EPA's $14.1M engine development contract with FEV North America, Inc. awarded via full and open competition

Contract Overview

Contract Amount: $14,097,476 ($14.1M)

Contractor: FEV North America, Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2007-10-25

End Date: 2012-01-31

Contract Duration: 1,559 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ENGINE AND VEHICLE DEVELOPMENT TESTING AND REFINEMENT WITH PRODUCTION INTENT

Place of Performance

Location: AUBURN HILLS, OAKLAND County, MICHIGAN, 48326

State: Michigan Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $14.1 million to FEV NORTH AMERICA, INC for work described as: ENGINE AND VEHICLE DEVELOPMENT TESTING AND REFINEMENT WITH PRODUCTION INTENT Key points: 1. Contract focused on engine and vehicle development, testing, and refinement with production intent. 2. Awarded through full and open competition, suggesting a robust market for these services. 3. The contract duration of 1559 days indicates a significant, long-term project. 4. The cost-plus-fixed-fee pricing structure allows for flexibility while maintaining cost control. 5. The contract was awarded to FEV North America, Inc., a known entity in the automotive engineering sector. 6. The North American region was the primary geographic focus for this contract.

Value Assessment

Rating: good

The contract value of approximately $14.1 million over roughly four years represents a substantial investment in engineering services. Benchmarking this against similar contracts for engine development and testing is challenging without more specific service details. However, the fixed-fee component suggests an attempt to manage costs effectively. The value appears reasonable for a project involving development, testing, and refinement with production intent, which are complex and resource-intensive activities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bidders suggests a competitive environment, which typically leads to better pricing and value for the government. The open competition process allows the agency to select the most capable and cost-effective solution.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive marketplace that drives down prices and encourages innovation, ensuring the government receives the best possible value for its investment.

Public Impact

The Environmental Protection Agency (EPA) benefits from advanced engine and vehicle development, contributing to regulatory goals. Services delivered include critical testing and refinement processes essential for automotive technology advancement. The contract's impact is primarily within the automotive engineering and research sector. Workforce implications include specialized engineering and technical roles within FEV North America, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus contracts if not managed diligently.
Dependence on a single contractor for critical development and testing phases.
Scope creep could increase the final cost beyond initial estimates.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Fixed-fee component provides a degree of cost certainty for the government.
Contractor has a specific focus on engine and vehicle development, suggesting expertise.

Sector Analysis

The automotive engineering sector is characterized by significant R&D investment and a focus on innovation, particularly in areas like emissions reduction and fuel efficiency. This contract fits within the broader landscape of federal support for technological advancement in transportation. Comparable spending benchmarks would depend on the specific nature of the engine development and testing, but federal agencies often contract for specialized engineering services to meet regulatory and research objectives.

Small Business Impact

This contract was not set aside for small businesses and there is no indication of subcontracting requirements for small businesses. The primary contractor, FEV North America, Inc., is a large entity. Therefore, the direct impact on the small business ecosystem is likely minimal, with opportunities primarily arising if FEV North America, Inc. chooses to subcontract for specialized services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Environmental Protection Agency's contracting officers and program managers. Accountability measures are built into the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through the contract award process and reporting requirements, though specific details of ongoing oversight are not publicly detailed.

Related Government Programs

Vehicle Emissions Testing
Automotive Research and Development
Environmental Technology Development
Engineering Services Contracts

Risk Flags

Cost Overrun Risk
Scope Creep Potential
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $14.1 million to FEV NORTH AMERICA, INC. ENGINE AND VEHICLE DEVELOPMENT TESTING AND REFINEMENT WITH PRODUCTION INTENT

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 $14.1 million.

What is the period of performance?

Start: 2007-10-25. End: 2012-01-31.

What is the track record of FEV North America, Inc. with the EPA and other federal agencies for similar engineering services?

FEV North America, Inc. has a significant history of providing engineering services, particularly in the automotive sector, to various government agencies, including the EPA. Their expertise lies in engine development, testing, and advanced propulsion systems. While specific contract details with the EPA beyond this entry are not immediately available in this dataset, FEV's broader federal contracting history often involves research, development, and testing services related to vehicle performance and emissions. Their established presence in the industry suggests a capacity to handle complex engineering challenges. Further analysis would involve reviewing historical performance ratings and other contract awards to gauge their consistent delivery and value proposition across different federal engagements.

How does the $14.1 million contract value compare to similar engine development and testing contracts awarded by the EPA or other agencies?

The $14.1 million contract value for engine and vehicle development testing and refinement with production intent is a substantial but not extraordinary figure for a multi-year engineering project. To provide a precise comparison, one would need to identify contracts with highly similar scopes of work, such as advanced powertrain development, emissions control system testing, or prototype vehicle engineering. However, for a project spanning over 1500 days and involving complex R&D with production intent, this value appears within a reasonable range. Federal agencies frequently award contracts in the multi-million dollar bracket for specialized engineering services that require extensive testing, simulation, and validation, especially in rapidly evolving fields like automotive technology.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engine development?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engine development revolve around cost control and potential for scope creep. While the fixed fee provides the contractor with a guaranteed profit margin, the 'cost plus' portion means the government bears the risk of actual costs incurred. If development encounters unforeseen technical challenges or requires more resources than initially estimated, the total cost to the government can escalate significantly. The contractor has less incentive to control costs once the fee is fixed, potentially leading to less efficient resource utilization. For the government, diligent oversight, clear performance metrics, and robust change management processes are crucial to mitigate these risks and ensure the project stays within budget and achieves its objectives.

What is the expected impact of this contract on the EPA's ability to meet its environmental and regulatory goals?

This contract is expected to significantly enhance the EPA's capabilities in engine and vehicle development, testing, and refinement, directly supporting its environmental and regulatory goals. By investing in advanced research and development, the EPA can better understand and address emissions challenges, fuel efficiency, and the performance of new automotive technologies. The 'production intent' aspect suggests that the outcomes of this contract could lead to the development of technologies or standards that influence future vehicle production, thereby contributing to cleaner air and reduced environmental impact. The testing and refinement processes are crucial for validating the effectiveness of new technologies and ensuring they meet stringent environmental performance criteria.

How has EPA's spending on engineering services like this evolved over the past five years?

Analyzing the EPA's spending evolution on engineering services requires access to historical contract data beyond this single entry. However, generally, federal agencies like the EPA allocate significant budgets to engineering and technical services to support their mission, which includes research, development, regulatory enforcement, and environmental protection. Spending in this area can fluctuate based on specific program needs, emerging environmental challenges (e.g., climate change initiatives, new pollutant regulations), and the availability of federal funding. Contracts for engine and vehicle development, in particular, may see increased activity driven by evolving automotive technologies, stricter emissions standards, and the push towards electrification and alternative fuels. A comprehensive review of EPA's contracting database would reveal trends and specific investment patterns.

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

Solicitation ID: PRCI0710063

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: FEV North America Inc. (UEI: 313178417)

Address: 4554 GLENMEADE LN, AUBURN HILLS, MI, 48326

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $29,150,644

Exercised Options: $17,854,548

Current Obligation: $14,097,476

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline