DoD Awards $31M Clinic Repair Contract to URS Group Inc. Amidst Full and Open Competition

Contract Overview

Contract Amount: $30,953,340 ($31.0M)

Contractor: URS Group Inc

Awarding Agency: Department of Defense

Start Date: 2016-09-30

End Date: 2020-03-30

Contract Duration: 1,277 days

Daily Burn Rate: $24.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF FY16 MISC. CLINIC REPAIRS/RELOCATIONS

Place of Performance

Location: TRIPLER ARMY MEDICAL CENTER, HONOLULU County, HAWAII, 96859

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $31.0 million to URS GROUP INC for work described as: IGF::OT::IGF FY16 MISC. CLINIC REPAIRS/RELOCATIONS Key points: 1. The contract, valued at $30.95 million, was awarded by the Department of the Army for clinic repairs and relocations. 2. URS Group Inc. secured the contract through full and open competition, indicating a competitive bidding process. 3. The project duration spans 1277 days, suggesting a significant undertaking in construction and facility management. 4. The contract type is Firm Fixed Price, which transfers risk to the contractor regarding cost overruns. 5. The award was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $30.95 million for clinic repairs and relocations appears reasonable given the project's scope and duration. Benchmarking against similar large-scale construction 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, suggesting that multiple qualified bidders had the opportunity to submit proposals. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, benefiting taxpayers by avoiding inflated costs associated with less competitive procurement methods.

Public Impact

Ensures improved healthcare facilities for military personnel and their families. Supports the construction industry and creates jobs through subcontracting opportunities. Potential for enhanced operational efficiency and patient care at the clinic. The long duration may indicate complex construction or renovation requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (1277 days) could lead to potential delays or cost escalations if not managed effectively.
Firm Fixed Price contract transfers cost overrun risk to the contractor, but could also lead to scope limitations if costs rise significantly.
Lack of specific details on the nature of repairs/relocations makes it difficult to assess the full scope and potential challenges.

Positive Signals

Awarded through full and open competition, suggesting a competitive price.
Firm Fixed Price contract provides cost certainty for the government.
Project aims to improve critical healthcare infrastructure.

Sector Analysis

The contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector for the Department of Defense can fluctuate based on infrastructure needs and modernization efforts. Benchmarks for similar large-scale construction projects are essential for evaluating cost-effectiveness.

Small Business Impact

The data indicates that small business participation was not a stated factor in this award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The award was a delivery order, suggesting it was part of a larger IDIQ contract. Oversight would typically involve monitoring the contractor's performance against the delivery order terms and conditions, as well as the overall IDIQ contract.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long contract duration.
Firm Fixed Price contract.
Potential for scope creep.
Lack of detailed project scope information.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.0 million to URS GROUP INC. IGF::OT::IGF FY16 MISC. CLINIC REPAIRS/RELOCATIONS

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 Army).

What is the total obligated amount?

The obligated amount is $31.0 million.

What is the period of performance?

Start: 2016-09-30. End: 2020-03-30.

What specific repairs or relocations are included in this contract, and how do they align with the Department of Defense's strategic healthcare infrastructure goals?

The provided data lacks specifics on the exact nature of the clinic repairs and relocations. Understanding these details is crucial to assess their alignment with DoD's strategic healthcare infrastructure goals, such as modernization, capacity expansion, or addressing specific medical needs. Without this context, it's difficult to evaluate the project's strategic value beyond general facility improvement.

Given the 1277-day duration and Firm Fixed Price structure, what are the primary risks associated with potential cost overruns or scope creep for the government?

The primary risk for the government under a Firm Fixed Price contract with a long duration is that the contractor may face unforeseen cost increases (e.g., material, labor) and either cut corners on quality or seek change orders, leading to scope creep. While the contractor bears the initial risk, significant issues could still impact the project's timeline and final deliverable, requiring careful government oversight to manage potential disputes and ensure contract adherence.

How does the competitive landscape for similar large-scale clinic construction and renovation contracts influence the pricing and effectiveness of this award?

The fact that this contract was awarded under full and open competition suggests a healthy competitive landscape, which generally drives down prices and enhances effectiveness by forcing contractors to offer competitive terms. However, the specific number of bidders and their qualifications would provide a clearer picture. A robust competition typically leads to better value for the government and ensures that the chosen contractor has the capability to deliver the required services efficiently.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY10R0005

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM

Address: 2020 K ST NW STE 300, WASHINGTON, DC, 20006

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

Financial Breakdown

Contract Ceiling: $44,407,421

Exercised Options: $30,953,340

Current Obligation: $30,953,340

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $321,766,713

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY12D0016

IDV Type: IDC

Timeline