Department of the Army's $42M R&D contract to URS Federal Services Inc. shows $747K funded

Contract Overview

Contract Amount: $15,895,040 ($15.9M)

Contractor: URS Federal Services Inc.

Awarding Agency: Department of Defense

Start Date: 2007-07-16

End Date: 2010-04-15

Contract Duration: 1,004 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: CR-1804, TO 0163 LSI. $42MIL, $747K FUNDED. 24 MONTH TO, NO OPTIONS

Place of Performance

Location: SHREWSBURY, MONMOUTH County, NEW JERSEY, 07702, UNITED STATES OF AMERICA

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $15.9 million to URS FEDERAL SERVICES INC. for work described as: CR-1804, TO 0163 LSI. $42MIL, $747K FUNDED. 24 MONTH TO, NO OPTIONS Key points: 1. Value for money appears fair given the time and materials pricing structure, though detailed cost breakdowns are needed for a definitive assessment. 2. Competition dynamics indicate a full and open process, suggesting a competitive environment that should have driven favorable pricing. 3. Risk indicators are moderate, with a time and materials contract type posing potential cost overrun risks if not closely managed. 4. Performance context is within Research and Development in Physical, Engineering, and Life Sciences, a broad category. 5. Sector positioning places this contract within the broader R&D services market for the Department of Defense.

Value Assessment

Rating: fair

The awarded amount of $42 million with $747,000 funded suggests a phased approach to this research and development effort. Benchmarking against similar R&D contracts is challenging without more specific details on the scope of work. However, the time and materials (T&M) contract type, while flexible, can lead to higher costs if not managed diligently compared to fixed-price contracts. The initial funded amount represents a small fraction of the total potential value, indicating significant future expenditure.

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 number of bids received is not specified, but the competitive nature of the award process is a positive sign for price discovery and potentially achieving a fair market price.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services.

Public Impact

This contract likely benefits the Department of the Army by funding critical research and development activities. The services delivered are in the domain of physical, engineering, and life sciences research. The geographic impact is centered in New Jersey, where the contractor is located. Workforce implications include employment for researchers, engineers, and support staff involved in the R&D projects.

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 monitored.
Scope creep could increase costs beyond the initial $42 million ceiling without adequate controls.
The long duration of the contract (24 months with no options) might lead to vendor lock-in or reduced flexibility in adapting to changing research needs.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contractor, URS Federal Services Inc., likely has a track record in supporting government R&D efforts.
The contract aims to advance research in critical physical, engineering, and life sciences areas.

Sector Analysis

The Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541710) is a significant area of federal spending, particularly within the Department of Defense. This contract fits within the broader landscape of innovation and technological advancement pursued by the government. Comparable spending benchmarks would depend heavily on the specific sub-field of R&D, but overall federal R&D spending is in the tens of billions annually.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. The primary contractor, URS Federal Services Inc., would determine any subcontracting opportunities based on their project needs and procurement policies.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Army. Accountability measures would be tied to performance milestones and deliverables outlined in the contract. Transparency is facilitated through contract databases, though detailed project-specific information may be limited due to the nature of R&D and national security considerations. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development
Army Research Laboratory Contracts
Science and Technology Development Contracts
Engineering Services Contracts
Life Sciences Research Contracts

Risk Flags

Time and Materials Contract Type Risk
Potential for Scope Creep
Lack of Contract Options for Extension

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.9 million to URS FEDERAL SERVICES INC.. CR-1804, TO 0163 LSI. $42MIL, $747K FUNDED. 24 MONTH TO, NO OPTIONS

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 $15.9 million.

What is the period of performance?

Start: 2007-07-16. End: 2010-04-15.

What is the specific nature of the research and development being conducted under this contract?

The provided data indicates the contract falls under NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences.' However, the specific research topics are not detailed. This broad classification suggests the work could encompass a wide range of scientific and technological advancements, from materials science and advanced manufacturing to biotechnology and artificial intelligence applications relevant to defense. Further investigation into contract line item numbers (CLINs) or associated documentation would be necessary to ascertain the precise R&D focus.

How does the funded amount of $747K compare to the initial phase of similar R&D contracts awarded by the Department of the Army?

Comparing the initial funded amount of $747,000 to the total potential value of $42 million provides insight into the contract's funding profile. For R&D contracts of this magnitude, an initial funding level representing approximately 1.78% of the total ceiling is not uncommon, especially for multi-year efforts. This phased funding approach allows the government to manage risk and ensure progress before committing the full amount. Benchmarking against specific historical contracts would require access to detailed award data for comparable R&D efforts, considering factors like research area, contract type, and duration.

What are the potential risks associated with the 'Time and Materials' contract type for this R&D effort?

The primary risk with a Time and Materials (T&M) contract type, especially for a long-duration R&D effort like this one, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If project scope is not tightly controlled, or if labor hours are not efficiently utilized, costs can escalate beyond the initial estimates or the contract ceiling. Effective oversight, detailed tracking of labor and materials, and robust change management are crucial to mitigate these risks.

What is the track record of URS Federal Services Inc. in performing similar R&D contracts for the government?

URS Federal Services Inc. (now part of AECOM) has a significant history of performing various services for the U.S. government, including engineering, construction, and technical support. While specific details on their R&D contract performance require deeper database searches, their established presence suggests experience in managing complex government projects. Assessing their track record would involve reviewing past performance evaluations, any past performance issues or awards, and the types of R&D projects they have previously undertaken for agencies like the Department of Defense.

How does the duration of 24 months with no options impact the flexibility and potential cost-effectiveness of this R&D contract?

A fixed 24-month duration with no options means the contract has a defined end date and no built-in mechanism for extension without a new procurement action. For R&D, this can be a double-edged sword. It provides a clear timeline and forces a focus on achieving objectives within that period. However, if research breakthroughs or unforeseen challenges require more time, the government would need to initiate a new, potentially lengthy, competitive process to continue the work. This lack of flexibility could hinder long-term research continuity or lead to gaps in critical development efforts if follow-on work is desired.

What does the 'AW: DO' designation signify in the context of this contract award?

The 'AW: DO' designation likely refers to the award type or authority under which the contract was issued. 'DO' often stands for 'Defense Order,' which is a type of priority rating that can be assigned to contracts to ensure timely delivery of critical materials or services for national defense purposes. This suggests that the R&D work under this contract was deemed sufficiently important to warrant priority over other, non-rated orders. It implies a level of urgency or strategic importance associated with the research being funded.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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

Financial Breakdown

Contract Ceiling: $16,000,542

Exercised Options: $16,000,542

Current Obligation: $15,895,040

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAB0703DB010

IDV Type: IDC

Timeline