AECOM International awarded $22.3M for Army facility operations, highlighting engineering services demand

Contract Overview

Contract Amount: $22,328,136 ($22.3M)

Contractor: AECOM International Inc.

Awarding Agency: Department of Defense

Start Date: 2022-08-12

End Date: 2026-05-31

Contract Duration: 1,388 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SOFA: BASE ITEMS: ZAGAN BRIGADE OPS FACILITY

Plain-Language Summary

Department of Defense obligated $22.3 million to AECOM INTERNATIONAL INC. for work described as: SOFA: BASE ITEMS: ZAGAN BRIGADE OPS FACILITY Key points: 1. Contract value represents significant investment in base operations and facility support. 2. Engineering services sector shows robust activity, with major players like AECOM securing substantial awards. 3. Fixed-price contract type suggests predictable cost outcomes for the government. 4. Long performance period indicates a need for sustained operational support. 5. The award falls within the broader category of defense infrastructure and base support services. 6. Competition dynamics for this type of large-scale engineering contract warrant further examination.

Value Assessment

Rating: good

The $22.3 million award for facility operations and engineering services appears reasonable given the contract's duration and scope. Benchmarking against similar large-scale base support contracts would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overrun risks for the government. However, without detailed breakdowns of labor rates and material costs, a definitive assessment of pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a broad solicitation process. While the number of bidders is not specified, this method typically encourages a competitive environment, potentially leading to better pricing and service offerings. The success of this approach hinges on the number and capability of the firms that responded to the solicitation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where multiple capable contractors vie for the work, driving down costs and improving service quality.

Public Impact

The primary beneficiaries are the U.S. Army personnel and operations at the Zagan Brigade facility, ensuring continued operational readiness. Services delivered include essential facility operations and maintenance, crucial for military base functionality. The geographic impact is localized to the Zagan Brigade's operational area, supporting regional military infrastructure. Workforce implications may include direct and indirect employment opportunities for engineers, technicians, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial operational requirements are not clearly defined.
Reliance on a single large contractor could limit future flexibility or innovation.
Ensuring consistent quality of services over the multi-year performance period.

Positive Signals

Award to an established contractor like AECOM suggests a degree of confidence in their capabilities.
Firm fixed-price contract provides cost certainty for the government.
Long-term contract allows for stable planning and resource allocation for facility support.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense infrastructure. The market for base operations and facility support services for military installations is substantial, with numerous large firms competing for these long-term agreements. AECOM is a significant player in this space, often competing for and winning large-scale government contracts related to construction, engineering, and operational support.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, AECOM, as a large prime contractor, may engage small businesses as subcontractors for specialized services or materials, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army, ensuring compliance with contract terms and performance standards. The firm fixed-price nature of the contract provides a degree of accountability for AECOM to deliver services within the agreed budget. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

Base Operations Support (BOS)
Facility Engineering and Maintenance Services
Defense Infrastructure Projects
Military Construction Support

Risk Flags

Contract Duration
Performance Risk
Cost Control

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.3 million to AECOM INTERNATIONAL INC.. SOFA: BASE ITEMS: ZAGAN BRIGADE OPS FACILITY

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 $22.3 million.

What is the period of performance?

Start: 2022-08-12. End: 2026-05-31.

What is AECOM International's track record with similar Department of Defense contracts?

AECOM International has a substantial track record with the Department of Defense, frequently securing contracts for large-scale engineering, construction, and base support services. Their portfolio includes numerous projects involving facility operations, maintenance, and infrastructure development across various military branches and global locations. While specific performance details for past contracts are often proprietary, their continued success in winning competitive bids suggests a generally positive performance history and capability to meet complex military requirements. Analyzing past contract awards and any associated performance reviews or disputes would provide a more granular understanding of their reliability and effectiveness in delivering services similar to those required for the Zagan Brigade operations facility.

How does the $22.3 million value compare to similar facility operations contracts?

The $22.3 million value for this contract, spanning approximately 3.5 years (August 2022 to May 2026), translates to an average annual value of roughly $6.4 million. This figure is within the expected range for large-scale facility operations and engineering support contracts for military installations, particularly those involving significant infrastructure or complex operational requirements. Benchmarking against contracts for similar-sized bases or brigades, or those with comparable service scopes (e.g., maintenance, utilities, security support), would be necessary for a precise comparison. However, given the duration and the nature of supporting a brigade-level operation, the total award amount appears commensurate with market rates for such services.

What are the primary risks associated with this contract for the government?

The primary risks for the government associated with this contract include potential performance deficiencies by the contractor, leading to disruptions in facility operations or reduced service quality. Given the firm fixed-price nature, there's a risk that AECOM might cut corners to maintain profitability, impacting long-term asset maintenance or safety standards. Contractor financial instability, though less likely with a large firm like AECOM, remains a background risk. Furthermore, the long duration increases the risk of unforeseen operational changes or evolving mission requirements that the contract may not adequately address, potentially necessitating costly modifications or change orders. Ensuring robust oversight and clear performance metrics are crucial to mitigate these risks.

How effective is the firm fixed-price (FFP) contract type in managing costs for this type of service?

The firm fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and risks are understood, as is often the case with established facility operations and maintenance. It shifts the risk of cost overruns to the contractor, incentivizing efficiency and cost control. For the government, FFP provides budget certainty, as the price is fixed regardless of the contractor's actual costs. However, if the scope is not perfectly defined upfront, or if unforeseen issues arise, the contractor may be less inclined to perform additional work without significant negotiation for increased price, potentially leading to disputes or performance gaps if not managed carefully. For ongoing services like facility operations, FFP works best when performance standards are clearly articulated and measurable.

What are the historical spending patterns for facility operations and engineering services within the Department of the Army?

The Department of the Army consistently allocates significant portions of its budget towards facility operations and engineering services, reflecting the vast network of bases, training areas, and administrative facilities it maintains globally. Historical spending data reveals a steady demand for these services, driven by the need for infrastructure upkeep, modernization, and operational readiness. Contracts in this category often range from smaller, localized maintenance tasks to large, multi-year base operations support (BOS) contracts awarded to major defense contractors. Spending levels can fluctuate based on geopolitical conditions, modernization initiatives, and budget appropriations, but the fundamental requirement for maintaining physical infrastructure remains a constant, substantial expenditure category for the Army.

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: W912GB19R0012

Offers Received: 1

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: $23,406,517

Exercised Options: $22,328,136

Current Obligation: $22,328,136

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $214,283

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912GB19D0028

IDV Type: IDC

Timeline