DoD awards $13M contract for leak detection services, highlighting engineering expertise
Contract Overview
Contract Amount: $12,966,387 ($13.0M)
Contractor: Baker-Aecom Environmental Compliance JV
Awarding Agency: Department of Defense
Start Date: 2026-01-12
End Date: 2027-02-15
Contract Duration: 399 days
Daily Burn Rate: $32.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CY26 DLA LEAK DETECTION CMP FOR OCONUS AND CONUS INSTALLATIONS
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23508
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $13.0 million to BAKER-AECOM ENVIRONMENTAL COMPLIANCE JV for work described as: CY26 DLA LEAK DETECTION CMP FOR OCONUS AND CONUS INSTALLATIONS Key points: 1. Contract value appears reasonable given the scope of OCONUS and CONUS installations. 2. Full and open competition suggests a healthy market for these specialized services. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of over a year allows for thorough service delivery. 5. The award to a joint venture indicates a capacity for complex, large-scale projects.
Value Assessment
Rating: good
The contract value of approximately $13 million for leak detection services across various Department of Defense (DoD) installations seems aligned with industry standards for comprehensive environmental engineering support. Benchmarking against similar contracts for large-scale infrastructure maintenance and environmental compliance would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract suggests a proactive approach to cost control by the agency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors were able to bid on the requirement. The specific number of bidders is not provided, but the open competition suggests a competitive environment that should drive fair pricing and encourage innovation. This approach is generally favored for ensuring the government receives the best value.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure services at optimal prices, preventing potential overspending and ensuring efficient allocation of public funds.
Public Impact
The Department of Defense benefits from enhanced environmental compliance and operational readiness through effective leak detection. Services will be delivered across OCONUS (Outside Continental United States) and CONUS (Continental United States) installations, ensuring broad geographic coverage. The contract supports specialized engineering and environmental services, potentially involving a skilled workforce in these fields. Improved leak detection contributes to environmental protection and resource conservation at military facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if unforeseen environmental complexities arise at diverse installations.
- Ensuring consistent service quality across geographically dispersed OCONUS and CONUS locations may present logistical challenges.
Positive Signals
- Fixed-price contract structure provides cost certainty and limits financial risk for the government.
- Award to a joint venture (BAKER-AECOM ENVIRONMENTAL COMPLIANCE JV) suggests robust capabilities and experience in handling complex environmental projects.
- Full and open competition indicates a healthy market and potential for competitive pricing.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader professional, scientific, and technical services industry. The market for environmental consulting and engineering services supporting government infrastructure is substantial, driven by regulatory compliance, aging facilities, and operational needs. This specific contract addresses the vital requirement for leak detection and environmental management at defense installations, a recurring need within the sector.
Small Business Impact
The contract was not specifically set aside for small businesses, and the award went to a joint venture, BAKER-AECOM ENVIRONMENTAL COMPLIANCE JV. While this indicates a large prime contractor, there may be opportunities for small businesses to participate as subcontractors, particularly in specialized areas of leak detection or environmental monitoring. Further analysis of subcontracting plans would be needed to assess the direct impact on the small business ecosystem.
Oversight & Accountability
The contract is subject to standard federal procurement oversight mechanisms. The fixed-price nature provides a degree of financial oversight. The Department of Defense's internal audit and inspection functions, along with potential oversight from the Government Accountability Office (GAO) and the Inspector General, would ensure accountability and adherence to contract terms. Transparency is maintained through contract award databases.
Related Government Programs
- Environmental Remediation Services
- Facility Maintenance and Repair
- Infrastructure Support Services
- Defense Environmental Programs
Risk Flags
- Potential for logistical challenges due to geographic dispersion.
- Risk of scope expansion if unforeseen environmental issues are discovered.
Tags
engineering-services, department-of-defense, leak-detection, environmental-compliance, firm-fixed-price, full-and-open-competition, delivery-order, virginia, oconus, conus, joint-venture
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.0 million to BAKER-AECOM ENVIRONMENTAL COMPLIANCE JV. CY26 DLA LEAK DETECTION CMP FOR OCONUS AND CONUS INSTALLATIONS
Who is the contractor on this award?
The obligated recipient is BAKER-AECOM ENVIRONMENTAL COMPLIANCE JV.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $13.0 million.
What is the period of performance?
Start: 2026-01-12. End: 2027-02-15.
What is the track record of BAKER-AECOM ENVIRONMENTAL COMPLIANCE JV in delivering similar environmental services for the Department of Defense?
Information regarding the specific track record of the joint venture BAKER-AECOM ENVIRONMENTAL COMPLIANCE JV in delivering leak detection and environmental compliance services for the Department of Defense (DoD) is not detailed in the provided data. However, BAKER and AECOM are established entities with significant experience in engineering, construction, and environmental services. Their joint venture likely leverages the combined expertise and past performance of both parent companies. A deeper dive into their contract history with the DoD and other federal agencies, focusing on projects of similar scope and complexity, would be necessary to fully assess their capabilities and past performance in this specific domain. Reviewing past performance evaluations and any documented issues or successes on prior contracts would provide a more comprehensive understanding.
How does the awarded value of $13 million compare to similar leak detection contracts for large-scale government facilities?
The awarded value of approximately $13 million for leak detection services across OCONUS and CONUS installations represents a significant investment. To benchmark this value effectively, comparisons should be made with contracts for similar services at comparable large-scale government facilities, particularly those managed by the Department of Defense or other federal agencies with extensive infrastructure. Factors such as the number and type of installations, the complexity of the leak detection technology required, the duration of the contract, and the specific environmental conditions at each site will influence pricing. Without access to a database of comparable contracts, it is difficult to definitively state whether this represents excellent, fair, or questionable value. However, the full and open competition suggests an effort to achieve competitive pricing.
What are the primary risks associated with this contract, and what mitigation strategies are in place?
Primary risks associated with this contract include potential scope creep if unforeseen environmental complexities or a higher-than-anticipated number of leaks are discovered across the diverse OCONUS and CONUS installations. Logistical challenges in providing consistent service quality across geographically dispersed locations also pose a risk. The fixed-price contract type serves as a primary mitigation strategy against cost overruns, as it shifts some financial risk to the contractor. The selection of a joint venture with presumed expertise (BAKER-AECOM ENVIRONMENTAL COMPLIANCE JV) suggests a capacity to manage complex projects. Clear performance standards, regular progress reporting, and defined change order procedures within the contract would further mitigate risks related to performance and scope.
How effective is the fixed-price contract type in ensuring value for money for this specific leak detection service?
The Firm Fixed Price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and the risks are understood. For leak detection services, where the primary objective is to identify and report issues, an FFP contract provides cost certainty for the government. It incentivizes the contractor to perform the work efficiently and within budget to maximize their profit. This structure minimizes the risk of cost growth due to contractor inefficiencies or unforeseen minor issues. However, if significant, unanticipated environmental remediation becomes necessary beyond the scope of simple detection, the FFP structure could potentially limit the government's ability to address emergent needs without costly contract modifications.
What are the historical spending patterns for leak detection and environmental compliance services within the Department of Defense?
Historical spending patterns for leak detection and environmental compliance services within the Department of Defense (DoD) are not provided in the current data. However, it is reasonable to infer that such spending is substantial and likely consistent, given the vastness and age of DoD infrastructure, coupled with stringent environmental regulations. Agencies like the Defense Logistics Agency (DLA) and various branches of the military regularly procure services for environmental monitoring, compliance, and infrastructure maintenance. Annual spending likely fluctuates based on specific installation needs, regulatory changes, and the lifecycle of infrastructure projects. Analyzing past DoD budgets and contract awards related to environmental services would reveal trends in spending levels and the types of services most frequently procured.
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
Address: 100 AIRSIDE DR, MOON TOWNSHIP, PA, 15108
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,966,387
Exercised Options: $12,966,387
Current Obligation: $12,966,387
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6247022D0007
IDV Type: IDC
Timeline
Start Date: 2026-01-12
Current End Date: 2027-02-15
Potential End Date: 2027-02-15 00:00:00
Last Modified: 2026-01-12
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