DoD Awards URS Group $30M for Industrial Building Construction in Utah
Contract Overview
Contract Amount: $30,039,066 ($30.0M)
Contractor: URS Group, Inc.
Awarding Agency: Department of Defense
Start Date: 2001-09-28
End Date: 2008-09-29
Contract Duration: 2,558 days
Daily Burn Rate: $11.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Place of Performance
Location: HILL AFB, DAVIS County, UTAH, 84056
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $30.0 million to URS GROUP, INC. for work described as: Key points: 1. Contract awarded to URS Group, Inc. for industrial building construction. 2. Full and open competition was utilized for this contract. 3. The contract duration is 2558 days, spanning from 2001 to 2008. 4. The award amount is $30,039,066. 5. The contract was awarded by the Department of the Army.
Value Assessment
Rating: fair
The contract value of $30 million over approximately 7 years suggests a moderate annual spend. Without specific unit costs or comparable projects, it's difficult to definitively assess pricing efficiency, but the duration implies significant project scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows all qualified contractors to bid, theoretically leading to more competitive pricing. However, the final price is dependent on the specific requirements and market conditions at the time of bidding.
Taxpayer Impact: The competitive bidding process aims to ensure taxpayer funds are used efficiently. The final award amount reflects the market's assessment of the cost for the specified construction services.
Public Impact
Significant infrastructure development funded by taxpayers. Potential for job creation in the construction sector in Utah. Long-term facility development for military operations. Contractor performance impacts readiness and operational capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to cost overruns or scope creep.
- Lack of specific performance metrics makes value assessment difficult.
- Potential for price escalation over the 7-year period.
Positive Signals
- Full and open competition promotes market efficiency.
- Firm fixed price contract shifts risk to the contractor.
- Awarded by a major federal agency (DoD).
Sector Analysis
Industrial building construction is a significant sector within the broader construction industry. Federal spending in this area often supports critical infrastructure for defense, research, or operational needs. Benchmarks would typically compare cost per square foot or cost per project type.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to URS Group, Inc., a large entity. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense, which has established oversight mechanisms. However, the long duration necessitates ongoing monitoring to ensure compliance and manage potential risks.
Related Government Programs
- Industrial Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration increases risk of cost escalation and scope creep.
- Lack of detailed performance metrics hinders value assessment.
- No explicit mention of small business subcontracting goals.
- Potential for price changes over a 7-year period despite fixed price.
Tags
industrial-building-construction, department-of-defense, ut, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.0 million to URS GROUP, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is URS GROUP, 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 $30.0 million.
What is the period of performance?
Start: 2001-09-28. End: 2008-09-29.
What was the average annual spending under this contract, and how does it compare to similar industrial construction projects?
The total award of $30,039,066 over 2558 days (approximately 7 years) averages to roughly $4.3 million per year. Comparing this to similar industrial construction projects requires detailed project specifications, location, and market conditions. Without such data, a direct benchmark is challenging, but this annual spend is moderate for large-scale federal construction.
What specific risks were identified during the full and open competition process, and how were they mitigated?
The provided data does not detail specific risks identified during the competition phase. Full and open competition itself aims to mitigate risks related to contractor selection and pricing by maximizing bidder participation. However, risks related to project execution, cost overruns, or schedule delays would typically be managed through contract clauses and ongoing oversight.
How effectively did the firm fixed price contract structure ensure value for taxpayer money over the contract's lifespan?
A firm fixed price contract shifts the risk of cost overruns to the contractor, which can be advantageous for taxpayers if the initial price is well-estimated. Over a long duration like 7 years, effectiveness depends on the accuracy of the initial estimate and the contractor's ability to manage costs. Without post-award cost data or performance reviews, assessing the ultimate value realization is difficult.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: AECOM Global II, LLC (UEI: 043271568)
Address: 2870 GATEWAY OAKS DRIVE SU, SACRAMENTO, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2001-09-28
Current End Date: 2008-09-29
Potential End Date: 2008-09-29 00:00:00
Last Modified: 2008-06-26
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