DOE's $25M engineering services contract awarded to URS Group, Inc. for 5 years
Contract Overview
Contract Amount: $24,959,794 ($25.0M)
Contractor: URS Group, Inc.
Awarding Agency: Department of Energy
Start Date: 2005-02-18
End Date: 2010-02-17
Contract Duration: 1,825 days
Daily Burn Rate: $13.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: ARCHITECT ENGINEERING SERVICES
Place of Performance
Location: NEW ORLEANS, JEFFERSON County, LOUISIANA, 70123
Plain-Language Summary
Department of Energy obligated $25.0 million to URS GROUP, INC. for work described as: ARCHITECT ENGINEERING SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes performance but requires careful oversight. 3. The duration of 1825 days (5 years) indicates a long-term need for these services. 4. The contract was awarded by the Department of Energy, suggesting a focus on energy-related infrastructure or projects. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 6. The base contract value is approximately $25 million, with potential for adjustments based on award fees.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. Cost Plus Award Fee contracts can sometimes lead to higher costs if not managed tightly, as the contractor is reimbursed for costs plus an award fee based on performance. Comparing this to similar engineering services contracts would require detailed analysis of scope and complexity. The base award amount of $24.96 million over five years averages to approximately $5 million per year, which could be reasonable for large-scale engineering projects.
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 a bid. The presence of 8 bids suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: Taxpayers benefit from a competitive process as it is more likely to result in a fair market price and a wider range of innovative solutions being considered.
Public Impact
The primary beneficiaries are likely the Department of Energy and its various projects requiring specialized engineering expertise. Services delivered include architectural and engineering support, crucial for planning, designing, and overseeing complex projects. The geographic impact is tied to the specific projects undertaken by the Department of Energy, which could be national in scope. The contract supports a workforce of engineers, architects, and technical specialists, contributing to employment in these fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts require robust oversight to ensure costs are reasonable and award fees are justified.
- The long duration of the contract could lead to scope creep or cost overruns if not managed proactively.
- Without specific performance metrics, it's difficult to assess the true value and efficiency of the award fee structure.
Positive Signals
- Awarded through full and open competition, indicating a competitive market for these services.
- The presence of multiple bidders (8) suggests significant interest and a potentially robust bidding environment.
- The contract is for essential engineering services, supporting critical government functions.
Sector Analysis
The engineering services sector is a vital component of the broader construction and professional services industries. This contract falls under NAICS code 541330 (Engineering Services). The market for federal engineering services is substantial, driven by infrastructure development, defense needs, and research initiatives. Comparable spending benchmarks would depend on the specific type of engineering services required, such as civil, mechanical, or electrical engineering, and the scale of the projects involved.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information on subcontracting plans for small businesses. Without specific set-aside requirements or subcontracting goals, the direct impact on the small business ecosystem for this particular contract is likely limited, though the prime contractor may engage small businesses as subcontractors.
Oversight & Accountability
Oversight for this Cost Plus Award Fee contract would primarily fall under the Department of Energy's contracting officers and program managers. Accountability measures are tied to the performance criteria established for the award fee. Transparency would be enhanced through contract award databases and reporting requirements, though detailed project-level oversight information may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Energy - Major Construction Projects
- Federal Architecture and Engineering Services
- Cost-Reimbursement Contracts
- Long-Term Service Contracts
Risk Flags
- Cost Plus Award Fee contract type requires diligent oversight.
- Potential for cost overruns if performance metrics are not tightly managed.
- Long contract duration increases risk of scope creep.
Tags
engineering-services, department-of-energy, cost-plus-award-fee, definitive-contract, full-and-open-competition, large-contract, professional-services, federal-contract, urs-group-inc, naics-541330, louisiana
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $25.0 million to URS GROUP, INC.. ARCHITECT ENGINEERING SERVICES
Who is the contractor on this award?
The obligated recipient is URS GROUP, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $25.0 million.
What is the period of performance?
Start: 2005-02-18. End: 2010-02-17.
What is the track record of URS Group, Inc. with federal contracts, particularly with the Department of Energy?
URS Group, Inc. (now part of AECOM) has a significant history of performing federal contracts across various agencies, including the Department of Energy. Their experience often spans large-scale engineering, construction management, and environmental services. For the Department of Energy, URS has been involved in projects related to nuclear cleanup, infrastructure modernization, and energy research. A detailed review of their contract history would reveal specific performance ratings, past issues, and successes. However, their long-standing presence suggests a capacity to handle complex government requirements. It's important to note that company structures and names can change through mergers and acquisitions, so tracing historical performance requires attention to these transitions.
How does the $25 million value compare to similar engineering services contracts awarded by the Department of Energy?
The $25 million value for a 5-year engineering services contract is within a moderate range for the Department of Energy, which often manages very large, multi-billion dollar projects. However, the 'average' value is highly dependent on the specific scope of work. Contracts for large-scale infrastructure design, environmental remediation planning, or complex facility engineering can easily reach tens or hundreds of millions of dollars. Smaller, more specialized engineering support contracts might be in the single-digit millions. This $25 million contract, averaging $5 million annually, suggests a significant but not necessarily top-tier project scope. A direct comparison would require identifying contracts with identical or highly similar NAICS codes (541330) and service descriptions awarded over comparable timeframes.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude?
The primary risks with a CPAF contract of this magnitude ($25 million over 5 years) revolve around cost control and performance measurement. CPAF contracts reimburse the contractor for allowable costs plus a fee that is composed of a fixed base fee and an award amount that depends on meeting or exceeding performance objectives. The risk for the government is that costs could escalate beyond initial projections if the contractor's efficiency is low, even while achieving award fee targets. Conversely, poorly defined performance objectives can lead to the contractor receiving high award fees for work that is not truly exceptional or aligned with the government's core needs. Robust oversight, clear performance metrics, and diligent cost auditing are critical to mitigate these risks and ensure value for money.
What does the 'definitive contract' award type signify in this context?
A 'definitive contract' is a standard, fully negotiated contract that specifies all terms and conditions, including price, quantity, and delivery schedule. In contrast to indefinite-delivery/indefinite-quantity (IDIQ) contracts or basic ordering agreements, a definitive contract represents a firm commitment for a specific scope of work over a defined period. For this $25 million engineering services contract awarded to URS Group, Inc., it means the scope, duration (5 years), and initial pricing structure (Cost Plus Award Fee) were finalized during the negotiation process. This provides a clear framework for both the government and the contractor, reducing ambiguity about the deliverables and financial commitments.
How has federal spending on engineering services (NAICS 541330) trended over the past decade, and where does this contract fit?
Federal spending on engineering services (NAICS 541330) has generally remained robust, driven by ongoing needs in infrastructure, defense, energy, and research. While specific year-over-year trends fluctuate based on budget appropriations and national priorities, the overall demand for engineering expertise from the federal government is consistent. This $25 million contract fits within the broader landscape of federal engineering procurements. It represents a significant investment for a single contract but is one among thousands awarded annually across various agencies. Its placement within the Department of Energy suggests a focus on energy infrastructure, research facilities, or environmental projects, which are key areas of federal engineering expenditure.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102
Offers Received: 8
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: AECOM (UEI: 153561212)
Address: 600 CARONDELET STREET, NEW ORLEANS, LA, 70130
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $24,959,794
Exercised Options: $24,959,794
Current Obligation: $24,959,794
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2005-02-18
Current End Date: 2010-02-17
Potential End Date: 2010-02-17 00:00:00
Last Modified: 2020-01-15
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