Pentagon Renovation Management contract awarded for $14.9M to AECOM/Parsons JV for program management services
Contract Overview
Contract Amount: $17,634,642 ($17.6M)
Contractor: Aecom/Parsons, a Joint Venture
Awarding Agency: Department of Defense
Start Date: 2002-12-23
End Date: 2004-04-30
Contract Duration: 494 days
Daily Burn Rate: $35.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: 200312!000214!9700!ZD47 !PENTAGON RENOVATION MANAGEMENT !MDA94701D0001 !A!N! !N!0003 !20021223!20031130!149022985!149022985!149022985!N!DMJM-3D/I A JOINT VENTURE !1525 WILSON BOULEVARD !ARLINGTON !VA!22209!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000010644972!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541611!E! !5!A!S!C! ! !99990909!B! ! !A! !A!U!U!2!003!B! !Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!D!N! ! ! !Y! ! !0001! !
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $17.6 million to AECOM/PARSONS, A JOINT VENTURE for work described as: 200312!000214!9700!ZD47 !PENTAGON RENOVATION MANAGEMENT !MDA94701D0001 !A!N! !N!0003 !20021223!20031130!149022985!149022985!149022985!N!DMJM-3D/I A JOINT VENTURE !1525 WILSON BOULEVARD !ARLINGTON !VA!22209!03000!013!51!ARLINGTON !ARLIN… Key points: 1. Contract awarded for program management and support services related to Pentagon renovations. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The duration of the contract was approximately 1.6 years, suggesting a focused scope of work. 4. The contractor, AECOM/Parsons JV, is a joint venture, potentially bringing diverse expertise. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control while ensuring contractor profit. 6. The primary service category is Administrative Management and General Management Consulting Services.
Value Assessment
Rating: fair
The contract value of $14.9 million for program management services over roughly 1.6 years appears within a reasonable range for large-scale renovation projects. However, without specific benchmarks for Pentagon renovation management, a precise value-for-money assessment is difficult. The Cost Plus Fixed Fee structure means the final cost could exceed the initial estimate, requiring careful oversight to ensure efficiency and prevent cost overruns. Comparing this to similar large-scale government facility renovation management contracts would provide a clearer picture of its cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit a bid. With three bidders identified, this indicates a moderate level of competition. While more than one bidder is positive, a higher number of bids typically leads to more robust price discovery and potentially lower costs for the government. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of this competition.
Taxpayer Impact: Full and open competition with multiple bidders generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. This approach helps ensure the government receives the best value for its investment.
Public Impact
The primary beneficiaries are the Department of Defense and its personnel, who will experience improved facilities. The services delivered include program management and support for the renovation of the Pentagon. The geographic impact is localized to Arlington, Virginia, where the Pentagon is located. Workforce implications may include the employment of project managers, engineers, and administrative staff by the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to costs exceeding initial estimates if not managed tightly.
- The limited competition (3 bidders) might have resulted in a higher price than if more firms had participated.
- The specific scope and deliverables are not detailed, making it hard to fully assess performance against expectations.
Positive Signals
- Awarded under full and open competition, suggesting a fair and accessible process.
- The contractor is a joint venture, potentially bringing a breadth of specialized expertise to the project.
- The contract duration of 494 days is defined, providing a clear timeframe for project completion.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically focusing on management and consulting. The market for large-scale government facility renovation and management is significant, often involving specialized firms and joint ventures. Comparable spending benchmarks would typically be found in contracts for major construction project management, infrastructure development, or large-scale facility upgrades within government agencies. The North American Industry Classification System (NAICS) code 541611 (Administrative Management and General Management Consulting Services) indicates a focus on advisory and operational support rather than direct construction.
Small Business Impact
There is no indication that this contract was specifically set aside for small businesses. Given the scale and nature of Pentagon renovation management, it is likely that large businesses or joint ventures of large businesses were the primary participants. Subcontracting opportunities for small businesses may exist within the execution of the contract, but this is not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on the extent to which the prime contractor engages small businesses for specialized services or support.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Washington Headquarters Services (WHS) within the Department of Defense. Accountability measures would be defined in the contract's terms and conditions, likely including performance metrics, reporting requirements, and payment schedules tied to milestones. Transparency is generally facilitated through contract award databases and public reporting, though specific project details might be sensitive. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Pentagon Renovation Projects
- Department of Defense Facilities Management
- Government Program Management Contracts
- Construction Management Services
Risk Flags
- Cost Overrun Risk (CPFF Contract)
- Limited Competition (3 Bidders)
- Scope Creep Potential
Tags
construction, department-of-defense, washington-headquarters-services, arlington-virginia, program-management, consulting-services, cost-plus-fixed-fee, full-and-open-competition, joint-venture, renovation, administrative-management
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.6 million to AECOM/PARSONS, A JOINT VENTURE. 200312!000214!9700!ZD47 !PENTAGON RENOVATION MANAGEMENT !MDA94701D0001 !A!N! !N!0003 !20021223!20031130!149022985!149022985!149022985!N!DMJM-3D/I A JOINT VENTURE !1525 WILSON BOULEVARD !ARLINGTON !VA!22209!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000010644972!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541611!E! !5!A!S!C! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is AECOM/PARSONS, A JOINT VENTURE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $17.6 million.
What is the period of performance?
Start: 2002-12-23. End: 2004-04-30.
What is the track record of AECOM/Parsons JV in managing large-scale government renovation projects?
The provided data does not detail the specific track record of the AECOM/Parsons JV for this particular contract. However, AECOM and Parsons are both established companies with significant experience in large-scale infrastructure and government projects. AECOM has a broad portfolio in design, construction, and management, while Parsons is known for its engineering, construction, and technical services. As a joint venture, their combined expertise would be leveraged. A deeper dive into their past performance on similar contracts, including client feedback and project outcomes, would be necessary for a comprehensive assessment of their capabilities for this specific Pentagon renovation management task.
How does the $14.9 million contract value compare to similar Pentagon renovation management efforts?
Direct comparison of the $14.9 million contract value for Pentagon renovation management is challenging without access to detailed historical data on similar contracts. However, considering the scale and complexity of the Pentagon, this figure appears to be a management fee or a portion of a larger renovation program rather than the total renovation cost. Large-scale facility management and program support contracts for government entities can range from millions to hundreds of millions of dollars, depending on the scope, duration, and specific services required. Benchmarking against contracts for managing major federal building upgrades or infrastructure programs would provide a more accurate context for assessing value.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of project?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded for Pentagon renovation management, is the potential for cost overruns. While the 'fixed fee' component provides the contractor with a predetermined profit, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If project complexities or unforeseen issues lead to higher costs than anticipated, the total expenditure for the government can increase significantly beyond initial projections. This necessitates robust oversight from the contracting agency to scrutinize all claimed costs, ensure efficiency, and prevent unnecessary spending. The government bears the financial risk of cost escalation, while the contractor is incentivized to complete the work within a reasonable cost structure to protect their fixed fee.
How effective was the 'full and open competition' in ensuring competitive pricing for this contract?
The 'full and open competition' award for this contract suggests a structured process designed to solicit bids from all qualified sources. With three bidders participating, there was a degree of competition, which generally aids in price discovery. However, the effectiveness in ensuring optimal pricing depends on several factors not detailed here: the number of *responsive* bids received, the specific evaluation criteria used, and the market dynamics for specialized renovation management services. If the pool of qualified bidders was limited, or if the technical requirements were highly specific, three bidders might represent a reasonable competitive outcome. A more thorough analysis would involve examining the bid proposals and the government's justification for the award selection to ascertain if competitive pressures were fully leveraged.
What is the historical spending pattern for Pentagon renovation and management services?
The provided data represents a single contract award for Pentagon renovation management. To understand historical spending patterns, a broader analysis of all contracts related to Pentagon renovations and management services over several fiscal years would be required. This would involve querying federal procurement databases for similar contracts awarded to various entities, examining spending trends, identifying key contractors, and noting fluctuations in contract values and durations. Such an analysis would reveal whether spending in this category has been consistent, increasing, or decreasing, and whether it is concentrated among a few large firms or distributed across a wider range of providers.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 3101 WILSON BLVD, ARLINGTON, VA, 22201
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: MDA94701D0001
IDV Type: IDC
Timeline
Start Date: 2002-12-23
Current End Date: 2004-04-30
Potential End Date: 2004-04-30 00:00:00
Last Modified: 2015-06-04
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