DOT awards $2.2M for Puerto Rico construction inspection services, with competition indicating potential value

Contract Overview

Contract Amount: $2,247,474 ($2.2M)

Contractor: Atkinsrealis USA Inc

Awarding Agency: Department of Transportation

Start Date: 2024-02-20

End Date: 2026-06-30

Contract Duration: 861 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NEW CONSTRUCTION INSPECTION SERVICES TASK ORDER FOR PROJECT PR ER PRMNT RPR (12).

Place of Performance

Location: COROZAL, COROZAL County, PUERTO RICO, 00783

Plain-Language Summary

Department of Transportation obligated $2.2 million to ATKINSREALIS USA INC for work described as: NEW CONSTRUCTION INSPECTION SERVICES TASK ORDER FOR PROJECT PR ER PRMNT RPR (12). Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. Fixed-price contract type helps mitigate cost overrun risks for the government. 3. The duration of the contract (over 2 years) indicates a sustained need for these services. 4. Services are for critical infrastructure repair and maintenance in Puerto Rico. 5. The contractor has a track record with federal agencies, though specific performance on this contract is yet to be determined.

Value Assessment

Rating: good

The contract value of approximately $2.25 million for over two years of engineering services appears reasonable, especially considering the location and the nature of infrastructure repair. Benchmarking against similar construction inspection contracts awarded by the Federal Highway Administration or other DOT agencies would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract suggests that the government has negotiated a set cost, which is generally favorable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. This method is generally preferred as it allows for the widest possible pool of qualified contractors to participate, fostering a competitive environment that can lead to better pricing and service offerings. The specific number of bids received would further clarify the intensity of the competition.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces and ensuring that the government receives the best value for its investment.

Public Impact

Residents and businesses in Puerto Rico will benefit from improved infrastructure through diligent inspection services. Services ensure the quality and safety of repairs to critical infrastructure projects. The contract supports the ongoing economic recovery and resilience of Puerto Rico's infrastructure. Local workforce may see indirect benefits through employment opportunities related to the construction projects being inspected.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays in inspection services if the contractor faces resource constraints.
Geographic challenges in Puerto Rico could impact timely access to all project sites.
Ensuring consistent quality of inspection across all project phases requires robust government oversight.

Positive Signals

Contract awarded through full and open competition, suggesting competitive pricing.
Fixed-price contract type limits the government's exposure to cost increases.
The contractor, AtkinsRéalis USA Inc., has experience with federal contracts.
The contract duration aligns with the expected timeline for infrastructure repairs.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the construction and infrastructure industry. The market for these services is driven by government spending on public works, transportation, and facility maintenance. The value of this specific contract is modest within the broader federal engineering services market, but it represents a significant investment in Puerto Rico's infrastructure.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The prime contractor, AtkinsRéalis USA Inc., is a large entity. Further analysis would be needed to determine if any subcontracting opportunities are available to small businesses within the scope of this task order.

Oversight & Accountability

Oversight will likely be managed by the Federal Highway Administration, a division of the Department of Transportation. The fixed-price contract type provides a degree of cost control. Accountability will be measured by the quality and timeliness of the inspection services delivered, ensuring that repairs meet federal standards. Transparency is generally maintained through federal contract databases, though specific inspection reports may not be publicly available.

Related Government Programs

Federal Highway Administration Construction and Engineering Services
Department of Transportation Infrastructure Repair Programs
Puerto Rico Infrastructure Development Projects
Federal Disaster Recovery and Resilience Funding

Risk Flags

Potential for performance issues in a challenging geographic location.
Need for robust government oversight to ensure quality of inspections.
Contract duration may be subject to delays impacting overall project timelines.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.2 million to ATKINSREALIS USA INC. NEW CONSTRUCTION INSPECTION SERVICES TASK ORDER FOR PROJECT PR ER PRMNT RPR (12).

Who is the contractor on this award?

The obligated recipient is ATKINSREALIS USA INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2024-02-20. End: 2026-06-30.

What is the track record of AtkinsRéalis USA Inc. with federal agencies, particularly in providing construction inspection services?

AtkinsRéalis USA Inc. (formerly AECOM Technical Services) has a significant history of contracting with various U.S. federal agencies, including the Department of Transportation, Department of Defense, and others. Their portfolio includes a wide range of engineering, design, and construction management services. While specific performance metrics for this particular task order are not yet available due to its recent award, the company's extensive experience suggests a capacity to handle complex federal projects. A deeper dive into past performance evaluations and any past disputes or contract terminations would provide a more comprehensive understanding of their reliability and quality of service delivery in similar contexts.

How does the awarded price of $2.25 million compare to similar construction inspection contracts for infrastructure projects?

Benchmarking the $2.25 million contract value requires comparing it against similar task orders for construction inspection services on infrastructure projects, ideally within the same geographic region or of comparable complexity. Factors such as the scope of work (e.g., types of infrastructure, duration of inspection), labor rates, and specific technical requirements heavily influence pricing. Given that this contract spans over two years and is for critical repairs in Puerto Rico, the price appears reasonable on its face. However, a detailed analysis would involve comparing the estimated labor hours, overhead rates, and profit margins against industry standards and historical federal contract data for similar services.

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

Key risks include potential delays in project completion due to unforeseen site conditions, weather events in Puerto Rico, or contractor performance issues. Cost overruns are mitigated by the Firm Fixed Price (FFP) contract type, which shifts financial risk to the contractor. Performance risk is managed through government oversight and the requirement for adherence to strict inspection standards. The contractor's experience and the competitive bidding process also serve as risk mitigation factors, suggesting a selection of a capable provider. However, ongoing monitoring by the Federal Highway Administration remains crucial.

How effective is the 'full and open competition' approach likely to be in ensuring value for this specific contract?

The 'full and open competition' approach is generally the most effective method for ensuring value for taxpayer money, as it maximizes the number of potential bidders and encourages competitive pricing. For this $2.25 million contract, it suggests that multiple qualified firms were able to bid, likely leading to a more favorable price than a sole-source or limited competition award. The effectiveness is further enhanced if the solicitation clearly defined the scope of work and evaluation criteria, allowing for a fair comparison of technical capabilities and costs among bidders. The ultimate value realization depends on the quality of the inspections performed.

What is the historical spending pattern for construction inspection services by the Federal Highway Administration in Puerto Rico?

Analyzing historical spending patterns for construction inspection services by the Federal Highway Administration (FHWA) in Puerto Rico is crucial for context. While this specific $2.25 million award is for a defined period, understanding the FHWA's typical investment in such services in the region over the past 5-10 years would reveal trends. This includes the average contract size, frequency of awards, and the prevalence of different competition levels. Such data can help determine if this award is consistent with past spending, unusually high or low, and whether there's a trend towards increased reliance on such services, possibly due to ongoing infrastructure needs or disaster recovery efforts in Puerto Rico.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4030 W BOY SCOUT BLVD STE 700, TAMPA, FL, 33607

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

Financial Breakdown

Contract Ceiling: $2,247,474

Exercised Options: $2,247,474

Current Obligation: $2,247,474

Actual Outlays: $1,815,486

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693C7322D000002

IDV Type: IDC

Timeline