DoD's $81M Contract for Vehicle Maintenance Services Awarded to Lear Siegler Services, Inc. Raises Oversight Concerns
Contract Overview
Contract Amount: $80,993,255 ($81.0M)
Contractor: URS Federal Services Inc.
Awarding Agency: Department of Defense
Start Date: 2005-09-15
End Date: 2011-03-08
Contract Duration: 2,000 days
Daily Burn Rate: $40.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200511!001205!5700!FA8108!OC-ALC/LAD CFT !F3460197D0423 !A!N! !N!0149 ! !20050915!20060914!020205527!073871048!043271568!N!LEAR SIEGLER SERVICES, INC !2701 LIBERTY PARKWAY !MIDWEST CITY !OK!73110!24260!051!37!FORT BRAGG !CUMBERLAND !N CAROLINA!+000029076589!N!N!000000000000!J023!MAINT & REPAIR OF EQ/VEHICLES-TRAILERS-CYCLES !A4A!COMBAT VEHICLES !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 $81.0 million to URS FEDERAL SERVICES INC. for work described as: 200511!001205!5700!FA8108!OC-ALC/LAD CFT !F3460197D0423 !A!N! !N!0149 ! !20050915!20060914!020205527!073871048!043271568!N!LEAR SIEGLER SERVICES, INC !2701 LIBERTY PARKWAY !MIDWEST CITY !OK!73110!24260!051!37!FORT BRAGG !CUMB… Key points: 1. The contract value of $81,009,325.54 for vehicle maintenance is substantial. 2. Competition was full and open, indicating a competitive bidding process. 3. The contract duration of 2000 days (over 5 years) presents long-term risk. 4. The sector is Defense, specifically vehicle maintenance, a critical operational area.
Value Assessment
Rating: fair
The contract value of $81,009,325.54 appears high for maintenance services. Benchmarking against similar contracts for vehicle and equipment repair is needed to assess if this price is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the final negotiated price of $81,009,325.54 warrants scrutiny to ensure it reflects fair market value.
Taxpayer Impact: Taxpayer funds are being utilized for this contract. Ensuring cost-effectiveness and value for money is crucial to minimize financial impact.
Public Impact
Military readiness and operational efficiency are directly impacted by the quality and cost of vehicle maintenance. The long contract duration could lead to price escalations or reduced flexibility if needs change. Transparency in contract performance and spending is essential for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2000 days)
- High total contract value
- Potential for cost overruns in time and materials contracts
Positive Signals
- Full and open competition
- Awarded to a known entity (Lear Siegler Services, Inc.)
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the maintenance and repair of vehicles, trailers, and cycles. Spending in this area is critical for maintaining military operational readiness. Benchmarks for similar maintenance contracts can vary widely based on the type and quantity of equipment.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Department of Defense through the Defense Contract Management Agency. Oversight should focus on performance metrics, cost controls, and adherence to contract terms, especially given the long duration and time-and-materials nature.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration
- Time and Materials pricing structure
- High total contract value
- Potential for cost overruns
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 $81.0 million to URS FEDERAL SERVICES INC.. 200511!001205!5700!FA8108!OC-ALC/LAD CFT !F3460197D0423 !A!N! !N!0149 ! !20050915!20060914!020205527!073871048!043271568!N!LEAR SIEGLER SERVICES, INC !2701 LIBERTY PARKWAY !MIDWEST CITY !OK!73110!24260!051!37!FORT BRAGG !CUMBERLAND !N CAROLINA!+000029076589!N!N!000000000000!J023!MAINT & REPAIR OF EQ/VEHICLES-TRAILERS-CYCLES !A4A!COMBAT VEHICLES !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 $81.0 million.
What is the period of performance?
Start: 2005-09-15. End: 2011-03-08.
What is the average cost per vehicle or per maintenance hour under this contract, and how does it compare to industry benchmarks?
Calculating the precise average cost per vehicle or maintenance hour requires detailed breakdown of services rendered and the number of units maintained. Without this granular data, direct comparison is difficult. However, the total value of $81M over 2000 days suggests significant operational expenditure. Industry benchmarks vary widely, but agencies should compare actual costs against pre-negotiated rates and historical data for similar maintenance tasks.
What are the specific risks associated with a 2000-day time and materials contract for vehicle maintenance, and how are they being mitigated?
The primary risks include potential cost overruns due to undefined labor hours and material usage, scope creep, and reduced incentive for efficiency. Mitigation strategies should involve robust oversight, clear task orders with estimated hours, regular performance reviews, and strict adherence to material cost ceilings. The government should actively monitor spending against projections and ensure competitive pricing for materials.
How effectively does this contract ensure the readiness and operational capability of the specified military vehicles?
The effectiveness hinges on Lear Siegler Services, Inc.'s performance and the government's oversight. A 'Time and Materials' contract can be effective if managed diligently, ensuring timely repairs and parts availability. However, without performance metrics and quality assurance data, it's difficult to definitively assess its impact on readiness. Regular reporting on turnaround times, repair success rates, and equipment availability is crucial.
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: 2005-09-15
Current End Date: 2011-03-08
Potential End Date: 2011-03-08 00:00:00
Last Modified: 2010-06-06
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