Army awards $11.6M for architect-engineering services, with a 6-bid competition

Contract Overview

Contract Amount: $11,647,597 ($11.6M)

Contractor: CH2M Hill/Urs Team

Awarding Agency: Department of Defense

Start Date: 2004-09-22

End Date: 2009-09-21

Contract Duration: 1,825 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200412!001826!96CE!W91238!USA ENGINEER DIST SACRAMENTO !W9123804C0027 !A!N! !N! ! !20040922!20041106!140015400!140015400!140015400!N!CH2M HILL/URS TEAM !2485 NATOMAS PARK DR !SACRAMENTO !CA!95833!24638!067!06!FOLSOM !SACRAMENTO !CALIFORNIA!+000000171964!N!N!000000186466!C211!ARCHITECT-ENGINEERING SERVICES !C2 !CONSTRUCTION !000 !* !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!006!D! !Z!Y!C! ! !N!C!N! ! ! !C!C!A!A!000!A!C!Y! !N! !Y! ! !0001! !

Place of Performance

Location: FOLSOM, SACRAMENTO County, CALIFORNIA, 95630

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $11.6 million to CH2M HILL/URS TEAM for work described as: 200412!001826!96CE!W91238!USA ENGINEER DIST SACRAMENTO !W9123804C0027 !A!N! !N! ! !20040922!20041106!140015400!140015400!140015400!N!CH2M HILL/URS TEAM !2485 NATOMAS PARK DR !SACRAMENTO !CA!95833!24638!067!06!FOLSOM !SACR… Key points: 1. Contract value of $11.6M represents a significant investment in specialized engineering expertise. 2. The competition involved 6 bidders, suggesting a moderately competitive market for these services. 3. A firm-fixed-price contract type indicates that the contractor bears the risk of cost overruns. 4. The contract duration of 1825 days (5 years) points to a long-term need for these services. 5. Services are categorized under Engineering Services (NAICS 541330), a key sector for infrastructure development. 6. The contract was awarded by the Department of the Army, highlighting defense-related infrastructure needs.

Value Assessment

Rating: good

The contract value of $11.6 million for architect-engineering services appears reasonable given the 5-year duration and the nature of the work. Benchmarking against similar large-scale A-E contracts would provide a more precise assessment, but the presence of multiple bidders suggests a competitive pricing environment. The firm-fixed-price structure shifts cost risk to the contractor, which can be favorable for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating a broad solicitation process. With 6 bidders, the competition level is moderate, suggesting that while multiple firms were interested, the market might not be saturated. This level of competition generally leads to better price discovery and value for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: A competitive bidding process with 6 participants helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

The primary beneficiaries are the Department of the Army and potentially other federal agencies requiring architect-engineering support for infrastructure projects. The services delivered include architectural and engineering design, planning, and potentially construction oversight. The geographic impact is likely focused on areas where the Army has facilities or projects requiring these specialized services, with the contractor based in Sacramento, CA. The contract supports a team of professionals in the architect-engineering field, contributing to employment in this sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project requirements are not clearly defined upfront.
Contractor performance risk, although mitigated by the firm-fixed-price structure.
Dependency on the contractor's specialized expertise for successful project outcomes.

Positive Signals

Firm-fixed-price contract aligns incentives for cost control.
Moderate competition suggests a healthy market for these services.
Long contract duration allows for continuity of essential services.

Sector Analysis

The architect-engineering services sector is critical for public and private infrastructure development, encompassing design, planning, and project management. This contract falls within the Engineering Services category (NAICS 541330). The market is characterized by specialized firms, ranging from small businesses to large corporations, competing for government and commercial projects. Federal spending in this area is substantial, driven by military base modernization, civil works, and other government facility needs.

Small Business Impact

The data does not indicate a specific small business set-aside for this contract. However, the prime contractor, CH2M HILL/URS TEAM, is a large entity. There is potential for subcontracting opportunities for small businesses within specialized engineering or support roles, but this is not explicitly detailed in the provided information. The impact on the small business ecosystem would depend on the extent of any subcontracting awarded.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project management team within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract type, which penalizes cost overruns for the contractor. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction
Architectural and Engineering Services
Department of Defense Infrastructure Projects
Engineering Design Services
Federal Facilities Management

Risk Flags

Contract Duration
Firm Fixed Price Risk
Competition Level

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.6 million to CH2M HILL/URS TEAM. 200412!001826!96CE!W91238!USA ENGINEER DIST SACRAMENTO !W9123804C0027 !A!N! !N! ! !20040922!20041106!140015400!140015400!140015400!N!CH2M HILL/URS TEAM !2485 NATOMAS PARK DR !SACRAMENTO !CA!95833!24638!067!06!FOLSOM !SACRAMENTO !CALIFORNIA!+000000171964!N!N!000000186466!C211!ARCHITECT-ENGINEERING SERVICES !C2 !CONSTRUCTION !000 !* !541330!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is CH2M HILL/URS TEAM.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.6 million.

What is the period of performance?

Start: 2004-09-22. End: 2009-09-21.

What is the track record of CH2M HILL/URS TEAM with federal contracts, particularly with the Department of the Army?

CH2M HILL and URS were major engineering and construction firms that have historically held numerous federal contracts, including significant work with the Department of Defense and the Army Corps of Engineers. Following mergers and acquisitions, their legacy work is now often associated with entities like Jacobs Engineering Group. Analyzing their past performance would involve reviewing contract histories for on-time delivery, adherence to budget, quality of work, and any disputes or terminations. Given the scale of their operations, they have a substantial track record, but specific performance metrics for this particular contract would require deeper data analysis beyond the initial award information.

How does the $11.6 million value compare to similar architect-engineering contracts awarded by the Army?

The $11.6 million contract value for architect-engineering services is a substantial award, indicative of a significant project. To benchmark this value, one would compare it to other architect-engineering contracts awarded by the Department of the Army or the Army Corps of Engineers for similar scope and duration. Factors such as the specific type of facility or infrastructure being designed, the complexity of the engineering required, and the geographic location can influence pricing. A contract of this size suggests a project of considerable scale, potentially involving major infrastructure or facility design, and would be considered mid-to-large in the context of A-E services.

What are the primary risks associated with a 5-year firm-fixed-price contract for architect-engineering services?

The primary risks for a 5-year firm-fixed-price contract in architect-engineering services primarily lie with the contractor. The contractor assumes the risk of cost overruns if project expenses exceed the fixed price. For the government, risks include potential impacts on quality if the contractor seeks to cut costs excessively, and the possibility of contractor default or performance issues over the long duration. Scope creep, where project requirements expand beyond the original agreement, is another significant risk that must be managed through robust contract modification procedures to prevent cost increases or schedule delays.

How effective is the 'full and open competition' process in ensuring value for money in this type of contract?

The 'full and open competition' process is generally considered the most effective method for ensuring value for money in federal contracting. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. In this case, with 6 bidders, the competition appears to have been robust enough to drive price discovery. The effectiveness is further enhanced when the government clearly defines requirements and evaluation criteria, allowing for a fair comparison of technical capabilities and costs among bidders.

What is the historical spending trend for architect-engineering services by the Department of the Army?

Historical spending by the Department of the Army on architect-engineering (A-E) services has been substantial and consistent, driven by the need to maintain, upgrade, and construct military installations worldwide. This spending fluctuates based on military readiness requirements, modernization initiatives, and infrastructure investment cycles. The Army Corps of Engineers is a primary entity responsible for procuring these services for a wide range of projects, from military bases to civil works. Analyzing trends would reveal periods of increased investment corresponding to major defense build-ups or infrastructure programs, and potentially shifts in the types of A-E services most in demand (e.g., cybersecurity infrastructure, sustainable design).

What are the implications of the NAICS code 541330 (Engineering Services) for this contract?

The classification under NAICS code 541330, Engineering Services, signifies that the contract is for professional services involving the application of engineering principles. This broad category includes services such as designing infrastructure, developing engineering plans, conducting feasibility studies, and providing construction management. For this specific contract, it means the work likely involves complex technical design and planning. This code is crucial for statistical purposes, market analysis, and determining applicable labor standards and regulations. It also helps in identifying potential competitors and understanding the market landscape for 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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CH2M Hill Companies, Ltd. (UEI: 027620574)

Address: 2485 NATOMAS PARK DR, SACRAMENTO, CA, 95833

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline