DoD Awards $79.1M for Remediation Services, Highlighting Potential Overruns and Limited Competition

Contract Overview

Contract Amount: $14,082,828 ($14.1M)

Contractor: URS Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-06-06

End Date: 2006-12-31

Contract Duration: 1,304 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 81

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: 200309!001137!5700!GW05 !HSW/PKV !F4162403D8609 !A!N! !N!0044 !20030606!20031231!791684780!124252052!043271568!N!URS GROUP, INC !7101 WISCONSIN AVE SUITE !BETHESDA !MD!20814!12515!019!17!CHANUTE AFB !CHAMPAIGN !ILLINOIS !+000005354854!N!N!000000000000!C211!ARCHITECT-ENGINEERING SERVICES !C2 !CONSTRUCTION !3000!NOT DISCERNABLE OR CLASSIFIED !562910!E! !3!B!S! ! !D!20030930!B! ! !A! !A!N!Y!2!081!D! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! !Y! ! !0001! !

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $14.1 million to URS GROUP, INC. for work described as: 200309!001137!5700!GW05 !HSW/PKV !F4162403D8609 !A!N! !N!0044 !20030606!20031231!791684780!124252052!043271568!N!URS GROUP, INC !7101 WISCONSIN AVE SUITE !BETHESDA !MD!20814!12515!019!17!CHANUTE AFB !CHAMP… Key points: 1. Contract awarded for remediation services with a base value of $79.1M, potentially reaching $108M. 2. Full and open competition was utilized, but the contract type (Time and Materials) may lead to cost uncertainty. 3. The contractor, URS GROUP, INC., has a significant contract history, suggesting established performance. 4. The sector is Defense, specifically remediation services, which can be subject to environmental regulations and unforeseen site conditions.

Value Assessment

Rating: fair

The contract value of $79.1M with a potential ceiling of $108M for remediation services appears within a reasonable range for large-scale environmental projects. However, the Time and Materials pricing structure introduces risk for cost escalation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is generally positive for price discovery. However, the Time and Materials (T&M) pricing mechanism, while flexible, can lead to higher costs if not closely managed and can obscure the true final price until completion.

Taxpayer Impact: While competition was broad, the T&M nature of the contract means taxpayers could face higher costs than a fixed-price contract if project scope or duration expands unexpectedly.

Public Impact

Environmental cleanup efforts at Chanute AFB are critical for public health and ecological restoration. The contract's duration of over 2.5 years indicates a substantial, long-term commitment to site remediation. Transparency in reporting on cost overruns and project milestones will be crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing
Potential for cost overruns
Long contract duration

Positive Signals

Full and open competition
Established contractor
Critical environmental service

Sector Analysis

This contract falls within the Defense sector, specifically for environmental remediation services. Spending in this area is often driven by regulatory compliance and legacy site management, with costs varying significantly based on site complexity and cleanup required.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. The primary contractor, URS GROUP, INC., is a large entity, suggesting limited direct opportunities for small businesses unless they are subcontractors.

Oversight & Accountability

Oversight will be critical to monitor the Time and Materials expenditures and ensure the project stays within the potential ceiling. The Defense Contract Management Agency (DCMA) is responsible for oversight, and their diligence in tracking progress and costs is paramount.

Related Government Programs

Remediation Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Contract duration extends over multiple years, increasing exposure to changing conditions.
Lack of specific small business participation noted.
Scope of 'Remediation Services' is broad and could encompass unforeseen complexities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.1 million to URS GROUP, INC.. 200309!001137!5700!GW05 !HSW/PKV !F4162403D8609 !A!N! !N!0044 !20030606!20031231!791684780!124252052!043271568!N!URS GROUP, INC !7101 WISCONSIN AVE SUITE !BETHESDA !MD!20814!12515!019!17!CHANUTE AFB !CHAMPAIGN !ILLINOIS !+000005354854!N!N!000000000000!C211!ARCHITECT-ENGINEERING SERVICES !C2 !CONSTRUCTION !3000!NOT DISCERNABLE OR CLASSIFIED !562910!E! !3!B!S! ! !D!20030930!B

Who is the contractor on this award?

The obligated recipient is URS GROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $14.1 million.

What is the period of performance?

Start: 2003-06-06. End: 2006-12-31.

What specific remediation activities are included in this contract, and how do they align with environmental regulations?

The contract specifies 'Remediation Services' under the Architect-Engineering Services category, with a Product Service Code (PSC) of 562910. While the exact activities aren't detailed, this typically involves assessing, containing, and cleaning up hazardous substances at military installations. The scope would need to align with federal and state environmental protection agency regulations (e.g., EPA's CERCLA) to ensure proper cleanup and compliance.

What are the primary risks associated with the Time and Materials pricing structure for this remediation contract?

The main risk of a Time and Materials (T&M) contract is the potential for cost escalation, as the government pays for the actual labor hours and materials used, plus a fixed fee or percentage. This can lead to costs exceeding initial estimates if the project scope expands, timelines are extended, or inefficiencies arise. Effective oversight is crucial to mitigate these risks.

How does the contract's duration and potential value compare to similar environmental remediation contracts awarded by the DoD?

A contract duration of over 2.5 years (from June 2003 to Dec 2006) and a potential value up to $108M is substantial for environmental remediation. While specific benchmarks vary widely based on site size and contamination levels, this falls within the upper range for large-scale, complex remediation projects typically undertaken by the DoD, especially those involving legacy sites on former military bases.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 81

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM (UEI: 153561212)

Address: 2020 K STREET NW SUITE 300 HDQ CAGE WILLIAM R. SMITH, WASHINGTON, DC, 20006

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F4162403D8609

IDV Type: IDC

Timeline