DoD awards $14.8M contract to Lear Siegler Services for Tank-Automotive R&D, raising cost concerns
Contract Overview
Contract Amount: $14,852,720 ($14.9M)
Contractor: URS Federal Services Inc.
Awarding Agency: Department of Defense
Start Date: 2005-02-03
End Date: 2006-04-30
Contract Duration: 451 days
Daily Burn Rate: $32.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200511!003315!2100!W56HZV!TACOM - WARREN !DAAE0798DT060 !A!N! !N!0096 !02 !20050203!20050525!073871048!065262573!043271568!N!LEAR SIEGLER SERVICES INC !900 CLOPPER ROAD !GAITHERSBURG !MD!20878!31175!031!24!GAITHERSBURG !MONTGOMERY !MARYLAND !+000005055106!N!N!000000000000!AC41!RDTE/TANK - AUTOMOTIVE-BASIC RESEARCH !S1 !SERVICES !000 !* !541330!E! !5!B!S!H! ! !20200930!B! ! !B! !A!N!Y!2!001!B! !Z!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!A!N! ! ! ! ! ! !0001! !
Place of Performance
Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $14.9 million to URS FEDERAL SERVICES INC. for work described as: 200511!003315!2100!W56HZV!TACOM - WARREN !DAAE0798DT060 !A!N! !N!0096 !02 !20050203!20050525!073871048!065262573!043271568!N!LEAR SIEGLER SERVICES INC !900 CLOPPER ROAD !GAITHERSBURG !MD!20878!31175!031!24!GAITHERSBURG !MONT… Key points: 1. Contract value: $14.8 million. 2. Competition: Full and open, but URS Federal Services Inc. was the only bidder. 3. Risk: Potential for cost overruns due to Time and Materials pricing. 4. Sector: Defense R&D, specifically Tank-Automotive.
Value Assessment
Rating: questionable
The contract's Time and Materials pricing structure, with a ceiling of $14.8 million, offers limited cost control. The actual cost could exceed this if not managed carefully, especially given the duration and the nature of R&D work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While advertised as full and open competition, only one bid was received from URS Federal Services Inc. This limited competition may have impacted price discovery, potentially leading to a less competitive price than if multiple bids had been submitted.
Taxpayer Impact: The potential for cost overruns in a Time and Materials contract for R&D presents a risk to taxpayer funds if not rigorously overseen.
Public Impact
Taxpayers may be exposed to higher costs due to the Time and Materials pricing model. Limited competition raises questions about the efficiency of the procurement process. The contract supports critical research for military vehicles, potentially enhancing national security. The duration of the contract (over a year) suggests a significant investment in research.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Limited competition despite full and open solicitation
- Potential for cost overruns
Positive Signals
- Supports critical defense R&D
- Contract awarded to established company
Sector Analysis
This contract falls within the Defense sector, specifically focusing on Research, Development, Test, and Evaluation (RDTE) for tanks and automotive systems. Spending in this area is crucial for maintaining technological superiority but requires careful oversight to ensure cost-effectiveness.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The primary contractor, Lear Siegler Services Inc., is a large business, suggesting limited direct opportunities for small businesses through subcontracting on this specific award.
Oversight & Accountability
The contract's Time and Materials nature necessitates robust oversight from the Defense Contract Management Agency (DCMA) to monitor costs, progress, and ensure adherence to the contract's objectives and ceiling. The limited competition warrants scrutiny of the procurement process.
Related Government Programs
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Time and Materials pricing increases cost risk.
- Only one bid received for a full and open solicitation.
- Potential for cost overruns in R&D.
- Lack of transparency in competition outcome.
Tags
department-of-defense, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.9 million to URS FEDERAL SERVICES INC.. 200511!003315!2100!W56HZV!TACOM - WARREN !DAAE0798DT060 !A!N! !N!0096 !02 !20050203!20050525!073871048!065262573!043271568!N!LEAR SIEGLER SERVICES INC !900 CLOPPER ROAD !GAITHERSBURG !MD!20878!31175!031!24!GAITHERSBURG !MONTGOMERY !MARYLAND !+000005055106!N!N!000000000000!AC41!RDTE/TANK - AUTOMOTIVE-BASIC RESEARCH !S1 !SERVICES !000 !* !541330!E! !5!B!S!H! ! !202
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $14.9 million.
What is the period of performance?
Start: 2005-02-03. End: 2006-04-30.
What specific R&D activities are covered under this contract, and how will their progress and cost-effectiveness be measured?
The contract specifies 'TANK - AUTOMOTIVE-BASIC RESEARCH'. Measuring progress and cost-effectiveness in basic research is inherently challenging. It typically involves milestones related to technical feasibility, prototype development, and performance testing. The Department of Defense, through DCMA, should have established metrics and regular reviews to assess the value derived from the funds expended, ensuring alignment with strategic research goals.
Given only one bid was received for a 'full and open' solicitation, what steps were taken to ensure fair market price and prevent potential collusion or lack of vendor interest?
When only one bid is received in a full and open competition, contracting officers should conduct a thorough review of the solicitation process, market research, and the reasonableness of the offered price. This might involve validating the bidder's qualifications, comparing the proposed price to historical data or independent cost estimates, and assessing if any barriers prevented other qualified vendors from bidding. The agency should document these steps to ensure accountability.
How will the Time and Materials pricing structure be managed to prevent cost overruns and ensure the government receives good value for its investment?
Managing Time and Materials (T&M) contracts requires stringent oversight. The government must closely monitor labor hours, material costs, and indirect rates. Establishing a clear ceiling price, defining specific deliverables, and implementing regular progress reviews are crucial. The Defense Contract Management Agency (DCMA) plays a vital role in verifying costs incurred and ensuring that the contractor's efforts are efficient and directly contribute to the contract's objectives.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
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, 03
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $14,947,452
Exercised Options: $14,864,512
Current Obligation: $14,852,720
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAE0798DT060
IDV Type: IDC
Timeline
Start Date: 2005-02-03
Current End Date: 2006-04-30
Potential End Date: 2006-04-30 00:00:00
Last Modified: 2014-07-30
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