DOD awards $7.76M engineering services contract to Paragon-Jacobs Joint Venture for Offutt CMS Year 1

Contract Overview

Contract Amount: $7,763,257 ($7.8M)

Contractor: Paragon-Jacobs Joint Venture, LLC

Awarding Agency: Department of Defense

Start Date: 2023-08-23

End Date: 2025-08-24

Contract Duration: 732 days

Daily Burn Rate: $10.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OFFUTT CMS YEAR 1

Place of Performance

Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $7.8 million to PARAGON-JACOBS JOINT VENTURE, LLC for work described as: OFFUTT CMS YEAR 1 Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract duration is 732 days, spanning over two years. 3. Services are categorized under Engineering Services, a broad but essential sector. 4. The award was not competed, raising questions about potential price efficiencies. 5. The contract is a delivery order, suggesting it's part of a larger, potentially pre-existing agreement. 6. The small business set-aside status is false, meaning larger firms were eligible. 7. The contract is for Nebraska, indicating a specific geographic focus.

Value Assessment

Rating: questionable

The contract value of $7.76 million for engineering services over two years requires careful benchmarking. Without comparable contracts or detailed scope of work, assessing value for money is difficult. The firm-fixed-price structure provides some cost certainty, but the lack of competition means there's no direct market comparison to gauge if the pricing is competitive. Further analysis of the specific engineering tasks and their typical market rates is needed to determine if this represents a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition. This approach is typically used when only one contractor possesses the necessary qualifications, or in specific circumstances where competition is not feasible or advantageous. The lack of bidders means there was no opportunity for multiple firms to propose solutions, potentially limiting price discovery and innovation.

Taxpayer Impact: For taxpayers, a sole-source award means there's a reduced likelihood of benefiting from competitive pricing that could drive down costs. It also limits the opportunity to discover potentially more cost-effective solutions from a wider range of providers.

Public Impact

The Department of Defense benefits from specialized engineering services required for the Offutt CMS project. The contract supports infrastructure development or maintenance at Offutt Air Force Base. The primary beneficiaries are military operations and personnel relying on the facilities. The contract's geographic impact is localized to Nebraska, specifically the Offutt Air Force Base area. Workforce implications include employment opportunities for engineers and technical staff within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs than a competed contract.
Sole-source awards can reduce transparency and accountability in pricing.
The specific engineering expertise required might be highly specialized, limiting contractor options.
The contract's value and duration warrant close monitoring for scope creep or cost overruns.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Engineering services are critical for maintaining and improving military infrastructure.
The contractor, Paragon-Jacobs Joint Venture, likely possesses specialized skills for this project.
The contract duration allows for sustained effort on the Offutt CMS project.

Sector Analysis

Engineering services represent a significant segment of the federal contracting market, encompassing a wide range of specialized technical expertise. This contract falls within the broader professional, scientific, and technical services sector. Comparable spending benchmarks would typically involve analyzing other large-scale engineering support contracts awarded by the Department of Defense or other federal agencies for similar infrastructure projects. The market for these services is often characterized by a mix of large, established firms and specialized smaller businesses.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates 'sb' is false. This means the competition, had it occurred, would have been open to firms of all sizes. Consequently, there are no direct subcontracting implications mandated for small businesses through a set-aside provision. However, the prime contractor may still choose to engage small businesses as subcontractors based on their capabilities and project needs.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Department of Defense Engineering Support Contracts
Military Base Infrastructure Projects
Offutt Air Force Base Contracts
Professional, Scientific, and Technical Services

Risk Flags

Sole-source award lacks competitive pricing.
Potential for higher costs without competition.
Limited transparency in pricing and selection.
Need for robust oversight due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.8 million to PARAGON-JACOBS JOINT VENTURE, LLC. OFFUTT CMS YEAR 1

Who is the contractor on this award?

The obligated recipient is PARAGON-JACOBS JOINT VENTURE, 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 $7.8 million.

What is the period of performance?

Start: 2023-08-23. End: 2025-08-24.

What specific engineering services are included in the Offutt CMS Year 1 contract?

The provided data indicates the contract is for 'Engineering Services' under NAICS code 541330. However, the specific details of the Offutt CMS (which likely stands for something like 'Combatant Mission Support' or a similar operational designation) are not detailed. Typically, engineering services in this context could encompass a wide range of activities such as architectural design, structural engineering, civil engineering, mechanical and electrical systems design, environmental engineering, and project management for construction or renovation projects at the base. Without further documentation, the precise scope remains general.

How does the $7.76 million contract value compare to similar engineering services contracts for military bases?

Benchmarking this $7.76 million contract requires comparing it to similar engineering services contracts awarded by the Department of Defense (DOD) for projects of comparable scale and complexity at military installations. Factors such as the specific type of engineering required (e.g., design, oversight, specialized systems), the duration of the contract (732 days), and the geographic location can influence pricing. Given this is a sole-source award, direct price comparisons are difficult. However, a review of publicly available DOD contract awards for engineering support at other bases over similar timeframes would be necessary to determine if this value is within an expected range or potentially higher due to the lack of competition.

What are the potential risks associated with a sole-source award for engineering services?

The primary risk associated with a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. Without multiple bids, the government may not secure the most cost-effective solution. Other risks include a lack of innovation, as the contractor may have less incentive to propose novel or more efficient approaches. Furthermore, sole-source awards can sometimes indicate a lack of market research or planning, or reliance on a single provider for critical, specialized services, which can create dependency and limit future options. Ensuring robust oversight and clear performance metrics becomes even more critical in such scenarios.

What is the track record of Paragon-Jacobs Joint Venture in performing federal engineering contracts?

To assess the track record of Paragon-Jacobs Joint Venture, one would need to examine their past performance on federal contracts, particularly those with the Department of Defense or for similar engineering services. This would involve reviewing contract databases for previous awards, performance evaluations (if publicly available), and any history of contract disputes or terminations. A joint venture's track record can also be influenced by the performance history of its individual member companies. Without specific data on their past federal engagements, it's difficult to definitively assess their reliability and past success in delivering similar services.

How has federal spending on engineering services evolved, and where does this contract fit?

Federal spending on engineering services, categorized under NAICS code 541330, has historically been substantial, driven by the needs of agencies like the Department of Defense, Department of Transportation, and General Services Administration for infrastructure, facilities, and complex project support. Spending patterns can fluctuate based on infrastructure investment cycles, national security priorities, and economic conditions. This $7.76 million contract for Offutt CMS Year 1 represents a specific instance of this broader spending trend. Its significance lies in its contribution to the DOD's infrastructure and operational support, fitting within the larger context of annual federal outlays for professional and engineering services.

What are the implications of the 'NOT AVAILABLE FOR COMPETITION' status for taxpayers?

The 'NOT AVAILABLE FOR COMPETITION' status, often synonymous with sole-source or limited competition, has direct implications for taxpayers. Primarily, it removes the downward price pressure that competition typically exerts. This means the selected contractor may not have been incentivized to offer the lowest possible price. Consequently, taxpayer funds might be utilized less efficiently compared to a scenario where multiple bids were solicited and evaluated. While sole-source awards can be justified for unique capabilities or urgent needs, they necessitate rigorous justification and oversight to ensure fair pricing and value for the public's money.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9128F22R0045

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3301 C STREET, SUITE 400, ANCHORAGE, AK, 99503

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,302,675

Exercised Options: $8,302,675

Current Obligation: $7,763,257

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128F22D0041

IDV Type: IDC

Timeline