Air Force awards $20.4M contract for aircraft component repair, highlighting a competitive bidding process

Contract Overview

Contract Amount: $20,454,508 ($20.5M)

Contractor: URS Federal Services Inc.

Awarding Agency: Department of Defense

Start Date: 2005-08-23

End Date: 2006-08-27

Contract Duration: 369 days

Daily Burn Rate: $55.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: 200511!001121!5700!FA8108!OC-ALC/LAD CFT !F3460197D0423 !A!N! !N!0151 ! !20050823!20060825!020205527!073871048!043271568!N!LEAR SIEGLER SERVICES, INC !2701 LIBERTY PARKWAY !MIDWEST CITY !OK!73110!20588!139!37!ELIZABETH CITY COAST!PASQUOTANK !N CAROLINA!+000001940000!N!N!000000000000!J016!MAINT & REPAIR OF EQ/AIRCRAFT COMPS & ACCYS !A1C!OTHER AIRCRAFT EQUIPMENT !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!1700! !0001! !

Place of Performance

Location: ELIZABETH CITY, PASQUOTANK County, NORTH CAROLINA, 27909

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $20.5 million to URS FEDERAL SERVICES INC. for work described as: 200511!001121!5700!FA8108!OC-ALC/LAD CFT !F3460197D0423 !A!N! !N!0151 ! !20050823!20060825!020205527!073871048!043271568!N!LEAR SIEGLER SERVICES, INC !2701 LIBERTY PARKWAY !MIDWEST CITY !OK!73110!20588!139!37!ELIZABETH CITY COAST!PASQ… Key points: 1. Contract awarded through full and open competition, suggesting a robust market for aircraft component repair services. 2. The contract value of $20.4M falls within a typical range for specialized aircraft maintenance and repair services. 3. Performance period of approximately one year indicates a focus on immediate or short-term repair needs. 4. The award to URS Federal Services Inc. suggests a contractor with established capabilities in defense logistics and maintenance. 5. The North Carolina location of the contractor may imply regional support or specific logistical advantages for the Air Force. 6. The contract type (Time and Materials) allows for flexibility but requires careful monitoring to control costs.

Value Assessment

Rating: good

The contract value of $20.4M for aircraft component repair appears reasonable given the scope of work. Benchmarking against similar contracts for aircraft parts maintenance and repair suggests this award is within the expected range for specialized services. The Time and Materials pricing structure, while flexible, necessitates diligent oversight to ensure cost-effectiveness and prevent potential overruns compared to fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that multiple bidders were likely considered. The presence of four bids suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and can lead to more cost-effective outcomes for the government.

Taxpayer Impact: A competitive bidding process like this one is beneficial for taxpayers as it helps ensure that the government is receiving fair market value for the services rendered, potentially leading to lower overall costs.

Public Impact

The primary beneficiaries are the U.S. Air Force units requiring maintenance and repair for aircraft components and accessories. Services delivered include the repair of various aircraft components and accessories, ensuring operational readiness. The geographic impact is primarily centered around the Air Force installations served by the contractor, with a specific mention of Elizabeth City, North Carolina. Workforce implications include employment opportunities for skilled technicians and support staff involved in aircraft component repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Time and Materials contract type if not closely managed.
Dependence on a single contractor for a critical support function could pose a risk if performance issues arise.
The relatively short performance period might necessitate a follow-on contract, leading to potential re-competition challenges.

Positive Signals

Awarded through full and open competition, indicating a competitive market and potential for good value.
The contractor, URS Federal Services Inc., likely possesses relevant experience in defense contracting and aircraft maintenance.
The contract supports critical Air Force operations by ensuring the availability of repaired aircraft components.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on the maintenance, repair, and overhaul (MRO) of aircraft components. The market for aircraft MRO is substantial, driven by the continuous need to maintain aging fleets and ensure operational readiness. This contract represents a portion of the government's spending on sustaining its aviation assets, competing with other providers of similar specialized repair services.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and the prime contractor, URS Federal Services Inc., is a large entity. There is no explicit information regarding subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem is likely minimal unless URS actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Air Force. Performance monitoring, quality assurance, and financial oversight are standard mechanisms. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Aircraft Component Repair Services
Aerospace Maintenance and Repair
Defense Logistics Support
Air Force Equipment Maintenance
Time and Materials Contracts

Risk Flags

Potential for cost creep due to Time and Materials pricing structure.
Contract duration is relatively short, requiring timely follow-on planning.
Limited public information on specific performance metrics for this award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to URS FEDERAL SERVICES INC.. 200511!001121!5700!FA8108!OC-ALC/LAD CFT !F3460197D0423 !A!N! !N!0151 ! !20050823!20060825!020205527!073871048!043271568!N!LEAR SIEGLER SERVICES, INC !2701 LIBERTY PARKWAY !MIDWEST CITY !OK!73110!20588!139!37!ELIZABETH CITY COAST!PASQUOTANK !N CAROLINA!+000001940000!N!N!000000000000!J016!MAINT & REPAIR OF EQ/AIRCRAFT COMPS & ACCYS !A1C!OTHER AIRCRAFT EQUIPMENT !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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $20.5 million.

What is the period of performance?

Start: 2005-08-23. End: 2006-08-27.

What is the track record of URS Federal Services Inc. in performing similar aircraft component repair contracts for the Department of Defense?

URS Federal Services Inc., now part of AECOM, has a significant history of performing complex logistics, maintenance, and support services for the Department of Defense. Their experience often includes aircraft maintenance, repair, and overhaul (MRO), as well as base operations support. While specific details for this exact contract's performance are not provided, the company's general profile suggests a capacity to handle such requirements. Historical data from contract databases would reveal the number and value of similar contracts awarded to URS, their performance ratings, and any significant issues encountered. This background is crucial for assessing the reliability and capability of the contractor for this specific award.

How does the awarded value of $20.4 million compare to other contracts for similar aircraft component repair services?

The $20.4 million award for aircraft component repair is a moderate-sized contract within the defense sector. To benchmark its value effectively, comparisons should be made with contracts for similar types of aircraft components, the complexity of repairs required, and the specific branch of service. Contracts for depot-level maintenance or specialized component overhauls can range from a few million to tens of millions of dollars. Factors like the number of bids received, the duration of the contract (369 days in this case), and the pricing structure (Time and Materials) influence the overall cost. Without specific details on the components repaired and the scope of work, a precise comparison is difficult, but the value appears consistent with specialized MRO services.

What are the primary risks associated with a Time and Materials (T&M) contract for aircraft component repair?

The primary risk with a Time and Materials (T&M) contract for aircraft component repair is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours and material costs incurred, plus a fee or profit. This structure can incentivize longer task durations or higher material costs if not rigorously monitored. For the government, effective oversight is critical to ensure that labor hours are reasonable, material costs are fair, and that the work is progressing efficiently towards completion. Without strong controls, the final cost can exceed initial estimates, diminishing the value proposition for the taxpayer.

What is the typical duration for contracts of this nature, and does this contract's duration suggest any specific program needs?

Contracts for aircraft component repair and maintenance can vary significantly in duration, ranging from short-term, task-order-based agreements to multi-year sustainment contracts. A duration of approximately one year (369 days) for this $20.4 million award suggests a focus on addressing a specific set of repair needs or a particular phase of a larger maintenance program. It might indicate a need for immediate support, a pilot program for a new repair process, or a bridge contract while a longer-term strategy is developed. Shorter durations often imply less complex or more predictable requirements, but they also necessitate timely re-competition or contract extension planning.

How does the geographic location of the contractor (Midwest City, OK) potentially impact service delivery for the Air Force?

The contractor's location in Midwest City, Oklahoma, is significant as it is near Tinker Air Force Base, a major hub for aircraft maintenance, repair, and logistics within the Air Force. This proximity likely facilitates efficient logistics, reduces transportation costs for components, and allows for closer collaboration between the contractor and Air Force personnel. Such geographic alignment often streamlines communication, speeds up turnaround times for repairs, and can lead to better overall performance. While the contract mentions Elizabeth City Coast, NC, the primary contractor address suggests a strong connection to the Oklahoma defense industrial base.

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