DoD's $20.3M AE Design Services Contract Awarded to Black & Veatch for Acquisition Management Complex Phase V
Contract Overview
Contract Amount: $20,260,474 ($20.3M)
Contractor: Black & Veatch Special Projects Corp.
Awarding Agency: Department of Defense
Start Date: 2024-12-06
End Date: 2026-09-30
Contract Duration: 663 days
Daily Burn Rate: $30.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: AMC-V: AE DESIGN SERVICES FOR THE ACQUISTION MANAGMENT COMPLEX PHASE V
Place of Performance
Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40201
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $20.3 million to BLACK & VEATCH SPECIAL PROJECTS CORP. for work described as: AMC-V: AE DESIGN SERVICES FOR THE ACQUISTION MANAGMENT COMPLEX PHASE V Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price definitive contract, providing cost certainty for the government. 3. Performance period spans over two years, indicating a significant project duration. 4. The contract is for engineering services, a critical component of infrastructure development. 5. The awardee, Black & Veatch, is a known entity in the engineering and construction sector. 6. The contract is not set aside for small businesses, potentially limiting direct small business participation.
Value Assessment
Rating: good
The contract value of approximately $20.3 million for AE design services appears reasonable given the scope of Phase V of the Acquisition Management Complex. Benchmarking against similar large-scale engineering design contracts for federal facilities suggests that this pricing is within expected ranges. The firm-fixed-price structure provides a degree of cost control for the Department of Defense. Further detailed cost breakdowns would be needed for a more granular assessment of value for money.
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 bids. The presence of three bidders suggests a moderate level of competition for this significant engineering services contract. While three bidders are present, a higher number could potentially drive prices down further, but this level of competition is generally considered healthy for specialized federal contracts.
Taxpayer Impact: The full and open competition ensures that taxpayers benefit from a competitive bidding process, which typically leads to more favorable pricing and a wider selection of qualified contractors.
Public Impact
The Department of Defense benefits from specialized engineering design services to support its acquisition management infrastructure. The project contributes to the development and modernization of critical federal facilities. The contract's geographic impact is centered in Kentucky, potentially creating local economic activity. The contract supports the engineering and design workforce, requiring skilled professionals in the field.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen complexities arise during the design phase, despite the fixed-price nature.
- Dependence on the contractor's ability to meet stringent federal design standards and timelines.
- Limited direct benefit to small businesses due to the absence of a small business set-aside.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Awarded through full and open competition, indicating a competitive selection process.
- Experienced contractor selected, suggesting a higher likelihood of successful project execution.
Sector Analysis
The engineering services sector for federal construction and infrastructure projects is a significant market. This contract falls within the broader category of architectural and engineering (A&E) services, which are essential for the planning and design of government facilities. Spending in this sector is often driven by modernization efforts, new construction, and infrastructure upgrades across various federal agencies. Comparable spending benchmarks for large-scale federal design projects can vary widely based on complexity, location, and specific service requirements.
Small Business Impact
This contract was not set aside for small businesses, meaning that large businesses were eligible to compete and win. Consequently, direct award opportunities for small businesses are limited. However, the prime contractor, Black & Veatch, may engage small businesses as subcontractors for specialized services, which could provide some indirect opportunities. The overall impact on the small business ecosystem depends on the subcontracting plan, if any, implemented by the prime contractor.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified design services within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting, although detailed design documents are typically not publicly disclosed for security reasons. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Facilities Engineering
- Army Corps of Engineers Design Contracts
- Acquisition Management Complex Projects
- Federal Engineering Services Procurement
Risk Flags
- Potential for scope creep if requirements are not clearly defined.
- Contractor performance risk if design quality is not maintained.
- Dependency on contractor's specialized expertise.
Tags
department-of-defense, department-of-the-army, engineering-services, acquisition-management, firm-fixed-price, full-and-open-competition, definitive-contract, kentucky, large-contract, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.3 million to BLACK & VEATCH SPECIAL PROJECTS CORP.. AMC-V: AE DESIGN SERVICES FOR THE ACQUISTION MANAGMENT COMPLEX PHASE V
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 $20.3 million.
What is the period of performance?
Start: 2024-12-06. End: 2026-09-30.
What is the track record of Black & Veatch Special Projects Corp. with the Department of Defense and similar large-scale engineering contracts?
Black & Veatch Special Projects Corp. has a significant history of working with government agencies, including the Department of Defense, on large-scale infrastructure and engineering projects. Their portfolio often includes complex design and construction management services for critical facilities. While specific performance data for this exact contract is not yet available due to its recent award, the company's extensive experience in federal contracting suggests a strong understanding of government requirements, regulations, and project delivery expectations. Past performance reviews and contract awards from similar projects would provide a more detailed picture of their reliability and success rate in executing complex federal engineering tasks.
How does the awarded amount of $20.3 million compare to similar AE design services contracts for federal facilities?
The $20.3 million award for AE design services for the Acquisition Management Complex Phase V appears to be within the typical range for large-scale federal facility design projects. The cost of such services is highly dependent on the complexity of the facility, the specific engineering disciplines required (e.g., structural, mechanical, electrical, civil), the duration of the design phase, and the geographic location. Without specific details on the scope of Phase V, a precise comparison is challenging. However, considering the 'Acquisition Management Complex' likely involves significant infrastructure and specialized requirements for the Department of Defense, this figure is not unusually high and suggests a competitive bidding process likely yielded a reasonable market price for the services rendered.
What are the primary risks associated with this firm-fixed-price contract for engineering services?
The primary risk for the government in a firm-fixed-price (FFP) contract is that the contractor may cut corners on quality or scope to protect their profit margin if unforeseen issues arise during the design process. For the contractor, the risk lies in underestimating the complexity or effort required, leading to reduced profitability or even losses if costs exceed the fixed price. In this specific case, risks could include design challenges related to integrating new phases with existing infrastructure, unexpected site conditions, or evolving regulatory requirements that necessitate design changes. Robust government oversight and clear contract specifications are crucial to mitigate these risks and ensure the delivered design meets all requirements.
How effective is the 'full and open competition' approach for specialized engineering services like these?
The 'full and open competition' approach is generally considered the most effective method for procuring specialized engineering services, as it maximizes the pool of potential bidders and encourages competitive pricing. For complex projects like the Acquisition Management Complex, this approach allows the government to solicit proposals from a wide range of qualified firms, ensuring that the best technical solutions and most competitive prices are considered. The fact that three bids were received indicates a healthy level of interest and competition. While more bidders could potentially lead to even lower prices, three bidders for a specialized, high-value contract is a reasonable outcome that suggests the government is likely to receive good value.
What is the historical spending pattern for engineering services by the Department of the Army in Kentucky?
Analyzing historical spending patterns for engineering services by the Department of the Army in Kentucky requires access to detailed federal procurement data over several fiscal years. Generally, the Army, through entities like the Army Corps of Engineers, invests significantly in design and engineering services for military installations, infrastructure upgrades, and construction projects within its operational areas. Kentucky hosts several significant Army installations, suggesting a consistent need for such services. Without specific data, it's difficult to quantify historical spending precisely, but it's reasonable to assume that contracts for design services are awarded regularly to support ongoing facility maintenance, modernization, and new construction initiatives within the state.
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: W912QR24R0083
Offers Received: 3
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: $26,500,072
Exercised Options: $20,260,474
Current Obligation: $20,260,474
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-12-06
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-09-29
More Contracts from Black & Veatch Special Projects Corp.
- Design and Construction Management Services TAS::72 1037::TAS — $87.6M (Agency for International Development)
- PMO (level of Effort) — $77.9M (Department of Defense)
- Biological Threat Reduction Program (btrp) Ukraine — $77.2M (Department of Defense)
- Program Management — $52.0M (Department of Defense)
- Program Mangement. Igf::ot::igf — $40.4M (Department of Defense)
View all Black & Veatch Special Projects Corp. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)