DoD awards $20.5M for aircraft structural component repair, raising questions on value and competition
Contract Overview
Contract Amount: $20,559,885 ($20.6M)
Contractor: URS Federal Services Inc.
Awarding Agency: Department of Defense
Start Date: 2006-08-24
End Date: 2007-08-24
Contract Duration: 365 days
Daily Burn Rate: $56.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200610!001400!5700!FA8108!OC-ALC/LAD CFT !F3460197D0423 !A!N! !N!0167 ! !20060824!20070824!020205527!073871048!043271568!N!LEAR SIEGLER SERVICES, INC !2701 LIBERTY PARKWAY !MIDWEST CITY !OK!73110!20588!139!37!ELIZABETH CITY COAST!PASQUOTANK !N CAROLINA!+000004276000!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336413!E! !5!B!M! !A! !99990909!B! ! !A! !A!U!Y!2!004!B! !C!Y!Z! ! !N!C!N! ! ! !C!A!A!A!000!A!C!N! ! ! ! !2100! !0001! !
Place of Performance
Location: ELIZABETH CITY, PASQUOTANK County, NORTH CAROLINA, 27909
Plain-Language Summary
Department of Defense obligated $20.6 million to URS FEDERAL SERVICES INC. for work described as: 200610!001400!5700!FA8108!OC-ALC/LAD CFT !F3460197D0423 !A!N! !N!0167 ! !20060824!20070824!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 to Lear Siegler Services, Inc. for $20.5M. 2. Focuses on maintenance and repair of aircraft structural components. 3. Competition method was 'Full and Open', but URS Federal Services Inc. is listed as a competitor. 4. Contract duration is one year, with a Time and Materials pricing structure. 5. The specific value proposition and cost-effectiveness require further scrutiny.
Value Assessment
Rating: questionable
The contract value of $20.5M for a one-year period for aircraft structural component repair appears high, especially given the Time and Materials pricing. Benchmarking against similar repair contracts is needed to assess if this represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While advertised as 'Full and Open Competition', the presence of only one listed competitor (URS Federal Services Inc.) raises concerns about the effectiveness of the competition and potential price discovery limitations.
Taxpayer Impact: The significant contract value suggests a substantial taxpayer investment. Ensuring competitive pricing is crucial to maximize the value of this expenditure.
Public Impact
Supports Air Force readiness by ensuring structural integrity of aircraft. Potential for job creation within the aerospace maintenance sector. Taxpayers are funding critical defense infrastructure maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clear performance metrics.
- Potential for cost overruns with Time and Materials pricing.
- Limited competition despite 'Full and Open' designation.
Positive Signals
- Addresses a critical need for aircraft maintenance.
- Contract awarded to a company with a physical presence in Oklahoma.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft component maintenance and repair. Spending in this area is critical for maintaining military readiness, but efficiency and cost control are paramount.
Small Business Impact
The contract was awarded to Lear Siegler Services, Inc., a large business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
Oversight is crucial given the Time and Materials pricing structure to prevent cost creep. The Department of the Air Force is responsible for ensuring contract compliance and performance.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Limited competition despite 'Full and Open' designation.
- Lack of detailed cost breakdown for assessment.
- Unclear performance metrics and oversight mechanisms.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, nc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.6 million to URS FEDERAL SERVICES INC.. 200610!001400!5700!FA8108!OC-ALC/LAD CFT !F3460197D0423 !A!N! !N!0167 ! !20060824!20070824!020205527!073871048!043271568!N!LEAR SIEGLER SERVICES, INC !2701 LIBERTY PARKWAY !MIDWEST CITY !OK!73110!20588!139!37!ELIZABETH CITY COAST!PASQUOTANK !N CAROLINA!+000004276000!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336413!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 Air Force).
What is the total obligated amount?
The obligated amount is $20.6 million.
What is the period of performance?
Start: 2006-08-24. End: 2007-08-24.
What is the specific breakdown of labor and material costs within the $20.5M award, and how does this compare to industry standards for similar aircraft structural repairs?
The provided data does not detail the labor and material cost breakdown. A Time and Materials contract can be susceptible to cost overruns if not closely monitored. Benchmarking against industry standards for similar repairs is essential to determine if the $20.5M represents a fair and reasonable price for the services rendered over the one-year period.
Given that URS Federal Services Inc. is listed as a competitor, why were there no other bids received under the 'Full and Open Competition' solicitation?
The limited number of bidders, despite a 'Full and Open Competition' designation, warrants investigation. Factors could include specific technical requirements, market dynamics, or the effectiveness of the solicitation process. Understanding this could reveal barriers to entry or suggest improvements for future solicitations to encourage broader participation.
What performance metrics are in place to ensure the quality and effectiveness of the 'MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS' and how is contractor performance being tracked?
The data does not specify performance metrics or tracking mechanisms for this contract. Effective oversight requires clearly defined deliverables, quality standards, and regular performance evaluations. Without this information, it's difficult to assess the effectiveness of the repairs and the overall value delivered to the government.
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: YES
Parent Contract
Parent Award PIID: F3460197D0423
IDV Type: IDC
Timeline
Start Date: 2006-08-24
Current End Date: 2007-08-24
Potential End Date: 2007-08-24 00:00:00
Last Modified: 2009-10-01
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