DoD's $51.5M sustainment contract with URS Federal Services Inc. awarded under full and open competition

Contract Overview

Contract Amount: $51,454,953 ($51.5M)

Contractor: URS Federal Services Inc.

Awarding Agency: Department of Defense

Start Date: 2006-09-21

End Date: 2007-10-31

Contract Duration: 405 days

Daily Burn Rate: $127.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: FOCUSED SUSTAINMENT CONTRACT

Place of Performance

Location: TEXARKANA, BOWIE County, TEXAS, 75501

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $51.5 million to URS FEDERAL SERVICES INC. for work described as: FOCUSED SUSTAINMENT CONTRACT Key points: 1. Contract awarded for focused sustainment services, indicating a need for specialized support. 2. The contract duration of 405 days suggests a short-term or project-specific requirement. 3. Awarded as Time and Materials, this contract type can pose cost control challenges if not closely managed. 4. The number of bids received (6) suggests a moderate level of competition for this requirement. 5. The contract was awarded in Texas, potentially impacting local workforce and economic activity. 6. The absence of small business set-aside flags indicates a focus on larger prime contractors.

Value Assessment

Rating: fair

The contract's value of approximately $51.5 million over roughly 13 months necessitates careful cost monitoring, especially given its Time and Materials (T&M) pricing structure. Without detailed breakdowns of labor rates and material markups, a direct value-for-money assessment is challenging. However, the presence of 6 bidders suggests a competitive environment that should have driven reasonable pricing. Further analysis would require benchmarking against similar sustainment contracts for comparable systems or services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The receipt of six bids indicates a healthy level of interest and a competitive marketplace for these sustainment services. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award, as multiple companies vied to win the contract.

Public Impact

The Department of Defense benefits from specialized sustainment services to maintain operational readiness. The contract supports the maintenance and operational integrity of specific military assets or systems. Services are likely delivered within Texas, potentially creating or sustaining jobs in the region. The contract supports the URS Federal Services Inc. workforce, contributing to employment in the defense contracting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not meticulously managed and monitored.
The relatively short duration might indicate a stop-gap measure, potentially leading to future contract instability.
Lack of specific details on the 'focused sustainment' makes it difficult to assess the true scope and potential risks.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Multiple bidders (6) indicate market interest and potential for competitive pricing.
The contract is with a known entity, URS Federal Services Inc., suggesting established capabilities.

Sector Analysis

This contract falls within the broader defense sustainment and support services sector, a critical component of the defense industrial base. This sector is characterized by long-term relationships, specialized technical expertise, and significant government spending. The market size for defense sustainment is substantial, with numerous contractors competing for various service requirements across different branches of the military. This specific contract represents a portion of the overall spending dedicated to ensuring the operational effectiveness of military equipment and platforms.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary award went to a large business, URS Federal Services Inc. While there's no direct information on subcontracting plans, larger prime contracts often include provisions for small business participation. However, the absence of a specific small business set-aside means opportunities for direct prime contracting with small businesses were not prioritized in this award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures. Accountability measures would be enforced through contract clauses, performance reviews, and payment verification processes. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency (DLA) Support Contracts
Army Aviation and Missile Command (AMCOM) Sustainment
Tactical Wheeled Vehicle (TWV) Sustainment Programs
Base Operations Support (BOS) Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Lack of specific details on the 'focused sustainment' scope.
Short contract duration may indicate a temporary solution or potential for follow-on instability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.5 million to URS FEDERAL SERVICES INC.. FOCUSED SUSTAINMENT CONTRACT

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 $51.5 million.

What is the period of performance?

Start: 2006-09-21. End: 2007-10-31.

What is the specific nature of the 'focused sustainment' provided under this contract?

The provided data identifies the contract as a 'FOCUSED SUSTAINMENT CONTRACT' but does not detail the specific systems, equipment, or services involved. Focused sustainment typically refers to specialized maintenance, repair, overhaul, or logistical support for particular military assets or platforms. Without further information, it's impossible to ascertain whether this pertains to aircraft, vehicles, electronics, or other critical military hardware. Understanding the exact nature of the sustainment is crucial for assessing its criticality, potential risks, and the contractor's specific capabilities required.

How does the Time and Materials (T&M) pricing structure compare to industry benchmarks for similar sustainment services?

Time and Materials (T&M) contracts, like the one awarded to URS Federal Services Inc., offer flexibility but can be prone to cost escalation if not tightly managed. Benchmarking T&M rates for sustainment services is complex as it depends heavily on the specific skill sets, labor categories, overhead rates, and material markups involved. Generally, fixed-price contracts are preferred for predictable scope work to mitigate risk for the government. However, for services where the scope is inherently uncertain or evolves, T&M can be appropriate. The government's oversight, including detailed review of labor hours and material costs, is paramount to ensure value for money under a T&M arrangement.

What was the historical spending pattern for this specific sustainment requirement prior to this contract award?

The provided data indicates this contract was awarded on September 21, 2006, with an end date of October 31, 2007. It represents a specific period of focused sustainment. To understand historical spending patterns, one would need to query contract databases for awards related to the same or similar sustainment requirements for the Department of the Army or Department of Defense in the years preceding this award. Analyzing prior contract values, durations, and contractors would reveal trends in spending, potential sole-source awards, or shifts in competition levels for this particular sustainment need.

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

URS Federal Services Inc. (now part of AECOM) has a significant history of performing various support and sustainment services for the Department of Defense and other government agencies. Their track record typically includes a wide range of services such as base operations, facilities maintenance, logistics support, and specialized technical services. Assessing their specific performance on similar 'focused sustainment' contracts would require reviewing past performance evaluations, contract histories, and any reported issues or commendations. Generally, large contractors like URS have extensive experience, but performance can vary significantly based on the specific contract, program management, and operational environment.

Given the 6 bidders, what was the estimated value range considered during the solicitation process?

The provided data shows the awarded value at $51,454,953.37. While the number of bidders (6) indicates a competitive process, the solicitation documents themselves would contain the government's estimated value range or independent government cost estimate (IGCE). This estimate is used internally to gauge the reasonableness of received proposals. Without access to the solicitation details or pre-award cost estimates, it's impossible to definitively state the range considered. However, the fact that 6 bids were submitted suggests the opportunity was attractive enough for multiple firms to invest resources in preparing a proposal, implying the perceived value was significant.

What are the potential risks associated with a Time and Materials contract for sustainment services, and how are they mitigated?

The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns, as the contractor is reimbursed for direct labor hours and materials used, plus a fee or fixed overhead. This can lead to a lack of incentive for the contractor to control costs efficiently. Mitigation strategies employed by the government include establishing labor hour limitations, setting ceiling prices, requiring detailed cost reporting, conducting thorough audits of invoices, and implementing robust contract surveillance. For sustainment services, where the exact effort can be unpredictable, T&M might be necessary, but stringent oversight is critical to ensure the government receives good value and avoids excessive spending.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

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: $51,454,953

Exercised Options: $51,454,953

Current Obligation: $51,454,953

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAE0798DT060

IDV Type: IDC

Timeline