Army awards $12.7M logistics support contract to Lear Siegler Services, Inc. for 1307 days

Contract Overview

Contract Amount: $12,728,335 ($12.7M)

Contractor: URS Federal Services Inc.

Awarding Agency: Department of Defense

Start Date: 2000-09-29

End Date: 2004-04-28

Contract Duration: 1,307 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200012!2100!000711!KF11 !ARMY ATLANTA CONTRACTING CENTER !DAKF1199D0012 !A!*!0015 !20000929!20010112!073871048!073871048!175406842!N!08MB5!LEAR SIEGLER SERVICES, INC. !175 ADMIRAL COCHRANE DR !ANNAPOLIS !MD!21401!30760!215!13!FORT BENNING !MUSCOGEE !GEORGIA !0001!+000000155783!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8741!5!B!M!*!B!A!*!A !N!U!2!010!B!* !C!N!Z!* !* !N!C!*!Z!Z!A!A!A!A!* !*!N!A!C!N!*!*!*!Y!*!

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30330

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to URS FEDERAL SERVICES INC. for work described as: 200012!2100!000711!KF11 !ARMY ATLANTA CONTRACTING CENTER !DAKF1199D0012 !A!*!0015 !20000929!20010112!073871048!073871048!175406842!N!08MB5!LEAR SIEGLER SERVICES, INC. !175 ADMIRAL COCHRANE DR !ANNAPOLIS !MD!21401!30760!215!13!FORT BENNING !MUS… Key points: 1. Contract value of $12.7M over approximately 3.5 years suggests a moderate annual spend. 2. Full and open competition indicates a potentially competitive bidding process. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 4. Performance is located in Georgia, implying a regional economic impact. 5. The services provided are logistics support, a critical function for military operations. 6. The award was a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

The contract value of $12.7 million over 1307 days averages to approximately $9,739 per day. Without specific benchmarks for logistics support services at Fort Benning, it's difficult to definitively assess value. However, the Cost Plus Fixed Fee (CPFF) contract type carries inherent risks of cost escalation if the contractor's costs exceed estimates, potentially impacting overall value for money. Further analysis would require comparison to similar contracts for similar services and scope.

Cost Per Unit: Approximately $9,739 per day (based on total contract value and duration).

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The data indicates 10 bids were received. A competitive process like this generally promotes price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing due to the full and open competition, which aims to secure the best value by allowing multiple qualified vendors to bid on the requirement.

Public Impact

The primary beneficiaries are the U.S. Army personnel and operations at Fort Benning, Georgia, who receive essential logistics support. Services delivered include a range of logistics support functions critical for maintaining operational readiness. The geographic impact is concentrated in Muscogee, Georgia, where Fort Benning is located, potentially supporting local employment. Workforce implications may include job creation or retention for individuals employed by Lear Siegler Services, Inc. and its subcontractors in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to incur costs to increase profit, potentially leading to higher overall spending than anticipated.
Lack of specific performance metrics in the provided data makes it difficult to assess the quality and efficiency of the logistics support services.
The contract duration of over three years necessitates ongoing monitoring to ensure continued value and performance.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contractor, Lear Siegler Services, Inc., has a track record of performing government contracts.
The contract is for essential logistics support, a core requirement for military operations.

Sector Analysis

Logistics support services represent a significant segment within the broader defense services sector. This contract fits within the category of base operations support and readiness services. The market for such services is competitive, with numerous companies offering specialized capabilities. Benchmarking would involve comparing the daily rate or overall contract value against similar logistics support contracts awarded by the Department of Defense to other installations.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Furthermore, there is no explicit information regarding subcontracting plans or goals for small businesses. Without this information, it is difficult to assess the direct impact on the small business ecosystem, though large prime contractors are often encouraged or required to subcontract with small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the URS Federal Services Inc. contracting office and potentially the Department of the Army's Inspector General. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed performance data may be less accessible.

Related Government Programs

Base Operations Support Services
Logistics and Supply Chain Management
Defense Readiness Contracts
Information Technology Support Services (if applicable to logistics)
Maintenance, Repair, and Operations (MRO)

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Lack of detailed performance metrics makes objective assessment of value difficult.
Need for ongoing monitoring due to contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to URS FEDERAL SERVICES INC.. 200012!2100!000711!KF11 !ARMY ATLANTA CONTRACTING CENTER !DAKF1199D0012 !A!*!0015 !20000929!20010112!073871048!073871048!175406842!N!08MB5!LEAR SIEGLER SERVICES, INC. !175 ADMIRAL COCHRANE DR !ANNAPOLIS !MD!21401!30760!215!13!FORT BENNING !MUSCOGEE !GEORGIA !0001!+000000155783!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8741!5!B!M!*!B!A!*!A !N!U!

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 $12.7 million.

What is the period of performance?

Start: 2000-09-29. End: 2004-04-28.

What is the historical spending pattern for logistics support services at Fort Benning?

Analyzing historical spending for logistics support at Fort Benning prior to this contract (2000-2004) would provide context for the $12.7 million award. If previous contracts were significantly lower or higher, it could indicate changes in service scope, market rates, or inflation. Without access to historical contract data for this specific installation and service category, it's challenging to establish a trend. However, the steady demand for logistics support suggests it's a recurring requirement, and understanding past expenditures would help assess if this award represents an increase, decrease, or stable level of investment in these services.

How does the daily rate of this contract compare to similar logistics support contracts?

The approximate daily rate for this contract is $9,739. To benchmark this effectively, we would need to compare it against other Cost Plus Fixed Fee (CPFF) contracts for similar logistics support services awarded by the Department of Defense around the same period (2000-2004) to other Army bases or similar-sized installations. Factors such as geographic location, specific services included (e.g., warehousing, transportation, maintenance), and contract duration can influence rates. If comparable contracts show significantly lower daily rates, it might suggest this contract was priced higher than the market average, potentially indicating less competitive pricing or a broader scope of services.

What are the specific risks associated with a Cost Plus Fixed Fee (CPFF) contract for logistics support?

The primary risk with a CPFF contract is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can incentivize the contractor to incur higher costs, as their profit margin is fixed regardless of the actual costs. For logistics support, this could mean less efficient resource management or unnecessary expenditures if not rigorously overseen. The government bears the risk of cost overruns, and effective oversight is crucial to ensure costs remain reasonable and necessary for fulfilling the contract requirements. This necessitates strong government cost monitoring and performance evaluation.

What is Lear Siegler Services, Inc.'s track record with similar government contracts?

Lear Siegler Services, Inc. (now part of Fluor Corporation) has a history of performing various services for the U.S. government, including logistics, base operations, and technical support. Their experience with large-scale government contracts suggests a capability to manage complex requirements. However, a detailed assessment would involve reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or contract terminations, and the scale and complexity of their previous logistics support awards. A positive performance history would reduce perceived risk, while a history of issues might raise concerns about their ability to deliver effectively and efficiently on this specific contract.

How does the competition level (10 bidders) impact the government's leverage in contract negotiations?

Having 10 bidders for this contract generally indicates a healthy level of competition. This provides the government with significant leverage during the negotiation and award process. A larger pool of bidders increases the likelihood that at least one offeror will provide a competitive price and technically sound proposal. It also reduces the government's reliance on any single contractor. Post-award, the existence of multiple capable vendors in the market can influence future contract negotiations and renewals, as contractors may be more inclined to offer favorable terms to retain or win future business, knowing they face competition.

What is the potential for cost overruns given the CPFF contract type and the duration?

The Cost Plus Fixed Fee (CPFF) structure inherently carries a risk of cost overruns, as the contractor is reimbursed for actual costs. Over a contract duration of 1307 days (approximately 3.5 years), the potential for unforeseen cost increases due to inflation, changes in labor rates, material costs, or operational complexities is significant. Without robust cost controls, performance monitoring, and clear definition of allowable costs, the total expenditure could exceed initial projections. The fixed fee component provides some predictability for the contractor's profit, but the government bears the variability of the cost base, making diligent oversight essential to mitigate overruns.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

Address: 175 ADMIRAL COCHRANE DR, ANNAPOLIS, MD, 21401

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline