Interior Department awards $2.67M contract for White Clay Dam design services to AECOM Technical Services

Contract Overview

Contract Amount: $2,671,286 ($2.7M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Department of the Interior

Start Date: 2021-11-24

End Date: 2027-01-31

Contract Duration: 1,894 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WHITE CLAY DAM DESIGN

Place of Performance

Location: PINE RIDGE, SHANNON County, SOUTH DAKOTA, 57770

State: South Dakota Government Spending

Plain-Language Summary

Department of the Interior obligated $2.7 million to AECOM TECHNICAL SERVICES, INC. for work described as: WHITE CLAY DAM DESIGN Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 3. The duration of 1894 days indicates a long-term project requiring sustained engineering expertise. 4. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering services. 5. The project is located in South Dakota, potentially impacting local infrastructure and workforce. 6. AECOM Technical Services, Inc. is the sole awardee, highlighting their specific qualifications for this task.

Value Assessment

Rating: good

The contract value of $2.67 million for dam design services appears reasonable given the 1894-day duration. Without specific benchmarks for dam design projects of this scale and complexity, a direct per-unit cost comparison is difficult. However, the firm-fixed-price structure suggests that the initial pricing was assessed as fair and reasonable by the Bureau of Indian Affairs and Bureau of Indian Education. Further analysis would require comparing this award to similar dam design contracts awarded by federal agencies.

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 a bid. The data does not specify the number of bidders, but the designation implies a robust competitive environment. This approach is generally expected to yield the best value for the government by encouraging multiple firms to offer their best pricing and technical solutions.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing, which benefits taxpayers by ensuring the government is not overpaying for essential services.

Public Impact

The primary beneficiaries are the Bureau of Indian Affairs and Bureau of Indian Education, who will receive design services for the White Clay Dam. The services delivered will be engineering design for a dam, crucial for water management and infrastructure. The geographic impact is focused on South Dakota, where the dam is located. The project may have implications for the local engineering workforce in South Dakota, potentially creating or sustaining jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-duration engineering projects, which could increase costs beyond the initial fixed price if not managed carefully.
Reliance on a single contractor (AECOM) for the entire design phase, meaning any performance issues could significantly delay the project.
The specific details of the dam's purpose and the environmental considerations are not fully elaborated, which could present unforeseen challenges.

Positive Signals

Awarded through full and open competition, suggesting a thorough vetting of potential contractors.
Firm-fixed-price contract type provides cost predictability and reduces financial risk for the government.
The long duration indicates a commitment to a comprehensive and potentially high-quality design process.
The contract is for engineering services (NAICS 541330), a specialized field where experienced firms like AECOM are valuable.

Sector Analysis

The engineering services sector, particularly for infrastructure projects like dams, is a significant part of the broader construction and professional services market. Federal spending in this area is often driven by the need to maintain and upgrade aging infrastructure or develop new resources. Comparable spending benchmarks would involve looking at other large-scale civil engineering design contracts awarded by agencies like the Army Corps of Engineers or the Bureau of Reclamation. The market size for engineering services is substantial, with many firms competing for government contracts.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. The award to AECOM Technical Services, Inc., a large corporation, suggests that the primary focus was on securing specialized expertise. This means that opportunities for small businesses to participate in this specific contract may be limited unless they are part of AECOM's supply chain or are engaged in subsequent phases of the project.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Indian Affairs and Bureau of Indian Education within the Department of the Interior. Accountability measures are inherent in the firm-fixed-price contract, which obligates the contractor to deliver the specified design within the agreed-upon cost. Transparency is facilitated by the public nature of federal contract awards. The Inspector General of the Department of the Interior would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Bureau of Indian Affairs Infrastructure Projects
Bureau of Indian Education Facilities Management
Department of the Interior Dam Safety Programs
Federal Civil Engineering Design Contracts
South Dakota Infrastructure Development

Risk Flags

Long contract duration may increase risk of scope creep and cost overruns if not managed effectively.
Reliance on a single contractor for a critical design phase.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.7 million to AECOM TECHNICAL SERVICES, INC.. WHITE CLAY DAM DESIGN

Who is the contractor on this award?

The obligated recipient is AECOM TECHNICAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $2.7 million.

What is the period of performance?

Start: 2021-11-24. End: 2027-01-31.

What is AECOM Technical Services, Inc.'s track record with the Department of the Interior and similar dam design projects?

AECOM Technical Services, Inc. has a significant history of performing engineering and technical services for various government agencies, including the Department of the Interior. While specific details on their past dam design projects for the DOI are not provided in this data, AECOM is a large, established firm with extensive experience in civil engineering, infrastructure, and environmental services globally. Their portfolio often includes complex projects such as water resource management, transportation, and energy infrastructure. A deeper dive into their contract history with the DOI and specific dam-related projects would reveal their performance metrics, past issues, and successes in similar contexts. This would help assess their capability and reliability for the White Clay Dam design.

How does the $2.67 million cost compare to similar dam design contracts?

Benchmarking the $2.67 million cost for the White Clay Dam design against similar contracts is challenging without more specific project details and market data. Factors influencing cost include the dam's size, complexity, geological conditions, environmental requirements, and the specific design services required (e.g., feasibility studies, detailed engineering, environmental impact assessments). Typically, dam design contracts can range from hundreds of thousands to tens of millions of dollars. The firm-fixed-price nature of this contract suggests the government sought cost certainty. To provide a robust comparison, one would need to identify contracts for dams of comparable scale and scope awarded by agencies like the Army Corps of Engineers or Bureau of Reclamation, analyzing their total value, duration, and the specific services rendered.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential scope creep due to the long duration (1894 days), unforeseen technical or environmental challenges during the design phase, and contractor performance issues. Scope creep is a risk in any long-term project, potentially leading to cost overruns if not managed tightly through change order processes. Unforeseen geological or environmental factors could necessitate design modifications, impacting timelines and costs. Contractor performance risk is mitigated by AECOM's established reputation, but performance issues could still lead to delays. The firm-fixed-price structure helps mitigate cost escalation from scope changes unless formally approved. The Bureau of Indian Affairs and Bureau of Indian Education will likely employ project management and oversight to monitor progress, manage changes, and ensure adherence to the contract requirements.

How effective is the firm-fixed-price contract type in ensuring value for money for this dam design project?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and risks are understood. For a design project like the White Clay Dam, an FFP contract provides cost certainty to the government, as the contractor assumes the risk of cost overruns. This encourages the contractor to be efficient and manage resources effectively to stay within the agreed price. However, if the scope is not fully understood at the outset or if significant unforeseen issues arise, an FFP contract can sometimes lead to contractors cutting corners or extensive negotiations over change orders, which can negate some of the initial cost benefits. For this project, the success of the FFP in delivering value will depend on the thoroughness of the initial requirements definition and the government's ability to manage any necessary contract modifications.

What is the historical spending pattern for dam design services by the Department of the Interior?

Historical spending patterns for dam design services by the Department of the Interior (DOI) are not detailed in the provided data. However, the DOI, through agencies like the Bureau of Reclamation and the Bureau of Indian Affairs, is involved in managing water resources and infrastructure, which includes dams. Spending in this area can fluctuate based on infrastructure needs, funding appropriations, and specific project lifecycles. Typically, federal agencies allocate funds for dam design, construction, and maintenance through annual budgets and specific infrastructure initiatives. Analyzing past DOI budgets and contract awards for similar engineering services would provide insight into the typical scale and frequency of such expenditures. This specific $2.67 million award represents a portion of the DOI's overall investment in water 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 - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140A1622R0006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 S GRAND AVE STE 1100, LOS ANGELES, CA, 90071

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,671,286

Exercised Options: $2,671,286

Current Obligation: $2,671,286

Actual Outlays: $1,581,158

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $130,355

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140A1218D0015

IDV Type: IDC

Timeline