DoD Awards $126.5M Construction Contract to URS Group for Iraq Facilities

Contract Overview

Contract Amount: $39,887,494 ($39.9M)

Contractor: URS Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-09-01

End Date: 2008-09-30

Contract Duration: 760 days

Daily Burn Rate: $52.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: 200612!001899!5700!FA8903!HSW/PKV !FA890306D8520 !A!N! !N!0005 ! !20060901!20070331!126483903!126483903!043271568!N!URS GROUP, INC !200 ORCHARD RIDGE DRIVE, S!GAITHERSBURG !MD!20878!00000! !IZ! ! !IRAQ !+000028293754!N!N!000000000000!Z111!MAINT/OFFICE BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236220!E! !3!B!M! !A!A!20110501!B! ! !A! !A!Y!U!2!006!B! !Z!Y!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !

Plain-Language Summary

Department of Defense obligated $39.9 million to URS GROUP, INC. for work described as: 200612!001899!5700!FA8903!HSW/PKV !FA890306D8520 !A!N! !N!0005 ! !20060901!20070331!126483903!126483903!043271568!N!URS GROUP, INC !200 ORCHARD RIDGE DRIVE, S!GAITHERSBURG !MD!20878!00000! !IZ! ! … Key points: 1. The contract, valued at $126.5 million, is for maintenance and office building construction. 2. URS Group, Inc. secured this contract through full and open competition. 3. The contract duration is 760 days, indicating a significant project timeline. 4. The spending is categorized under Commercial and Institutional Building Construction. 5. This award represents a substantial investment in infrastructure support.

Value Assessment

Rating: fair

The contract's total value is $126,483,903. Benchmarking this against similar construction contracts in a deployed environment is challenging due to unique risk factors and logistical costs. However, the cost-plus-fixed-fee structure suggests potential for cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which generally promotes competitive pricing. However, the specific nature of construction in a conflict zone can limit the pool of qualified bidders, potentially impacting price discovery.

Taxpayer Impact: Taxpayer funds are being utilized for essential infrastructure development in a deployed theater, aiming to support military operations and personnel.

Public Impact

Supports military operations by providing necessary facilities. Contributes to the economic activity of the awarded contractor and potentially subcontractors. Represents a significant allocation of federal funds towards infrastructure in a high-risk environment. Potential for long-term impact on operational readiness and personnel well-being.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type can lead to higher final costs.
Operating in a conflict zone introduces significant risks and potential for delays.
Limited transparency on specific cost breakdowns for the fixed fee component.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Contract addresses critical infrastructure needs for military operations.
Contractor has a history of performing large-scale projects.

Sector Analysis

This contract falls within the construction sector, specifically focusing on commercial and institutional buildings. Federal spending in this area is often driven by infrastructure needs, both domestically and in support of overseas operations. Benchmarks are highly variable based on location and project scope.

Small Business Impact

The data does not explicitly indicate the extent of small business participation in this contract. Further analysis would be needed to determine if subcontracting opportunities were provided to small businesses.

Oversight & Accountability

The contract was awarded by the Department of the Air Force, part of the Department of Defense. Oversight would typically involve contract management teams ensuring adherence to scope, budget, and timeline, with reporting mechanisms in place.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Cost-plus-fixed-fee contract type.
Construction in a conflict zone (Iraq).
Potential for cost overruns.
Long project duration.
Limited information on specific cost components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.9 million to URS GROUP, INC.. 200612!001899!5700!FA8903!HSW/PKV !FA890306D8520 !A!N! !N!0005 ! !20060901!20070331!126483903!126483903!043271568!N!URS GROUP, INC !200 ORCHARD RIDGE DRIVE, S!GAITHERSBURG !MD!20878!00000! !IZ! ! !IRAQ !+000028293754!N!N!000000000000!Z111!MAINT/OFFICE BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236220!E! !3!B!M! !A!A!201

Who is the contractor on this award?

The obligated recipient is URS GROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $39.9 million.

What is the period of performance?

Start: 2006-09-01. End: 2008-09-30.

What is the expected return on investment for this construction project in terms of operational efficiency or cost savings?

The return on investment is primarily measured by the enhanced operational capabilities and improved living/working conditions for personnel. While direct cost savings are not immediately apparent, the provision of adequate facilities is crucial for mission success and can indirectly reduce costs associated with inadequate infrastructure, such as maintenance issues or health risks.

What are the specific risks associated with performing construction in Iraq, and how are they mitigated by the contract terms?

Risks include security threats, logistical challenges, political instability, and potential material shortages. Mitigation strategies likely involve security protocols, robust supply chain management, contingency planning for delays, and potentially risk-sharing clauses within the cost-plus-fixed-fee structure. The contract's duration and value suggest these risks have been factored into the pricing.

How does the cost-plus-fixed-fee structure impact the government's ability to control overall project costs compared to other contract types?

Cost-plus-fixed-fee allows for flexibility in scope changes but can lead to higher final costs if initial estimates are inaccurate or if costs escalate unexpectedly. The government's control is exercised through detailed oversight, audits, and negotiation of the fixed fee. It shifts some cost risk to the government compared to fixed-price contracts.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM Global II, LLC (UEI: 043271568)

Address: 200 ORCHARD RIDGE DRIVE, S, GAITHERSBURG, MD, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA890306D8520

IDV Type: IDC

Timeline