Army awards $262M contract for vehicle maintenance, highlighting potential value and competition dynamics

Contract Overview

Contract Amount: $26,216,227 ($26.2M)

Contractor: URS Federal Services Inc.

Awarding Agency: Department of Defense

Start Date: 2003-07-19

End Date: 2007-07-18

Contract Duration: 1,460 days

Daily Burn Rate: $18.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: 200311!000978!2100!BK01 !ACA, SOUTH REGION CONTRACTING CT!DAKF1199D0012 !A!N! !N!0034 !20030719!20040718!073871048!065262573!043271568!N!LEAR SIEGLER SERVICES INC !900 CLOPPER ROAD !GAITHERSBURG !MD!20878!61268!037!48!RED RIVER ARMY DEPOT!BOWIE !TEXAS !+000000400000!N!N!000000000000!J023!MAINT & REPAIR OF EQ/VEHICLES-TRAILERS-CYCLES !A4A!COMBAT VEHICLES !1000!NOT DISCERNABLE OR CLASSIFIED !811111!E! !5!B!M! !D!A!20040718!B! ! !A! !A!N!Y!2!010!B! !C!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y!2100!W33FYJ!0001! !

Place of Performance

Location: ATLANTA, GEORGIA, 30330, UNITED STATES OF AMERICA

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $26.2 million to URS FEDERAL SERVICES INC. for work described as: 200311!000978!2100!BK01 !ACA, SOUTH REGION CONTRACTING CT!DAKF1199D0012 !A!N! !N!0034 !20030719!20040718!073871048!065262573!043271568!N!LEAR SIEGLER SERVICES INC !900 CLOPPER ROAD !GAITHERSBURG !MD!20878!61268!037!48!RED RIVER ARMY DEPOT!BOWIE !TEXAS !+000000400000!N!N!000000000… Key points: 1. Contract awarded for maintenance and repair of equipment, vehicles, trailers, and cycles. 2. Significant contract value suggests a substantial need for these services within the Army. 3. Full and open competition indicates a robust bidding process, potentially leading to better pricing. 4. Contract duration of 4 years allows for sustained service delivery and potential for performance evaluation. 5. The award to URS Federal Services Inc. suggests a strong incumbent or competitive advantage. 6. Geographic location of performance at Red River Army Depot is a key operational hub.

Value Assessment

Rating: good

The contract value of $262.2 million over four years for maintenance and repair of vehicles and equipment appears reasonable given the scope. Benchmarking against similar large-scale maintenance contracts within the Department of Defense is necessary for a definitive value assessment. However, the full and open competition suggests that pricing was likely scrutinized by multiple bidders, which generally drives better value for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 10 bids were received, suggesting a healthy level of competition for this significant requirement. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down the final price through multiple offers, maximizing the value of federal dollars spent on essential vehicle maintenance.

Public Impact

The primary beneficiaries are the U.S. Army units relying on well-maintained vehicles and equipment for operational readiness. Services delivered include maintenance and repair of various types of vehicles, trailers, and cycles. The contract's performance location at Red River Army Depot in Texas impacts the local economy and workforce there. This contract supports jobs related to vehicle maintenance, repair, and logistics within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if maintenance needs exceed initial projections.
Risk of service disruptions if contractor performance falters.
Dependence on a single contractor for critical maintenance services.

Positive Signals

Awarded through full and open competition, indicating competitive pricing.
Long-term contract duration allows for stable service provision.
Performance at a major Army depot suggests strategic alignment with military needs.

Sector Analysis

This contract falls within the broader defense logistics and maintenance sector, a critical component of military readiness. The market for defense maintenance services is substantial, with numerous contractors vying for these essential support roles. This specific award contributes to the overall spending within the 'Maintenance and Repair of Equipment/Vehicles' category, supporting the operational capabilities of ground forces.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. While the prime contractor is URS Federal Services Inc., there is no explicit information on subcontracting plans to small businesses. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army contracting command and potentially the Defense Contract Management Agency (DCMA). Accountability measures would be embedded in the contract's performance standards and reporting requirements. Transparency is generally maintained through contract award databases, though specific performance details might be sensitive.

Related Government Programs

Army Vehicle Maintenance Contracts
Defense Logistics Support Services
Equipment Repair Contracts
Tactical Vehicle Support
Combat Vehicle Maintenance

Risk Flags

Contract Duration
Contract Value
Competition Level
Contract Type

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.2 million to URS FEDERAL SERVICES INC.. 200311!000978!2100!BK01 !ACA, SOUTH REGION CONTRACTING CT!DAKF1199D0012 !A!N! !N!0034 !20030719!20040718!073871048!065262573!043271568!N!LEAR SIEGLER SERVICES INC !900 CLOPPER ROAD !GAITHERSBURG !MD!20878!61268!037!48!RED RIVER ARMY DEPOT!BOWIE !TEXAS !+000000400000!N!N!000000000000!J023!MAINT & REPAIR OF EQ/VEHICLES-TRAILERS-CYCLES !A4A!COMBAT VEHICLES !1000!NOT DISCERNABLE OR CLASSIFIED !811111!E! !5!B!M! !D!A!20040718!B! ! !A! !A!N!Y!2!010!B! !C!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y!2

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 $26.2 million.

What is the period of performance?

Start: 2003-07-19. End: 2007-07-18.

What is the track record of URS Federal Services Inc. in performing similar large-scale maintenance contracts for the Department of Defense?

URS Federal Services Inc., now part of AECOM, has a significant history of performing large-scale engineering, construction, and operations and maintenance services for government agencies, including the Department of Defense. They have managed complex logistics, infrastructure support, and facility maintenance programs. Their experience often includes supporting military installations and operational readiness. While specific performance metrics for this particular contract (DAKF1199D0012) are not detailed here, their broader portfolio suggests a capacity to handle such requirements. A deeper dive into past performance reviews and any contract disputes or awards associated with URS Federal Services would provide a more comprehensive understanding of their reliability and effectiveness in similar roles.

How does the awarded price per year compare to industry benchmarks for similar vehicle maintenance services?

The total contract value is approximately $262.2 million over a 4-year period (1460 days), averaging roughly $65.55 million per year. Benchmarking this against industry standards for large-scale military vehicle and equipment maintenance is complex due to variations in scope, equipment types, and service levels. However, given the full and open competition with 10 bids, it suggests the price was competitive. To provide a precise benchmark, one would need to compare the specific services (e.g., types of vehicles, repair complexity, parts included) against publicly available data for similar contracts awarded by other branches of the military or defense agencies. Without more granular data on the service mix, a definitive per-unit cost comparison is challenging, but the competitive bidding process implies a reasonable market-based price.

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

While the specific KPIs are not detailed in the provided data, typical performance indicators for such maintenance and repair contracts often include metrics related to response time for service requests, turnaround time for repairs, quality of workmanship (e.g., defect rates), availability of critical spare parts, and overall equipment readiness rates. The contract likely stipulates specific service level agreements (SLAs) that the contractor, URS Federal Services Inc., must meet. Performance would be monitored by the Army contracting officer's representative (COR) and potentially through contractor performance assessment reporting systems (CPARS). Failure to meet these KPIs could result in penalties or impact future contract awards.

What is the historical spending trend for vehicle and equipment maintenance at Red River Army Depot?

Historical spending data specifically for vehicle and equipment maintenance at Red River Army Depot prior to this $262.2 million contract award would require access to detailed historical procurement databases. This contract, awarded in 2003 with an end date in 2007, represents a significant investment during that period. To understand trends, one would need to examine contract awards for similar services at this depot over several years leading up to and following this contract. Analyzing patterns of spending, types of contracts (e.g., sole-source vs. competitive), and average contract values would reveal whether this award was an anomaly or part of a consistent spending strategy for depot maintenance operations.

Are there any identified risks associated with the contractor's ability to fulfill this contract, beyond standard performance concerns?

Beyond standard performance risks inherent in any large service contract, specific risks for this contract would depend on factors not detailed in the summary data. These could include the contractor's financial stability, potential labor disputes, supply chain vulnerabilities for critical parts, or cybersecurity risks if the maintenance involves networked systems. Given that URS Federal Services Inc. was a substantial entity, major financial instability was less likely at the time of award, but it's always a consideration. The nature of military equipment maintenance can also involve handling sensitive technologies or materials, introducing unique security and handling risks that the contractor must manage rigorously according to contract specifications.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

Pricing Type: TIME AND MATERIALS (Y)

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