EPA's $20.2M Engineering Services Contract with FEV North America: A 2002 Award
Contract Overview
Contract Amount: $20,213,112 ($20.2M)
Contractor: FEV North America, Inc
Awarding Agency: Environmental Protection Agency
Start Date: 2002-07-15
End Date: 2007-05-31
Contract Duration: 1,781 days
Daily Burn Rate: $11.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Place of Performance
Location: AUBURN HILLS, OAKLAND County, MICHIGAN, 48326
State: Michigan Government Spending
Plain-Language Summary
Environmental Protection Agency obligated $20.2 million to FEV NORTH AMERICA, INC for work described as: Key points: 1. The contract awarded in 2002 for $20.2 million highlights long-term engagements in engineering services. 2. FEV North America, Inc. secured this contract, indicating potential specialization or established relationship with the EPA. 3. The 'FULL AND OPEN COMPETITION' suggests a competitive bidding process, aiming for best value. 4. The contract duration of 1781 days (approx. 4.8 years) points to a significant project scope.
Value Assessment
Rating: fair
The contract type is 'COST PLUS FIXED FEE', which can sometimes lead to higher costs if not managed carefully. Benchmarking against similar engineering services contracts from the same era would be necessary for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION', indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests efforts to secure reasonable pricing, but the 'COST PLUS FIXED FEE' structure warrants scrutiny to ensure taxpayer funds were used efficiently.
Public Impact
Environmental protection initiatives often rely on specialized engineering expertise, impacting public health and safety. Long-term contracts like this can ensure continuity of essential services but also tie up significant public funds. The specific engineering services provided could range from pollution control design to environmental impact assessments, directly affecting communities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize cost overruns.
- Lack of specific performance metrics or outcomes makes value assessment difficult.
- Contract awarded over 20 years ago, current relevance and pricing may be outdated.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Long contract duration indicates a significant and potentially complex project.
Sector Analysis
Engineering services are critical for government agencies like the EPA to manage and execute complex environmental projects. Spending in this sector can vary widely based on regulatory changes and infrastructure needs.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). This suggests the scope or nature of the engineering services required favored larger, established firms.
Oversight & Accountability
The contract was awarded by the Environmental Protection Agency (EPA), a federal agency with established oversight mechanisms. However, the 'COST PLUS FIXED FEE' structure necessitates diligent monitoring to control costs and ensure performance.
Related Government Programs
- Engineering Services
- Environmental Protection Agency Contracting
- Environmental Protection Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type can lead to higher costs if not managed effectively.
- Lack of detailed performance metrics makes it difficult to assess the true value and effectiveness of the services rendered.
- The contract is over 20 years old, raising questions about its current relevance and whether the pricing remains competitive.
- No indication of small business participation.
Tags
engineering-services, environmental-protection-agency, mi, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Environmental Protection Agency awarded $20.2 million to FEV NORTH AMERICA, INC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is FEV NORTH AMERICA, INC.
Which agency awarded this contract?
Awarding agency: Environmental Protection Agency (Environmental Protection Agency).
What is the total obligated amount?
The obligated amount is $20.2 million.
What is the period of performance?
Start: 2002-07-15. End: 2007-05-31.
What specific engineering services were provided under this contract, and how did they contribute to the EPA's mission?
The contract number and description 'Engineering Services' are broad. To assess value, detailed documentation on the specific tasks performed, deliverables, and their impact on environmental protection goals would be needed. This includes understanding if the services led to tangible improvements in pollution control, regulatory compliance, or environmental restoration efforts.
What were the key factors that led to the selection of FEV North America, Inc. under a Cost Plus Fixed Fee structure?
Understanding the rationale behind the 'COST PLUS FIXED FEE' award is crucial for risk assessment. This structure is often used when project scope is uncertain or R&D is involved. Investigating the specific technical requirements, the perceived risks, and the competitive landscape at the time of award would clarify why this pricing model was chosen over fixed-price alternatives.
How does the $20.2 million expenditure compare to similar engineering service contracts awarded by the EPA around 2002?
A direct comparison requires access to historical contract data for similar services and agencies. Benchmarking the $20.2 million against the average cost and scope of comparable engineering contracts from that period would help determine if this award represented a fair market price. Without such comparative data, assessing the cost-effectiveness remains challenging.
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
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: FEV Motorentechnik Gmbh (UEI: 317585370)
Address: 4554 GLENMEADE LN, AUBURN HILLS, MI, 11
Business Categories: Category Business, Not Designated a Small Business
Timeline
Start Date: 2002-07-15
Current End Date: 2007-05-31
Potential End Date: 2007-05-31 00:00:00
Last Modified: 2009-06-01
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