DoD awards $7.6M A-E contract for Ramstein JOIC design, with Black & Veatch as prime

Contract Overview

Contract Amount: $7,598,079 ($7.6M)

Contractor: Black & Veatch Special Projects Corp.

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2026-12-18

Contract Duration: 1,176 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ARCHITECT-ENGINEER (A-E) SERVICES PREPARATION OF DESIGN FOR DESIGN-BID-BUILD (D-B-B) ACQUISITION FOR RAMSTEIN JOINT OPERATIONS AND INTEGRATION CENTER (JOIC) RAMSTEIN AIR BASE (AB), GERMANY

Plain-Language Summary

Department of Defense obligated $7.6 million to BLACK & VEATCH SPECIAL PROJECTS CORP. for work described as: ARCHITECT-ENGINEER (A-E) SERVICES PREPARATION OF DESIGN FOR DESIGN-BID-BUILD (D-B-B) ACQUISITION FOR RAMSTEIN JOINT OPERATIONS AND INTEGRATION CENTER (JOIC) RAMSTEIN AIR BASE (AB), GERMANY Key points: 1. Contract focuses on design preparation for a new Joint Operations and Integration Center at Ramstein Air Base. 2. The acquisition method is Design-Bid-Build (D-B-B), a traditional approach for construction projects. 3. The contract is a Delivery Order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The firm-fixed-price contract type suggests that cost risks are largely borne by the contractor. 5. The project is located in Germany, indicating international construction and engineering support needs. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services.

Value Assessment

Rating: good

The contract value of $7.6 million for architectural and engineering services for a significant military facility appears reasonable. Benchmarking against similar large-scale military design projects suggests this is within expected cost ranges. The firm-fixed-price structure provides cost certainty for the government, although it may require careful scope management to avoid change orders. The contractor, Black & Veatch, is a well-established firm with extensive experience in large infrastructure and government projects, which can contribute to value.

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 offers. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, leading to better pricing and innovation. This approach allows the government to select the best value offer based on technical qualifications, past performance, and price.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, driving down costs through market forces and ensuring the government receives competitive pricing.

Public Impact

The primary beneficiaries are the U.S. Department of Defense and its components operating at Ramstein Air Base, Germany. The contract delivers essential architectural and engineering design services for a new Joint Operations and Integration Center. The geographic impact is localized to Ramstein Air Base, Germany, a key U.S. military installation in Europe. The project will likely involve a workforce of architects, engineers, and support staff, potentially including both U.S. and local German professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in design phases if requirements are not clearly defined upfront.
Reliance on a single delivery order under a larger IDIQ could concentrate risk if the IDIQ vehicle itself has issues.
International location may introduce complexities in coordination, regulations, and logistics not present in domestic projects.

Positive Signals

Award to a reputable contractor with a strong track record in large-scale engineering projects.
Firm-fixed-price contract provides cost predictability for the government.
Full and open competition ensures a robust selection process and potential for competitive pricing.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to architectural and engineering (A-E) services for federal construction projects. The market for A-E services supporting defense infrastructure is substantial, with significant government spending allocated annually. This contract represents a portion of that spending, focused on the design phase of a critical facility. Comparable spending benchmarks would involve analyzing other large-scale military facility design contracts awarded by agencies like the Army Corps of Engineers or other branches of the DoD.

Small Business Impact

The provided data indicates that small business participation (sb) is false and there is no mention of small business set-asides (ss) for this specific delivery order. This suggests that the prime contractor, Black & Veatch, is not a small business, and the contract was not specifically set aside for small businesses. Subcontracting opportunities for small businesses may exist within the scope of work, but this is not explicitly detailed in the provided information. The impact on the small business ecosystem would depend on the extent to which the prime contractor utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant project management office within the Department of the Army or the Air Force at Ramstein Air Base. Accountability measures are inherent in the firm-fixed-price contract type, which holds the contractor responsible for delivering the design within the agreed-upon price. Transparency is facilitated through the Federal Procurement Data System (FPDS) where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Ramstein Air Base Infrastructure Projects
Department of Defense Design and Engineering Services
Joint Operations and Integration Centers
Army Corps of Engineers Construction Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

International Project Location
Firm Fixed Price Contract Risk
Design Phase Scope Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.6 million to BLACK & VEATCH SPECIAL PROJECTS CORP.. ARCHITECT-ENGINEER (A-E) SERVICES PREPARATION OF DESIGN FOR DESIGN-BID-BUILD (D-B-B) ACQUISITION FOR RAMSTEIN JOINT OPERATIONS AND INTEGRATION CENTER (JOIC) RAMSTEIN AIR BASE (AB), GERMANY

Who is the contractor on this award?

The obligated recipient is BLACK & VEATCH SPECIAL PROJECTS CORP..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $7.6 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-12-18.

What is the track record of Black & Veatch Special Projects Corp. with the Department of Defense?

Black & Veatch Special Projects Corp. has a significant track record with the Department of Defense, often undertaking large-scale, complex engineering and construction management projects. They are known for their work on critical infrastructure, including military bases, power generation, and water systems. Their experience often spans both domestic and international operations, aligning with the nature of this contract. A review of their past performance on similar DoD contracts would reveal their ability to manage scope, schedule, and budget effectively, as well as their compliance with government regulations and quality standards. Their history suggests they are a capable contractor for high-value federal projects.

How does the $7.6 million cost compare to similar A-E design contracts for military facilities?

The $7.6 million cost for the design of a Joint Operations and Integration Center at Ramstein Air Base appears to be within a reasonable range for a project of this scope and complexity, especially considering its international location. Benchmarking against similar A-E contracts awarded by the Department of Defense for new construction or major renovation of command and control facilities, operations centers, or significant base infrastructure can provide context. Factors influencing cost include the size and technical requirements of the facility, the level of detail required in the design documents (e.g., for Design-Bid-Build), and prevailing labor and material costs in the region. Without specific details on the facility's square footage or technical systems, a precise comparison is difficult, but the amount is consistent with significant federal design efforts.

What are the primary risks associated with this specific contract?

The primary risks associated with this contract include potential scope creep during the design phase if requirements are not meticulously defined and managed, leading to cost overruns or schedule delays through change orders. Given it's a Delivery Order under an IDIQ, there's a risk related to the overall IDIQ contract's performance and the contractor's ability to manage multiple orders. The international location introduces logistical challenges, potential regulatory hurdles specific to Germany, and currency exchange rate fluctuations if applicable. Furthermore, the firm-fixed-price nature means the contractor assumes the risk of cost overruns, which could incentivize them to cut corners if not properly monitored, impacting design quality.

How effective is the Design-Bid-Build (D-B-B) acquisition method for this type of project?

The Design-Bid-Build (D-B-B) method is a traditional and widely used approach for federal construction projects, including military facilities. Its effectiveness for this project lies in its clear separation of design and construction phases, allowing for specialized expertise in each. The government first procures design services (this contract) and then uses those completed designs to solicit bids from construction contractors. This method can be effective in achieving competitive pricing for construction because contractors bid on a fully defined scope. However, it can be less flexible to design changes once construction begins, and the separation can sometimes lead to coordination issues between the designer and builder if not managed carefully. For a project like the JOIC, where clear requirements can be established for design, D-B-B is a suitable, albeit conventional, choice.

What are the historical spending patterns for A-E services by the Department of the Army?

The Department of the Army, through entities like the Army Corps of Engineers, historically spends billions of dollars annually on architectural and engineering (A-E) services. This spending supports a vast array of projects, including military construction, infrastructure upgrades, environmental remediation, and facility modernization, both domestically and overseas. Spending patterns are influenced by geopolitical events, military readiness requirements, and congressional appropriations. A-E services are procured through various contract types, including IDIQs, task orders, and direct contracts, often utilizing full and open competition but sometimes employing specialized sources. Analyzing historical spending data reveals consistent demand for these services to maintain and expand the Army's global footprint and operational capabilities.

What is the significance of a Joint Operations and Integration Center (JOIC) for military operations?

A Joint Operations and Integration Center (JOIC) is a critical facility designed to enhance the coordination, communication, and execution of joint military operations involving multiple branches of service and potentially allied forces. Its significance lies in improving situational awareness, enabling seamless information sharing, and facilitating synchronized command and control. For a major hub like Ramstein Air Base, which serves as a logistical and operational linchpin in Europe, a JOIC would centralize planning and operational functions, thereby increasing efficiency, responsiveness, and overall effectiveness of joint military activities in the region. The design of such a center requires specialized A-E expertise to incorporate advanced communication systems, secure facilities, and collaborative workspaces.

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

Solicitation ID: W912GB18R0034

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6800 W 115TH STREET SUITE 2200, OVERLAND PARK, KS, 66211

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

Financial Breakdown

Contract Ceiling: $8,234,010

Exercised Options: $7,598,079

Current Obligation: $7,598,079

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $2,027,961

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912GB19D0008

IDV Type: IDC

Timeline