DoD awards $2.97M for Nellis AFB water infrastructure, with AECOM Technical Services securing the engineering services contract

Contract Overview

Contract Amount: $2,974,888 ($3.0M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-21

End Date: 2027-01-18

Contract Duration: 1,215 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROJECT TITLE AND LOCATION: WATER INFRASTRUCTURE & RESILIENCY IMPROVEMENTS, NELLIS AFB, NV.

Place of Performance

Location: NELLIS AFB, CLARK County, NEVADA, 89191

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $3.0 million to AECOM TECHNICAL SERVICES, INC. for work described as: PROJECT TITLE AND LOCATION: WATER INFRASTRUCTURE & RESILIENCY IMPROVEMENTS, NELLIS AFB, NV. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for engineering services, a critical component for infrastructure projects. 3. Project duration of 1215 days indicates a significant, long-term commitment. 4. The firm-fixed-price contract type shifts cost risk to the contractor. 5. AECOM Technical Services, Inc. is the sole awardee for this delivery order. 6. The project is located at Nellis Air Force Base, Nevada, highlighting a specific geographic focus.

Value Assessment

Rating: good

The contract value of $2.97 million for engineering services for water infrastructure and resiliency improvements appears reasonable given the project's scope and duration. Benchmarking against similar large-scale military base infrastructure projects suggests that costs for specialized engineering services can range significantly, but this award falls within expected parameters for a project of this complexity. The firm-fixed-price structure also provides cost certainty for the government, assuming the contractor accurately estimated all necessary services.

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 bids. The data does not specify the number of bids received, but the designation suggests a robust competitive environment. A competitive process generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value and price for essential infrastructure services, reducing the likelihood of inflated costs due to a lack of market pressure.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at Nellis AFB, who will receive improved water infrastructure and resiliency. The services delivered include engineering expertise crucial for planning, designing, and overseeing the implementation of water system upgrades. The geographic impact is localized to Nellis Air Force Base in Nevada. The contract supports the defense sector's infrastructure needs, indirectly impacting the civilian workforce through potential subcontracting opportunities for engineering and construction firms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial engineering assessments are incomplete, leading to cost overruns despite fixed-price contract.
Reliance on a single contractor (AECOM) for this delivery order could pose risks if performance issues arise.
The long duration of the project (over 3 years) increases the potential for unforeseen challenges or changes in requirements.

Positive Signals

Awarded under full and open competition, suggesting a competitive market for these services.
Firm-fixed-price contract type provides cost certainty for the government.
Focus on water infrastructure and resiliency addresses critical operational needs and long-term sustainability for the base.

Sector Analysis

The engineering services sector is a vital component of the construction and defense industries, providing specialized expertise for complex projects. The market for these services is competitive, with numerous firms capable of undertaking large-scale government contracts. This specific contract fits within the broader category of defense infrastructure spending, which often involves significant investments in facilities, utilities, and operational resilience. Comparable spending benchmarks for military base infrastructure upgrades can vary widely based on location, scope, and specific requirements, but projects of this nature typically represent substantial capital outlays.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, AECOM Technical Services, Inc., may engage small businesses as subcontractors for specialized services or materials, contributing to the broader small business ecosystem. The absence of a set-aside means the primary competition was open to all responsible sources, regardless of size.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Army contracting command, with technical oversight provided by personnel at Nellis AFB. Accountability measures are inherent in the firm-fixed-price contract type, which incentivizes the contractor to adhere to the agreed-upon scope and budget. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction may apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC)
Environmental Remediation Services
Public Works and Utilities Contracts
Defense Infrastructure Modernization

Risk Flags

Potential for cost overruns if contractor underbid.
Risk of performance issues due to long project duration.
Dependence on a single contractor for critical infrastructure services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.0 million to AECOM TECHNICAL SERVICES, INC.. PROJECT TITLE AND LOCATION: WATER INFRASTRUCTURE & RESILIENCY IMPROVEMENTS, NELLIS AFB, NV.

Who is the contractor on this award?

The obligated recipient is AECOM TECHNICAL SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.0 million.

What is the period of performance?

Start: 2023-09-21. End: 2027-01-18.

What is AECOM Technical Services, Inc.'s track record with similar Department of Defense infrastructure contracts?

AECOM Technical Services, Inc. has a significant history of performing engineering and construction management services for the Department of Defense across various installations. Their portfolio includes a wide range of projects, from facility design and upgrades to environmental services and infrastructure development. Analyzing their past performance on similar water infrastructure or resiliency projects within DoD would provide insight into their capability to execute this specific contract. Reviewing past performance evaluations, any contract disputes, or awards for similar work would be crucial. For instance, their involvement in projects at other Air Force bases or Army Corps of Engineers districts could serve as a relevant benchmark for their expertise and reliability in handling large-scale, complex engineering tasks for military clients.

How does the awarded amount compare to the estimated cost or initial solicitations for this project?

The awarded amount of $2,974,888.30 represents the final negotiated price for the engineering services. To assess value, this figure should be compared against the government's independent government cost estimate (IGCE) if available, or the range of bids received during the full and open competition. If the award is significantly lower than the IGCE or the highest bids, it suggests successful price negotiation. Conversely, if it's close to the upper end of bids or exceeds the IGCE, further scrutiny might be warranted. Without access to the solicitation details and bid tabulation, a precise value comparison is difficult, but the firm-fixed-price nature implies the government has secured a ceiling cost for the defined scope of work.

What are the primary risks associated with this firm-fixed-price contract for water infrastructure improvements?

The primary risk with a firm-fixed-price (FFP) contract, while generally favorable for cost control, lies in the contractor's potential underestimation of the project's complexity or unforeseen challenges. For water infrastructure and resiliency improvements at a large military installation like Nellis AFB, risks include encountering unexpected subsurface conditions (e.g., unknown utilities, soil instability), changes in environmental regulations during the project's long duration, or difficulties in coordinating with existing base operations. If AECOM Technical Services, Inc. underestimated these factors, they might face pressure to cut corners, potentially impacting quality, or seek change orders, which could increase costs. Effective government oversight is crucial to mitigate these risks and ensure the contractor meets all performance requirements within the fixed price.

How effective are the planned water infrastructure and resiliency improvements likely to be for Nellis AFB?

The effectiveness of the planned improvements hinges on the thoroughness and quality of the engineering services provided by AECOM Technical Services, Inc. Water infrastructure and resiliency projects aim to ensure a reliable supply of potable water, manage wastewater effectively, and protect systems from disruptions (e.g., extreme weather, cyber threats). If the engineering design adequately addresses current and future needs, incorporates robust and sustainable technologies, and accounts for potential environmental and operational challenges specific to Nellis AFB, the improvements should significantly enhance operational readiness and quality of life. The project's success will be measured by its ability to meet performance specifications, achieve long-term reliability, and potentially reduce future maintenance or repair costs.

What has been the historical spending trend for engineering services related to base infrastructure at Nellis AFB or similar Air Force installations?

Historical spending on engineering services for base infrastructure at Nellis AFB and similar Air Force installations typically fluctuates based on modernization needs, regulatory requirements, and funding allocations. Such spending often involves significant investments in utility systems (water, power, communications), facility upgrades, and environmental compliance projects. Analyzing past contracts awarded to various firms for similar work at Nellis AFB or comparable bases would reveal spending patterns, average contract values, and the prevalence of different contract types (e.g., FFP, cost-plus). This context helps determine if the current $2.97 million award is consistent with historical investment levels or represents a significant increase or decrease in spending for this category of services.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 S GRAND AVE STE 1100, LOS ANGELES, CA, 90071

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,097,800

Exercised Options: $2,974,888

Current Obligation: $2,974,888

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $29,735

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912PP20D0001

IDV Type: IDC

Timeline