenced by factors such as the age of existing facilities, new construction projects, and evolving operational requirements. A detailed analysis would require segmenting spending by specific types of hangars and engineering disciplines to understand the full scope of investment.

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: ARCHITECT-ENGINEER FAR 6.102

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Groupe Snc-Lavalin Inc

Address: 1925 BALLENGER AVE STE 400, ALEXANDRIA, VA, 22314

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

Financial Breakdown

Contract Ceiling: $14,951,885

Exercised Options: $14,951,885

Current Obligation: $14,951,885

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912ER17D0001

IDV Type: IDC

Timeline