Army awards $1.25B for Permanent Protection & Advanced work to APTIM Federal Services
Contract Overview
Contract Amount: $1,249,801,027 ($1.2B)
Contractor: Aptim Federal Services, LLC
Awarding Agency: Department of Defense
Start Date: 2008-04-03
End Date: 2020-09-30
Contract Duration: 4,563 days
Daily Burn Rate: $273.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: Construction
Official Description: IHNC 392 PERMANENT PROTECTION & ADVANCED
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118
Plain-Language Summary
Department of Defense obligated $1.25 billion to APTIM FEDERAL SERVICES, LLC for work described as: IHNC 392 PERMANENT PROTECTION & ADVANCED Key points: 1. Significant contract value of $1.25 billion. 2. APTIM Federal Services is the sole awardee. 3. Contract type is Cost Plus Award Fee. 4. Work is categorized under Other Heavy and Civil Engineering Construction.
Value Assessment
Rating: fair
The contract's Cost Plus Award Fee structure can lead to higher costs if not managed effectively. The total award value is substantial, and the duration is long, suggesting complex or ongoing needs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the single awardee suggests that only one entity was selected from the competitive pool.
Taxpayer Impact: With a $1.25 billion award, taxpayers are impacted by the significant investment in this project. Effective cost control and performance will be crucial to ensure value for money.
Public Impact
Long-term infrastructure project with potential for significant economic impact in Louisiana. Focus on permanent protection and advanced solutions suggests critical national security or environmental needs. The duration of the contract (over 12 years) indicates a sustained commitment of federal resources.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can incentivize cost overruns.
- Long contract duration increases risk of scope creep and cost escalation.
- Single awardee may limit future competitive opportunities if performance is poor.
Positive Signals
- Awarded under full and open competition.
- Work is in a critical infrastructure sector.
- Long-term commitment suggests strategic importance.
Sector Analysis
This contract falls under heavy and civil engineering construction, a sector vital for national infrastructure. Spending benchmarks for such large-scale, long-duration projects vary widely based on scope and location, but $1.25 billion over 12 years represents a significant federal investment.
Small Business Impact
The data does not indicate any specific subcontracting goals for small businesses on this contract. Further investigation would be needed to determine if small businesses are being adequately included in this large federal award.
Oversight & Accountability
The Cost Plus Award Fee structure requires robust oversight to ensure performance targets are met and costs are controlled. The long duration necessitates continuous monitoring and accountability from the Department of the Army.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Award Fee structure.
- Long contract duration (4563 days).
- Single awardee.
- Lack of specific small business subcontracting information.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, la, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.25 billion to APTIM FEDERAL SERVICES, LLC. IHNC 392 PERMANENT PROTECTION & ADVANCED
Who is the contractor on this award?
The obligated recipient is APTIM FEDERAL SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $1.25 billion.
What is the period of performance?
Start: 2008-04-03. End: 2020-09-30.
What specific permanent protection and advanced solutions are being implemented, and how do they align with current technological standards and future needs?
The contract details for 'IHNC 392 PERMANENT PROTECTION & ADVANCED' are not fully specified in the provided data. Understanding the precise nature of the 'permanent protection' and 'advanced' solutions is crucial. This could range from flood control infrastructure to advanced security systems. Assessing their alignment with current standards and future needs requires a deeper dive into the contract's technical specifications and the agency's long-term strategic objectives.
How will the Cost Plus Award Fee structure be managed to prevent potential cost overruns and ensure optimal value for taxpayers?
Effective management of a Cost Plus Award Fee (CPAF) contract hinges on clearly defined performance metrics and objective award fee criteria. The Department of the Army must establish rigorous oversight mechanisms to track costs, monitor contractor performance against these metrics, and ensure that award fees are only granted for exceptional performance. Regular audits and transparent reporting are essential to maintain accountability and prevent potential cost escalations.
What is the long-term strategic importance of this contract for the Department of Defense, and how does it contribute to overall mission readiness?
The substantial investment and long duration suggest this contract addresses a critical, enduring need for the Department of Defense, likely related to infrastructure resilience, force protection, or operational readiness in a specific geographic area (Louisiana). Understanding the 'IHNC 392' designation would clarify its specific role, whether it's protecting vital assets from environmental threats or enhancing base security. Its contribution to mission readiness depends on how effectively it supports personnel, equipment, and operations.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: W912P807R0053
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Peraton Technology Services Inc.
Address: 4171 ESSEN LN, BATON ROUGE, LA, 70809
Business Categories: Category Business, Foreign Owned, Limited Liability Corporation, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $1,249,801,027
Exercised Options: $1,249,801,027
Current Obligation: $1,249,801,027
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-04-03
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2024-04-15
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