DoD awards $8.58M engineering task order for Chicago-based Great Lakes and Rivers Phase 2 project

Contract Overview

Contract Amount: $8,581,894 ($8.6M)

Contractor: Aecom-B&v Lakes and Rivers JV

Awarding Agency: Department of Defense

Start Date: 2024-11-13

End Date: 2026-10-14

Contract Duration: 700 days

Daily Burn Rate: $12.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AE TASK ORDER FOR TJ O'BRIEN PHASE 2, CHICAGO, ILLINOIS

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40202

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $8.6 million to AECOM-B&V LAKES AND RIVERS JV for work described as: AE TASK ORDER FOR TJ O'BRIEN PHASE 2, CHICAGO, ILLINOIS Key points: 1. Contract awarded for critical environmental engineering services. 2. Project focuses on the Great Lakes and Rivers initiative, indicating a significant environmental or infrastructure component. 3. The firm-fixed-price contract type suggests predictable costs for the government. 4. A single award task order implies a specific need within a larger contract vehicle. 5. The duration of 700 days indicates a substantial, multi-year effort. 6. The contract is managed by the Department of the Army, highlighting military infrastructure or environmental responsibilities.

Value Assessment

Rating: good

The contract value of $8.58 million for engineering services appears reasonable given the project's scope and duration. Benchmarking against similar large-scale environmental engineering projects managed by the Department of Defense suggests that this award falls within expected cost ranges. The firm-fixed-price structure provides cost certainty, which is a positive indicator for value for money. Further analysis would require comparing specific deliverables and the complexity of the engineering tasks to publicly available data on comparable contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the award process generally supports fair pricing and encourages contractors to offer their best value. This approach is standard for significant federal procurements and aims to ensure the government receives optimal solutions.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and improves service quality.

Public Impact

The Department of Defense benefits from enhanced engineering capabilities for environmental projects. Services delivered will support the Great Lakes and Rivers initiative, likely improving environmental conditions or infrastructure in the region. The project is geographically located in Chicago, Illinois, with potential implications for the local economy and workforce. Engineering firms and their specialized personnel will be engaged, contributing to the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the engineering challenges and deliverables makes it difficult to fully assess the complexity and potential for cost overruns.
The absence of the number of bidders in the full and open competition limits the ability to gauge the intensity of the competition and its impact on pricing.
While the contract is firm-fixed-price, the scope of engineering services can sometimes lead to change orders if unforeseen issues arise during execution.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type provides cost predictability for the government.
The project addresses a specific initiative (Great Lakes and Rivers), indicating a focused and potentially impactful environmental or infrastructure goal.
The task order is part of a larger contract vehicle, suggesting established processes and oversight are likely in place.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector supports a wide range of government activities, from infrastructure development and environmental management to defense readiness. The market for engineering services is competitive, with numerous firms capable of undertaking complex federal projects. Spending in this area is often driven by infrastructure needs, environmental regulations, and national security requirements. Comparable spending benchmarks would typically be found within the Department of Defense's broader engineering and construction procurement data.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information about subcontracting plans. Given the nature and value of the engineering services required, it is possible that larger, established firms are the primary awardees. Further investigation into subcontracting opportunities would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and program management offices. As a task order under a larger contract, existing oversight mechanisms and accountability measures are expected to be in place. Transparency regarding project progress and performance can be assessed through federal procurement databases and agency reporting. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Engineering Services
Environmental Remediation Contracts
Great Lakes Waterway Projects
Army Corps of Engineers Contracts

Risk Flags

Potential for scope creep in complex engineering projects.
Reliance on specific contractor expertise.
Environmental regulatory compliance risks.
Geographic concentration of project work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.6 million to AECOM-B&V LAKES AND RIVERS JV. AE TASK ORDER FOR TJ O'BRIEN PHASE 2, CHICAGO, ILLINOIS

Who is the contractor on this award?

The obligated recipient is AECOM-B&V LAKES AND RIVERS JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.6 million.

What is the period of performance?

Start: 2024-11-13. End: 2026-10-14.

What specific engineering services are encompassed by this task order for the Great Lakes and Rivers Phase 2 project?

The provided data indicates the contract is for 'Engineering Services' (NAICS 541330) and is related to the 'AE TASK ORDER FOR TJ O'BRIEN PHASE 2, CHICAGO, ILLINOIS' and the 'Great Lakes and Rivers' initiative. While the exact nature of the engineering services is not detailed, typical services under such a designation for environmental or infrastructure projects could include feasibility studies, design, planning, environmental impact assessments, permitting assistance, construction oversight, and project management. Given the 'Great Lakes and Rivers' context, it might involve hydrological studies, water quality management, infrastructure design related to waterways, or environmental restoration efforts within the Chicago area's connection to the Great Lakes system. The specific 'TJ O'BRIEN PHASE 2' designation suggests a continuation or a specific phase of a larger, ongoing project.

How does the $8.58 million award compare to typical engineering service contracts for similar environmental projects managed by the Department of Defense?

The $8.58 million award for engineering services is a substantial but not unusually large sum for a multi-year federal project, especially one managed by the Department of Defense which often handles complex infrastructure and environmental initiatives. Contracts for large-scale environmental remediation, infrastructure design, or water resource management projects managed by agencies like the Army Corps of Engineers can range from several million to tens or even hundreds of millions of dollars. This specific task order, with a duration of 700 days (approximately 2 years), suggests a significant scope of work. Without knowing the precise technical requirements, deliverables, and geographic complexities, a direct comparison is challenging. However, it appears to be a mid-to-large-sized award for a defined phase of a project within the engineering services domain.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks for this engineering services contract include scope creep, unforeseen technical challenges, delays in permitting or regulatory approvals, and contractor performance issues. Scope creep is a common risk in complex engineering projects where requirements may evolve. This is mitigated by the firm-fixed-price contract type, which incentivizes the contractor to manage costs within the agreed-upon price, though change orders can still occur. Technical challenges are inherent in engineering; mitigation involves thorough planning, experienced personnel, and potentially contingency planning within the project scope. Delays in approvals are managed through proactive engagement with regulatory bodies and clear communication channels. Contractor performance is typically monitored through contract performance metrics, regular progress reports, and established government oversight.

What is the historical spending pattern for engineering services by the Department of the Army in the Chicago region?

Analyzing historical spending patterns for engineering services by the Department of the Army in the Chicago region requires access to detailed federal procurement databases. The Department of the Army, particularly through entities like the Army Corps of Engineers, frequently engages engineering firms for projects related to water resources, infrastructure, environmental compliance, and military base support. Chicago's strategic location on Lake Michigan and its role as a transportation hub likely means significant Army Corps of Engineers activity. Historical data would likely show a consistent demand for engineering services, with spending fluctuating based on specific infrastructure investments, environmental initiatives (like Great Lakes restoration), and national defense priorities. Without specific data queries, it's difficult to provide exact figures, but the region is a known area of federal engineering investment.

What does the 'full and open competition' designation imply for the contractor selection and potential for innovation?

The 'full and open competition' designation signifies that the Department of Defense solicited proposals from all responsible sources and did not impose any restrictions on the number or types of potential offerors. This process is designed to maximize competition, thereby encouraging a wider range of solutions and potentially driving down costs. It implies that the contractor, AECOM-B&V LAKES AND RIVERS JV, was selected based on a competitive evaluation of their technical approach, past performance, price, and other factors outlined in the solicitation. While full and open competition aims for best value, the extent of innovation can depend on the specific evaluation criteria used. If innovation was a key factor in the solicitation, the winning proposal likely demonstrated novel approaches or technologies. If the focus was primarily on cost and technical compliance, the innovation aspect might be less pronounced.

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: W912QR22R0013

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 W JEFFERSON ST STE 1600, LOUISVILLE, KY, 40202

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

Financial Breakdown

Contract Ceiling: $10,111,580

Exercised Options: $8,581,894

Current Obligation: $8,581,894

Actual Outlays: $1,688,109

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $597,227

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912QR23D0041

IDV Type: IDC

Timeline