DoD's $47.4M contract for aircraft parts logistics awarded to URS Federal Services Inc. amid 'OK' performance

Contract Overview

Contract Amount: $47,391,528 ($47.4M)

Contractor: URS Federal Services Inc.

Awarding Agency: Department of Defense

Start Date: 2008-08-28

End Date: 2012-01-05

Contract Duration: 1,225 days

Daily Burn Rate: $38.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: LABOR SERVICES TO ACCOMPLISH RECEIPT, STORAGE AND/OR ISSUE, OF CLASS IX REPAIR PARTS (AWCF). 200612!001749!5700!FA8108!OC-ALC/LAD CFT !F3460197D0423 !A!N! !N!0170 !10 !20060930!20070914!020205527!073871048!043271568!N!LEAR SIEGLER SERVICES, INC !3100 N I 35 SERVICE RD !OKLAHOMA CITY !OK!73111!26759!045!36!FORT DRUM !JEFFERSON !NEW YORK !+000000008560!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336413!E! !5!B!M!C!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: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73110

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $47.4 million to URS FEDERAL SERVICES INC. for work described as: LABOR SERVICES TO ACCOMPLISH RECEIPT, STORAGE AND/OR ISSUE, OF CLASS IX REPAIR PARTS (AWCF). … Key points: 1. Contract awarded to URS Federal Services Inc. for receipt, storage, and issue of Class IX repair parts. 2. Performance rated as 'OK' by the agency, indicating satisfactory but not exceptional execution. 3. Contract type is Time and Materials, which can pose cost control challenges. 4. Duration of the contract was 1225 days, spanning over three years. 5. The contract falls under NAICS code 336413, related to aircraft parts manufacturing. 6. No small business set-aside was utilized for this procurement. 7. The contract was awarded through full and open competition, suggesting a broad bidder pool.

Value Assessment

Rating: fair

The contract's Time and Materials (T&M) pricing structure warrants careful monitoring to ensure cost efficiency. While specific benchmarks for this exact service are difficult to ascertain without more granular data, the total value of over $47 million over approximately three years suggests a significant investment. Comparing this to similar logistics and repair parts management contracts within the Department of Defense would be crucial for a comprehensive value assessment. The 'OK' performance rating indicates that while the contractor met basic requirements, there may be room for improvement in efficiency or service delivery that could impact overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that the solicitation was made available to all responsible sources. The presence of 4 bids suggests a reasonably competitive environment, which typically aids in price discovery and can lead to more favorable pricing for the government. However, the specific details of the bidding process, including the number of proposals received and the evaluation criteria, would provide a clearer picture of the actual competitive intensity.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where contractors are incentivized to offer competitive pricing to win awards. This process helps ensure that the government is not overpaying for services due to a lack of viable alternatives.

Public Impact

The primary beneficiaries are the Department of Defense and its aviation units, ensuring the availability of critical repair parts. Services include the receipt, storage, and issuance of Class IX repair parts, essential for aircraft maintenance and operational readiness. The contract supports the logistical backbone of military aviation operations, indirectly impacting national security. Workforce implications include the personnel required by URS Federal Services to manage these complex logistics operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Performance rated as 'OK' suggests potential for improvement in service delivery or efficiency.
Lack of specific performance metrics makes it difficult to fully assess value for money.
The duration of the contract (over 3 years) means potential for price escalation over time.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contractor, URS Federal Services Inc., has a track record in government contracting.
The contract addresses a critical need for repair parts logistics within the DoD.

Sector Analysis

This contract falls within the broader aerospace and defense logistics sector, a critical component of the defense industrial base. The market for specialized logistics services supporting military repair parts is substantial, driven by the complex and demanding requirements of maintaining a large and diverse fleet of aircraft. Comparable spending benchmarks would typically involve analyzing other large-scale logistics contracts for repairable items within the DoD or other military branches, focusing on cost per item managed, storage efficiency, and delivery timeliness.

Small Business Impact

This contract did not include a small business set-aside. The absence of such provisions means that large businesses like URS Federal Services Inc. were the primary focus of the competition. There is no explicit information provided regarding subcontracting plans for small businesses. This procurement does not appear to directly contribute to the small business ecosystem through set-asides, though large prime contractors may still engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The 'OK' performance rating suggests that DCMA's oversight identified areas meeting requirements but potentially lacking in exceptional performance. Accountability measures would be tied to the contract terms and conditions, including delivery schedules and service level agreements. Transparency is facilitated through contract awards databases, but detailed operational oversight reports are generally not public.

Related Government Programs

Defense Logistics Agency (DLA) Operations
Army Working Capital Fund (AWCF) Logistics
Aircraft Maintenance and Repair Contracts
Military Supply Chain Management

Risk Flags

Performance rated as 'OK' may indicate areas for improvement.
Time and Materials contract type poses potential cost control risks.
Lack of detailed performance metrics limits in-depth value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.4 million to URS FEDERAL SERVICES INC.. LABOR SERVICES TO ACCOMPLISH RECEIPT, STORAGE AND/OR ISSUE, OF CLASS IX REPAIR PARTS (AWCF).

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 $47.4 million.

What is the period of performance?

Start: 2008-08-28. End: 2012-01-05.

What is the historical spending pattern for this specific type of labor service (receipt, storage, issue of Class IX repair parts) within the Department of Defense?

Analyzing historical spending for this specific service requires access to detailed procurement data beyond the scope of this single contract. However, the Department of Defense consistently allocates significant portions of its budget to logistics and supply chain management, which includes the handling of repair parts. Contracts for warehousing, inventory management, and distribution of Class IX parts are common across various military branches and agencies like the Defense Logistics Agency (DLA). Spending in this area is influenced by factors such as the operational tempo of military forces, the age and maintenance requirements of aircraft fleets, and strategic decisions regarding in-house versus contracted logistics support. Without specific historical data for this contract's predecessors or comparable contracts, it's challenging to establish a precise trend, but the overall defense logistics budget indicates a sustained and substantial investment in these capabilities.

How does the performance rating of 'OK' compare to other similar logistics contracts awarded by the DoD?

A performance rating of 'OK' generally signifies that the contractor met the contract requirements in a satisfactory manner. It is not an exceptional rating, nor is it a failing one. In the context of DoD contracts, performance ratings can range from 'Exceptional' down to 'Unsatisfactory.' An 'OK' rating suggests that the contractor fulfilled their obligations adequately but may not have exceeded expectations in areas such as timeliness, cost efficiency, or innovation. Comparing this to other similar contracts would involve analyzing the distribution of performance ratings across a portfolio of logistics contracts. If 'OK' is the most common rating, it might indicate a standard level of performance expected or achieved in this sector. Conversely, if 'Exceptional' or 'Very Good' ratings are more prevalent for comparable services, then an 'OK' might suggest a relative underperformance or a missed opportunity for greater value.

What are the potential risks associated with a Time and Materials (T&M) contract for logistics services?

Time and Materials (T&M) contracts, like the one awarded to URS Federal Services, carry inherent risks for the government, primarily related to cost control. In a T&M arrangement, the contractor is reimbursed for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. This structure can lead to cost overruns if the scope of work is not well-defined or if the contractor's efficiency is not closely monitored. For logistics services involving receipt, storage, and issue of repair parts, risks include inflated labor hours, inefficient material handling processes, and potentially higher-than-expected material costs if not properly managed. The government's ability to mitigate these risks depends heavily on robust oversight, detailed tracking of labor hours and material usage, and clear definitions of what constitutes 'material' and 'labor' within the contract. Without stringent controls, T&M contracts can become more expensive than fixed-price alternatives.

What is the typical profit margin or fee structure for logistics contracts of this size and nature within the DoD?

Determining the exact profit margin or fee structure for this specific contract is not possible with the provided data, as it is not explicitly stated. However, for Time and Materials (T&M) contracts within the DoD, the 'fee' component typically represents the contractor's profit. This fee is often negotiated as a percentage of the estimated direct labor and material costs. Industry standards and government regulations (like the Federal Acquisition Regulation - FAR) guide the negotiation of these fees. For large, complex logistics contracts, profit margins can vary significantly based on factors such as the level of risk involved, the criticality of the service, competition, and the contractor's demonstrated efficiency. While specific figures are proprietary, profit margins for government service contracts generally aim to be fair and reasonable, reflecting the services rendered and the risks undertaken, often falling within a range that might be considered standard for the industry and the specific contract type.

How does the number of bids (4) in this full and open competition impact the perceived value for taxpayers?

A full and open competition with four bids generally suggests a healthy level of market interest and competition for the contract. From a taxpayer perspective, this level of competition is typically viewed positively. It implies that multiple companies were willing and able to bid, which increases the likelihood that the government received competitive pricing. When more bidders participate, the government has a better chance of selecting an offer that represents good value for money, as contractors are incentivized to propose their best terms and prices to win the award. While four bids are a reasonable number, the true impact on taxpayer value also depends on the quality of the bids received, the evaluation process, and whether the winning bid was significantly lower than other competitive offers. A higher number of bids can sometimes lead to even more aggressive pricing, but four bids indicate that the market was sufficiently engaged.

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: $47,391,528

Exercised Options: $47,391,528

Current Obligation: $47,391,528

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: F3460197D0423

IDV Type: IDC

Timeline