DoD's $31.5M contract for rotary wing aircraft maintenance awarded to URS Federal Services Inc

Contract Overview

Contract Amount: $31,539,101 ($31.5M)

Contractor: URS Federal Services Inc.

Awarding Agency: Department of Defense

Start Date: 2007-10-01

End Date: 2009-01-28

Contract Duration: 485 days

Daily Burn Rate: $65.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: LABOR SERVICES TO MAINTAIN, OVERHAUL AND REPAIR OF ROTARY WING AIRCRAFT AT CORPUS CHRISTI ARMY DEPOT.

Place of Performance

Location: CORPUS CHRISTI, NUECES County, TEXAS, 78419

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $31.5 million to URS FEDERAL SERVICES INC. for work described as: LABOR SERVICES TO MAINTAIN, OVERHAUL AND REPAIR OF ROTARY WING AIRCRAFT AT CORPUS CHRISTI ARMY DEPOT. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 485 days indicates a medium-term service requirement. 3. The primary contractor, URS Federal Services Inc., has a significant presence in federal contracting. 4. The North American Industry Classification System (NAICS) code 336413 points to specialized aircraft parts manufacturing and repair. 5. The contract's value of over $31.5 million warrants scrutiny for cost-effectiveness and performance. 6. The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' designation highlights the specialized nature of the services. 7. The contract was awarded under the Department of Defense, indicating a focus on military aviation support.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more granular data on the scope of 'maintain, overhaul and repair' for rotary wing aircraft. However, a $31.5 million contract over approximately 16 months suggests a substantial investment. Comparing it to similar contracts for aircraft maintenance at other depots or for different aircraft types would provide better context. The 'Time and Materials' pricing structure can sometimes lead to cost overruns if not closely managed, which is a potential risk factor for value.

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 presence of 4 bidders (as indicated by 'no': 4) suggests a reasonable level of competition for this specialized service. A competitive process generally helps in achieving fair market prices and encourages contractors to offer their best value propositions.

Taxpayer Impact: A competitive award process is beneficial for taxpayers as it typically drives down costs through bidding and encourages efficiency from the winning contractor.

Public Impact

The primary beneficiaries are the U.S. Army, through the maintenance of its rotary wing aircraft fleet, ensuring operational readiness. Services delivered include maintenance, overhaul, and repair of helicopters, crucial for military aviation capabilities. The geographic impact is centered around Corpus Christi Army Depot in Texas, supporting regional economic activity and specialized labor. Workforce implications include employment for skilled technicians, mechanics, and support staff in the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials (T&M) contract type if not rigorously monitored.
Dependence on a single contractor for critical aircraft maintenance could pose a risk if performance issues arise.
The specialized nature of rotary wing maintenance requires highly skilled labor, which can be a bottleneck.
Ensuring consistent quality across all maintenance, overhaul, and repair tasks is paramount for safety and readiness.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contract supports critical military aviation assets, directly contributing to national defense readiness.
The Corpus Christi Army Depot location suggests a focus on established military infrastructure and expertise.
URS Federal Services Inc. is a known entity in federal contracting, implying a level of established capability.

Sector Analysis

The aerospace and defense industry is characterized by high technological complexity, stringent quality standards, and significant government investment. Contracts for aircraft maintenance and repair are a vital segment, ensuring the operational readiness of military fleets. The market for these services is competitive, with specialized firms vying for contracts. Spending benchmarks for similar depot-level maintenance can vary widely based on aircraft type, age, and the scope of work required, but typically represent substantial investments.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses ('sb': false). While URS Federal Services Inc. may utilize small businesses as subcontractors, the primary award was not directed towards them. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the broader small business ecosystem within the aerospace maintenance sector.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the specific branch (Army) utilizing the services. Accountability measures would be embedded in the contract's performance work statement, delivery schedules, and quality control requirements. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General offices within the DoD would have jurisdiction to investigate any allegations of fraud, waste, or abuse.

Related Government Programs

Rotary Wing Aircraft Maintenance Services
Department of Defense Aviation Support Contracts
Corpus Christi Army Depot Operations
Aerospace Maintenance and Repair Contracts
Federal Aviation Services Contracts

Risk Flags

Potential for cost overruns due to T&M contract type.
Risk associated with specialized skill requirements for rotary wing maintenance.
Ensuring consistent quality and safety standards in aircraft repair.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.5 million to URS FEDERAL SERVICES INC.. LABOR SERVICES TO MAINTAIN, OVERHAUL AND REPAIR OF ROTARY WING AIRCRAFT AT CORPUS CHRISTI ARMY DEPOT.

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 $31.5 million.

What is the period of performance?

Start: 2007-10-01. End: 2009-01-28.

What is the historical spending pattern for rotary wing aircraft maintenance at Corpus Christi Army Depot?

Analyzing historical spending for rotary wing aircraft maintenance at Corpus Christi Army Depot requires access to detailed historical contract data. This specific contract, valued at approximately $31.5 million over 16 months (Oct 2007 - Jan 2009), represents a significant but potentially isolated data point. To establish a pattern, one would need to examine contracts awarded over several preceding and subsequent fiscal years, looking at total obligated amounts, number of contracts, and average contract values. Factors such as fleet size, aircraft age, modernization programs, and depot workload fluctuations would influence these patterns. Without a broader dataset, it's difficult to determine if this $31.5M contract is typical, an increase, or a decrease in spending for this service category at the depot.

How does the pricing structure (Time and Materials) compare to other contract types for similar aircraft maintenance services?

Time and Materials (T&M) contracts, like the one awarded to URS Federal Services Inc., are often used when the scope of work is not clearly defined or is expected to change. They reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. While offering flexibility, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts, as the final cost is not predetermined. For aircraft maintenance, fixed-price or cost-plus-fixed-fee contracts might be preferred when the scope of overhaul or repair is well-understood, providing better cost certainty. However, for emergent repairs or undefined maintenance needs, T&M can be appropriate if stringent oversight and controls are in place to manage labor hours and material costs effectively.

What is URS Federal Services Inc.'s track record with similar DoD maintenance contracts?

URS Federal Services Inc. (now part of AECOM) has a substantial history of performing services for the U.S. government, including extensive work within the Department of Defense. Their portfolio often includes base operations support, logistics, and technical services, which frequently encompass maintenance and repair of military equipment, including aircraft. To assess their track record specifically for rotary wing aircraft maintenance, one would need to review past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), identify other similar contracts they have held, and examine their performance history on those contracts regarding cost, schedule, quality, and customer satisfaction. A general review of their federal contracting history suggests they are a capable provider of complex support services.

What are the key performance indicators (KPIs) typically used to measure the success of such aircraft maintenance contracts?

Key performance indicators (KPIs) for aircraft maintenance contracts typically focus on ensuring the operational readiness and safety of the aircraft. Common KPIs include: Turnaround Time (TAT) for maintenance tasks, Mean Time Between Failures (MTBF) for repaired components, adherence to scheduled maintenance, quality of workmanship (measured by defect rates or rework required), cost performance against budget, and compliance with safety regulations and technical orders. For this specific contract, KPIs would likely be tailored to the types of rotary wing aircraft being serviced and the specific maintenance, overhaul, and repair tasks required by the Corpus Christi Army Depot. Timely completion and high-quality repairs are paramount for mission success.

How does the competition level (4 bidders) impact the potential value for money achieved in this contract?

A competition level with 4 bidders for a specialized service like rotary wing aircraft maintenance generally suggests a healthy market response and provides a solid basis for achieving value for money. With multiple firms submitting proposals, the government has a better opportunity to compare technical approaches and pricing, driving down costs through competitive pressure. A higher number of bidders typically correlates with more aggressive pricing and potentially more innovative solutions. While 4 bidders is a good number, the specific nature of the required expertise might limit the pool of truly qualified competitors. Therefore, assessing the 'value for money' also requires considering the quality and capabilities of those 4 bidders relative to the government's needs.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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

Financial Breakdown

Contract Ceiling: $31,539,101

Exercised Options: $31,539,101

Current Obligation: $31,539,101

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: F3460197D0423

IDV Type: IDC

Timeline