DoD's $39.4M PM TRASYS support contract awarded to URS Federal Services, Inc. shows fair value

Contract Overview

Contract Amount: $39,389,014 ($39.4M)

Contractor: URS Federal Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-05-25

End Date: 2015-12-12

Contract Duration: 1,296 days

Daily Burn Rate: $30.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PM TRASYS PROGRAM SUPPORT

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $39.4 million to URS FEDERAL SERVICES, INC. for work described as: PM TRASYS PROGRAM SUPPORT Key points: 1. The contract's value appears reasonable when benchmarked against similar administrative management consulting services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance duration of nearly four years provides a stable support period. 5. The contract falls within the administrative management and general management consulting services sector. 6. No small business set-aside was applied, indicating a focus on broader market participation.

Value Assessment

Rating: good

The total award of approximately $39.4 million over its period of performance suggests a moderate level of investment for specialized administrative management and general management consulting services. Benchmarking against similar contracts in the federal space for management consulting indicates that this award falls within a typical range, especially considering the duration and scope. The firm-fixed-price structure is a positive indicator for value, as it shifts cost risk to the contractor. Without specific details on the deliverables, a precise value-for-money assessment is challenging, but the pricing appears competitive given the contract type and competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 6 bidders indicates a healthy level of interest and competition for this requirement. A competitive bidding process generally leads to more favorable pricing for the government and encourages contractors to offer their best value propositions. The number of bidders suggests that the market for these services is robust and that the government had a good selection of qualified offerors.

Taxpayer Impact: The robust competition for this contract likely resulted in taxpayer savings by driving down the price compared to a sole-source or limited competition scenario. This ensures that federal funds are used efficiently for essential administrative support services.

Public Impact

The Department of Defense benefits from enhanced administrative management and general management consulting services. The contract supports critical program management functions within the Navy. Services are likely delivered to support operational readiness and strategic planning within the DoD. The contract contributes to the professional services sector workforce, particularly in management consulting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, despite fixed-price structure.
Contractor performance history and specific expertise in DoD program support require ongoing monitoring.
Reliance on a single contractor for a significant duration could pose transition risks if not managed proactively.

Positive Signals

Firm-fixed-price contract type provides cost certainty.
Full and open competition suggests a competitive market and potentially better pricing.
Multiple bidders (6) indicate a robust competition and a good pool of qualified contractors.
Contract duration of nearly four years allows for stable support and knowledge retention.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal contracting, supporting a wide array of government functions. The market for these services is competitive, with numerous firms offering specialized expertise. Federal spending in this area often supports program management, strategic planning, and operational efficiency improvements across various agencies. Comparable spending benchmarks for management consulting services vary widely based on scope, duration, and specific expertise required.

Small Business Impact

The contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements specifically for small businesses. This suggests that the primary award went to a large business, URS Federal Services, Inc. While this maximizes the pool of potential prime contractors, it may limit direct opportunities for small businesses to participate as prime contractors on this specific award. However, large prime contractors often engage small businesses for subcontracting, so indirect opportunities may exist.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Navy. The firm-fixed-price nature of the award provides a degree of accountability by linking payment to performance and delivery. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Management Support Services
Program Management Consulting
Administrative Support Contracts
Professional Services Contracts
Department of Defense IT and Management Support

Risk Flags

Contract performance risk
Cost overrun potential (if scope changes significantly)
Contractor capability and capacity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.4 million to URS FEDERAL SERVICES, INC.. PM TRASYS PROGRAM SUPPORT

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 Navy).

What is the total obligated amount?

The obligated amount is $39.4 million.

What is the period of performance?

Start: 2012-05-25. End: 2015-12-12.

What specific program management functions did URS Federal Services, Inc. provide under this contract?

While the contract details specify 'Administrative Management and General Management Consulting Services' (NAICS 541611) and the awardee is URS Federal Services, Inc., the precise nature of the 'PM TRASYS PROGRAM SUPPORT' is not detailed in the provided data. Typically, such contracts involve providing expertise in areas like strategic planning, organizational analysis, process improvement, project management support, and potentially logistical or operational planning assistance to facilitate the execution of specific Department of the Navy programs. The 'TRASYS' acronym might refer to a specific system or initiative within the Navy's portfolio requiring management and administrative oversight.

How does the $39.4 million award compare to other similar management consulting contracts awarded by the Department of Defense?

The $39.4 million award for nearly four years of support is a substantial but not extraordinary figure for a large federal agency like the Department of Defense. Federal spending on management and consulting services is in the billions annually. Contracts of this size are common for providing program support, strategic planning, and operational analysis to major defense initiatives. When compared to other large-scale, multi-year consulting contracts within the DoD, this award appears to be within a reasonable range, reflecting the complexity and duration of the support required. Factors like the specific agency, the criticality of the program supported, and the level of expertise demanded would influence precise comparisons.

What are the primary risks associated with a firm-fixed-price contract of this magnitude and duration?

The primary risk with a firm-fixed-price (FFP) contract, especially one of this size and duration ($39.4M over ~3.6 years), is that the contractor may not fully meet the government's expectations if the scope of work is not clearly defined or if unforeseen challenges arise. While FFP shifts cost risk to the contractor, it can lead to potential issues if the contractor cuts corners to maintain profitability, impacting quality or performance. Conversely, if the government's requirements change significantly, the contractor may seek change orders, potentially increasing costs. Effective government oversight is crucial to ensure the contractor delivers the required services at the agreed-upon price and quality standards throughout the contract's life.

What is the significance of awarding this contract under 'full and open competition' with 6 bidders?

Awarding this contract under 'full and open competition' signifies that the Department of the Navy sought bids from all responsible sources, maximizing the potential for a competitive marketplace. The fact that 6 bidders submitted proposals indicates a healthy level of interest and competition for this type of service within the defense sector. This competitive environment generally leads to better pricing, higher quality services, and innovative solutions as contractors vie for the award. It suggests that the government was able to obtain fair market value and that the selection process was robust, providing a strong basis for the chosen contractor's performance.

What is the historical spending trend for 'Administrative Management and General Management Consulting Services' within the Department of the Navy?

Historical spending data for 'Administrative Management and General Management Consulting Services' (NAICS 541611) within the Department of the Navy typically shows consistent and significant investment. Agencies like the Navy frequently contract for these services to support complex operations, strategic planning, organizational efficiency, and program management. While specific year-over-year trends fluctuate based on budgetary priorities and specific program needs, the overall demand for these consulting services within the DoD remains robust. This contract, valued at approximately $39.4 million, aligns with the general pattern of substantial federal investment in management consulting to support defense missions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM (UEI: 153561212)

Address: 20501 SENECA MEADOWS PARKWAY, SUITE 300, GERMANTOWN, MD, 20876

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,690,532

Exercised Options: $39,389,014

Current Obligation: $39,389,014

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785402A9011

IDV Type: IDC

Timeline