VA awards AES Group Inc. $3.3M engineering services contract for 848 days

Contract Overview

Contract Amount: $3,317,550 ($3.3M)

Contractor: AES Group Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-03-08

End Date: 2026-07-04

Contract Duration: 848 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: X.O.X..OO.X

Place of Performance

Location: PARKER, DOUGLAS County, COLORADO, 80138

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.3 million to AES GROUP INC for work described as: X.O.X..OO.X Key points: 1. Contract value appears reasonable for the duration and scope of engineering services. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include performance delays or scope creep given the multi-year duration. 4. This contract supports the Department of Veterans Affairs' infrastructure needs. 5. Engineering services are critical for maintaining and upgrading federal facilities.

Value Assessment

Rating: good

The contract value of approximately $3.3 million over 848 days (roughly 2.3 years) for engineering services seems within a reasonable range for federal contracts of this nature. Without specific details on the exact services rendered, it's difficult to provide a precise benchmark. However, comparing it to similar engineering support contracts awarded by agencies like the GSA or DoD, the estimated annual cost of around $1.4 million appears competitive, assuming the scope is standard for facility engineering.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust selection of qualified contractors and potentially better pricing due to market forces. The data does not specify the number of bids received, but the method of competition suggests a healthy level of market interest.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

Veterans will benefit from improved or maintained facilities through the engineering services provided. The contract delivers essential engineering expertise for the Department of Veterans Affairs. The geographic impact is likely focused on facilities within the VA's jurisdiction, potentially in Colorado where the contract is noted. The contract supports a workforce of engineers and technical specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work expands beyond initial estimates.
Risk of schedule delays impacting the timely completion of VA facility projects.
Ensuring consistent quality of engineering services throughout the contract duration.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing structure.
Fixed-price contract type can help control costs if scope is well-defined.
Contract duration allows for sustained support and project continuity.

Sector Analysis

The engineering services sector is a vital component of the federal contracting landscape, supporting a wide array of government functions from infrastructure development to specialized technical support. The market for these services is competitive, with numerous firms vying for contracts across various agencies. This contract, valued at approximately $3.3 million, falls into the mid-range for specialized engineering support, fitting within the broader context of federal spending on professional services which often exceeds billions annually.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While AES GROUP INC may be a small business, the award method suggests it competed on a level playing field with larger firms. There is no explicit information on subcontracting plans, but for a contract of this size and scope, subcontracting to small businesses is a possibility that could contribute to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement, including quality control and delivery schedules. Transparency is facilitated through contract databases like FPDS, where award details are publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Facilities Engineering Support
Architectural and Engineering Services
Professional and Technical Services

Risk Flags

Potential for scope creep impacting budget and schedule.
Ensuring consistent quality of engineering services over the contract duration.
Contractor's ability to meet specific VA facility needs and standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.3 million to AES GROUP INC. X.O.X..OO.X

Who is the contractor on this award?

The obligated recipient is AES GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $3.3 million.

What is the period of performance?

Start: 2024-03-08. End: 2026-07-04.

What specific engineering services are included in this $3.3 million contract?

The provided data indicates the contract is for 'Engineering Services' (nd: Engineering Services) under NAICS code 541330. However, the specific nature of these services is not detailed. Typically, this could encompass a range of activities such as structural engineering, mechanical, electrical, and plumbing (MEP) design, civil engineering, environmental engineering, or construction management support for VA facilities. The duration of 848 days suggests ongoing support rather than a single project, potentially involving design, review, and oversight for multiple infrastructure or renovation projects within the VA system.

How does the $3.3 million contract value compare to similar VA engineering contracts?

Comparing the $3.3 million contract value for AES GROUP INC to similar VA engineering contracts requires access to a broader dataset of historical awards. However, based on the contract duration of 848 days (approximately 2.3 years), the approximate annual value is around $1.4 million. This figure appears reasonable for specialized engineering support services, especially if it involves complex facility management or design work. Without knowing the specific deliverables, it's challenging to make a precise benchmark, but the value does not immediately suggest overpricing or underbidding for a multi-year federal engineering contract.

What are the key performance indicators (KPIs) or deliverables expected under this contract?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. Typically, for engineering services contracts, KPIs would relate to the quality of designs, adherence to project schedules, cost control within defined budgets, compliance with relevant codes and standards, and responsiveness to VA requests. Deliverables would likely include engineering reports, design documents, construction plans, site inspections, and technical recommendations. These would be formally outlined in the contract's Performance Work Statement (PWS).

What is the track record of AES GROUP INC in securing and performing federal contracts, particularly with the VA?

The provided data identifies AES GROUP INC (co: AES GROUP INC) as the contractor awarded this specific contract by the Department of Veterans Affairs (ag: Department of Veterans Affairs). To assess their track record, one would need to analyze their historical contract awards across various federal agencies, including the VA. This would involve looking at the number of contracts awarded, their values, the types of services provided, and performance ratings if available. A positive track record with the VA would suggest familiarity with their processes and requirements, potentially reducing performance risks for this new award.

What is the risk associated with a Firm Fixed Price (FFP) contract type for these engineering services?

A Firm Fixed Price (FFP) contract type, like the one awarded to AES GROUP INC (pt: FIRM FIXED PRICE), generally shifts the risk of cost overruns to the contractor. This means AES GROUP INC is obligated to complete the work for the agreed-upon price, regardless of unforeseen expenses. For the government, this offers budget certainty. However, the risk lies in potential contractor corners-cutting to maintain profitability, which could impact quality, or conversely, if the initial price was set too high due to uncertainty, the government might overpay. Effective oversight is crucial to ensure quality is maintained under an FFP structure.

How does the geographic location noted ('COLORADO') impact the scope or execution of this VA contract?

The notation 'COLORADO' (sn: COLORADO) likely indicates the location of the contractor's office or the primary area where the engineering services will be performed or managed. For the Department of Veterans Affairs, this could mean the contract supports facilities located within Colorado, or it might be a central hub for managing projects across a broader region. The geographic focus can influence the specific engineering challenges (e.g., seismic, climate-related) and regulatory requirements the contractor must address. It also implies potential travel costs and logistical considerations for on-site work if VA facilities outside Colorado are involved.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11031 S PIKES PEAK DR, PARKER, CO, 80138

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,317,550

Exercised Options: $3,317,550

Current Obligation: $3,317,550

Actual Outlays: $2,213,917

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA22D00DR

IDV Type: FSS

Timeline