DoD Awards $56.9M Contract for Vehicle Maintenance to Lear Siegler Services Inc

Contract Overview

Contract Amount: $56,887,475 ($56.9M)

Contractor: URS Federal Services Inc.

Awarding Agency: Department of Defense

Start Date: 2003-01-17

End Date: 2005-04-28

Contract Duration: 832 days

Daily Burn Rate: $68.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200307!000411!2100!BK01 !ACA, SOUTH REGION CONTRACTING CT!DAKF1199D0012 !A!N! !N!0032 !20030117!20030311!073871048!065262573!043271568!N!LEAR SIEGLER SERVICES INC !900 CLOPPER ROAD !GAITHERSBURG !MD!20878!31068!029!13!FORT STEWART !BRYAN !GEORGIA !+000000300000!N!N!000000000000!J023!MAINT & REPAIR OF EQ/VEHICLES-TRAILERS-CYCLES !S1 !SERVICES !1DBV!BRADLEY,INFANTRY FT VEH FAMILY!811118!E! !5!B!M! !A!A!20030311!B! ! !A! !A!N!U!2!010!B! !C!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: GEORGIA, 30330, UNITED STATES OF AMERICA

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $56.9 million to URS FEDERAL SERVICES INC. for work described as: 200307!000411!2100!BK01 !ACA, SOUTH REGION CONTRACTING CT!DAKF1199D0012 !A!N! !N!0032 !20030117!20030311!073871048!065262573!043271568!N!LEAR SIEGLER SERVICES INC !900 CLOPPER ROAD !GAITHERSBURG !MD!20878!31068!029!13!FORT STEWART !BRYAN… Key points: 1. The contract value is substantial at $56.9 million, indicating a significant need for maintenance services. 2. URS Federal Services Inc. was a competitor, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can carry cost overrun risks. 4. The sector is primarily Defense, specifically vehicle and equipment maintenance.

Value Assessment

Rating: good

The contract value of $56.9 million for maintenance and repair of vehicles and equipment appears reasonable given the duration and scope. Benchmarking against similar large-scale maintenance contracts 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, which generally leads to better price discovery and value for the government. The presence of URS Federal Services Inc. as a competitor further supports this.

Taxpayer Impact: Full and open competition is expected to yield a fair price, maximizing taxpayer value for the essential maintenance services provided.

Public Impact

Ensures operational readiness of Army vehicles and equipment. Supports military personnel and operations in the South Region. Creates and sustains jobs within the defense contracting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
Contract duration of 832 days (approx. 2.3 years) may not fully capture long-term needs.
Potential for scope creep in maintenance and repair services.

Positive Signals

Awarded under full and open competition.
Contractor has experience in similar services.
Supports critical military equipment readiness.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on the maintenance and repair of vehicles, trailers, and cycles. Spending in this area is crucial for maintaining military readiness and operational capability.

Small Business Impact

There is no explicit indication of small business participation in this award. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The contract was awarded by the Department of Defense, which has established oversight mechanisms. However, the Cost Plus Fixed Fee structure requires diligent monitoring to ensure costs remain reasonable and within scope.

Related Government Programs

Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Potential for cost overruns.
Contract duration may not cover all future needs.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.9 million to URS FEDERAL SERVICES INC.. 200307!000411!2100!BK01 !ACA, SOUTH REGION CONTRACTING CT!DAKF1199D0012 !A!N! !N!0032 !20030117!20030311!073871048!065262573!043271568!N!LEAR SIEGLER SERVICES INC !900 CLOPPER ROAD !GAITHERSBURG !MD!20878!31068!029!13!FORT STEWART !BRYAN !GEORGIA !+000000300000!N!N!000000000000!J023!MAINT & REPAIR OF EQ/VEHICLES-TRAILERS-CYCLES !S1 !SERVICES !1DBV!BRADLEY,INFANTRY FT VEH FAMILY!811118!E! !5!B!M! !A!A!20030311!B

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 $56.9 million.

What is the period of performance?

Start: 2003-01-17. End: 2005-04-28.

What is the typical profit margin for Cost Plus Fixed Fee contracts in the defense maintenance sector?

Profit margins for Cost Plus Fixed Fee (CPFF) contracts in the defense maintenance sector can vary significantly based on contract complexity, risk, and market conditions. Generally, the fixed fee is negotiated as a percentage of the estimated cost. While specific figures are proprietary, industry averages often see fees ranging from 5% to 15% of the estimated cost. However, this is a broad range, and actual profit realization depends heavily on the contractor's ability to manage costs effectively within the negotiated parameters.

How does the competition level impact the final price for vehicle maintenance contracts?

Full and open competition typically drives down prices by encouraging multiple bidders to offer their best value propositions. When several qualified companies compete, they are incentivized to be more cost-effective and innovative to win the contract. This contrasts with limited or sole-source procurements, where reduced competition can lead to higher prices as the contractor faces less pressure to optimize costs. Therefore, the 'full and open' designation suggests a more competitive price discovery process.

What are the key performance indicators (KPIs) used to measure the effectiveness of this vehicle maintenance contract?

Key performance indicators for such a contract would likely include metrics like vehicle availability rates, turnaround time for repairs, quality of workmanship (e.g., defect rates), adherence to maintenance schedules, and cost control against the fixed fee. Performance would also be assessed against delivery timelines for parts and services. The government would monitor these KPIs to ensure the contractor meets operational readiness requirements and provides value for the funds expended.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

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

Cost or Pricing Data: NO

Timeline