Defense Threat Reduction Agency awards $26.7M contract for professional services, highlighting long-term support needs

Contract Overview

Contract Amount: $26,738,636 ($26.7M)

Contractor: Bechtel National, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-06-22

End Date: 2010-04-30

Contract Duration: 1,773 days

Daily Burn Rate: $15.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 200510!502093!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0011 !A!N! !Y!0012 !03 !20050622!20051031!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE ST STE 1 !SAN FRANCISCO !CA!94105!00000! !GG!* !* !GEORGIA !-000000013832!N!N!000000000000!B599!OTHER SPECIAL STUDIES&ANALYSES !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !541690!E! !5!B!M!D!A!D!20070828!B! ! !N!Z!D!U!R!1!001!N!1B!Z!Y!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Plain-Language Summary

Department of Defense obligated $26.7 million to BECHTEL NATIONAL, INC. for work described as: 200510!502093!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0011 !A!N! !Y!0012 !03 !20050622!20051031!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE ST STE 1 !SAN FRANCISCO !CA!94105!00000! !GG!* !* … Key points: 1. Contract provides essential support services, indicating a need for specialized expertise. 2. The duration of the contract suggests a strategic, long-term investment in a specific capability. 3. Awarded through full and open competition, implying a robust market for these services. 4. The cost-plus-award-fee structure incentivizes performance while allowing for flexibility. 5. This contract falls under professional, scientific, and technical services, a broad but critical category. 6. The contractor, Bechtel National, Inc., has a significant presence in large-scale government projects.

Value Assessment

Rating: good

The contract value of $26.7 million over approximately 5 years represents a substantial investment. Benchmarking this against similar long-term support contracts for specialized technical services is challenging without more granular data on the specific tasks. However, the cost-plus-award-fee structure suggests a focus on performance and achieving specific objectives, which can be a good value if those objectives are met effectively. The absence of a fixed price makes direct cost comparison difficult, but the award fee mechanism aims to ensure value delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. The fact that it was competed suggests a healthy market for these specialized services. The specific number of bidders is not provided, but full and open competition generally leads to more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs through market forces and ensures that the government secures the best possible value for its investment.

Public Impact

The primary beneficiaries are likely the Department of Defense and its agencies, receiving critical technical and analytical support. Services delivered are expected to enhance threat reduction capabilities and national security. The geographic impact is likely national, supporting defense initiatives across various locations. Workforce implications include the employment of highly skilled professionals in scientific, technical, and analytical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-award-fee contracts can sometimes lead to cost overruns if not managed tightly.
The broad nature of 'Other Professional, Scientific, and Technical Services' can make performance monitoring complex.
Long contract durations may not always reflect the most current technological or strategic needs.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield good value.
The contractor, Bechtel National, Inc., is a well-established entity with experience in large government contracts.
The cost-plus-award-fee structure incentivizes contractor performance and achievement of defined objectives.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, a broad category encompassing a wide range of specialized expertise. The market for these services is substantial, driven by government needs for research, analysis, engineering, and consulting. Bechtel National, Inc. operates in a segment often characterized by large, complex projects requiring significant technical acumen and project management capabilities. Comparable spending benchmarks would depend heavily on the specific sub-specialties within 'Other Professional, Scientific, and Technical Services'.

Small Business Impact

There is no explicit indication of small business set-asides for this particular contract. Given the scale and specialized nature of the services, it is likely that the prime contractor, Bechtel National, Inc., would manage subcontracting opportunities. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Threat Reduction Agency (DTRA) contracting officers and program managers. Accountability measures are embedded within the cost-plus-award-fee structure, linking payment to performance. Transparency is generally maintained through contract awards databases and reporting requirements, though specific performance metrics may be considered sensitive.

Related Government Programs

Defense Threat Reduction Agency Support Services
Department of Defense Professional Services
National Security Support Contracts
Technical and Scientific Consulting Services
Government Contract Services

Risk Flags

Long contract duration may not align with rapidly evolving threat landscapes.
Cost-plus-award-fee structure requires diligent oversight to ensure value for money.
Broad service category ('All Other Professional, Scientific, and Technical Services') may obscure specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.7 million to BECHTEL NATIONAL, INC.. 200510!502093!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0011 !A!N! !Y!0012 !03 !20050622!20051031!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE ST STE 1 !SAN FRANCISCO !CA!94105!00000! !GG!* !* !GEORGIA !-000000013832!N!N!000000000000!B599!OTHER SPECIAL STUDIES&ANALYSES !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !541690!E! !5!B!M!D!A!D!20070

Who is the contractor on this award?

The obligated recipient is BECHTEL NATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $26.7 million.

What is the period of performance?

Start: 2005-06-22. End: 2010-04-30.

What specific threat reduction activities does this contract support?

The provided data indicates the contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' and PSC code B599, 'Other Special Studies & Analyses.' While the contract title is 'DEFENSE THREAT REDUCTION AGENCY,' the specific threat reduction activities are not detailed in the summary data. These services likely encompass analytical support, research, studies, and potentially technical consulting aimed at identifying, assessing, and mitigating various threats to national security. This could range from analyzing weapons proliferation to supporting non-proliferation efforts or providing expertise on emerging security challenges. Further details would require access to the contract's statement of work.

How does the cost-plus-award-fee (CPAF) structure compare to other contract types for similar services?

Cost-plus-award-fee (CPAF) contracts are often used when the scope of work is not precisely defined or when performance outcomes are critical and difficult to pre-determine. Unlike fixed-price contracts, CPAF allows for the reimbursement of allowable costs plus a fee that is composed of a base fee (typically a small percentage of estimated costs) and an award fee. The award fee is earned based on the contractor's achievement of specific performance objectives outlined in the contract. Compared to cost-plus-fixed-fee (CPFF), CPAF offers stronger incentives for superior performance. Compared to firm-fixed-price (FFP), CPAF provides more flexibility for the government in adapting to changing requirements but carries a higher risk of cost growth if not managed diligently. For complex, long-term R&D or support services like those potentially involved here, CPAF is a common choice to balance flexibility and performance incentives.

What is Bechtel National, Inc.'s track record with similar government contracts?

Bechtel National, Inc. is a subsidiary of Bechtel Corporation, a global leader in engineering, construction, and project management. They have a long and extensive history of performing large-scale, complex projects for various U.S. government agencies, including the Department of Defense, Department of Energy, and NASA. Their track record includes significant work in areas such as infrastructure development, environmental remediation, and national security support. While specific performance details for individual contracts are not publicly detailed in this summary, Bechtel's overall reputation suggests a capacity to manage substantial government contracts. Their experience likely includes navigating CPAF structures and meeting stringent performance requirements for defense-related entities.

What are the potential risks associated with a contract of this duration and type?

Contracts with a duration of nearly five years (1773 days) carry inherent risks. One primary risk is scope creep or the potential for requirements to evolve significantly over the contract period, potentially leading to cost increases or a misalignment between the original objectives and the final deliverables. For a CPAF contract, there's also the risk that the award fee criteria may not adequately incentivize the most critical performance aspects, or conversely, that the government may overpay if performance metrics are not rigorously defined and monitored. Furthermore, long-term reliance on a single contractor for specialized services could create vendor lock-in, making it difficult to transition to new solutions or contractors if circumstances change. Market conditions and technological advancements could also render the contracted services less relevant or efficient over time.

How does this contract's value compare to overall spending by the Defense Threat Reduction Agency?

The contract value of approximately $26.7 million represents a portion of the Defense Threat Reduction Agency's (DTRA) overall budget. DTRA's annual budgets typically range in the billions of dollars, allocated across various programs focused on countering weapons of mass destruction and emerging threats. A single contract of this magnitude, while significant for the services it procures, is likely one of many awards made by DTRA to support its broad mission. To provide a precise comparison, one would need to analyze DTRA's total obligated amounts for the fiscal years spanning the contract's performance period (2005-2010) and compare this contract's value as a percentage of that total. This contract appears to be for specialized professional services rather than major procurement or research initiatives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bechtel Group, Inc.

Address: 5275 WESTVIEW DR, FREDERICK, MD, 21703

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTRA0101D0011

IDV Type: IDC

Timeline