Army awards $74.7M for Abrams tank repair, with URS Federal Services as prime contractor

Contract Overview

Contract Amount: $74,770,963 ($74.8M)

Contractor: URS Federal Services Inc.

Awarding Agency: Department of Defense

Start Date: 2003-04-24

End Date: 2009-12-03

Contract Duration: 2,415 days

Daily Burn Rate: $31.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: 200307!001761!2100!AE20 !TACOM ROCK ISLAND !DAAE0798DT060 !A!N! !Y!DG05 !20030424!20030707!073871048!065262573!043271568!N!LEAR SIEGLER SERVICES INC !900 CLOPPER ROAD !GAITHERSBURG !MD!20878!05000!453!48!AUSTIN !TRAVIS !TEXAS !+000000290000!N!N!000000000000!J010!MAINT & REPAIR OF EQ/WEAPONS !S1 !SERVICES !1DJN!ABRAMS SERIES (M1/M1A1/M1A2) !811118!E! !5!B!M! !A! !99990909!B! ! !A! !A!U!Y!2!002!N!3A!C!N!Z! ! !N!C!U! ! ! !Z!Z!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Plain-Language Summary

Department of Defense obligated $74.8 million to URS FEDERAL SERVICES INC. for work described as: 200307!001761!2100!AE20 !TACOM ROCK ISLAND !DAAE0798DT060 !A!N! !Y!DG05 !20030424!20030707!073871048!065262573!043271568!N!LEAR SIEGLER SERVICES INC !900 CLOPPER ROAD !GAITHERSBURG !MD!20878!05000!453!48!AUSTIN !TRAVI… Key points: 1. Contract awarded for maintenance and repair of Abrams series tanks. 2. Significant portion of contract value allocated to services. 3. Contract duration spans over 6 years, indicating long-term support needs. 4. Prime contractor has a substantial role in fulfilling this requirement. 5. The contract type suggests flexibility in resource allocation for repairs. 6. Potential for follow-on work given the nature of equipment maintenance.

Value Assessment

Rating: good

The contract value of $74.7 million for Abrams tank repair and maintenance appears reasonable given the extensive service period of over 6 years. While specific per-unit costs for repairs are not detailed, the overall award suggests a commitment to sustaining a critical defense asset. Benchmarking against similar long-term maintenance contracts for heavy armor would provide further insight into value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is expected to drive better pricing and service quality. The presence of 6 bids suggests a healthy level of interest and competition for this type of defense service.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

Benefits the U.S. Army by ensuring the operational readiness of its Abrams main battle tanks. Provides essential maintenance and repair services for a critical component of armored warfare capabilities. Supports the defense industrial base through the provision of specialized repair and technical services. Indirectly impacts soldiers by ensuring the reliability of their primary combat vehicles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if repair needs exceed initial estimates.
Dependence on a single prime contractor for a critical support function.
Risk of schedule delays if specialized parts or expertise are not readily available.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Long contract duration implies a stable, predictable support structure.
Focus on maintenance and repair indicates a commitment to asset longevity.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on the maintenance and repair of armored vehicles. The market for defense logistics and sustainment services is substantial, with significant government spending dedicated to ensuring the readiness of military equipment. This contract represents a portion of that broader spending aimed at supporting the U.S. Army's armored fleet.

Small Business Impact

While the contract was awarded to URS Federal Services, Inc., there is no explicit information regarding small business set-asides or subcontracting plans within the provided data. Further investigation would be needed to determine the extent of small business participation in fulfilling this contract.

Oversight & Accountability

The contract is subject to standard Department of Defense oversight mechanisms. Accountability is managed through contract performance monitoring and reporting requirements. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Abrams Tank Systems
Military Vehicle Maintenance
Defense Logistics Support
Armored Vehicle Repair
Army Equipment Sustainment

Risk Flags

Long contract duration may expose government to price volatility.
Potential for scope creep if repair requirements are not clearly defined.
Dependence on a single contractor for critical sustainment services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $74.8 million to URS FEDERAL SERVICES INC.. 200307!001761!2100!AE20 !TACOM ROCK ISLAND !DAAE0798DT060 !A!N! !Y!DG05 !20030424!20030707!073871048!065262573!043271568!N!LEAR SIEGLER SERVICES INC !900 CLOPPER ROAD !GAITHERSBURG !MD!20878!05000!453!48!AUSTIN !TRAVIS !TEXAS !+000000290000!N!N!000000000000!J010!MAINT & REPAIR OF EQ/WEAPONS !S1 !SERVICES !1DJN!ABRAMS SERIES (M1/M1A1/M1A2) !811118!E! !5!B!M! !A! !99990909!B

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 $74.8 million.

What is the period of performance?

Start: 2003-04-24. End: 2009-12-03.

What is the historical spending trend for Abrams tank maintenance and repair by the Department of the Army?

Analyzing historical spending for Abrams tank maintenance and repair requires access to detailed procurement data over multiple fiscal years. Typically, such spending fluctuates based on operational tempo, deployment cycles, and modernization programs. For instance, periods of high operational tempo, such as during major conflicts, often see increased spending on repair and sustainment to maintain fleet readiness. Conversely, periods of reduced deployment or strategic shifts might see a decrease in immediate repair needs but an increase in modernization or upgrade contracts. Without specific historical data for this contract vehicle or similar ones, it's difficult to establish a precise trend. However, it is generally understood that maintaining a large fleet of complex armored vehicles like the Abrams represents a consistent and significant long-term investment for the Army, often amounting to billions of dollars annually across various contracts for parts, labor, and depot-level maintenance.

How does the per-unit cost of repairing an Abrams tank under this contract compare to industry benchmarks?

Determining the precise per-unit cost of repairing an Abrams tank under this specific contract is challenging without access to the detailed breakdown of services and associated costs. The contract value of $74.7 million is an aggregate for a period exceeding six years and covers a range of maintenance and repair activities. Industry benchmarks for heavy equipment repair can vary widely based on the complexity of the repair, the specific components involved, and the labor rates. For military vehicles, costs are often influenced by stringent quality control, specialized tooling, and security requirements. A direct comparison would necessitate isolating the cost of a specific, standardized repair task (e.g., engine overhaul, transmission replacement) and comparing it to similar civilian or military repair contracts. Given the specialized nature of the Abrams tank and the defense contracting environment, its per-unit repair costs are likely to be higher than comparable civilian heavy machinery due to these factors.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance on this maintenance and repair contract?

Key Performance Indicators (KPIs) for defense maintenance and repair contracts typically focus on ensuring the operational readiness and reliability of the equipment. For a contract like this, common KPIs would likely include metrics such as: Turnaround Time (TAT) for repairs, ensuring tanks are returned to operational status within specified timeframes; Quality of Repair, measured by defect rates or repeat repairs within a certain period; Material Availability, tracking the contractor's ability to procure and utilize necessary parts; and Compliance with Technical Orders, ensuring all maintenance adheres to established military specifications. Additionally, metrics related to cost control and adherence to schedule might also be employed. The government would monitor these KPIs through regular reporting, inspections, and potentially through performance-based payment structures tied to achieving specific targets.

What is the track record of URS Federal Services Inc. in performing similar defense maintenance and repair contracts?

URS Federal Services Inc., prior to its acquisition by AECOM, had a significant track record in providing a wide range of services to the U.S. military, including logistics, base operations support, and technical services. Their experience often encompassed maintenance, repair, and overhaul (MRO) for various military platforms. Historical contract data would likely show numerous awards for similar services across different branches of the armed forces. Assessing their specific track record for Abrams tank maintenance would involve reviewing past performance evaluations, any documented issues or successes on similar contracts, and their overall reputation within the defense contracting community for reliability and quality of service delivery. Generally, companies with extensive experience in this domain are well-positioned to handle complex sustainment requirements.

What are the potential risks associated with the long duration (over 6 years) of this contract?

The long duration of this contract, spanning over six years, presents several potential risks. Firstly, there's the risk of cost escalation due to inflation or unforeseen changes in material and labor costs over such an extended period, especially if the contract terms do not adequately account for these factors. Secondly, technological advancements in tank systems or repair methodologies could render the current approach suboptimal, leading to potential inefficiencies or the need for contract modifications. Thirdly, contractor performance can degrade over time, or the contractor's financial stability could change, impacting their ability to deliver consistent service. Finally, changes in military strategy or budget priorities could lead to a reduction in the scope or need for the services, potentially resulting in contract disputes or early termination.

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, 21401

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAE0798DT060

IDV Type: IDC

Timeline