Department of Defense awards $25M engineering contract for underseepage control in Missouri

Contract Overview

Contract Amount: $25,060,402 ($25.1M)

Contractor: Hntb Corporation

Awarding Agency: Department of Defense

Start Date: 2019-07-29

End Date: 2026-08-05

Contract Duration: 2,564 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE THREE TWO D/B/B PACKAGES INCLUDE AN UNDERSEEPAGE CONTROL CONTRACT FOR ARMOURDALE AND, AN UNDERSEEPAGE CONTROL CONTRACT FOR CID.

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64108

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $25.1 million to HNTB CORPORATION for work described as: THE THREE TWO D/B/B PACKAGES INCLUDE AN UNDERSEEPAGE CONTROL CONTRACT FOR ARMOURDALE AND, AN UNDERSEEPAGE CONTROL CONTRACT FOR CID. Key points: 1. Contract focuses on critical infrastructure protection for Army Corps of Engineers projects. 2. Engineering services are essential for long-term dam and levee maintenance. 3. The contract duration of over 7 years suggests a need for sustained expertise. 4. Fixed-price contract type aims to control costs for the government. 5. Competition level indicates potential for fair market pricing. 6. Geographic focus on Missouri highlights regional infrastructure investment.

Value Assessment

Rating: good

The contract value of approximately $25 million over a 7-year period for engineering services related to underseepage control appears reasonable. While specific benchmarks for this niche service are difficult to ascertain without more detailed project scope, the fixed-price nature of the contract provides cost certainty. Comparing this to similar large-scale civil engineering projects managed by the Army Corps of Engineers, the pricing seems to be within expected ranges for specialized technical services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of a single award for this delivery order suggests that HNTB Corporation offered the best value among the competing firms. The competitive process is expected to have driven pricing towards market rates.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and a wider selection of qualified contractors.

Public Impact

The primary beneficiaries are the Department of the Army Corps of Engineers, ensuring the integrity of critical infrastructure. Services delivered include specialized engineering expertise for underseepage control, crucial for dam and levee safety. The geographic impact is concentrated in Missouri, addressing specific regional infrastructure needs. This contract supports specialized engineering jobs within the civil engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential cost overruns if scope management is weak.
Reliance on a single contractor for a significant period may limit future innovation or cost-saving opportunities.
Potential for scope creep in complex engineering projects over an extended period.

Positive Signals

Fixed-price contract type provides cost predictability for the government.
Full and open competition suggests a robust selection process and potential for competitive pricing.
The contract addresses a critical need for infrastructure maintenance and safety.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on civil engineering and infrastructure management. The market for such services is driven by government investment in public works, including dams, levees, and flood control systems. Comparable spending benchmarks would typically be found in large-scale civil infrastructure projects managed by federal agencies like the Army Corps of Engineers, where specialized geotechnical and hydrological engineering expertise is paramount.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While the prime contractor is HNTB Corporation, a large engineering firm, there is no explicit information on subcontracting plans for small businesses within this data. Further analysis would be needed to determine if small businesses are involved in the subcontracting chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely managed by the Army Corps of Engineers district responsible for the projects in Missouri. Accountability measures are inherent in the fixed-price contract type, which incentivizes the contractor to complete work within the agreed budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific project-level oversight details are not provided.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Infrastructure Protection Contracts
Dam Safety and Maintenance
Flood Control Projects

Risk Flags

Long contract duration may increase risk of cost escalation or scope creep.
Potential for unforeseen subsurface conditions impacting project timeline and budget.
Reliance on a single contractor for a critical infrastructure function over several years.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.1 million to HNTB CORPORATION. THE THREE TWO D/B/B PACKAGES INCLUDE AN UNDERSEEPAGE CONTROL CONTRACT FOR ARMOURDALE AND, AN UNDERSEEPAGE CONTROL CONTRACT FOR CID.

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 $25.1 million.

What is the period of performance?

Start: 2019-07-29. End: 2026-08-05.

What is the track record of HNTB Corporation with the Department of Defense and similar infrastructure projects?

HNTB Corporation is a well-established engineering firm with extensive experience in infrastructure design and construction management, including significant work with federal agencies like the Department of Defense and the Army Corps of Engineers. They have a history of managing large-scale projects, including transportation, water resources, and environmental engineering. Their track record with the DoD typically involves complex engineering solutions for military installations and civil works. While specific performance metrics for this particular contract are not detailed in the provided data, HNTB's general reputation suggests a capacity to handle such specialized engineering tasks. Past performance evaluations from previous government contracts would offer a more granular view of their reliability and quality of work.

How does the $25 million contract value compare to similar underseepage control projects managed by the Army Corps of Engineers?

Benchmarking the $25 million contract value for underseepage control requires understanding the specific scope, complexity, and duration of the projects involved. Underseepage control is a critical component of dam and levee safety, often involving extensive geotechnical investigations, design of control measures (like cutoff walls or relief wells), and construction oversight. Given that this contract spans over seven years (July 2019 to August 2026), the annual expenditure averages around $3.5 million. This figure appears reasonable for specialized engineering services on large civil infrastructure projects. However, without detailed project specifications and geographic context for comparable projects, a precise comparison is challenging. Generally, projects involving complex geological conditions or extensive remediation efforts would command higher costs.

What are the primary risks associated with a 7-year engineering contract for underseepage control?

The primary risks associated with a long-term engineering contract like this include potential scope creep, where the project's requirements expand beyond the initial agreement, leading to cost overruns. Inflation over the 7-year period could also impact the real value of the fixed-price contract if not adequately accounted for in the initial pricing. Technical risks are inherent in complex engineering projects, such as unforeseen subsurface conditions that may require design modifications or additional work. Contractor performance risk is also a factor; if HNTB Corporation experiences staffing issues, financial difficulties, or quality control problems, it could delay the project and impact its effectiveness. Furthermore, changes in regulatory requirements or environmental conditions over such a long period could necessitate contract modifications.

How effective are fixed-price contracts in managing costs for long-term, complex engineering services?

Fixed-price contracts are generally effective in managing costs for complex engineering services when the scope of work is well-defined and risks are understood upfront. They shift the primary cost risk to the contractor, incentivizing them to control expenses and complete the project efficiently to maximize profit. For this contract, the firm fixed-price nature provides the Department of Defense with budget certainty. However, for long-term projects with inherent technical uncertainties, like underseepage control, there's a risk that the contractor may build in significant contingencies, leading to a higher initial price, or that unforeseen issues necessitate costly change orders. Effective contract administration, including clear scope definition and rigorous change management, is crucial to realizing the cost-saving benefits of fixed-price contracts in such scenarios.

What is the historical spending pattern for engineering services related to underseepage control by the Department of Defense?

Historical spending patterns for underseepage control by the Department of Defense, particularly through the Army Corps of Engineers, are substantial due to the vast network of dams, levees, and flood control structures managed nationwide. These projects are often long-term and require continuous investment in maintenance, repair, and upgrades to ensure structural integrity and public safety. Spending can fluctuate based on infrastructure condition assessments, federal budget allocations, and the prioritization of specific projects. While this specific $25 million contract represents a significant award, it is part of a broader, ongoing commitment to civil works infrastructure. Analyzing historical data from the Army Corps of Engineers' civil works budget would reveal trends in funding for geotechnical engineering, dam safety, and related infrastructure protection 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

Solicitation ID: W912DQ19R1059

Offers Received: 1

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: $25,455,981

Exercised Options: $25,060,402

Current Obligation: $25,060,402

Actual Outlays: $2,025,636

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W912DQ19D1009

IDV Type: IDC

Timeline