DoD's $18.5M contract for Guam infrastructure supports Marine Corps relocation and naval enhancements

Contract Overview

Contract Amount: $18,506,099 ($18.5M)

Contractor: TEC Inc Joint Venture

Awarding Agency: Department of Defense

Start Date: 2007-04-09

End Date: 2010-09-30

Contract Duration: 1,270 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THE ARCHITECT-ENGINEER SHALL PERFORM THE SERVICES SPECIFIED IN THE ATTACHED REVISED AMENDMENT NO. 8, DTD 4 APRIL 2007 TO THE BASIC STATEMENT OF ARCHITECT-ENGINEERING SERVICES DATED 12 MAY 2006, WHICH SUPPORT PREPARATION OF AN ENVIRONMENTAL IMPACT STATEMENT/OVERSEAS ENVIRONMENTAL IMPACT STATEMENT (EIS/OEIS) AND ALL OTHER APPROPRIATE AND ASSOCIATED DOCUMENTATION FOR THE PROPOSED 1) RELOCATION OF THE U.S. MARINE CORPS (USMC) FORCES TO THE MARIANA ISLANDS; 2) ENHANCEMENT OF INFRASTRUCTURE, TRAINING, AND CAPABILITIES FOR TRANSIENT NUCLEAR AIRCRAFT CARRIER (CVN) GROUPS IN GUAM; AND 3) PLACEMENT OF A U.S. ARMY TERMINAL HIGH-ALTITIUDE AIR DEFENSE (THAAD) TASK FORCE IN GUAM.

Place of Performance

Location: TAMUNING, GUAM County, GUAM, 96913

Plain-Language Summary

Department of Defense obligated $18.5 million to TEC INC JOINT VENTURE for work described as: THE ARCHITECT-ENGINEER SHALL PERFORM THE SERVICES SPECIFIED IN THE ATTACHED REVISED AMENDMENT NO. 8, DTD 4 APRIL 2007 TO THE BASIC STATEMENT OF ARCHITECT-ENGINEERING SERVICES DATED 12 MAY 2006, WHICH SUPPORT PREPARATION OF AN ENVIRONMENTAL IMPACT STATEMENT/OVERSEAS ENVIRONMENTAL … Key points: 1. Contract supports significant strategic military initiatives including Marine Corps relocation and naval capabilities. 2. The contract's scope encompasses environmental impact statements for major infrastructure projects. 3. Performance period spans over three years, indicating a substantial and complex undertaking. 4. The firm-fixed-price structure aims to control costs for the government. 5. This contract is part of a broader effort to enhance U.S. military presence in the Pacific.

Value Assessment

Rating: good

The contract value of $18.5 million for architect-engineering services appears reasonable given the scale and complexity of the environmental impact assessments required for major military relocations and infrastructure enhancements in Guam. Benchmarking against similar large-scale environmental planning contracts for defense projects suggests this is within a typical range. The firm-fixed-price contract type provides cost certainty for the government, although the final cost is dependent on the scope of services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified firms had the opportunity to bid. This competitive process is expected to yield a fair price and ensure the selection of a capable contractor. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by fostering a competitive environment that drives down prices and encourages innovation.

Public Impact

The primary beneficiaries are the U.S. Marine Corps and Navy, who will see enhanced infrastructure and capabilities. Services delivered include critical environmental impact assessments for major defense projects. The geographic impact is focused on Guam and the Mariana Islands, a key strategic location. Workforce implications include potential for specialized environmental consulting and engineering jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in environmental impact assessments for large-scale projects.
Long performance duration could introduce risks related to changing environmental regulations or project requirements.

Positive Signals

Clear definition of services in the statement of work.
Firm-fixed-price contract helps manage cost overruns.
Awarded under full and open competition, suggesting a competitive pricing environment.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting large-scale government infrastructure and environmental planning. The market for such services is characterized by highly specialized firms capable of handling complex regulatory and technical requirements. Comparable spending benchmarks for Environmental Impact Statements (EIS) for major federal projects can range from hundreds of thousands to tens of millions of dollars, depending on the project's scope and environmental sensitivity. This contract's value aligns with significant defense-related environmental planning efforts.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions. Given the specialized nature and scale of architect-engineering services for major defense projects, it is common for prime contracts to be awarded to larger firms. However, opportunities for small businesses may exist through subcontracting, particularly in specialized areas of environmental consulting or support services, though this is not explicitly detailed.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. The firm-fixed-price nature provides a degree of cost control. Transparency is facilitated by the contract being awarded under full and open competition, with details likely available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USMC Forces Relocation to Mariana Islands
Naval Infrastructure Enhancements in Guam
Army THAAD Task Force Placement in Guam
Environmental Impact Statement Preparation

Risk Flags

Potential for scope creep in environmental assessments.
Long contract duration may introduce cost and schedule risks.
Complexity of multi-faceted military projects requires robust oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to TEC INC JOINT VENTURE. THE ARCHITECT-ENGINEER SHALL PERFORM THE SERVICES SPECIFIED IN THE ATTACHED REVISED AMENDMENT NO. 8, DTD 4 APRIL 2007 TO THE BASIC STATEMENT OF ARCHITECT-ENGINEERING SERVICES DATED 12 MAY 2006, WHICH SUPPORT PREPARATION OF AN ENVIRONMENTAL IMPACT STATEMENT/OVERSEAS ENVIRONMENTAL IMPACT STATEMENT (EIS/OEIS) AND ALL OTHER APPROPRIATE AND ASSOCIATED DOCUMENTATION FOR THE PROPOSED 1) RELOCATION OF THE U.S. MARINE CORPS (USMC) FORCES TO THE MARIANA ISLANDS; 2) ENHANCEMENT OF INFRASTRUCTURE, TRAINING,

Who is the contractor on this award?

The obligated recipient is TEC INC JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2007-04-09. End: 2010-09-30.

What is the track record of TEC Inc Joint Venture in performing similar large-scale environmental impact assessment contracts for the Department of Defense?

Information regarding the specific track record of TEC Inc Joint Venture for similar large-scale environmental impact assessment contracts with the Department of Defense is not directly available in the provided data. However, the award of this $18.5 million contract suggests they possess the necessary qualifications and experience to undertake such complex projects. Further investigation into past performance databases, such as the Contractor Performance Assessment Reporting System (CPARS), would be required to provide a detailed assessment of their historical performance, including on-time delivery, quality of work, and adherence to budget on comparable projects. The duration of this contract (over three years) also implies a significant level of trust and capability demonstrated in prior engagements or their proposal.

How does the $18.5 million contract value compare to other Environmental Impact Statements for major military base realignments or infrastructure projects?

The $18.5 million contract value for architect-engineering services to prepare Environmental Impact Statements (EIS) for the relocation of USMC forces, enhancement of naval facilities, and placement of a THAAD task force in Guam is substantial. EIS preparation costs can vary widely based on project complexity, environmental sensitivity, and geographic scope. For major military base realignments or large infrastructure projects, EIS contracts can range from a few million dollars to upwards of $20-30 million. Given the strategic importance and multi-faceted nature of the projects in Guam, this $18.5 million figure appears to be within the expected range for comprehensive environmental planning services supporting significant defense initiatives. It reflects the extensive analysis required for environmental, social, and economic impacts.

What are the primary risks associated with a contract of this duration (1270 days) and scope for environmental impact assessment?

Contracts with a long duration, such as this 1270-day (approximately 3.5 years) agreement, carry inherent risks. One primary risk is scope creep, where the requirements or complexity of the environmental impact assessment may evolve beyond the initial agreement due to unforeseen factors or changing regulatory landscapes. Another significant risk is the potential for cost escalation if the firm-fixed-price contract does not adequately account for inflation or changes in labor/material costs over the extended period. Furthermore, maintaining contractor engagement and oversight effectiveness over such a long timeframe can be challenging. There's also a risk that the environmental conditions or project needs might change substantially by the time the EIS is completed, potentially requiring updates or revisions.

What does the 'firm fixed price' contract type imply about the government's risk and the contractor's incentive?

A firm fixed price (FFP) contract type places the primary cost risk on the contractor. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. For the government, this offers significant cost certainty and predictability, as the total expenditure is known upfront, barring any contract modifications. For the contractor, the incentive is to manage costs efficiently and perform the work effectively to maximize profit. If the contractor's costs exceed the fixed price, their profit margin shrinks or they may incur a loss. Conversely, if they can complete the work under budget, their profit increases. This structure is generally favored for well-defined scopes of work where cost estimation is relatively reliable.

How does this contract contribute to the broader strategic goals of the U.S. military in the Indo-Pacific region?

This contract is directly linked to the U.S. military's strategic repositioning and enhancement of capabilities in the Indo-Pacific region, often referred to as the 'pivot to Asia.' The relocation of U.S. Marine Corps forces to the Mariana Islands is a key component of this strategy, increasing U.S. presence and operational readiness in a critical theater. Enhancing infrastructure for transient nuclear aircraft carrier groups in Guam bolsters naval power projection and logistical support in the Western Pacific. The placement of a THAAD task force in Guam addresses regional security concerns and strengthens missile defense capabilities. By funding the necessary environmental impact assessments, this contract enables the physical realization of these strategic military objectives, ensuring compliance with environmental regulations while facilitating the build-up of essential defense infrastructure.

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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2496 OLD IVY RD STE 300, CHARLOTTESVILLE, VA, 05

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,506,099

Exercised Options: $18,506,099

Current Obligation: $18,506,099

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6274206D1870

IDV Type: IDC

Timeline