Strategic AFCEC A&E and Environmental Services contracts expiring in early 2020’s

Strategic contracts expiring in 2020 and 2021

The ordering periods of the Air Force Civil Engineer Center’s (AFCEC) main A&E and ES contracts are set to expire between 2020 and 2021. These including the following:

• Architect Engineering Design and Construction Services (A-E13 DCS): $950M IDIQ whose contracts expire in 2020 and 2021 (see Opp ID 161109)
• Architect Engineering Environmental Services (A-E13 ES): $500M IDIQ whose contracts expire in 2020 and 2021 (see Opp ID 161356)
• Environmental Services and Construction USAF Europe Region (ESC-Europe): $48M IDIQ whose contracts expire in 2020 (see Opp ID 158446)
• Environmental Services and Construction USAF Pacific Region (ESC-Pacific): $48M IDIQ whose contracts expire in 2021 (see Opp ID 97517)
• Environmental Services Blanket Purchase Agreement (ES-BPA): $385M BPA that expires 2021 (see Opp ID 163102)

These 5 contracts make up the A&E and ES portions of what AFCEC calls its ‘Contract Toolbox’. The AFCEC toolbox currently includes contracts in the following categories: engineering and construction, advisory and assistance services, fuel systems services, contingency construction and services, architecture and engineering, and environmental services.

The expiration time frames vary for the contracts that make up the above referenced categories, but the A&E and ES portions are the next grouping to be expiring. The A&E and ES portions of the portfolio represent approximately $1.9B in ceiling value.

Spending trends in the Air Force’s Environmental Services market and Engineering Services market.

Let’s first look at the market that applies to the AE13-ES, ESC-Europe, ESC-Pacific, and ES-BPA contracts: Environmental Services.

Across the Air Force, spending under the ‘Environment and Conservation Services’ category has seen a net decline between FY 14 and FY 17, but with FY 17 indicating a possible upward swing.

Spending Category	FY 14	FY 15	FY 16	FY 17
Env. & Conservation Svcs	$300M	$230M	$194M	$230M

 

 

 

Similarly, spending under NAICS 562910 (Remediation) and 541620 (Environmental Consulting) – the NAICS used for AE13-ES, ESC-Europe, ESC-Pacific, and ES-BPA  – saw overall declines since FY 14, with an upswing in FY 17 as compared to the prior year.

NAICS Code	FY 14	FY 15	FY 16	FY 17
562910	$487M	$339M	$300M	$326M
541620	$120M	$168M	$176M	$166M
Total	$607M	$506M	$476M	$492M

 

 

 

 

 

 

Now let’s look at the market that applies to the A-E13 DCS contract: Engineering Services within the AEC vertical.

Across the Air Force, spending under the AEC category overall saw a net decline between FY 14 and FY 17, but with FY 17 seeing an increase from FY 16.

Spending Category	FY 14	FY 15	FY 16	FY 17
AEC	$3.1B	$2.8B	$2.6B	$2.8B

 

 

 

The A-E13 DCS contract was issued under NAICS code 541330 (Engineering Services). To get a more accurate picture, we looked at Engineering Services spending categorized specifically under AEC. Spending saw a net increase of over $100M between FY 17 and FY 14.

NAICS Code	FY 14	FY 15	FY 16	FY 17
541330	$125M	$115M	$244M	$232M

 

 

 

Plan ahead:

While it may only be 2018, interested vendors are encouraged to keep an eye out well in advance of contract expirations should any developments occur. In this regard, some considerations include potentially lengthy acquisition cycles for re-competes, contract consolidations or deconsolidations, changes in acquisition strategy, or re-competes not taking place.

With respect to lengthy acquisition cycles, the incumbent efforts provide some indication that activity could begin early:

• Market research began in 2011 for the follow-on to a legacy A&E program called Worldwide Planning Program and Design (4PAE-08). The follow-on (known as 4PAE-13) later split into two acquisitions and became AE13-DCS and AE13-ES. Requests for SF 330s were issued in 2012. Awards were issued and finalized in 2015 and 2016 for AE13-DCS. Awards for AE13-ES were initially issued in 2014, and finalized in 2015 and 2016 following protests.
• Market research for the incumbent ESC-Europe and ESC-Pacific requirements began in 2013. The RFPs were issued in 2014 and 2016, respectively.
• The ES-BPA was put into place well before its incumbent contracts were originally set to expire. The incumbents reached their ceiling early.

As far as possibilities for contract consolidation or de-consolidation, the AE13-DCS and AE13-ES efforts again serve as illustrative examples. The legacy A&E program called 4PAE-08 was initially going to be re-competed in full as 4PAE-13. The acquisition strategy later changed, becoming the two separate but concurrent solicitations known as AE13-DCS and AE13-ES.

What future iterations of any of the contracts mentioned above will look like is yet to be determined. Early tracking and planning could be key in making sure resources are aligned for when developments occur.