DOT's $218M engineering services contract awarded to Jacobs Project Management Co. for DAFIS UDO RECONSTRUCT W/O ADVANCE

Contract Overview

Contract Amount: $217,966,794 ($218.0M)

Contractor: Jacobs Project Management CO

Awarding Agency: Department of Transportation

Start Date: 2004-04-02

End Date: 2008-04-12

Contract Duration: 1,471 days

Daily Burn Rate: $148.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: DAFIS UDO RECONSTRUCT W/O ADVANCE

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $218.0 million to JACOBS PROJECT MANAGEMENT CO for work described as: DAFIS UDO RECONSTRUCT W/O ADVANCE Key points: 1. The contract's value of $218 million over its duration suggests a significant investment in engineering services. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process. 3. The use of Time and Materials pricing may introduce cost variability, requiring diligent oversight. 4. The contract's duration of 1471 days indicates a long-term need for these engineering services. 5. The specific nature of 'DAFIS UDO RECONSTRUCT W/O ADVANCE' points to a complex and potentially critical project. 6. The award to a single entity, Jacobs Project Management Co., highlights their specialized capabilities in this domain.

Value Assessment

Rating: fair

Benchmarking the value of this $218 million contract is challenging without specific details on the engineering services provided. However, the duration of 1471 days suggests a substantial project. The Time and Materials pricing structure, while flexible, can lead to costs exceeding initial estimates if not managed carefully. Comparing this to similar large-scale engineering services contracts would provide better context on whether the pricing reflects market rates for the complexity and duration involved.

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 invited to submit proposals. This approach generally fosters price discovery and allows the government to select the most advantageous offer. The presence of 3 bidders suggests a reasonable level of competition for this engineering services contract.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages competitive pricing and can lead to cost savings compared to sole-source or limited competition awards.

Public Impact

The Federal Aviation Administration (FAA) and the Department of Transportation (DOT) are the primary beneficiaries, receiving critical engineering services. The services delivered are related to 'DAFIS UDO RECONSTRUCT W/O ADVANCE,' likely involving infrastructure or system upgrades. The geographic impact is centered in Virginia (ST='VA', SN='VIRGINIA'), where the contractor is based. The contract supports specialized engineering roles, potentially impacting the workforce in the engineering services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure.
Complexity of 'DAFIS UDO RECONSTRUCT W/O ADVANCE' may pose execution risks.
Long contract duration could lead to scope creep or evolving requirements.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contractor Jacobs Project Management Co. has a track record in project management.
The contract addresses a specific, likely important, need within the FAA/DOT.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of infrastructure development and maintenance. The market for such services is substantial, driven by government and private sector investments in transportation, utilities, and construction. This specific award to Jacobs Project Management Co. for the FAA likely represents a significant project within this specialized niche, contributing to the overall spending in the engineering consulting industry.

Small Business Impact

The contract data indicates that small business participation (SB=false) was not a specific set-aside. There is no explicit information on subcontracting plans for small businesses. This suggests that the primary focus was on securing specialized engineering expertise, and the impact on the small business ecosystem may be indirect, depending on whether the prime contractor utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration (FAA) contracting officers and program managers. Accountability measures would be embedded in the contract terms, including performance metrics and reporting requirements. Transparency is facilitated through contract award databases like USASpending.gov. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Aviation Administration Contracts
Department of Transportation Engineering Services
Infrastructure Project Management Contracts
Time and Materials Contracts
Large-Scale Engineering Services

Risk Flags

Potential for cost overruns due to T&M pricing.
Long contract duration may increase risk of scope creep.
Complexity of project 'DAFIS UDO RECONSTRUCT W/O ADVANCE' requires careful management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $218.0 million to JACOBS PROJECT MANAGEMENT CO. DAFIS UDO RECONSTRUCT W/O ADVANCE

Who is the contractor on this award?

The obligated recipient is JACOBS PROJECT MANAGEMENT CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $218.0 million.

What is the period of performance?

Start: 2004-04-02. End: 2008-04-12.

What is the specific nature and scope of the 'DAFIS UDO RECONSTRUCT W/O ADVANCE' project?

The acronym 'DAFIS UDO RECONSTRUCT W/O ADVANCE' likely refers to a specific project within the Federal Aviation Administration (FAA) related to data, systems, or infrastructure reconstruction. Without further declassification or context, the precise meaning remains obscure. However, the 'RECONSTRUCT' element suggests a significant overhaul or rebuilding effort. The 'W/O ADVANCE' might indicate a phase or a specific methodology. Given the contract's value and duration, it is reasonable to infer that this project involves substantial engineering, planning, and potentially construction management services critical to the FAA's operational capabilities or infrastructure integrity.

How does the $218 million contract value compare to other large engineering services contracts awarded by the FAA or DOT?

A $218 million contract for engineering services is substantial, placing it among significant federal procurements. To benchmark effectively, one would need to compare it against similar contracts for large-scale infrastructure projects, system upgrades, or complex technical support within the transportation sector. For instance, major airport construction oversight, air traffic control system modernization, or large bridge design contracts could offer comparable value points. The duration of 1471 days (approximately 4 years) also suggests a project of considerable scale and complexity, which typically correlates with higher contract values in the engineering services domain.

What are the potential risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk with a Time and Materials (T&M) pricing structure is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours and material costs incurred, plus a fee or profit margin. If not managed diligently through robust oversight, detailed tracking of hours, and strict control over material procurement, the total cost can escalate beyond initial expectations. This necessitates strong government oversight to ensure efficiency, prevent unnecessary labor, and validate all material expenses. The long duration of this contract amplifies this risk, as market rates for labor and materials can fluctuate over time.

What is Jacobs Project Management Co.'s track record with large federal engineering contracts, particularly with the FAA or DOT?

Jacobs Project Management Co. is a well-established entity in the engineering and construction management sector, known for undertaking large-scale projects for both government and private clients. While specific details of their past performance on similar FAA or DOT contracts would require deeper investigation into contract databases and performance reviews, their selection for a contract of this magnitude suggests a demonstrated capability and a positive performance history. Federal procurement systems often track contractor past performance, which is a key factor in award decisions. Their experience likely encompasses managing complex projects, adhering to stringent regulatory requirements, and delivering within specified timelines and budgets.

How has federal spending on engineering services, specifically within the transportation sector, trended over the past decade?

Federal spending on engineering services within the transportation sector has generally seen fluctuations tied to infrastructure investment cycles and specific agency priorities. Periods of increased federal funding for infrastructure projects, such as highway expansions, airport upgrades, and transit system development, typically lead to higher demand and spending on engineering services. Conversely, budget constraints or shifts in national priorities can result in reduced spending. The FAA, as a major consumer of engineering services for air traffic control systems and airport infrastructure, plays a significant role in this trend. Analyzing historical data from agencies like DOT and FAA would reveal patterns influenced by legislation (e.g., infrastructure bills) and economic conditions.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)

Address: 1100 N GLEBE RD STE 500, ARLINGTON, VA, 08

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

Financial Breakdown

Contract Ceiling: $66,099,309,092

Exercised Options: $279,630,217

Current Obligation: $217,966,794

Timeline