DoD awards $32.3M for Guam infrastructure design, with a 3-year performance period

Contract Overview

Contract Amount: $32,272,546 ($32.3M)

Contractor: Black & Veatch-Jacobs JV

Awarding Agency: Department of Defense

Start Date: 2024-09-26

End Date: 2027-03-31

Contract Duration: 916 days

Daily Burn Rate: $35.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P219 GDS FORWARD OPERATING GUAM, FIELD INVESTIGATIONS FOR GEOTECHNICAL, TOPOGRAPHIC SURVEYS, HYDROGEOLOGICAL ASSESSMENT, AND SITE ENGINEERING INVESTIGATION AND TO PREPARE A DESIGN-BID-BUILD FOR DESIGN SUBMITTAL PACKAGES FOR TRANCHE 1 PROJECT SITES.

Place of Performance

Location: YIGO, GUAM County, GUAM, 96929

Plain-Language Summary

Department of Defense obligated $32.3 million to BLACK & VEATCH-JACOBS JV for work described as: P219 GDS FORWARD OPERATING GUAM, FIELD INVESTIGATIONS FOR GEOTECHNICAL, TOPOGRAPHIC SURVEYS, HYDROGEOLOGICAL ASSESSMENT, AND SITE ENGINEERING INVESTIGATION AND TO PREPARE A DESIGN-BID-BUILD FOR DESIGN SUBMITTAL PACKAGES FOR TRANCHE 1 PROJECT SITES. Key points: 1. Contract focuses on essential engineering services for critical infrastructure development. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract duration of over 900 days indicates a significant, long-term project. 4. Performance is expected in Guam, highlighting a focus on Pacific theater infrastructure. 5. The firm-fixed-price structure shifts cost risk to the contractor. 6. No small business set-aside was noted, potentially limiting direct small business participation.

Value Assessment

Rating: good

The contract value of $32.3 million for engineering services appears reasonable given the scope of work, which includes geotechnical, topographic, and hydrogeological assessments, along with site engineering for design-bid-build packages. Benchmarking against similar large-scale infrastructure design contracts in the Pacific region would provide a more precise value assessment. The firm-fixed-price contract type suggests that the contractor bears the primary risk for cost overruns, which can be a positive indicator of value if the contractor is experienced and efficient.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified contractors for this complex engineering task.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and thus potentially lower prices for the government.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel stationed in Guam, who will gain improved infrastructure. Services delivered include detailed engineering designs for future construction projects, ensuring site suitability and technical feasibility. The geographic impact is concentrated in Guam, supporting the U.S. military's strategic presence in the Indo-Pacific region. The contract supports a specialized engineering workforce, requiring expertise in geotechnical, topographic, and hydrogeological fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial site assessments reveal unforeseen complexities requiring extensive design modifications.
Reliance on a joint venture may introduce coordination challenges between the two entities.
Geographic remoteness of Guam could impact logistics and material availability for any follow-on construction phases.

Positive Signals

The firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
Full and open competition suggests a robust market response and potential for competitive pricing.
The contract specifies a clear performance period, providing defined milestones for project completion.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense infrastructure development. The market for large-scale engineering and design services for government projects is substantial, often involving specialized firms capable of handling complex site assessments and design packages. Comparable spending benchmarks would typically be found in other major military construction or infrastructure upgrade projects, particularly those in strategic locations like Guam, where significant investment is directed towards enhancing operational capabilities.

Small Business Impact

The contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting goals for small businesses. This suggests that the primary awardee, a joint venture, will likely perform the majority of the work. While large prime contracts can sometimes lead to subcontracting opportunities for small businesses, the absence of explicit set-aside or subcontracting requirements means that direct participation by small businesses in this specific award is not guaranteed and may be limited.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and project management offices. Accountability measures are embedded within the firm-fixed-price contract terms, requiring the contractor to deliver specified design packages by the deadline. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Department of Defense Infrastructure Projects
Guam Military Construction Projects
Engineering and Architectural Services Contracts
Geotechnical and Site Assessment Contracts

Risk Flags

Potential for unforeseen site conditions impacting design scope.
Logistical challenges due to Guam's remote location.
Contractor performance risk on a large, multi-faceted project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.3 million to BLACK & VEATCH-JACOBS JV. P219 GDS FORWARD OPERATING GUAM, FIELD INVESTIGATIONS FOR GEOTECHNICAL, TOPOGRAPHIC SURVEYS, HYDROGEOLOGICAL ASSESSMENT, AND SITE ENGINEERING INVESTIGATION AND TO PREPARE A DESIGN-BID-BUILD FOR DESIGN SUBMITTAL PACKAGES FOR TRANCHE 1 PROJECT SITES.

Who is the contractor on this award?

The obligated recipient is BLACK & VEATCH-JACOBS 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 $32.3 million.

What is the period of performance?

Start: 2024-09-26. End: 2027-03-31.

What is the track record of the Black & Veatch-Jacobs JV in performing similar large-scale infrastructure design contracts for the Department of Defense?

Assessing the track record of the Black & Veatch-Jacobs JV requires examining past performance data for both individual entities and their collaborative efforts on similar projects. Black & Veatch has a history of large-scale engineering projects, including significant work in water, wastewater, and energy infrastructure, often for government clients. Jacobs Engineering Group also has extensive experience in federal contracting, particularly in design, engineering, and program management for defense, aerospace, and infrastructure sectors. Their joint venture structure suggests a combined capability to handle complex, multi-disciplinary tasks. A detailed review of their past performance ratings, any past performance issues, and the successful completion of comparable DoD contracts would be necessary to fully evaluate their suitability and reliability for this specific Guam project. Information on their experience with projects in similar geographic or environmental conditions would also be highly relevant.

How does the $32.3 million contract value compare to similar engineering services contracts for military installations in the Pacific region?

Benchmarking the $32.3 million contract value requires comparing it against similar engineering services contracts awarded for military installations in the Pacific region, particularly those involving geotechnical, topographic, hydrogeological assessments, and site engineering for design-bid-build packages. Factors such as the specific scope of work, the complexity of the terrain, environmental considerations, and the overall scale of the planned infrastructure development significantly influence pricing. Contracts awarded by Naval Facilities Engineering Command (NAVFAC) or other DoD entities for projects in Guam, Japan, or Hawaii with comparable service requirements would serve as the most relevant benchmarks. Without access to a detailed database of such comparable contracts, it is difficult to definitively state whether this value is high, low, or average. However, the firm-fixed-price nature suggests the government has negotiated a price deemed acceptable for the defined scope, shifting cost overrun risk to the contractor.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential technical challenges arising from unforeseen geological or environmental conditions during site investigations, which could impact design accuracy and subsequent construction costs. Schedule delays are another risk, particularly given the remote location of Guam and potential logistical hurdles. The firm-fixed-price contract shifts financial risk to the contractor, incentivizing them to manage costs effectively. Mitigation strategies are likely embedded in the contract's technical specifications, requiring thorough site assessments and detailed design documentation. The contractor's experience and reputation, evaluated during the procurement process, also serve as a risk mitigation factor. Furthermore, the defined performance period and delivery schedules provide clear milestones for monitoring progress and identifying potential delays early.

What is the expected impact of this contract on the development and readiness of military infrastructure in Guam?

This contract is expected to have a significant positive impact on the development and readiness of military infrastructure in Guam. By providing essential design packages for geotechnical, topographic, and hydrogeological assessments, it lays the groundwork for future construction projects. These projects are crucial for enhancing the operational capabilities, housing, and support facilities for U.S. forces stationed in the strategically important Indo-Pacific region. The detailed engineering designs will ensure that new or upgraded infrastructure is built to appropriate standards, considering the local environmental conditions and seismic activity, thereby improving the long-term resilience and functionality of military installations. Ultimately, this contract contributes to the modernization and strengthening of the U.S. military's presence and readiness in Guam.

How does the contract's duration of 916 days (approximately 2.5 years) align with typical project timelines for similar engineering design efforts?

A contract duration of 916 days for engineering design services, encompassing geotechnical, topographic, and hydrogeological assessments, as well as site engineering for design-bid-build packages, is substantial and suggests a complex scope of work. Typical timelines for such comprehensive design efforts can vary widely depending on the size and complexity of the project, the number of sites involved, and the specific requirements for investigations and documentation. For large-scale infrastructure projects, especially those involving extensive site analysis in challenging environments like Guam, a duration of over two years is not uncommon. This timeframe allows for thorough data collection, analysis, design iterations, and client reviews, which are critical for ensuring the success of subsequent construction phases. The extended duration also reflects the firm-fixed-price nature, where the contractor is responsible for managing the project within the allocated time.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

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: 11401 LAMAR AVE, LEAWOOD, KS, 66211

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,272,546

Exercised Options: $32,272,546

Current Obligation: $32,272,546

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $6,802,748

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6274224D0009

IDV Type: IDC

Timeline