DoD's $34M AECOM contract for engineering services in Poland shows strong competition and long-term commitment

Contract Overview

Contract Amount: $34,009,016 ($34.0M)

Contractor: AECOM International Inc.

Awarding Agency: Department of Defense

Start Date: 2018-01-09

End Date: 2029-05-31

Contract Duration: 4,160 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF SOFA AE SERVICES FOR APS AND MSA IN POLAND

Plain-Language Summary

Department of Defense obligated $34.0 million to AECOM INTERNATIONAL INC. for work described as: IGF::OT::IGF SOFA AE SERVICES FOR APS AND MSA IN POLAND Key points: 1. The contract's long duration suggests a sustained need for engineering services. 2. A firm-fixed-price structure provides cost certainty for the government. 3. The high number of bids indicates a competitive market for these services. 4. This contract supports critical infrastructure and operational readiness in a key geographic region. 5. AECOM's extensive experience likely contributed to their selection. 6. The contract's value is significant within the engineering services sector for DoD.

Value Assessment

Rating: good

The contract value of $34 million over approximately 11 years represents a substantial investment. Benchmarking this against similar long-term, large-scale engineering support contracts for overseas operations is challenging due to unique geopolitical factors. However, the firm-fixed-price nature suggests a degree of cost control. The average annual value is approximately $3.1 million, which appears reasonable for complex engineering services in a foreign operational environment, assuming the scope of work is extensive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with six bidders participating. This level of competition is a positive indicator, suggesting that multiple capable firms were interested and able to bid. A robust bidding process generally leads to better price discovery and potentially more favorable terms for the government. The presence of six bidders implies a healthy market for these specialized engineering services.

Taxpayer Impact: The extensive competition for this contract likely resulted in a more competitive price for taxpayers, ensuring that the Department of Defense received good value for the engineering services procured.

Public Impact

US military forces and personnel stationed in Poland benefit from enhanced operational infrastructure and support. The contract delivers essential engineering services, potentially including design, construction oversight, and maintenance support. The geographic impact is concentrated in Poland, supporting US strategic interests in Eastern Europe. The contract likely supports a workforce of engineers, technicians, and support staff, both locally and potentially from the US.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 10 years) could lead to complacency or scope creep if not actively managed.
Reliance on a single contractor for extended periods may limit flexibility to adapt to changing requirements or incorporate new technologies.
Geopolitical instability in the region could impact project timelines and costs.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm-fixed-price contract provides cost certainty.
Long-term nature suggests a stable and predictable need for services.
Contractor (AECOM) is a well-established firm with significant experience in large-scale engineering projects.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader professional, scientific, and technical services industry. The market for defense-related engineering services is substantial, driven by global military presence and modernization efforts. Spending in this category often involves complex projects requiring specialized expertise, with significant competition among large, established firms. Benchmarks for similar overseas engineering support contracts are highly variable, depending on location, scope, and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Given the scale and nature of the services (large-scale engineering for defense), it is possible that AECOM may engage small businesses for specialized support, but this is not a primary focus of the contract award details provided. The lack of specific small business provisions suggests the primary focus was on securing the most capable large-scale provider.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The firm-fixed-price structure provides a degree of financial oversight. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Regular performance reviews and milestone tracking are standard oversight mechanisms.

Related Government Programs

DoD Overseas Construction
DoD Engineering and Technical Services
Army Corps of Engineers Contracts
Foreign Military Basing Support
NATO Infrastructure Projects

Risk Flags

Long-term contract duration requires robust oversight to prevent scope creep and ensure continued value.
Geopolitical risks in Eastern Europe could impact project execution and costs.
Firm-fixed-price contracts can be susceptible to contractor underestimation or overestimation of costs over extended periods.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.0 million to AECOM INTERNATIONAL INC.. IGF::OT::IGF SOFA AE SERVICES FOR APS AND MSA IN POLAND

Who is the contractor on this award?

The obligated recipient is AECOM INTERNATIONAL 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 $34.0 million.

What is the period of performance?

Start: 2018-01-09. End: 2029-05-31.

What is AECOM's track record with similar large-scale, long-term engineering contracts for the Department of Defense, particularly in overseas environments?

AECOM International Inc. has a substantial history of performing large-scale engineering, procurement, and construction (EPC) services for the Department of Defense, both domestically and internationally. They have been involved in numerous projects supporting military installations, infrastructure development, and operational readiness in various theaters. Their experience often includes complex projects in challenging environments, similar to the requirements in Poland. Reviewing past performance evaluations and contract histories for AECOM on similar DoD contracts would provide further insight into their capabilities, reliability, and past performance metrics, which are crucial for assessing the risk associated with this long-term engagement.

How does the $3.1 million average annual value compare to similar engineering support contracts for US military operations in Eastern Europe?

The average annual value of approximately $3.1 million for this contract is difficult to benchmark precisely against similar contracts in Eastern Europe without detailed scope comparisons. Factors such as the specific types of engineering services (e.g., design, construction management, environmental, maintenance), the scale of infrastructure involved, local labor costs, security requirements, and the duration of the contract significantly influence pricing. However, for complex, long-term engineering support required for significant military installations or operations in a foreign country, this figure appears within a plausible range. A more precise comparison would require access to data on comparable contracts with similar service levels and geographic contexts.

What are the primary risks associated with a firm-fixed-price contract of this duration (over 10 years) for engineering services in Poland?

The primary risks associated with a firm-fixed-price contract of this duration include potential for contractor underestimation of costs, leading to reduced profit or financial distress, and conversely, contractor overestimation, leading to inflated prices for the government. For the government, the risk lies in the potential for scope creep if requirements evolve significantly and are not managed tightly, or if unforeseen geopolitical events or regulatory changes increase costs beyond the fixed price. Long durations can also reduce flexibility to adopt newer technologies or adapt to changing strategic needs. Effective contract management, clear performance metrics, and robust change control processes are essential to mitigate these risks.

What specific types of engineering services are anticipated under this contract, and how do they contribute to the DoD's mission in the region?

While the specific details of services are not fully elaborated in the provided data, engineering services under this contract likely encompass a broad range of activities critical to supporting US military operations and presence in Poland. This could include architectural and engineering design for new facilities, renovation and upgrade of existing infrastructure (barracks, training areas, logistics hubs), site assessments, environmental engineering, construction oversight, and potentially facilities maintenance planning. These services directly contribute to the DoD's mission by ensuring that military personnel have safe, functional, and modern facilities, thereby enhancing operational readiness, troop morale, and the overall effectiveness of US forces stationed in or operating through Poland.

How has DoD spending on engineering services in Poland trended over the past five years, and does this contract represent a significant increase or shift?

Analyzing DoD spending trends on engineering services specifically in Poland over the past five years requires access to detailed historical contract databases. Without that specific data, it's difficult to definitively state whether this $34 million contract represents a significant increase or shift. However, given the increasing geopolitical importance of Eastern Europe and the US commitment to strengthening its presence in the region, it is plausible that spending on infrastructure and related engineering services has been steady or increasing. This contract, with its long duration and substantial value, suggests a sustained, long-term requirement rather than a short-term surge, aligning with broader strategic commitments.

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

Solicitation ID: W912GB17R0046

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: SIEMENSSTR. 10, NEU-ISENBURG

Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $34,069,341

Exercised Options: $34,009,494

Current Obligation: $34,009,016

Actual Outlays: $112,215

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $1,659,256

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline