Deltek Pulse: Architecture, engineering and construction (AEC) month in review, December 2016
As we moved into the final month of 2016, Deltek observed another drop in the number of architecture, engineering and construction (AEC) projects released by state and local governments. The end of the year brings a bit of a slowdown in government activity with the holidays and change in calendar year. The percentage decrease in bids from November to December was nearly 13%.
While it seems alarming at first glance, judgement should be reserved until several months of data is available in 2017. Should activity remain even with the end of 2016, this may be the new normal state of government contracting. If the number of projects starts moving back up again, as Deltek anticipates, we can expect a steady rise through the first half of 2017.
In December, city and state governments released a nearly identical percentage of projects at 33% and 32.9%, respectively. County projects went up slightly to 13.7%, while university activity dropped a bit to 7.5%.
From a regional perspective, the Southern U.S. released 38.1% of projects, with the West at 25.36%, East with 19.17% and Midwest at 17.31%. The projects in the West were mostly out of California, which issued the most bids from a state perspective, with 10%. Texas (8.9%), New York (5.8%), Virginia (5.8%) and Florida (5.4%) round out the top five. One surprise was a big increase in South Carolina, which issued 4.1% of bids.
Notable Solicitation Releases
- Los Angeles County, California solicited bids for Design-Build Services for Castaic Sports Complex Skate Park Project and George Lane Skate Park Project. Responses are due February 1, 2017.
- The Port Authority of New York and New Jersey solicited bids for Design-Build Services Relating to the Newark Liberty International Airport Terminal A Redevelopment Project. Responses are due February 2, 2017.
- Ann Arbor, Michigan solicited bids for Project Management Services Unit General Civil Engineering and Surveying Services. Responses are due February 2, 2017.
Notable Contract Awards
- The Albuquerque School District (New Mexico) awarded a two-year contract to EDI Integrative Consulting, LLC for LEED Certification Consulting Services for General LEED. The value of the contract is not available.
- The New York Office of the State Comptroller awarded a $350,000 contract to Bell & Spina Architects –Planners PC for AE Design Services to Replace the Egg Roof at Empire State Plaza in Albany. The value of the contract is $350,000.
- The Illinois Environmental Protection Agency signed a contract with TetraTech for Quality Based Selection Sites. The value of the contract is $2,200,000.
New Lead Alerts
- Fluvanna County, Virginia budgets $2,250,000 in FY17 to Design and Construct JRWA Raw Water System/Intake Structure.
- University City, Missouri has budgeted $1,030,000 in FY17-21 for River des Peres Improvements Design/Construction.
- Longview, Washington budgets $750,000 in FY17-21 for Water Facility Relocation for Road Replacement.
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