DoD awards $17.1M engineering task order for Rhine Ordnance Barracks Medical Center

Contract Overview

Contract Amount: $17,138,507 ($17.1M)

Contractor: Rtkl/Ssr

Awarding Agency: Department of Defense

Start Date: 2022-02-09

End Date: 2028-11-08

Contract Duration: 2,464 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TASK ORDER AWARD IN SUPPORT OF RHINE ORDNANCE BARRACKS MEDICAL CENTER

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75201

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $17.1 million to RTKL/SSR for work described as: TASK ORDER AWARD IN SUPPORT OF RHINE ORDNANCE BARRACKS MEDICAL CENTER Key points: 1. Task order awarded under a larger contract vehicle, suggesting potential for follow-on work. 2. Firm Fixed Price contract type indicates cost certainty for the government. 3. Long performance period of nearly 7 years allows for phased execution and potential for scope adjustments. 4. Engineering services are critical for infrastructure development and maintenance. 5. Awarded by the Department of the Army, indicating a focus on military infrastructure. 6. Contractor RTKL/SSR has a history of performing similar services. 7. The contract is not set aside for small businesses, implying larger prime contractors are involved.

Value Assessment

Rating: good

The total award amount of $17.1 million for engineering services over a period of approximately 7 years appears reasonable for a project of this nature. Benchmarking against similar large-scale medical facility engineering projects would provide a more precise value assessment. The firm fixed-price structure helps manage cost overruns, but the long duration could introduce risks if market conditions change significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is generally expected to yield favorable pricing and innovative solutions for the government. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces and ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiaries are the U.S. Army and its personnel who will utilize the improved medical facilities at Rhine Ordnance Barracks. The services delivered will include engineering design, planning, and potentially oversight for the medical center. The geographic impact is localized to the Rhine Ordnance Barracks, likely in Germany, supporting military operations abroad. The contract will likely involve a workforce of engineers, architects, and project managers, potentially including subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long performance period could lead to scope creep or increased costs if not managed effectively.
Reliance on a single task order award vehicle might limit future competition for specific engineering needs.
Potential for unforeseen technical challenges in complex medical facility construction.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Full and open competition suggests a competitive bidding process leading to potential cost savings.
Award to established contractor RTKL/SSR indicates experience in similar projects.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader construction and defense infrastructure industries. The market for specialized engineering services supporting large government facilities, particularly military medical centers, is substantial. Comparable spending benchmarks would involve analyzing other large-scale infrastructure projects managed by the Department of Defense or similar federal agencies.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses in the provided data. This suggests that the prime contractor, RTKL/SSR, is likely a large business, and opportunities for small businesses may be limited to subcontracting roles determined by the prime.

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. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver services within the agreed-upon cost. Transparency is facilitated by the contract award data being publicly available, though detailed performance metrics may not be.

Related Government Programs

Military Construction Program
Base Realignment and Closure (BRAC) projects
Department of Defense Medical Facilities Construction
Engineering and Architectural Services Contracts

Risk Flags

Long performance period may increase risk of cost escalation or scope creep.
Lack of specific small business subcontracting goals could limit opportunities for smaller firms.
Potential for unforeseen technical complexities in medical facility engineering.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.1 million to RTKL/SSR. TASK ORDER AWARD IN SUPPORT OF RHINE ORDNANCE BARRACKS MEDICAL CENTER

Who is the contractor on this award?

The obligated recipient is RTKL/SSR.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.1 million.

What is the period of performance?

Start: 2022-02-09. End: 2028-11-08.

What is the track record of RTKL/SSR in performing large-scale medical facility engineering projects for the Department of Defense?

RTKL/SSR, as a joint venture or combined entity, has a history of involvement in significant architectural and engineering projects. While specific details on their track record with DoD medical facilities require deeper database searches, their selection for this task order suggests they possess relevant experience and qualifications. Further analysis would involve examining past performance evaluations and contract awards to RTKL/SSR for similar projects, assessing their on-time and on-budget delivery rates, and reviewing any past performance issues or commendations.

How does the $17.1 million cost compare to similar engineering contracts for military medical centers?

Benchmarking the $17.1 million cost requires comparing it to similar engineering task orders or contracts for military medical centers of comparable size and complexity. Factors such as the scope of work (design, planning, construction oversight), geographic location (which impacts labor and material costs), and the specific medical capabilities being designed will influence the price. Without specific comparable contract data, it's difficult to definitively state if this represents excellent or fair value. However, the long performance period (nearly 7 years) suggests a substantial scope of work, making the total cost appear reasonable at face value, pending detailed cost analysis.

What are the primary risks associated with a nearly 7-year performance period for this engineering contract?

The primary risks associated with a nearly 7-year performance period include potential scope creep, where the project's requirements expand beyond the initial agreement, leading to cost overruns or schedule delays. Market volatility in material costs and labor rates over such a long duration can also impact the fixed-price agreement if not adequately accounted for. Furthermore, technological advancements in medical facility design or equipment could necessitate design changes, adding complexity and cost. Effective project management, change control processes, and contingency planning are crucial to mitigate these risks.

What is the significance of the 'full and open competition' award type for this contract?

The 'full and open competition' award type signifies that the Department of the Army sought proposals from all responsible sources, maximizing the pool of potential bidders. This competitive environment is intended to drive down prices, encourage innovation, and ensure the government secures the best possible value. It implies that the selection process was based on merit, with proposals evaluated against defined criteria. For taxpayers, this typically translates to more efficient use of funds compared to sole-source or limited competition awards, as market forces are leveraged to achieve optimal outcomes.

How does the firm fixed-price (FFP) contract type benefit the government in this scenario?

The Firm Fixed Price (FFP) contract type offers significant benefits to the government by establishing a ceiling on the total cost of the contract. This provides cost certainty and predictability, making budgeting more straightforward. The risk of cost overruns is primarily borne by the contractor, RTKL/SSR, incentivizing them to manage their expenses efficiently and complete the project within the agreed-upon price. This structure is particularly advantageous for projects with well-defined scopes of work, like engineering services for a medical center, where potential cost variables can be reasonably estimated upfront.

What is the potential impact of this contract on the small business ecosystem, given it's not a small business set-aside?

Since this contract was awarded through full and open competition and is not designated as a small business set-aside, its direct impact on the small business ecosystem as a prime awardee is nil. However, the prime contractor, RTKL/SSR, may engage small businesses as subcontractors to fulfill specific aspects of the engineering work. The extent of this subcontracting will depend on the prime's strategy and any potential subcontracting goals set by the Department of the Army. Without explicit subcontracting plans, the direct benefit to small businesses remains uncertain and contingent on the prime's procurement practices.

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: W912DY18R0008

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1717 PACIFIC AVE, DALLAS, TX, 75201

Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $17,138,507

Exercised Options: $17,138,507

Current Obligation: $17,138,507

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY20D0076

IDV Type: IDC

Timeline