DoD's $41M AECOM contract for engineering services in Hawaii shows strong competition and long-term performance

Contract Overview

Contract Amount: $41,190,998 ($41.2M)

Contractor: AECOM Services, LLC

Awarding Agency: Department of Defense

Start Date: 2009-11-13

End Date: 2027-07-31

Contract Duration: 6,469 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AE SVCS DESIGN C2F, FT SHAFTER, HI

Place of Performance

Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $41.2 million to AECOM SERVICES, LLC for work described as: AE SVCS DESIGN C2F, FT SHAFTER, HI Key points: 1. The contract demonstrates a commitment to competitive sourcing for essential engineering services. 2. Long-term performance indicates a stable and potentially cost-effective relationship. 3. The fixed-price structure offers predictability in spending. 4. Performance is geographically concentrated in Hawaii, suggesting specialized regional needs. 5. The duration of the contract implies a sustained requirement for these services. 6. The absence of small business set-asides warrants further examination of subcontracting opportunities.

Value Assessment

Rating: good

The contract's total value of approximately $41.2 million over its extended period suggests a significant investment in engineering services. Benchmarking this against similar long-term, large-scale engineering support contracts for military installations is crucial. Given the firm fixed-price nature, the value is largely determined by the initial negotiation and any subsequent modifications. Without direct cost breakdowns or comparisons to industry standards for specific engineering tasks, a precise value-for-money assessment is challenging, but the sustained award implies perceived value by the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. With 17 bids received, this suggests a robust and healthy competitive environment for these engineering services. A high number of bids generally leads to better price discovery and can drive down costs for the government, ensuring a more competitive outcome.

Taxpayer Impact: The strong competition for this contract is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition award. This competitive process helps ensure that taxpayer funds are used efficiently.

Public Impact

The Department of the Army benefits from consistent and specialized engineering support for its facilities. Services delivered include design and engineering for infrastructure at Fort Shafter, Hawaii. The geographic impact is concentrated in Hawaii, supporting military operations in the Pacific region. The contract supports a workforce of engineers and technical specialists, contributing to employment in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep over the long contract duration.
Reliance on a single contractor for critical engineering services over many years.
Limited visibility into specific cost drivers without detailed performance metrics.

Positive Signals

Awarded through full and open competition, indicating broad market engagement.
Firm fixed-price contract provides cost certainty.
Long contract duration suggests successful past performance and sustained need.
Geographic concentration may indicate specialized expertise relevant to the location.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader Architecture, Engineering, and Construction (AEC) industry. The market for engineering services supporting government infrastructure, particularly military installations, is substantial. This contract represents a significant portion of spending for specialized design and engineering support within a specific geographic region. Comparable spending benchmarks would involve analyzing other large-scale, long-term engineering support contracts awarded by the Department of Defense or other federal agencies for similar facility types.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the contractor, AECOM SERVICES, LLC, is a large entity. This suggests that opportunities for small businesses would primarily arise through subcontracting. Further investigation into the subcontracting plan and actual performance would be necessary to assess the impact on the small business ecosystem. Without specific set-aside goals, the direct benefit to small businesses is likely limited unless actively pursued through subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

Military Construction
Base Operations Support
Architectural and Engineering Services
Department of Defense Facilities Management
Army Corps of Engineers Contracts

Risk Flags

Long contract duration increases risk of changing requirements or technology.
Firm Fixed Price contract may incentivize cost-cutting impacting quality if not monitored.
Geographic concentration limits flexibility and introduces regional risks.
Lack of explicit small business set-aside requires monitoring subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.2 million to AECOM SERVICES, LLC. AE SVCS DESIGN C2F, FT SHAFTER, HI

Who is the contractor on this award?

The obligated recipient is AECOM SERVICES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $41.2 million.

What is the period of performance?

Start: 2009-11-13. End: 2027-07-31.

What is AECOM Services, LLC's track record with the Department of Defense, particularly on similar engineering contracts?

AECOM Services, LLC has a substantial history of contracting with the Department of Defense across various service areas, including engineering, construction, and program management. For engineering services specifically, they have been awarded numerous contracts, many of which are long-term and high-value, supporting military installations globally. Their performance on contracts like this one in Hawaii often involves complex design, planning, and execution for infrastructure projects. While specific performance ratings are often proprietary, the sustained award of significant contracts suggests a generally positive track record and capability to meet DoD requirements. Analyzing past performance reviews and any documented issues or commendations would provide a more granular understanding of their reliability and effectiveness in delivering engineering solutions for the military.

How does the $41.2 million contract value compare to similar engineering services contracts awarded by the DoD in recent years?

The $41.2 million total contract value for AECOM Services, LLC, spanning over several years (from 2009 to 2027), places it as a significant, long-term engineering support contract. To benchmark this, one would compare it to other indefinite-delivery/indefinite-quantity (IDIQ) or firm-fixed-price contracts awarded by the Department of Defense for architectural and engineering (A&E) services at major installations. For instance, contracts for base master planning, facility design, environmental engineering, or construction management at large Army, Navy, or Air Force bases often range from tens to hundreds of millions of dollars over their performance periods. The value is considered moderate to high for a single-region, long-term engineering support contract, especially given its firm-fixed-price nature which implies well-defined scope. However, the precise 'value' is relative to the scope, complexity, and duration, requiring detailed comparison with contracts for similar services and geographic scope.

What are the primary risk indicators associated with this long-term, firm-fixed-price engineering contract?

Key risk indicators for this contract include potential scope creep, where the requirements may expand beyond the initial definition, leading to cost overruns if not managed tightly, despite the fixed-price nature. Contractor performance risk is another factor; while AECOM has a long tenure, ensuring consistent quality and adherence to schedules over nearly two decades is challenging. Technological obsolescence or changes in engineering standards could also pose a risk, requiring contract modifications or updates. Furthermore, the concentration of services in Hawaii might present logistical or localized economic risks. Finally, the long duration increases the risk of unforeseen geopolitical or environmental factors impacting project execution or requirements. The firm-fixed-price structure, while offering cost certainty, can also incentivize the contractor to cut corners if margins are squeezed, posing a quality risk.

How effective has this contract been in meeting the Army's engineering and design needs at Fort Shafter, Hawaii?

Assessing the effectiveness requires detailed performance metrics and feedback from the Army, which are not publicly available in this dataset. However, the contract's longevity (awarded in 2009 and extending to 2027) strongly suggests a high degree of satisfaction and effectiveness in meeting the Army's needs. Sustained awards and contract extensions typically indicate that the contractor is performing well, delivering required services, and meeting program objectives. The firm-fixed-price structure, combined with full and open competition, implies that the Army secured services at a competitive rate and that the contractor has been able to deliver within those financial parameters. Without specific reports on project completion rates, quality assessments, or user feedback, effectiveness is inferred from the contract's sustained existence and competitive award.

What are the historical spending patterns for engineering services at Fort Shafter, Hawaii, and how does this contract fit in?

Historical spending patterns for engineering services at Fort Shafter, Hawaii, prior to and during this contract's tenure, would reveal the Army's consistent investment in maintaining and upgrading its infrastructure in the region. This $41.2 million contract represents a significant, long-term commitment to specialized engineering and design services for the installation. It likely consolidates or replaces previous, potentially smaller or shorter-term contracts for similar services. The duration suggests a strategic approach to managing engineering requirements for Fort Shafter, ensuring continuity and potentially leveraging economies of scale through a single, large contract. Understanding the total spending on engineering services over time at this installation would provide context for the scale and importance of AECOM's role.

What is the potential impact of this contract on the local Hawaiian economy and workforce?

This contract has a direct and indirect impact on the local Hawaiian economy and workforce. Directly, AECOM Services, LLC likely employs engineers, designers, project managers, and support staff residing in Hawaii or relocating there to fulfill the contract requirements. This creates skilled jobs and contributes to the local tax base. Indirectly, the engineering services provided are crucial for the maintenance, modernization, and expansion of military infrastructure at Fort Shafter. This infrastructure development supports military readiness and operations, which are significant economic drivers for Hawaii. Furthermore, AECOM may subcontract with local Hawaiian businesses for materials, specialized services, or support functions, further stimulating the local economy.

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

Offers Received: 17

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10 S JEFFERSON ST STE 1600, ROANOKE, VA, 24011

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

Financial Breakdown

Contract Ceiling: $41,240,905

Exercised Options: $41,190,998

Current Obligation: $41,190,998

Actual Outlays: $24,506

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline