DoD Awards $21M Engineering Contract for Advanced Semiconductor Lab to CH2M - Burns & McDonnell JV

Contract Overview

Contract Amount: $20,982,196 ($21.0M)

Contractor: CH2M - Burns & Mcdonnell Joint Venture

Awarding Agency: Department of Defense

Start Date: 2017-09-27

End Date: 2026-07-31

Contract Duration: 3,229 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: IGF::OT::IGF ENGINEERING&DESIGN SERVICES FOR THE ADVANCED COMPOUND SEMICONDUCTOR LABORATORY/MICROELECTRONICS INTEGRATION FACILITY (CSL-MIF) AT BEDFORD, MA

Place of Performance

Location: BEDFORD, MIDDLESEX County, MASSACHUSETTS, 01730

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $21.0 million to CH2M - BURNS & MCDONNELL JOINT VENTURE for work described as: IGF::OT::IGF ENGINEERING&DESIGN SERVICES FOR THE ADVANCED COMPOUND SEMICONDUCTOR LABORATORY/MICROELECTRONICS INTEGRATION FACILITY (CSL-MIF) AT BEDFORD, MA Key points: 1. Contract awarded for critical semiconductor and microelectronics facility. 2. Full and open competition suggests a competitive bidding process. 3. Potential for significant taxpayer impact due to the scale of the project. 4. Engineering services sector is vital for national defense and technological advancement.

Value Assessment

Rating: good

The contract value of $20.98 million for engineering and design services appears reasonable for a facility of this complexity. Benchmarking against similar large-scale research and development infrastructure projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The significant investment in advanced semiconductor facilities is intended to bolster national technological capabilities, which can have long-term economic and security benefits for taxpayers.

Public Impact

Enhances US capabilities in advanced semiconductor manufacturing, crucial for national security and economic competitiveness. Supports the development of next-generation microelectronics, impacting various defense and civilian technologies. Creates jobs and stimulates economic activity in the Massachusetts region. Potential for technological breakthroughs in computing and AI.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (over 5 years) increases risk of cost overruns or scope creep.
Reliance on a single joint venture for critical design work.
Firm Fixed Price contract may not fully account for unforeseen design challenges in novel facilities.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Focus on a strategically important sector (semiconductors) for national interest.
Clear end date (2026) provides a defined project timeline.

Sector Analysis

This contract falls within the engineering services sector, specifically supporting advanced research and development infrastructure. Spending in this area is critical for maintaining technological superiority, particularly in defense and high-tech industries. Benchmarks for similar large-scale R&D facility design contracts would be necessary for a precise comparison.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee is a joint venture, suggesting large business participation. There is no direct indication of small business subcontracting opportunities within this award notice.

Oversight & Accountability

The contract is managed by the Department of the Army, a component of the Department of Defense. Oversight will likely involve program managers and contracting officers ensuring adherence to contract terms, quality standards, and budget. The long duration necessitates consistent monitoring.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long contract duration increases risk.
Potential for cost overruns on complex R&D projects.
Dependence on a single joint venture for critical design.
Lack of explicit small business participation noted.
Firm Fixed Price may not accommodate unforeseen technical hurdles.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.0 million to CH2M - BURNS & MCDONNELL JOINT VENTURE. IGF::OT::IGF ENGINEERING&DESIGN SERVICES FOR THE ADVANCED COMPOUND SEMICONDUCTOR LABORATORY/MICROELECTRONICS INTEGRATION FACILITY (CSL-MIF) AT BEDFORD, MA

Who is the contractor on this award?

The obligated recipient is CH2M - BURNS & MCDONNELL JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.0 million.

What is the period of performance?

Start: 2017-09-27. End: 2026-07-31.

What specific technological advancements is this facility expected to enable, and how do these align with current national defense priorities?

The Advanced Compound Semiconductor Laboratory/Microelectronics Integration Facility is designed to foster innovation in next-generation semiconductors, which are critical for advanced defense systems including AI, quantum computing, and secure communications. Its development directly supports national priorities to regain leadership in microelectronics manufacturing and reduce reliance on foreign supply chains, ensuring technological superiority for the military.

What are the primary risks associated with the firm fixed-price contract type for this complex engineering project, and how are they being mitigated?

The primary risk of a firm fixed-price contract for complex engineering is that unforeseen technical challenges or design complexities could lead to contractor claims for additional costs or delays. Mitigation strategies may include robust initial design reviews, clear scope definition, and contingency planning within the contract or through government-managed reserves, though the contract type itself limits flexibility.

How will the success of this facility's design and eventual operation be measured in terms of its contribution to U.S. technological competitiveness?

Success will be measured by the facility's ability to accelerate the development and production of cutting-edge semiconductor technologies, attract top research talent, and foster industry partnerships. Key performance indicators could include the number of patents filed, successful technology transitions to defense programs, and the establishment of a secure, domestic microelectronics supply chain, ultimately enhancing U.S. global competitiveness.

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: ARCHITECT-ENGINEER FAR 6.102

Solicitation ID: W912WJ17R0010

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9191 S JAMAICA ST, ENGLEWOOD, CO, 80112

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

Financial Breakdown

Contract Ceiling: $20,982,196

Exercised Options: $20,982,196

Current Obligation: $20,982,196

Actual Outlays: $263,877

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $2,780,724

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline