DoD's $15M automotive repair contract awarded to URS Federal Services Inc. shows potential for cost savings

Contract Overview

Contract Amount: $15,049,849 ($15.0M)

Contractor: URS Federal Services Inc.

Awarding Agency: Department of Defense

Start Date: 2009-03-18

End Date: 2010-08-31

Contract Duration: 531 days

Daily Burn Rate: $28.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LTV TPER PRODUCTION FOR JULY 09 - OCT 09

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $15.0 million to URS FEDERAL SERVICES INC. for work described as: LTV TPER PRODUCTION FOR JULY 09 - OCT 09 Key points: 1. Value for money appears reasonable given the scope of services. 2. Full and open competition suggests a competitive pricing environment. 3. Contract duration and fixed-price nature mitigate cost overrun risks. 4. Performance context is within automotive repair and maintenance services. 5. Sector positioning is within defense logistics and support. 6. The contract's value is moderate within the broader defense spending landscape.

Value Assessment

Rating: good

The contract value of approximately $15 million over its period of performance is within a reasonable range for comprehensive automotive repair and maintenance services for military vehicles. Benchmarking against similar large-scale maintenance contracts for government fleets suggests that the pricing structure, being firm-fixed-price, aims to control costs effectively. While specific per-unit cost data is not provided, the competitive award process implies that URS Federal Services Inc. offered a price deemed competitive by the Department of the Army.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 6 bidders, as suggested by the data, points to a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and can lead to more cost-effective solutions for the government.

Taxpayer Impact: The robust competition for this contract suggests that taxpayers likely benefited from a more competitive price than might have been achieved through a less open procurement process.

Public Impact

Military personnel and equipment readiness are enhanced through reliable vehicle maintenance. Services are delivered to the Department of the Army, supporting its operational capabilities. The geographic impact is primarily within Maryland, where the contract is managed. Workforce implications include employment opportunities for skilled automotive technicians and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if maintenance needs exceed initial estimates.
Dependence on contractor's ability to source parts efficiently.
Risk of performance degradation if key personnel turnover occurs.

Positive Signals

Firm-fixed-price contract structure limits cost uncertainty.
Full and open competition suggests a competitive market offering.
Contract duration provides stability for service delivery.

Sector Analysis

The defense sector relies heavily on robust logistics and maintenance support to ensure operational readiness. Automotive repair and maintenance contracts are critical for sustaining vehicle fleets, ranging from light tactical vehicles to heavy-duty transport. The market for these services is competitive, with numerous providers capable of meeting stringent government requirements. This contract fits within the broader category of base operations support and readiness services, where consistent performance and cost control are paramount.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. As a large contract awarded under full and open competition, the primary contractor, URS Federal Services Inc., would typically manage the majority of the work. Opportunities for small businesses would likely arise through subcontracting if URS chooses to engage them for specialized services or parts procurement.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant Department of the Army contracting command. Performance monitoring, quality assurance checks, and invoice verification are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements, though detailed operational oversight specifics are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Vehicle Maintenance Contracts
Army Logistics Support Services
Automotive Repair and Maintenance Services
Base Operations Support Contracts

Risk Flags

Potential for contractor to underperform due to fixed-price nature.
Risk of parts availability impacting service timelines.
Need for robust quality assurance to ensure service standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.0 million to URS FEDERAL SERVICES INC.. LTV TPER PRODUCTION FOR JULY 09 - OCT 09

Who is the contractor on this award?

The obligated recipient is URS FEDERAL SERVICES INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.0 million.

What is the period of performance?

Start: 2009-03-18. End: 2010-08-31.

What is the historical spending pattern for automotive repair and maintenance services by the Department of the Army?

The Department of the Army, like other branches of the military, consistently allocates significant funds towards the maintenance and repair of its vast vehicle fleet. Historical spending patterns reveal a steady demand for these services, driven by the operational tempo and the aging of equipment. While specific figures fluctuate year-to-year based on budget allocations, modernization efforts, and deployment needs, the overall trend indicates a substantial and ongoing investment. This particular contract, valued at approximately $15 million, represents a portion of that larger, consistent expenditure. Analyzing trends over multiple fiscal years would provide a clearer picture of the Army's commitment to fleet readiness and the associated budgetary priorities.

How does the number of bidders (6) compare to similar large-scale automotive maintenance contracts?

A competition involving six bidders for a contract of this magnitude (approximately $15 million) suggests a moderately competitive market. For large-scale government contracts, particularly those requiring specialized technical capabilities and extensive logistical support, the number of bidders can vary significantly. Contracts with fewer bidders might indicate niche requirements, high barriers to entry, or limited market capacity. Conversely, a higher number of bidders often points to a broader market appeal and potentially more aggressive pricing. Six bidders is a respectable number that indicates sufficient interest and capability within the industry to pursue this type of work, likely leading to a competitive outcome for the government.

What are the potential risks associated with a firm-fixed-price contract for automotive maintenance?

While firm-fixed-price (FFP) contracts are designed to provide cost certainty for the government, they can introduce risks for the contractor. For automotive maintenance, potential risks include unforeseen repair complexities, unexpected increases in the cost of parts or labor, and the contractor underestimating the scope or difficulty of the work. If the contractor miscalculates these factors, they may incur losses. For the government, the primary risk is that the contractor might cut corners on quality or service to maintain profitability, especially if the FFP price was set too low due to intense competition. Robust performance monitoring and quality assurance clauses are crucial to mitigate these risks.

What is the track record of URS Federal Services Inc. in performing similar government contracts?

URS Federal Services Inc., now part of AECOM, has a substantial track record of performing large-scale government contracts, including those involving base operations, logistics, and technical support services across various agencies and military branches. Their experience often encompasses facility maintenance, infrastructure support, and specialized technical services, which would align with the requirements of automotive repair and maintenance. While specific performance metrics for this particular contract are not detailed here, the company's general history suggests a capacity to manage complex projects and meet demanding government specifications. A deeper dive into past performance evaluations and contract close-out reports would provide more granular insights into their reliability and quality of service.

How does the contract duration (531 days) impact the overall value and risk profile?

The contract duration of 531 days (approximately 17.5 months) provides a significant period for service delivery, allowing for consistent support and planning for both the contractor and the Department of the Army. From a value perspective, this duration enables the contractor to achieve economies of scale and potentially offer more competitive pricing than for shorter-term engagements. It also reduces the administrative burden and cost associated with frequent re-procurement processes for the government. In terms of risk, a longer duration can mitigate risks associated with contractor startup and learning curves, while also increasing the potential exposure to market fluctuations (e.g., labor rates, parts costs) for the contractor. For the government, it offers stability in service provision.

What is the significance of the 'All Other Automotive Repair and Maintenance' NAICS code (811198)?

The North American Industry Classification System (NAICS) code 811198, 'All Other Automotive Repair and Maintenance,' signifies that this contract covers a broad spectrum of automotive services that do not fall into more specific categories like specialized engine repair, transmission repair, or body work. This typically includes general automotive diagnostics, routine maintenance (oil changes, tire rotations), minor repairs, and potentially fleet management support. For the Department of the Army, this broad classification allows for a single contract to address a wide range of vehicle upkeep needs across different types of automotive equipment, simplifying procurement and management. It implies a comprehensive service requirement rather than a highly specialized one.

Industry Classification

NAICS: Other Services (except Public Administration) › Automotive Repair and Maintenance › All Other Automotive Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM Global II, LLC

Address: 900 CLOPPER RD STE 200, GAITHERSBURG, MD, 20878

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,049,849

Exercised Options: $15,049,849

Current Obligation: $15,049,849

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV07D0203

IDV Type: IDC

Timeline