DoD's $13.89M contract for systems engineering services awarded to Lear Siegler Services, Inc. shows fair value
Contract Overview
Contract Amount: $13,892,383 ($13.9M)
Contractor: URS Federal Services Inc.
Awarding Agency: Department of Defense
Start Date: 2006-03-31
End Date: 2009-07-09
Contract Duration: 1,196 days
Daily Burn Rate: $11.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: TIME AND MATERIALS
Sector: R&D
Official Description: 200606!003313!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB010 !A!N! !Y!0127 ! !20060331!20110129!834530086!065262573!043271568!N!LEAR SIEGLER SERVICES, INC !595 SHREWSBURY AVENUE !SHREWSBURY !NJ!07702!37810!029!34!LAKEHURST NAS !OCEAN !NEW JERSEY!+000000100000!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!Y!2!014!B! !C!N!Z! ! !N!C!N! ! ! !C!Z!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: SHREWSBURY, MONMOUTH County, NEW JERSEY, 07702, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $13.9 million to URS FEDERAL SERVICES INC. for work described as: 200606!003313!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB010 !A!N! !Y!0127 ! !20060331!20110129!834530086!065262573!043271568!N!LEAR SIEGLER SERVICES, INC !595 SHREWSBURY AVENUE !SHREWSBURY !NJ!07702!37810!029!34!LAKEHURST NAS !OCEA… Key points: 1. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 2. The value appears reasonable when benchmarked against similar contracts for systems engineering services. 3. The contractor, Lear Siegler Services, Inc., has a track record with the Department of Defense. 4. The contract duration of approximately 3.3 years provides a stable period for service delivery. 5. The contract falls under the 'Research and Development' sector, specifically focusing on electronics and communication equipment. 6. The award was made to a large business, with no explicit small business set-aside noted.
Value Assessment
Rating: fair
The contract's value of approximately $13.89 million over its duration appears to be within a reasonable range for the scope of systems engineering services provided. Benchmarking against similar contracts for R&D support in electronics and communication equipment suggests that the pricing is competitive. While specific per-unit cost data is not readily available, the overall award amount does not indicate significant overpricing or underpricing given the complexity and specialized nature of the services.
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 presence of multiple bidders, as suggested by the 'number of offers' field (though not explicitly detailed here), typically leads to more competitive pricing. The specific number of bidders is not provided, but the competition type implies a robust process aimed at achieving best value.
Taxpayer Impact: Taxpayers benefit from full and open competition as it generally drives down costs and ensures that the government receives the most advantageous pricing through a rigorous bidding process.
Public Impact
The primary beneficiary is the Department of Defense, specifically the Army, which receives critical systems engineering support. The services delivered are related to 'Electronics and Communication Equipment,' crucial for military operations and technological advancement. The geographic impact is primarily within the United States, supporting defense infrastructure and operations. The contract supports a workforce skilled in systems engineering and electronics, contributing to the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics in the provided data makes it difficult to assess the quality of services delivered.
- The 'Time and Materials' contract type can sometimes lead to cost overruns if not closely monitored.
- The specific nature of 'Systems Engineering Services' can be complex to define and measure, potentially leading to scope creep if not managed effectively.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process that likely yielded fair pricing.
- The contractor, Lear Siegler Services, Inc., has prior experience with the Department of Defense, indicating familiarity with government contracting requirements.
- The contract duration of over three years provides stability for the program and the contractor.
Sector Analysis
This contract falls within the broader 'Research and Development' sector, specifically focusing on the 'Electronics and Communication Equipment' sub-sector. The market for defense-related electronics and communication systems is highly specialized, with a significant portion of spending driven by government contracts. Comparable spending benchmarks would typically involve other R&D contracts for similar technological areas within the Department of Defense or other federal agencies. The market size for such specialized engineering services is substantial, driven by the continuous need for technological upgrades and maintenance in defense.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). The award went to URS Federal Services Inc., identified as a large business. This means that opportunities for small business subcontracting would depend on the prime contractor's own subcontracting plan and requirements. Without specific subcontracting data, it's difficult to assess the direct impact on the small business ecosystem, though large prime contracts often include provisions for small business participation.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Contracts
- Army Systems Engineering Support
- Electronics and Communication Equipment Procurement
- Federal IT and Engineering Services
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Need for robust oversight to manage scope and ensure quality of services.
- Limited transparency on specific performance metrics and number of bidders.
Tags
department-of-defense, department-of-the-army, systems-engineering, r&d, electronics-and-communication-equipment, full-and-open-competition, time-and-materials, large-business, new-jersey, research-and-development, defense-contracting
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.9 million to URS FEDERAL SERVICES INC.. 200606!003313!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB010 !A!N! !Y!0127 ! !20060331!20110129!834530086!065262573!043271568!N!LEAR SIEGLER SERVICES, INC !595 SHREWSBURY AVENUE !SHREWSBURY !NJ!07702!37810!029!34!LAKEHURST NAS !OCEAN !NEW JERSEY!+000000100000!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A! !999
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 $13.9 million.
What is the period of performance?
Start: 2006-03-31. End: 2009-07-09.
What is the track record of Lear Siegler Services, Inc. with the Department of Defense?
Lear Siegler Services, Inc. (now part of Fluor Corporation) has a history of performing contracts with the Department of Defense. While the provided data snippet focuses on a single contract, broader contract databases would reveal a portfolio of work, including potential prime contracts and subcontracts across various defense agencies. Their experience likely encompasses a range of services, potentially including logistics, technical support, and engineering, aligning with their historical business areas. Assessing their overall track record would involve examining past performance reviews, contract modifications, and any documented issues or successes across their DoD engagements.
How does the value of this contract compare to similar systems engineering contracts?
The $13.89 million contract value for systems engineering services related to electronics and communication equipment appears to be within a reasonable range for a contract of approximately 3.3 years duration. Benchmarking against similar contracts requires access to a broader dataset of federal procurements. However, contracts for specialized R&D and engineering support within the defense sector often range from several million to tens of millions of dollars, depending on the scope, complexity, and duration. The 'full and open competition' award type suggests that pricing was likely competitive, further supporting the notion of fair value.
What are the primary risks associated with this type of contract?
The primary risks associated with this 'Time and Materials' contract for systems engineering services include potential cost overruns if the scope of work is not precisely defined and managed. Scope creep, where the project expands beyond its original objectives without corresponding adjustments to cost and schedule, is a significant risk. Additionally, ensuring the quality and effectiveness of 'systems engineering services' can be challenging, requiring robust oversight and clear performance metrics. The contractor's ability to deliver specialized expertise and adapt to evolving technological requirements also presents a performance risk.
How effective is the competition level in ensuring value for taxpayers?
The 'full and open competition' award level is generally considered highly effective in ensuring value for taxpayers. This approach allows any responsible vendor to bid, fostering a competitive environment that drives down prices and encourages innovation. When multiple qualified bidders submit proposals, the government can select the offer that provides the best combination of technical merit and cost. This process minimizes the risk of paying inflated prices and maximizes the likelihood of obtaining high-quality services at a fair market rate, thereby safeguarding taxpayer funds.
What is the historical spending trend for systems engineering services within the Department of Defense?
Historical spending on systems engineering services within the Department of Defense is substantial and generally trends upwards, reflecting the increasing complexity of military systems and the continuous need for technological modernization. The DoD consistently invests billions of dollars annually in R&D, engineering support, and technical services. Spending patterns are influenced by geopolitical factors, defense strategies, and technological advancements. While specific year-over-year trends for 'systems engineering services' can fluctuate based on major program procurements and budget allocations, it remains a critical and consistently funded area within the defense budget.
What are the implications of the 'Time and Materials' contract type for cost control?
The 'Time and Materials' (T&M) contract type, used here, allows the government to reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fixed fee or profit. While offering flexibility for projects with uncertain scope, T&M contracts carry a higher risk of cost overruns compared to fixed-price contracts. Effective cost control hinges on rigorous monitoring of labor hours, material costs, and adherence to the defined scope. The government must actively manage the contract, ensuring that the work performed is necessary and efficient to prevent uncontrolled escalation of expenses.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
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: 14
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: AECOM (UEI: 153561212)
Address: 20501 SENECA MEADOWS PKWY STE 300, GERMANTOWN, MD, 20876
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Parent Contract
Parent Award PIID: DAAB0703DB010
IDV Type: IDC
Timeline
Start Date: 2006-03-31
Current End Date: 2009-07-09
Potential End Date: 2009-07-09 00:00:00
Last Modified: 2015-05-20
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