DoD awards $5.98M for conceptual design services, with AECOM International Inc. securing the contract

Contract Overview

Contract Amount: $5,975,449 ($6.0M)

Contractor: AECOM International Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-28

End Date: 2026-05-24

Contract Duration: 1,334 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AE-22-0190 CONCEPTUAL DESIGN

Plain-Language Summary

Department of Defense obligated $6.0 million to AECOM INTERNATIONAL INC. for work described as: AE-22-0190 CONCEPTUAL DESIGN Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for conceptual design services, a foundational stage in project development. 3. AECOM International Inc. is the sole awardee for this delivery order. 4. The contract duration is substantial, spanning over 1300 days. 5. The contract type is Firm Fixed Price, providing cost certainty. 6. The award value is within a moderate range for conceptual design services.

Value Assessment

Rating: good

The contract value of approximately $5.98 million for conceptual design services appears reasonable given the extensive duration of over 1300 days. Benchmarking against similar conceptual design contracts for large-scale projects would provide a more precise value assessment. However, the firm-fixed-price structure suggests that the contractor has assumed the risk for cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the designation suggests a robust competitive environment. This approach is intended to foster price discovery and ensure the government receives the best value.

Taxpayer Impact: Full and open competition generally leads to more competitive pricing for taxpayers by encouraging multiple firms to vie for the contract, potentially driving down costs.

Public Impact

The Department of the Army benefits from these conceptual design services, crucial for planning future infrastructure or projects. This contract supports the development of engineering designs, laying the groundwork for subsequent project phases. The geographic impact is likely tied to specific Department of the Army installations or project sites. The contract may indirectly impact the engineering and design workforce through AECOM International Inc.'s resource allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits a full assessment of competitive intensity.
The scope of 'conceptual design' can vary, potentially leading to scope creep if not clearly defined.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Firm Fixed Price contract type provides cost certainty for the government.
Long contract duration suggests a significant and potentially complex project requiring sustained effort.

Sector Analysis

Engineering services, particularly conceptual design, are a critical component of the broader Architecture, Engineering, and Construction (AEC) sector. This contract falls within the professional services sub-sector, which is characterized by specialized expertise and project-based work. The market for these services is competitive, with numerous firms offering a range of capabilities. The value of this contract is moderate within the context of large federal infrastructure or defense projects.

Small Business Impact

The data indicates that 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 requirement. However, the prime contractor, AECOM International Inc., may engage small businesses as subcontractors depending on their internal policies and the project's needs, which is not specified in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of 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 the defined scope within the agreed price. Transparency is facilitated by the contract award notice, though further details on performance and deliverables would require access to contract management systems.

Related Government Programs

Department of Defense - Military Construction
Army Corps of Engineers - Design Services
Federal Facilities - Planning and Design

Risk Flags

Potential for scope creep due to the nature of conceptual design.
Reliance on a single contractor for a long-duration effort.
Limited transparency on the number of bidders in the competitive process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.0 million to AECOM INTERNATIONAL INC.. AE-22-0190 CONCEPTUAL DESIGN

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 $6.0 million.

What is the period of performance?

Start: 2022-09-28. End: 2026-05-24.

What is AECOM International Inc.'s track record with the Department of Defense for similar conceptual design contracts?

AECOM International Inc. has a significant history of performing work for the Department of Defense across various service lines, including engineering and design. While specific data on their past conceptual design contracts with the DoD is not detailed here, their extensive presence suggests considerable experience. A deeper dive into federal procurement databases like FPDS or SAM.gov would reveal the volume, value, and performance history of their prior DoD awards. This would allow for a more robust assessment of their suitability and past performance on comparable projects, including any potential red flags or consistent successes in delivering on time and within budget for similar conceptual design efforts.

How does the $5.98 million award value compare to similar conceptual design contracts for large federal projects?

The $5.98 million award for conceptual design services is a moderate figure within the landscape of large federal projects. Conceptual design is an early-stage service, and its cost is highly dependent on the scale and complexity of the ultimate project. For major infrastructure, defense installations, or complex systems, conceptual design contracts can range from hundreds of thousands to several million dollars. Without knowing the specific nature of the project this contract supports, a direct comparison is challenging. However, considering the contract duration of over 1300 days, the per-day cost appears reasonable, suggesting that the value is aligned with the expected effort for a substantial undertaking.

What are the primary risks associated with this conceptual design contract?

Key risks for this conceptual design contract include potential scope creep if the project's requirements are not meticulously defined and managed. Ambiguity in the 'conceptual' phase can lead to evolving requirements that may strain the firm-fixed-price agreement. Another risk is the contractor's ability to accurately estimate the full lifecycle costs and complexities based on the initial concept, which could impact downstream phases. Furthermore, reliance on a single awardee, AECOM International Inc., introduces performance risk; any delays or quality issues from the contractor could impact the project timeline. Finally, the long duration increases the risk of changing technological landscapes or regulatory environments affecting the design's relevance.

How effective is the firm-fixed-price contract type in managing costs for conceptual design services?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for conceptual design services by shifting the cost-risk burden to the contractor. This means AECOM International Inc. is obligated to complete the defined scope of work for the agreed-upon price, incentivizing them to control their own costs and manage the project efficiently. For the government, this provides significant budget certainty, as the total cost is known upfront, barring any contract modifications. However, the effectiveness hinges on a well-defined scope of work at the outset. If the conceptual design requirements are vague or subject to significant change, an FFP contract could lead to disputes or the contractor seeking modifications, potentially negating some of the cost certainty benefits.

What is the historical spending trend for engineering services by the Department of the Army?

Historical spending by the Department of the Army (DoA) on engineering services has consistently been substantial, reflecting the vast infrastructure, maintenance, and modernization needs of the Army. The DoA, through entities like the Army Corps of Engineers, procures a wide array of engineering services, including design, planning, environmental assessments, and construction management. Spending fluctuates based on military readiness requirements, infrastructure investment cycles, and national security priorities. While specific annual figures require detailed analysis of historical budget allocations and contract awards, it is evident that engineering services represent a significant and ongoing investment category for the DoA, crucial for supporting its global operations and domestic installations.

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: W912GB18R0034

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: $6,677,941

Exercised Options: $5,975,449

Current Obligation: $5,975,449

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912GB19D0006

IDV Type: IDC

Timeline