DoD's $255M Air Transportation Support Contract Awarded to URS Federal Services Inc

Contract Overview

Contract Amount: $255,354,526 ($255.4M)

Contractor: URS Federal Services Inc.

Awarding Agency: Department of Defense

Start Date: 2001-07-17

End Date: 2010-06-12

Contract Duration: 3,252 days

Daily Burn Rate: $78.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Place of Performance

Location: SHEPPARD AFB, WICHITA County, TEXAS, 76311

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $255.4 million to URS FEDERAL SERVICES INC. for work described as: Key points: 1. Contract value of $255.35 million over its duration. 2. Awarded under full and open competition. 3. Fixed Price Incentive contract type suggests shared risk between government and contractor. 4. Contract duration of approximately 9 years. 5. Supports air transportation activities. 6. Contractor: URS Federal Services Inc.

Value Assessment

Rating: fair

The contract value of $255.35 million over nearly 9 years averages to approximately $28.37 million per year. Without specific performance metrics or detailed cost breakdowns, it is difficult to benchmark this against similar contracts. The Fixed Price Incentive (FPI) contract type implies that cost savings are shared, which can incentivize efficiency, but also carries risks if cost targets are not met. The lack of detailed cost data makes a precise value-for-money assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 5 bidders (no) suggests a reasonable level of competition for this service. This competitive process is generally expected to lead to more favorable pricing and better service offerings for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and encouraging innovation among potential contractors.

Public Impact

Provides essential support services for air transportation operations within the Department of Defense. Ensures the smooth functioning of critical air mobility and logistics. Likely impacts military personnel and cargo movement. Supports the broader defense infrastructure and national security objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential cost overruns if not managed effectively.
Fixed Price Incentive contracts require careful monitoring to ensure contractor performance aligns with cost objectives.
Reliance on a single contractor for nearly a decade may reduce future competitive opportunities.

Positive Signals

Full and open competition suggests a robust bidding process.
The FPI contract type can incentivize cost efficiency.
Contract award to URS Federal Services Inc. indicates a selection based on competitive merit.

Sector Analysis

This contract falls within the broader 'Other Support Activities for Air Transportation' sector, which is a critical component of the defense industrial base. This sector encompasses a wide range of services necessary for the operation and maintenance of air assets, including ground support, logistics, and specialized technical services. The market for such services is often characterized by a mix of large, established defense contractors and specialized niche providers. Benchmarking spending in this area requires comparison with similar support contracts across military branches and potentially with commercial aviation support services, adjusted for the unique requirements of military operations.

Small Business Impact

The provided data indicates that small business participation (sb: false) was not a specific set-aside requirement for this contract. There is no explicit information on subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though large prime contracts often have subcontracting goals that can benefit smaller firms.

Oversight & Accountability

The contract was awarded by the Department of the Air Force, a component of the Department of Defense. Oversight would typically be managed by contracting officers and program managers within the Air Force. The Department of Defense has a robust Inspector General system that investigates fraud, waste, and abuse, and contract performance is subject to audits and reviews. Transparency is generally maintained through contract award databases, though detailed performance and cost data may be less accessible.

Related Government Programs

Air Mobility Command Contracts
Logistics Readiness Contracts
Base Operations Support Contracts
Aircraft Maintenance Support Contracts
Defense Transportation Services

Risk Flags

Long contract duration
Fixed Price Incentive contract type requires careful monitoring
Potential for cost overruns if not managed effectively

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $255.4 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 $255.4 million.

What is the period of performance?

Start: 2001-07-17. End: 2010-06-12.

What specific air transportation support services are covered under this contract?

The contract, NAICS code 488190, covers 'Other Support Activities for Air Transportation.' This broad category typically includes services such as airport operations support, air traffic control services (non-federal), aircraft ground handling, cargo handling, passenger handling, ramp services, and other logistical support essential for the efficient operation of airfields and air transportation systems. For the Department of the Air Force, this likely translates to supporting military aircraft operations, including maintenance coordination, fueling, baggage and cargo loading/unloading, and passenger processing at various installations.

How does the Fixed Price Incentive (FPI) contract type function in this context?

A Fixed Price Incentive (FPI) contract establishes a target cost, a target profit, and a price ceiling. The final price is determined by the contractor's actual costs. If the final cost is below the target cost, both the government and the contractor share in the savings according to a predetermined formula. Conversely, if the final cost exceeds the target cost, the contractor absorbs a larger portion of the overrun up to the price ceiling. This structure incentivizes the contractor to control costs while sharing potential savings with the government, aiming for a balance between cost control and performance.

What is the historical spending pattern for similar air transportation support contracts by the Department of the Air Force?

Historical spending on air transportation support contracts by the Department of the Air Force can vary significantly based on operational tempo, specific base requirements, and the scope of services procured. Contracts for similar support activities often range from tens to hundreds of millions of dollars over their lifecycles. Factors influencing spending include the number of aircraft supported, the volume of cargo and passengers moved, and the geographic locations of operations. Analyzing past awards for NAICS 488190 or related codes within the Air Force can reveal trends in contract duration, value, and competition levels, providing context for the $255.35 million awarded to URS Federal Services Inc.

What are the potential risks associated with a contract of this duration (nearly 9 years)?

Contracts spanning nearly nine years carry several potential risks. Firstly, the extended duration increases the likelihood of unforeseen economic fluctuations, such as inflation or changes in labor costs, which can impact the contractor's ability to maintain performance within the agreed-upon price, especially under fixed-price arrangements. Secondly, technological advancements in air transportation or support services could render the contracted methods or equipment obsolete before the contract ends, requiring costly modifications or renegotiations. Thirdly, long-term contracts can reduce flexibility for the government to adapt to changing mission requirements or to incorporate innovative solutions from other vendors. Finally, contractor performance can degrade over time if oversight is not consistently rigorous.

How does the contractor, URS Federal Services Inc., perform on other government contracts?

URS Federal Services Inc., now part of AECOM, has a history of performing various support services for government agencies, including the Department of Defense. Performance reviews and past performance data available through federal procurement databases (like SAM.gov or FPDS) would provide specific insights into their track record. Generally, large contractors like URS/AECOM handle complex, large-scale contracts. Their performance on similar contracts would be assessed based on factors such as on-time delivery, quality of services, cost control, and adherence to contract terms. A review of their past performance ratings would be crucial for a comprehensive assessment.

What is the significance of the 'Other Support Activities for Air Transportation' NAICS code (488190) in the federal contracting landscape?

The 'Other Support Activities for Air Transportation' (NAICS 488190) code represents a vital segment of the federal contracting market, particularly for agencies like the Department of Defense, Department of Homeland Security (Coast Guard), and the Federal Aviation Administration. This code encompasses a diverse range of essential services that keep air operations running smoothly, from ground support and maintenance coordination to specialized logistical functions. Federal spending under this NAICS code reflects the ongoing need for robust air infrastructure and operational support, often involving significant contract values due to the complexity and critical nature of the services provided. It signifies a market where specialized expertise and reliable service delivery are paramount.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 5

Pricing Type: FIXED PRICE INCENTIVE (L)

Contractor Details

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

Address: 175 ADMIRAL COCHRANE DRIVE, ANNAPOLIS, MD, 03

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline