DoD Awards $41.5M for Aircraft Structural Component Repair, Facing Potential Cost Overruns
Contract Overview
Contract Amount: $41,470,405 ($41.5M)
Contractor: URS Federal Services Inc.
Awarding Agency: Department of Defense
Start Date: 2005-02-17
End Date: 2010-09-15
Contract Duration: 2,036 days
Daily Burn Rate: $20.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200505!000423!5700!FA8108!OC-ALC/LAD CFT !F3460197D0423 !A!N! !N!0143 ! !20050217!20060228!020205527!073871048!043271568!N!LEAR SIEGLER SERVICES, INC !2701 LIBERTY PARKWAY !MIDWEST CITY !OK!73110!69050!003!15!SCHOFIELD BARRACKS !HONOLULU !HAWAII !+000024124539!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1A!AIRFRAMES AND SPARES !000 !* !336413!E! !5!B!M! !A! !20200930!B! ! !A! !A!U!Y!2!004!B! !C!Y!Z! ! !N!C!N! ! ! !C!A!A!A!000!A!C!N! ! ! !Y!2100! !0001! !
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73110
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $41.5 million to URS FEDERAL SERVICES INC. for work described as: 200505!000423!5700!FA8108!OC-ALC/LAD CFT !F3460197D0423 !A!N! !N!0143 ! !20050217!20060228!020205527!073871048!043271568!N!LEAR SIEGLER SERVICES, INC !2701 LIBERTY PARKWAY !MIDWEST CITY !OK!73110!69050!003!15!SCHOFIELD BARRACKS !HONO… Key points: 1. Contract awarded to LEAR SIEGLER SERVICES, INC. for $41.5M. 2. Focuses on maintenance and repair of aircraft structural components. 3. Contract duration is 5.5 years, with a potential for cost overruns indicated by 'br'. 4. Sector is Defense, specifically 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'.
Value Assessment
Rating: questionable
The contract value is $41.5M. While specific benchmarks for this niche service are unavailable, the 'br' value of 20369 suggests a significant potential overrun or variance from the initial estimate, raising concerns about cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. However, the 'pt' value of 'TIME AND MATERIALS' can sometimes lead to less predictable final costs compared to fixed-price contracts.
Taxpayer Impact: The potential for cost overruns, as suggested by the 'br' value, could lead to increased taxpayer expenditure beyond the initial award amount.
Public Impact
Ensures readiness of critical aircraft structural components for military operations. Supports the aerospace manufacturing and repair sector within Oklahoma. Potential for increased costs impacts defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential cost overruns ('br' value)
- Time and Materials pricing structure
- Long contract duration
Positive Signals
- Full and open competition
- Awarded to established company (LEAR SIEGLER SERVICES, INC.)
Sector Analysis
This contract falls within the Defense sector, specifically supporting the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' industry. Spending in this area is critical for maintaining military aviation assets. Benchmarks are difficult to ascertain without more granular data on similar repair contracts.
Small Business Impact
The prime contractor is LEAR SIEGLER SERVICES, INC. There is no indication in the provided data whether small businesses were subcontracted for this specific award.
Oversight & Accountability
The contract was awarded by the Department of Defense through the Defense Contract Management Agency. Oversight would focus on ensuring quality of repairs and adherence to contract terms, especially given the Time and Materials pricing.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns
- Time and Materials pricing
- Lack of specific performance metrics
- Long contract duration
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ok, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.5 million to URS FEDERAL SERVICES INC.. 200505!000423!5700!FA8108!OC-ALC/LAD CFT !F3460197D0423 !A!N! !N!0143 ! !20050217!20060228!020205527!073871048!043271568!N!LEAR SIEGLER SERVICES, INC !2701 LIBERTY PARKWAY !MIDWEST CITY !OK!73110!69050!003!15!SCHOFIELD BARRACKS !HONOLULU !HAWAII !+000024124539!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1A!AIRFRAMES AND SPARES !000 !* !336413!E! !5!B!M! !A! !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 $41.5 million.
What is the period of performance?
Start: 2005-02-17. End: 2010-09-15.
What is the primary driver for the potential cost overrun indicated by the 'br' value?
The 'br' value of 20369 likely represents a variance or potential overrun from the initial estimated cost. Without further context, it's difficult to pinpoint the exact driver. It could be due to unforeseen complexities in repairs, fluctuations in material costs, or extended labor hours beyond initial projections. Further investigation into the contract's performance history and specific repair tasks would be needed to identify the precise cause.
How does the 'Time and Materials' pricing structure affect the risk for the government?
The 'Time and Materials' (T&M) pricing structure shifts some cost risk to the government. While it allows for flexibility when the scope of work is uncertain, it can lead to higher final costs if not managed closely. The government pays for the actual labor hours and material costs incurred by the contractor, making robust oversight crucial to prevent inefficiencies or inflated charges.
What is the expected impact of this contract on aircraft structural component availability for the DoD?
This contract is expected to ensure the continued availability and operational readiness of critical aircraft structural components. By outsourcing maintenance and repair to a specialized contractor like LEAR SIEGLER SERVICES, INC., the DoD can maintain its fleet effectively. The successful execution of this contract directly contributes to the overall airworthiness and longevity of military aircraft.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
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
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F3460197D0423
IDV Type: IDC
Timeline
Start Date: 2005-02-17
Current End Date: 2010-09-15
Potential End Date: 2010-09-15 00:00:00
Last Modified: 2010-06-06
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