HNTB Corporation awarded $32.2M for Arlington National Cemetery expansion engineering services

Contract Overview

Contract Amount: $32,223,753 ($32.2M)

Contractor: Hntb Corporation

Awarding Agency: Department of Defense

Start Date: 2017-06-29

End Date: 2023-03-14

Contract Duration: 2,084 days

Daily Burn Rate: $15.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF AE DESIGN SOUTHERN EXPANSION AT ARLINGTON NATIONAL CEMENTERY, VA

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64105

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $32.2 million to HNTB CORPORATION for work described as: IGF::OT::IGF AE DESIGN SOUTHERN EXPANSION AT ARLINGTON NATIONAL CEMENTERY, VA Key points: 1. Contract value appears reasonable given the scope of engineering services for a significant national project. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract duration of over 2000 days indicates a long-term commitment and potential for scope creep. 4. Fixed-price contract type generally shifts risk to the contractor, but scope definition is crucial. 5. The project's location at Arlington National Cemetery highlights its national significance and potential public scrutiny. 6. Engineering services are critical for infrastructure projects, impacting long-term durability and cost-effectiveness.

Value Assessment

Rating: good

The contract value of $32.2 million for engineering services for the Arlington National Cemetery expansion seems within a reasonable range for a project of this scale and national importance. Benchmarking against similar large-scale infrastructure or historical site development projects would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract suggests an effort to control costs upfront. The duration of the contract (over 2000 days) implies a substantial and complex undertaking, making the total value a necessary investment for the required expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This method typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was intended and likely occurred, which is generally favorable for price discovery and achieving market-based rates.

Taxpayer Impact: A competitive bidding process for this contract is beneficial for taxpayers as it increases the likelihood of securing engineering services at a fair market price, preventing potential overpayment and ensuring value for public funds.

Public Impact

The primary beneficiaries are the Department of the Army and the National Park Service, responsible for managing Arlington National Cemetery. The services delivered are critical engineering designs and support for the expansion of the cemetery, ensuring its long-term viability. The geographic impact is localized to Arlington, Virginia, but the project has national symbolic importance. Workforce implications include employment for engineers, architects, and support staff involved in the design and planning phases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2084 days) increases the risk of cost overruns if scope is not tightly managed.
Potential for scope creep in large, complex infrastructure projects, especially those with national significance.
Reliance on a single contractor for a significant period could limit flexibility if unforeseen issues arise.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield fair pricing.
Firm fixed-price contract type shifts cost risk to the contractor, incentivizing efficiency.
The project addresses a critical need for expansion at a historically significant national site.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the construction and infrastructure industry. The market for large-scale engineering and design services is competitive, with numerous firms capable of undertaking complex projects. Spending in this sector is often driven by government infrastructure investments, military base development, and public works projects. Comparable spending benchmarks would typically be found in large federal or state transportation, defense, or environmental projects requiring extensive design and planning.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While HNTB Corporation is a large firm, there may be opportunities for small businesses to participate as subcontractors. The extent of subcontracting to small businesses is not detailed here, but it's a common practice in large federal contracts to meet broader economic goals and leverage specialized expertise.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely through contracting officers and program managers responsible for the Arlington National Cemetery expansion. Transparency is generally maintained through contract award databases like FPDS. Accountability measures are inherent in the firm fixed-price structure, with penalties for non-performance. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations if any irregularities were suspected.

Related Government Programs

Arlington National Cemetery Capital Improvements
Department of Defense Infrastructure Projects
Federal Engineering Services Contracts
National Park Service Development Projects

Risk Flags

Long contract duration increases risk of scope creep and cost escalation through change orders.
Potential for contractor financial distress if unforeseen issues significantly increase costs under FFP.
National significance of the site may lead to heightened public and political scrutiny.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.2 million to HNTB CORPORATION. IGF::OT::IGF AE DESIGN SOUTHERN EXPANSION AT ARLINGTON NATIONAL CEMENTERY, VA

Who is the contractor on this award?

The obligated recipient is HNTB CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $32.2 million.

What is the period of performance?

Start: 2017-06-29. End: 2023-03-14.

What is HNTB Corporation's track record with similar large-scale federal engineering projects?

HNTB Corporation has a significant history of undertaking large-scale infrastructure and engineering projects for federal, state, and local governments. They have been involved in major transportation projects, including airports, bridges, and highways, as well as significant architectural and engineering design for public facilities. Their experience often includes complex projects with long durations and substantial budgets, similar to the Arlington National Cemetery expansion. A review of their past performance on contracts with agencies like the Department of Transportation, Department of Defense, and various state Departments of Transportation would provide further insight into their capabilities, past performance ratings, and any history of disputes or performance issues on comparable projects.

How does the $32.2 million contract value compare to similar cemetery expansion or national monument engineering projects?

Direct comparisons for cemetery expansion engineering services are challenging due to the unique nature of such projects and the specific requirements of national cemeteries. However, $32.2 million for over five years of engineering services on a project of national significance like Arlington National Cemetery is likely within a reasonable range. Large-scale public works projects, such as significant additions to national parks, memorials, or complex historical site developments, often involve substantial engineering design costs. For context, major transportation infrastructure projects or large federal building designs can range from tens to hundreds of millions of dollars in engineering fees alone, depending on complexity, scale, and duration. The value here reflects the specialized nature and importance of the site.

What are the primary risks associated with a firm fixed-price contract for a project spanning over 2000 days?

The primary risk with a firm fixed-price (FFP) contract, especially one with a long duration like 2084 days, is the potential for scope creep and unforeseen conditions that were not adequately defined or anticipated at the outset. While FFP shifts cost risk to the contractor, if the government requires changes or additions to the original scope, it can lead to costly change orders. Conversely, if the contractor encounters unexpected difficulties or underestimates the complexity, they bear the brunt of the increased costs, which could potentially impact their financial stability or lead to disputes. Robust contract management, clear initial scope definition, and a well-defined change order process are crucial to mitigating these risks for both parties.

What is the expected impact of this contract on the long-term effectiveness and capacity of Arlington National Cemetery?

This contract is directly aimed at ensuring the long-term effectiveness and capacity of Arlington National Cemetery by providing the necessary engineering designs for its expansion. The expansion is critical to accommodate the needs of service members and veterans for future interments. Effective engineering design will ensure that the expansion is built to last, respects the solemnity and historical significance of the site, and meets all regulatory and environmental requirements. Proper planning and design can optimize land use, improve accessibility, and integrate new facilities seamlessly with existing ones, thereby enhancing the cemetery's ability to serve its intended purpose for decades to come.

How has federal spending on engineering services for national memorial or cemetery projects trended in recent years?

Federal spending on engineering services for national memorial or cemetery projects is generally tied to specific capital improvement initiatives and the overall need for expansion or renovation at these significant sites. While not a consistently large category compared to broader infrastructure spending (like highways or defense facilities), there are periodic upticks driven by specific projects. The need for expansion at Arlington, for instance, is a long-term requirement due to capacity constraints. Trends would likely show steady, albeit project-dependent, spending. Major historical site upgrades or expansions, like those at Arlington, Gettysburg, or other national cemeteries, would represent significant, but infrequent, spikes in this niche spending area, often requiring specialized engineering expertise.

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: 715 KIRK DR, KANSAS CITY, MO, 64105

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: $32,223,753

Exercised Options: $32,223,753

Current Obligation: $32,223,753

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W9123614D0035

IDV Type: IDC

Timeline