EPA awards $19M for Vehicle and Engine Engineering Support to FEV North America, Inc

Contract Overview

Contract Amount: $19,000,811 ($19.0M)

Contractor: FEV North America, Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2004-12-29

End Date: 2008-09-30

Contract Duration: 1,371 days

Daily Burn Rate: $13.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: VEHICLE AND ENGINE ENGINEERING SUPPORT

Place of Performance

Location: AUBURN HILLS, OAKLAND County, MICHIGAN, 48326

State: Michigan Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $19.0 million to FEV NORTH AMERICA, INC for work described as: VEHICLE AND ENGINE ENGINEERING SUPPORT Key points: 1. Contract awarded to FEV North America, Inc. for $19M. 2. Competition type: Full and Open. 3. Contract duration: 1371 days. 4. NAICS code: 541330 (Engineering Services). 5. Contract vehicle: DCA.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee pricing arrangement may not always yield the most cost-effective outcome.

Taxpayer Impact: Taxpayer funds are utilized for specialized engineering support, with the effectiveness of cost controls being a key factor in overall value.

Public Impact

Supports EPA's mission in environmental protection through engineering expertise. Potential for innovation in vehicle and engine technology. Ensures compliance with environmental regulations through technical analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee pricing structure
Lack of detailed cost breakdown for benchmarking

Positive Signals

Full and open competition
Supports critical EPA mission

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for government agencies like the EPA to conduct research, development, and regulatory oversight. Spending in this sector is often project-specific and driven by evolving technological and environmental needs.

Small Business Impact

The contract was awarded to FEV North America, Inc., a large business. There is no indication of small business subcontracting participation in the provided data.

Oversight & Accountability

The EPA is responsible for overseeing this contract to ensure the engineering services provided meet the required standards and that costs are managed effectively under the Cost Plus Fixed Fee arrangement.

Related Government Programs

Engineering Services
Environmental Protection Agency Contracting
Environmental Protection Agency Programs

Risk Flags

Potential for cost overruns due to CPFF structure
Limited transparency on specific deliverables and cost allocation
No clear indication of small business participation
Contract duration is substantial, requiring ongoing oversight

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $19.0 million to FEV NORTH AMERICA, INC. VEHICLE AND ENGINE ENGINEERING SUPPORT

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 $19.0 million.

What is the period of performance?

Start: 2004-12-29. End: 2008-09-30.

What specific engineering challenges or projects does this contract address for the EPA?

This contract likely supports the EPA's efforts in areas such as emissions testing, development of new engine technologies, vehicle efficiency standards, and research into the environmental impact of transportation. The specific projects would depend on the EPA's current regulatory priorities and research initiatives within its environmental protection mandate.

How does the Cost Plus Fixed Fee structure impact the risk of cost overruns for this contract?

The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost can increase if allowable costs rise. This shifts some cost risk to the government, necessitating strong oversight to control expenditures and ensure the fixed fee remains appropriate for the work performed.

What is the long-term effectiveness of this type of engineering support for the EPA's mission?

Sustained, high-quality engineering support is vital for the EPA to stay abreast of technological advancements and effectively regulate environmental impacts. The long-term effectiveness hinges on the contractor's ability to provide innovative solutions, accurate analysis, and timely support that directly contributes to achieving the agency's environmental protection goals.

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 ID: PRCI0310417

Offers Received: 3

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,070,913

Exercised Options: $21,349,663

Current Obligation: $19,000,811

Timeline