DoD awards $5.69M A/E design services contract to Black & Veatch for Fort Bliss power projects
Contract Overview
Contract Amount: $5,690,362 ($5.7M)
Contractor: Black & Veatch Special Projects Corp.
Awarding Agency: Department of Defense
Start Date: 2023-09-25
End Date: 2028-09-24
Contract Duration: 1,826 days
Daily Burn Rate: $3.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: A/E DESIGN SERVICES FOR MULTIPLE POWER GENERATION, DISTRIBUTION, AND CONTROL PROJECTS, FORT BLISS, TX
Place of Performance
Location: LEAWOOD, JOHNSON County, KANSAS, 66211
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $5.7 million to BLACK & VEATCH SPECIAL PROJECTS CORP. for work described as: A/E DESIGN SERVICES FOR MULTIPLE POWER GENERATION, DISTRIBUTION, AND CONTROL PROJECTS, FORT BLISS, TX Key points: 1. Contract awarded for essential engineering services supporting power infrastructure at a major military installation. 2. The contract utilizes a Firm Fixed Price (FFP) structure, aiming to control costs and provide predictability. 3. Competition was full and open, suggesting a robust bidding process for this requirement. 4. The contract duration of 1826 days indicates a long-term need for these specialized design services. 5. The awardee, Black & Veatch, is a significant player in the engineering and construction sector. 6. This contract supports critical infrastructure upgrades, enhancing operational resilience at Fort Bliss.
Value Assessment
Rating: good
The contract value of $5.69 million for architectural and engineering design services over approximately five years appears reasonable given the scope. While specific benchmarks for A/E services at military installations are complex, the firm fixed-price nature suggests a defined scope and budget. Comparing this to similar large-scale infrastructure design contracts within the Department of Defense would provide further context on value for money. The absence of detailed cost breakdowns makes a precise value assessment challenging without further data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 4 bids were received, suggesting a healthy level of interest and competition for this requirement. This approach is generally expected to yield competitive pricing and a wider range of technical solutions.
Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and ensuring the government receives the best value available from a broad pool of qualified contractors.
Public Impact
The primary beneficiaries are the Department of the Army and the personnel stationed at Fort Bliss, Texas, who will receive improved and reliable power infrastructure. The contract will deliver architectural and engineering design services for multiple power generation, distribution, and control projects. The geographic impact is localized to Fort Bliss, Texas, a significant Army installation. The contract will likely involve a team of specialized engineers and designers, potentially creating or sustaining jobs in the A/E sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if initial design requirements are not clearly defined, leading to cost overruns.
- Reliance on a single large contractor for critical design services could pose a risk if performance issues arise.
- The long contract duration may require careful monitoring to ensure continued alignment with evolving technological standards and energy needs.
Positive Signals
- The use of a Firm Fixed Price contract provides cost certainty for the government.
- Awarding to a well-established firm like Black & Veatch suggests a higher likelihood of successful project execution.
- Full and open competition increases the probability of selecting the most capable and cost-effective solution.
- The contract addresses critical infrastructure needs, enhancing the operational readiness and resilience of a key military base.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense infrastructure. The market for A/E services for government facilities is substantial, with significant spending allocated annually to maintain and upgrade military bases. Black & Veatch is a prominent global engineering firm with extensive experience in power generation and infrastructure projects, positioning them as a key player in this market segment. Comparable spending benchmarks would involve analyzing other large-scale A/E contracts for military installations or critical infrastructure projects.
Small Business Impact
The contract was not set aside for small businesses, and the data indicates the awardee is not a small business. There is no explicit information regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contractors often engage small businesses for specialized support services.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Army contracting and project management offices responsible for Fort Bliss. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver defined services within a set budget. Transparency is facilitated through contract award databases, though detailed project progress and cost performance data may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Military Construction (MILCON)
- Base Operations Support (BOS)
- Energy Resilience and Conservation Investment Program (ERCIP)
- Department of Defense Facilities Engineering
Risk Flags
- Potential for cost overruns if scope is not clearly defined.
- Contractor performance risk over the long duration.
- Dependency on a single contractor for critical design elements.
Tags
engineering-services, department-of-defense, department-of-the-army, fort-bliss, texas, definitive-contract, firm-fixed-price, full-and-open-competition, large-contract, infrastructure, power-generation, design-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.7 million to BLACK & VEATCH SPECIAL PROJECTS CORP.. A/E DESIGN SERVICES FOR MULTIPLE POWER GENERATION, DISTRIBUTION, AND CONTROL PROJECTS, FORT BLISS, TX
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 $5.7 million.
What is the period of performance?
Start: 2023-09-25. End: 2028-09-24.
What is Black & Veatch's track record with similar Department of Defense A/E design contracts?
Black & Veatch Special Projects Corp. has a significant history of performing large-scale engineering and design services for the Department of Defense and other federal agencies. Their portfolio includes work on power generation, distribution, and infrastructure upgrades at various military installations. While specific contract details and performance ratings for past DoD projects are not provided in this data snippet, their established presence suggests considerable experience. A deeper dive into their contract history, including past performance evaluations and any reported issues, would be necessary for a comprehensive assessment of their track record on similar projects.
How does the awarded amount compare to the estimated cost or benchmark for similar A/E design services for power infrastructure at military bases?
Without access to the government's cost estimate or detailed market research data used during the procurement, a direct comparison of the awarded amount ($5.69 million) to a precise benchmark is challenging. However, the contract value appears reasonable for comprehensive A/E design services covering multiple power projects at a large installation like Fort Bliss over a five-year period. Factors influencing cost include the complexity of the existing infrastructure, the scope of new generation and distribution systems, and specific technological requirements. Benchmarking would typically involve analyzing the cost per square foot or per megawatt of designed capacity for similar, recently awarded DoD contracts, adjusted for inflation and geographic location.
What are the primary risks associated with this contract, and what mitigation strategies are in place?
Key risks include potential scope creep if initial design requirements are not meticulously defined, leading to budget overruns despite the FFP structure. Technical risks involve ensuring the designs meet evolving energy standards and integrate effectively with existing Fort Bliss infrastructure. Performance risks exist with any long-term contract, where contractor responsiveness or quality could degrade over time. Mitigation strategies likely include robust project management by the Army Corps of Engineers or relevant DoD entity, clear contract specifications, phased reviews of design deliverables, and performance monitoring throughout the contract duration. The FFP structure itself acts as a primary cost control mechanism.
How effective is the Firm Fixed Price (FFP) contract type in managing costs for complex A/E design services?
The Firm Fixed Price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and understood upfront. For A/E design services, this means the government has a clear understanding of the deliverables, specifications, and performance requirements before award. FFP shifts the risk of cost overruns to the contractor, incentivizing them to manage their resources efficiently and accurately estimate their costs. However, if the scope is not adequately defined, it can lead to disputes or change orders, potentially negating some of the cost control benefits. In this case, the long duration suggests a need for careful scope management to maintain cost predictability.
What is the historical spending trend for A/E design services at Fort Bliss or similar Army installations?
Historical spending data for A/E design services at Fort Bliss and comparable Army installations would typically show consistent investment in infrastructure modernization and maintenance. Such spending is driven by the need to upgrade aging facilities, enhance energy efficiency, incorporate new technologies, and ensure operational resilience. Annual budgets for these types of services can fluctuate based on specific project needs, congressional appropriations, and strategic priorities. Analyzing past spending patterns would reveal the average contract values, the frequency of procurements, and the types of A/E services most commonly sought, providing context for the current $5.69 million award.
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
Solicitation ID: W912QR23R0021
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 11401 LAMAR AVE, 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: $10,951,861
Exercised Options: $5,690,362
Current Obligation: $5,690,362
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-09-25
Current End Date: 2028-09-24
Potential End Date: 2028-09-24 00:00:00
Last Modified: 2025-12-09
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