DoD's $781M Facilities Support Contract to URS Federal Services: A 10-Year Engagement

Contract Overview

Contract Amount: $78,102,111 ($78.1M)

Contractor: URS Federal Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2000-09-05

End Date: 2008-09-30

Contract Duration: 2,947 days

Daily Burn Rate: $26.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Place of Performance

Location: HOLLOMAN AFB, OTERO County, NEW MEXICO, 88330

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $78.1 million to URS FEDERAL SERVICES, INC. for work described as: Key points: 1. The contract's substantial value over a decade suggests a long-term need for facilities support services. 2. Full and open competition indicates a broad market search, potentially leading to competitive pricing. 3. The Cost Plus Award Fee (CPAF) structure incentivizes performance but requires careful oversight to manage costs. 4. The contract duration of nearly 10 years (2947 months) is significant and may indicate stable, ongoing requirements. 5. Focus on facilities support services points to a critical operational need within the Department of Defense. 6. The award to URS Federal Services highlights a key contractor in the defense facilities management sector.

Value Assessment

Rating: good

Benchmarking the value of this contract is challenging without specific service details and comparable contracts. However, a nearly $781 million award over almost 10 years for facilities support services suggests a significant investment. The Cost Plus Award Fee (CPAF) structure, while common, requires diligent monitoring to ensure costs remain reasonable and that award fees are tied to demonstrable performance improvements. Without more granular data on the scope of services and market rates for similar support, a definitive value-for-money assessment is difficult, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the Department of Defense sought bids from all responsible sources. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The presence of four bidders (no=4) suggests a healthy level of interest and competition for this significant facilities support requirement.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and ensures the government receives the best value by considering a wide range of potential providers.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who receive essential facilities support services. Services likely include maintenance, repair, operations, and potentially other facility management functions across various DoD installations. The geographic impact is concentrated in New Mexico, where the contract was performed. The contract supports a workforce involved in skilled trades, facility management, and administrative roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee (CPAF) contracts can lead to cost overruns if not managed rigorously, as the contractor is reimbursed for costs plus a fee that can be adjusted based on performance.
The long duration of the contract (nearly 10 years) might indicate a lack of flexibility to adapt to changing needs or explore more innovative solutions over time.
Without specific performance metrics and award fee determinations, it's difficult to assess if the 'award' portion of the fee truly reflects exceptional performance or simply met baseline expectations.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process and potential for competitive pricing.
The contract specifies an award fee structure, which incentivizes the contractor to exceed performance standards.
The contractor, URS Federal Services, likely possesses significant experience in providing facilities support to government entities.

Sector Analysis

Facilities Support Services fall under the broader professional, scientific, and technical services sector. This sector is characterized by a mix of large, established firms and smaller specialized companies. Government contracts for facilities support are substantial, often involving long-term commitments for maintenance, operations, and management of complex infrastructure. Benchmarks for spending in this area vary widely based on the scope and scale of facilities managed, but contracts in the hundreds of millions of dollars are common for large federal agencies like the Department of Defense.

Small Business Impact

The data indicates that small business participation (sb=false) was not a specific set-aside requirement for this contract. While the prime contractor is URS Federal Services, there is no explicit information on subcontracting plans or performance related to small businesses. The absence of a small business set-aside suggests the primary focus was on securing the most capable large-scale provider through open competition.

Oversight & Accountability

Oversight for this Cost Plus Award Fee contract would typically involve the contracting officer and their representatives (CORs) monitoring performance against contract requirements and evaluating the contractor's achievement of award fee criteria. The Department of Defense has established procurement regulations and oversight bodies, including the Defense Contract Audit Agency (DCAA) and potentially the Inspector General, to ensure accountability and proper use of funds. Transparency is facilitated through contract awards databases, though detailed performance reports and fee determinations are often internal.

Related Government Programs

Base Operations Support (BOS)
Logistics and Supply Chain Management
Facilities Engineering and Maintenance
Construction and Renovation Services
Information Technology Support Services

Risk Flags

Cost Plus Award Fee (CPAF) requires diligent oversight to ensure cost control.
Long contract duration may limit adaptability to evolving requirements.
Lack of specific performance metrics in summary data hinders detailed value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $78.1 million to URS FEDERAL SERVICES, INC.. See the official description on USAspending.

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 Air Force).

What is the total obligated amount?

The obligated amount is $78.1 million.

What is the period of performance?

Start: 2000-09-05. End: 2008-09-30.

What specific types of facilities support services were included under this contract?

While the contract number (DCA) and NAICS code (561210 - Facilities Support Services) provide a general category, the specific services are not detailed in the provided data. Typically, facilities support services for the Department of Defense can encompass a wide range of activities including, but not limited to, operations and maintenance of buildings and grounds, custodial services, pest control, refuse collection, transportation services, security services, laundry and dry-cleaning services, food services, and even minor repair and alteration work. The 'Cost Plus Award Fee' structure suggests that performance metrics were established for these services, and the contractor's achievement against these metrics influenced their final fee.

How did URS Federal Services' performance compare to other potential bidders during the evaluation process?

The provided data indicates the contract was awarded under 'Full and Open Competition' with four bidders. However, it does not contain the specific evaluation criteria, scoring, or comparative analysis of the bidders' proposals. Typically, in such competitions, proposals are evaluated on factors such as technical approach, past performance, management capability, and price. URS Federal Services was selected as the best value, implying their proposal was deemed superior or more advantageous to the government compared to the other three bidders based on the pre-defined evaluation factors. Without access to the source selection decision document, a detailed comparison is not possible.

What were the key performance indicators (KPIs) used to determine the award fee for URS Federal Services?

The data specifies the contract type as 'Cost Plus Award Fee' (CPAF), which means a portion of the contractor's compensation was contingent upon meeting or exceeding specific performance standards. However, the exact Key Performance Indicators (KPIs) or award fee criteria are not provided. For facilities support contracts, these KPIs commonly include metrics related to response times for service requests, quality of maintenance and repairs, safety compliance, energy efficiency, customer satisfaction, and adherence to budget. The contracting officer and their technical representatives would have assessed the contractor's performance against these criteria to determine the amount of the award fee.

What is the historical spending trend for facilities support services by the Department of the Air Force in New Mexico?

The provided data pertains to a single contract awarded in 2000. To analyze historical spending trends for facilities support services by the Department of the Air Force in New Mexico, one would need to examine contract awards over a longer period, potentially spanning several years or decades. This would involve querying federal procurement databases (like FPDS or USASpending) for contracts with the Air Force in New Mexico under relevant NAICS codes (e.g., 561210) and analyzing the total obligated amounts, contract types, and durations. This single contract represents a significant portion of spending during its performance period but does not provide a trend on its own.

Were there any significant cost variances or overruns associated with this contract?

The provided data includes the initial award amount ('a': 78102110.87) and the contract duration ('dur': 2947 months, approximately 9.7 years), but it does not detail the final contract value, any modifications, or actual expenditures versus budgeted amounts. Cost Plus Award Fee contracts inherently involve reimbursement of costs, making 'variance' a complex metric. Significant cost variances or overruns would typically be identified through contract audits (e.g., by DCAA) or performance reviews. Without access to contract modification history, audit reports, or final payment data, it is impossible to determine if there were significant cost variances or overruns.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM Global II, LLC (UEI: 043271568)

Address: 900 CLOPPER ROAD, GAITHERSBURG, MD, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline