DoD Awards $45.5M for Iraq Facility Construction to URS Group, Inc
Contract Overview
Contract Amount: $45,463,259 ($45.5M)
Contractor: URS Group, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-06-12
End Date: 2009-03-21
Contract Duration: 648 days
Daily Burn Rate: $70.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: CONSTRUCT FACILITIES, FOB NORMANDY, IRAQ
Plain-Language Summary
Department of Defense obligated $45.5 million to URS GROUP, INC. for work described as: CONSTRUCT FACILITIES, FOB NORMANDY, IRAQ Key points: 1. The contract awarded to URS Group, Inc. for facility construction in Iraq represents a significant investment in operational infrastructure. 2. Competition for this contract was full and open, suggesting a robust bidding process. 3. The cost-plus-fixed-fee contract type introduces potential for cost overruns, a key risk factor. 4. This spending falls within the broader construction sector, supporting military readiness and logistics.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure requires careful monitoring to ensure costs remain reasonable. Benchmarking against similar construction projects in austere environments is challenging due to unique logistical and security factors.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically promotes competitive pricing. However, the specific nature of construction in a conflict zone may limit the number of truly comparable bids.
Taxpayer Impact: Taxpayer funds are being utilized for essential infrastructure development in a critical operational theater. Ensuring cost-effectiveness is paramount to maximizing the value of this investment.
Public Impact
Supports military operations and personnel by providing necessary facilities. Contributes to the economic activity within the construction sector. Represents a long-term investment in national security infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contract type can lead to cost escalation.
- Construction in a conflict zone presents inherent risks and potential delays.
- Limited transparency on specific cost breakdowns for fixed fee.
Positive Signals
- Awarded through full and open competition.
- Addresses critical infrastructure needs for military operations.
- Supports a known contractor with experience in similar environments.
Sector Analysis
This contract falls under commercial and institutional building construction, a sector vital for supporting government operations, especially in overseas deployments. Benchmarks are difficult due to the unique operational environment.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The contract type and location necessitate rigorous monitoring of performance, costs, and adherence to specifications to ensure accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost escalation risk due to CPFF contract type.
- Operational risks associated with construction in a conflict zone.
- Potential for schedule delays due to security and logistical challenges.
- Limited visibility into subcontractor performance and costs.
- Geopolitical instability impacting project continuity.
Tags
commercial-and-institutional-building-co, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.5 million to URS GROUP, INC.. CONSTRUCT FACILITIES, FOB NORMANDY, IRAQ
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 $45.5 million.
What is the period of performance?
Start: 2007-06-12. End: 2009-03-21.
What was the rationale for selecting a cost-plus-fixed-fee contract type for this project, given the potential for cost overruns?
Cost-plus-fixed-fee contracts are often used when the scope of work is not fully defined or when unforeseen circumstances are highly probable, such as in a contingency environment. This allows for flexibility while providing the contractor with an incentive to control costs to achieve their fixed fee. However, it necessitates robust government oversight to prevent excessive spending.
How did the unique challenges of construction in Iraq (security, logistics) impact the competitive bidding process and final pricing?
Construction in Iraq presents significant logistical hurdles and security risks, which likely limited the pool of eligible bidders and increased overhead costs. These factors would naturally drive up pricing compared to domestic projects. The full and open competition likely ensured that the awarded price reflected the best available terms under these challenging conditions.
What is the long-term strategic value of these constructed facilities for U.S. military operations in the region?
The constructed facilities, likely Forward Operating Bases (FOBs), are crucial for providing secure and functional environments for troops and equipment. They enhance operational readiness, support sustained presence, and improve logistical capabilities, contributing directly to the strategic objectives of U.S. military operations in Iraq and the broader region.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 7
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: AECOM (UEI: 153561212)
Address: 200 ORCHARD RIDGE DRIVE, S, GAITHERSBURG, MD, 20878
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $45,463,259
Exercised Options: $45,463,259
Current Obligation: $45,463,259
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA890306D8520
IDV Type: IDC
Timeline
Start Date: 2007-06-12
Current End Date: 2009-03-21
Potential End Date: 2009-03-21 00:00:00
Last Modified: 2017-11-03
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