DoD's $10M Firm Fixed Price Contract with CH2M-JONES, LLC for Services in South Carolina
Contract Overview
Contract Amount: $10,054,505 ($10.1M)
Contractor: Ch2m-Jones, LLC
Awarding Agency: Department of Defense
Start Date: 2000-02-14
End Date: 2020-02-13
Contract Duration: 7,304 days
Daily Burn Rate: $1.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Place of Performance
Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29415
Plain-Language Summary
Department of Defense obligated $10.1 million to CH2M-JONES, LLC for work described as: Key points: 1. Contract awarded to CH2M-JONES, LLC for an estimated $10.05 million. 2. Utilized full and open competition, suggesting a competitive bidding process. 3. Contract duration is 20 years, indicating a long-term service agreement. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. Located in South Carolina, with a base contract value of $1.377 million.
Value Assessment
Rating: good
The contract's base value is $1.377 million with a total potential value of $10.05 million over 20 years. Pricing appears reasonable given the long duration and firm fixed-price structure, which typically includes contractor risk premiums.
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 considered. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by fostering a competitive environment.
Public Impact
Long-term service contracts can provide stability for government operations. Firm fixed-price contracts protect the government from cost overruns. The significant duration may raise questions about the need for ongoing services over two decades. Geographic concentration in South Carolina may indicate specific regional needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (20 years) may warrant review for continued necessity.
- Potential for scope creep in long-term service contracts.
- Lack of specific service details makes detailed risk assessment difficult.
Positive Signals
- Firm Fixed Price structure transfers cost risk to the contractor.
- Full and open competition suggests a competitive award process.
- Contract awarded to a single entity, potentially simplifying management.
Sector Analysis
This contract falls under general services within the Department of Defense. Benchmarking requires specific service details, but long-term service contracts of this magnitude are common for infrastructure or support functions.
Small Business Impact
The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The long duration of the contract necessitates robust oversight to ensure performance standards are met and the contract remains aligned with evolving government needs. Regular performance reviews are crucial.
Related Government Programs
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration (20 years) may exceed actual need.
- Potential for contractor performance degradation over time.
- Lack of specific service details hinders comprehensive risk assessment.
- Firm Fixed Price may disincentivize contractor innovation if not managed well.
Tags
department-of-defense, sc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.1 million to CH2M-JONES, LLC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is CH2M-JONES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $10.1 million.
What is the period of performance?
Start: 2000-02-14. End: 2020-02-13.
What specific services are covered under this $10 million contract, and how do they align with the Department of the Navy's long-term strategic goals?
The provided data lacks specifics on the services rendered. Understanding the exact nature of the services is crucial for assessing their alignment with the Department of the Navy's strategic objectives. Without this information, it's difficult to determine if the $10 million investment over 20 years is effectively contributing to mission accomplishment or if the scope needs re-evaluation.
Given the 20-year duration, what mechanisms are in place to manage potential cost increases or scope creep, even with a firm fixed-price structure?
While a firm fixed-price contract shifts cost risk to the contractor, a 20-year term presents inherent risks. Mechanisms like clear performance metrics, change order controls, and periodic reviews are essential. The government must ensure that contract modifications are strictly managed to prevent uncontrolled scope expansion and that the contractor maintains efficiency over the extended period.
How was the 'full and open competition' process structured to ensure the best possible value was achieved for these long-term services?
The effectiveness of 'full and open competition' hinges on the solicitation's clarity, the evaluation criteria's robustness, and the number and quality of bids received. For a 20-year contract, the evaluation likely considered not just initial price but also the contractor's long-term viability, technical approach, and past performance. Ensuring a truly competitive landscape is key to taxpayer value.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)
Address: 115 PERIMETER CENTRE PLACE, ATLANTA, GA, 30346
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2000-02-14
Current End Date: 2020-02-13
Potential End Date: 2020-02-13 00:00:00
Last Modified: 2020-09-09
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