DoD's $18.75M Engineering Services Contract Awarded to Skidmore, Owings & Merrill LLP
Contract Overview
Contract Amount: $18,751,580 ($18.8M)
Contractor: Skidmore, Owings & Merrill LLP
Awarding Agency: Department of Defense
Start Date: 2008-10-20
End Date: 2018-06-30
Contract Duration: 3,540 days
Daily Burn Rate: $5.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Engineering Services
Official Description: INITIAL TASK ORDER FOR NMUSA PROJECT
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $18.8 million to SKIDMORE, OWINGS & MERRILL LLP for work described as: INITIAL TASK ORDER FOR NMUSA PROJECT Key points: 1. Contract value of $18.75M for engineering services. 2. Awarded under full and open competition. 3. Potential risks include contract duration and fixed-price nature. 4. Sector is Engineering Services, a critical component of Defense spending.
Value Assessment
Rating: fair
The contract value of $18.75M over a 10-year period suggests a moderate annual spend. Benchmarking against similar large-scale engineering service contracts would be necessary to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing.
Taxpayer Impact: The use of full and open competition is positive for taxpayers, as it aims to secure the best value through market forces.
Public Impact
This contract supports critical infrastructure and engineering needs for the Department of the Army. The long duration (nearly 10 years) suggests a sustained need for these specialized engineering services. The firm fixed-price contract type shifts cost overrun risk to the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (3540 days)
- Firm Fixed Price contract type
Positive Signals
- Full and Open Competition
- Engineering Services
Sector Analysis
Engineering services are vital for government infrastructure projects and defense installations. Spending in this sector can fluctuate based on national priorities and infrastructure investment cycles.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Army, suggesting established oversight mechanisms. However, the long duration warrants continuous monitoring for performance and cost.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration
- Firm Fixed Price contract type
- Potential for scope creep
- Limited insight into subcontractor performance
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.8 million to SKIDMORE, OWINGS & MERRILL LLP. INITIAL TASK ORDER FOR NMUSA PROJECT
Who is the contractor on this award?
The obligated recipient is SKIDMORE, OWINGS & MERRILL LLP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $18.8 million.
What is the period of performance?
Start: 2008-10-20. End: 2018-06-30.
What is the typical cost range for similar long-term engineering service contracts awarded by the DoD?
The typical cost range for similar long-term engineering service contracts awarded by the DoD can vary significantly based on project scope, complexity, and duration. However, contracts in the tens of millions of dollars over several years are not uncommon for major infrastructure or defense-related projects. Benchmarking against specific project types and service levels is crucial for a precise assessment.
What are the primary risks associated with a firm fixed-price contract of this duration?
The primary risks with a firm fixed-price contract of this duration include potential contractor underestimation of costs, leading to reduced profit or even losses if unforeseen issues arise. Conversely, if the contractor significantly overestimates, taxpayers may pay a premium. Scope creep, if not managed tightly, can also become a significant issue.
How effectively does full and open competition ensure value for money in specialized engineering services?
Full and open competition generally enhances value for money by fostering a competitive environment where multiple qualified firms vie for the contract. This encourages competitive pricing and innovation. For specialized engineering services, it ensures that the government can access a broad pool of expertise and select the most capable and cost-effective provider.
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: W912WJ08R0005
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 14 WALL ST, NEW YORK, NY, 10005
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership
Financial Breakdown
Contract Ceiling: $18,751,580
Exercised Options: $18,751,580
Current Obligation: $18,751,580
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912WJ08D0007
IDV Type: IDC
Timeline
Start Date: 2008-10-20
Current End Date: 2018-06-30
Potential End Date: 2018-06-30 00:00:00
Last Modified: 2020-10-03
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