Navy Awards $19.4M Engineering Contract for Cherry Point Sustainment Center Support
Contract Overview
Contract Amount: $19,381,612 ($19.4M)
Contractor: HDR Engineering, Inc of the Carolinas
Awarding Agency: Department of Defense
Start Date: 2020-01-10
End Date: 2029-07-07
Contract Duration: 3,466 days
Daily Burn Rate: $5.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SUSTAINMENT CENTER CHERRY POINTAE SUPPORT TO PO
Place of Performance
Location: CHERRY POINT, CRAVEN County, NORTH CAROLINA, 28533
Plain-Language Summary
Department of Defense obligated $19.4 million to HDR ENGINEERING, INC OF THE CAROLINAS for work described as: SUSTAINMENT CENTER CHERRY POINTAE SUPPORT TO PO Key points: 1. Contract value of $19.4 million over its term. 2. Competition was full and open, indicating a competitive bidding process. 3. Risk appears moderate given the long duration and fixed-price nature. 4. Sector is Engineering Services, supporting defense infrastructure.
Value Assessment
Rating: good
The contract value of $19.4 million over nearly 10 years suggests a reasonable annual spend. Benchmarking against similar large-scale engineering support contracts would provide a clearer picture of pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The fixed-price contract type further incentivizes cost control by the contractor.
Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it drives down costs through market forces.
Public Impact
Supports critical infrastructure maintenance and operations at a naval facility. Long-term contract provides stability for sustainment operations. Potential for follow-on work or expansion based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (nearly 10 years) could lead to scope creep or price escalation if not managed effectively.
- Reliance on a single firm for extended support may limit future innovation or cost-saving opportunities.
- Fixed-price contracts can sometimes lead to contractors cutting corners if not closely monitored.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Firm fixed-price contract type aligns incentives for cost control.
- Long-term nature provides predictable support for essential operations.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense infrastructure. Spending in this sector can vary widely based on project scale and duration, but long-term sustainment contracts are common for maintaining critical government facilities.
Small Business Impact
The contract was awarded to HDR ENGINEERING, INC OF THE CAROLINAS, a large business. There is no indication of specific set-asides for small businesses in this award, suggesting limited direct participation for SMBs in this prime contract.
Oversight & Accountability
The long duration of this contract necessitates robust oversight from the Department of the Navy to ensure performance standards are met and costs remain within expectations. Regular performance reviews and contract modifications will be crucial.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration may increase risk of cost overruns or scope creep.
- Potential for contractor performance degradation over an extended period.
- Lack of explicit small business participation noted.
- Dependence on a single entity for critical sustainment functions.
Tags
engineering-services, department-of-defense, nc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.4 million to HDR ENGINEERING, INC OF THE CAROLINAS. SUSTAINMENT CENTER CHERRY POINTAE SUPPORT TO PO
Who is the contractor on this award?
The obligated recipient is HDR ENGINEERING, INC OF THE CAROLINAS.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $19.4 million.
What is the period of performance?
Start: 2020-01-10. End: 2029-07-07.
What is the estimated annual cost for this engineering support, and how does it compare to industry benchmarks for similar facilities?
The total contract value is $19.4 million over approximately 3466 days (about 9.5 years). This equates to an average annual cost of roughly $2.04 million. Benchmarking this against similar sustainment contracts for large military installations would be necessary to determine if it represents good value. Factors like the complexity of the facility and specific services required would influence this comparison.
What are the key performance indicators (KPIs) for this contract, and how will the government ensure the contractor meets them over the long term?
While specific KPIs are not detailed in the provided data, typical indicators for such contracts include response times, quality of work, adherence to safety standards, and successful completion of maintenance tasks. The Department of the Navy will likely employ a contract officer's representative (COR) and conduct regular performance reviews to monitor progress and ensure compliance. Contract clauses addressing performance failures would also be in place.
Are there any provisions for incorporating new technologies or more efficient engineering practices over the contract's nearly decade-long term?
The provided data does not explicitly mention provisions for incorporating new technologies or practices. However, a well-structured contract of this duration often includes mechanisms for contract modifications or change orders to allow for the integration of improved methods or technologies, especially if they offer cost savings or enhanced performance. The government's proactive management would be key to leveraging such opportunities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: HDR, Inc
Address: 440 S CHURCH ST STE 1000, CHARLOTTE, NC, 28202
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,381,612
Exercised Options: $19,381,612
Current Obligation: $19,381,612
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $1,068,257
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N4008518D0601
IDV Type: IDC
Timeline
Start Date: 2020-01-10
Current End Date: 2029-07-07
Potential End Date: 2029-07-07 00:00:00
Last Modified: 2025-09-19
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