EPA awards $18.7M for advanced hydraulic hybrid vehicle technology to FEV North America

Contract Overview

Contract Amount: $18,679,838 ($18.7M)

Contractor: FEV North America, Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2008-09-01

End Date: 2012-08-31

Contract Duration: 1,460 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: HYDRAULIC PUMP/MOTOR AND ADVANCED POWERTRAIN SUPPORT FOR DEVELOPMENT OF ADVANCED HYDRAULIC HYBRID VECHICLE TECHNOLOGY

Place of Performance

Location: AUBURN HILLS, OAKLAND County, MICHIGAN, 48326

State: Michigan Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $18.7 million to FEV NORTH AMERICA, INC for work described as: HYDRAULIC PUMP/MOTOR AND ADVANCED POWERTRAIN SUPPORT FOR DEVELOPMENT OF ADVANCED HYDRAULIC HYBRID VECHICLE TECHNOLOGY Key points: 1. Contract value of $18.7M over four years suggests significant investment in specialized engineering services. 2. Full and open competition indicates a broad market search for qualified contractors. 3. Cost Plus Fixed Fee contract type may present cost control challenges if not closely managed. 4. The definitive contract award signifies a commitment to a specific project timeline and scope. 5. Focus on advanced powertrain development aligns with environmental goals for vehicle efficiency. 6. The contract duration of 1460 days (4 years) allows for substantial research and development. 7. Engineering services procurement highlights the need for specialized technical expertise. 8. The contract's focus on hybrid vehicle technology positions it within the growing green transportation sector.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific details on the scope of 'advanced hydraulic hybrid vehicle technology'. However, an $18.7 million award over four years for specialized engineering services is substantial. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, can lead to higher costs if the fixed fee is not adequately justified by the anticipated effort and risk. Without comparable contract data for similar advanced powertrain development, a precise value-for-money assessment is difficult, but the duration suggests a deep dive into complex engineering challenges.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that the Environmental Protection Agency (EPA) sought proposals from all responsible sources. This approach typically fosters a competitive environment, potentially leading to better pricing and innovative solutions. The fact that it was a definitive contract award implies a thorough evaluation process. However, the number of bidders is not specified, which would provide further insight into the intensity of the competition and its impact on price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of potential contractors to bid, which can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are likely the EPA and the public, through advancements in environmentally friendly vehicle technology. Services delivered include specialized engineering and development for advanced hydraulic hybrid vehicle powertrains. The geographic impact is primarily within Michigan, where FEV North America is located, but the technological advancements could have national implications. Workforce implications include the employment of highly skilled engineers and technical staff at FEV North America.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize profit if not properly managed.
Lack of specific performance metrics makes it difficult to assess the contractor's progress and efficiency.
The advanced nature of the technology implies inherent technical risks that could impact project timelines and outcomes.
Limited information on the number of bidders in the full and open competition makes it hard to gauge the true competitive pressure on pricing.

Positive Signals

Awarded under full and open competition, indicating a broad search for the best value.
The contract duration of four years allows for in-depth research and development of complex technologies.
Focus on developing advanced hydraulic hybrid vehicle technology aligns with national environmental and energy efficiency goals.
FEV North America's specialization in powertrain development suggests a strong technical capability for this project.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on automotive R&D and advanced powertrain technologies. The market for green vehicle technology is rapidly expanding, driven by environmental regulations and consumer demand. Comparable spending in this area can vary widely depending on the specific technology and development phase. However, significant government and private investment is being directed towards hybrid and electric vehicle research, making this contract a relevant part of that broader trend.

Small Business Impact

The contract was awarded to FEV North America, Inc., a large business. There is no indication of a small business set-aside. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data, but it is possible that FEV may engage small businesses for specialized components or services as part of the project's execution.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Environmental Protection Agency (EPA). The Cost Plus Fixed Fee structure necessitates diligent oversight to ensure costs are reasonable and allocable, and that the fixed fee is earned. Transparency would be enhanced through regular reporting requirements from the contractor. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Advanced Vehicle Technology Development
Environmental Technology Research
Hybrid Vehicle Systems
Powertrain Engineering
Sustainable Transportation Initiatives

Risk Flags

Cost Plus Fixed Fee contract type requires robust oversight to manage potential cost overruns.
Complexity of advanced technology development introduces inherent technical risks.
Lack of specific performance metrics makes ongoing progress assessment challenging.
Limited information on bidder numbers hinders full assessment of competitive pressure.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $18.7 million to FEV NORTH AMERICA, INC. HYDRAULIC PUMP/MOTOR AND ADVANCED POWERTRAIN SUPPORT FOR DEVELOPMENT OF ADVANCED HYDRAULIC HYBRID VECHICLE TECHNOLOGY

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 $18.7 million.

What is the period of performance?

Start: 2008-09-01. End: 2012-08-31.

What is FEV North America's track record with similar government contracts, particularly in advanced powertrain development?

FEV North America, Inc. has a significant history of working with government agencies and the automotive industry on advanced powertrain and vehicle technologies. While specific details on past EPA contracts are not provided here, FEV is globally recognized for its expertise in engine and vehicle development, testing, and integration. Their work often involves complex R&D projects, including hybrid and alternative fuel systems. A deeper dive into their contract history with agencies like the Department of Energy or Department of Defense, and their performance ratings on those contracts, would provide a more comprehensive understanding of their reliability and success in delivering on similar advanced engineering projects.

How does the $18.7 million contract value compare to similar R&D efforts in advanced hydraulic hybrid vehicle technology?

Directly comparing the $18.7 million contract value to similar R&D efforts in advanced hydraulic hybrid vehicle technology is challenging without access to proprietary industry data or a comprehensive database of government R&D spending on this specific niche. However, the amount suggests a substantial, multi-year commitment to developing complex powertrain systems. The cost is likely influenced by the specialized nature of hydraulic hybrid technology, the need for advanced simulation and testing, and the expertise required. For context, other advanced vehicle technology R&D programs, such as those for battery electric vehicles or fuel cell technology, often involve multi-million dollar investments over several years, indicating that this figure is within the expected range for cutting-edge automotive engineering.

What are the primary technical risks associated with developing advanced hydraulic hybrid vehicle technology under this contract?

The primary technical risks associated with developing advanced hydraulic hybrid vehicle technology include the complexity of integrating hydraulic energy storage and recovery systems with conventional or alternative powertrains, ensuring system efficiency and durability under various operating conditions, and managing the weight and packaging constraints of these systems within a vehicle. Achieving seamless control strategies between the hydraulic and other powertrain components is also a significant challenge. Furthermore, the reliability and maintenance requirements of advanced hydraulic components in a demanding automotive environment pose potential risks. The Cost Plus Fixed Fee contract type may mitigate some risk for the contractor, but the EPA bears the risk of cost overruns if these technical challenges prove more difficult or expensive to overcome than initially anticipated.

How effective is the Cost Plus Fixed Fee (CPFF) contract type for managing R&D projects like this, and what are the potential implications for the EPA?

The Cost Plus Fixed Fee (CPFF) contract type is often used for research and development (R&D) projects where the scope of work is not precisely defined at the outset, allowing for flexibility as the project evolves. It provides the contractor with reimbursement for allowable costs plus a predetermined fixed fee, incentivizing them to complete the work within the estimated cost to maximize their profit margin. For the EPA, the implication is that while it allows for exploration of innovative technologies, it also carries a risk of cost overruns if the contractor's initial cost estimates are inaccurate or if unforeseen technical challenges arise. Effective oversight is crucial to ensure costs remain reasonable and allocable to the contract, and that the fixed fee appropriately reflects the effort and risk involved.

What historical spending patterns exist for the EPA in the area of advanced vehicle or powertrain research?

The EPA has historically invested in research related to vehicle emissions, fuel efficiency, and alternative fuels to meet its environmental protection mandate. While specific spending patterns for 'advanced hydraulic hybrid vehicle technology' are not detailed here, the agency has funded numerous projects aimed at reducing the environmental impact of transportation. This includes research into cleaner combustion engines, advanced emission control systems, and the development and testing of hybrid and electric vehicle technologies. Their spending in these areas often fluctuates based on legislative priorities, technological advancements, and the availability of funding, but there is a consistent underlying commitment to advancing cleaner transportation solutions.

What are the potential long-term benefits and applications of the technology being developed under this contract?

The long-term benefits and applications of the technology developed under this contract could be significant for environmental protection and energy efficiency. Advanced hydraulic hybrid systems have the potential to improve fuel economy and reduce emissions in heavy-duty vehicles (like buses and trucks) and potentially in other vehicle classes by capturing and reusing braking energy. This technology could lead to more efficient urban transport, reduced reliance on fossil fuels, and lower greenhouse gas emissions. Successful development could also spur innovation in the automotive supply chain, creating new markets for hydraulic components and control systems, and contributing to the broader transition towards more sustainable transportation.

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: PRCI0810206

Offers Received: 1

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, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $37,286,517

Exercised Options: $30,560,096

Current Obligation: $18,679,838

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline