DoD Awards $128M Fixed-Price Construction Contract to URS Group, Inc. for Navy Facilities
Contract Overview
Contract Amount: $127,995,043 ($128.0M)
Contractor: URS Group, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-09-28
End Date: 2014-11-06
Contract Duration: 1,500 days
Daily Burn Rate: $85.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIXED PRICE AWARD FEE
Sector: Construction
Official Description: FIXED PRICE AWARD FEE CONSTRUCTION - GMAC
Place of Performance
Location: CAMP PENDLETON, SAN DIEGO County, CALIFORNIA, 92055
Plain-Language Summary
Department of Defense obligated $128.0 million to URS GROUP, INC. for work described as: FIXED PRICE AWARD FEE CONSTRUCTION - GMAC Key points: 1. Significant contract value of $128 million for construction services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract spans over 4 years, indicating a substantial project duration. 4. The sector is Commercial and Institutional Building Construction, a key area for infrastructure development.
Value Assessment
Rating: good
The contract is a Fixed Price Award Fee type, which aims to balance cost control with performance incentives. The award amount of $128 million is substantial and requires careful monitoring of costs and performance against the fee structure.
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 compete. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds were likely used efficiently, with pricing driven by market forces rather than sole-source limitations.
Public Impact
Impacts Navy infrastructure development and readiness in California. Supports jobs in the construction sector and related industries. The large contract value signifies a major investment in federal facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if award fee targets are not met.
- Long duration could lead to scope creep or unforeseen challenges.
Positive Signals
- Full and open competition likely secured competitive pricing.
- Fixed-price structure provides some cost certainty.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, which is vital for maintaining and upgrading federal facilities. Spending benchmarks in this sector can vary widely based on project scope and location, but $128 million represents a significant investment.
Small Business Impact
The data indicates that neither small business set-asides nor subcontracting goals were explicitly met or required for this specific award. Further analysis would be needed to determine the extent of small business participation through subcontracting.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for oversight. The fixed-price award fee structure implies performance monitoring and accountability for meeting contract requirements and fee criteria.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration increases risk of cost escalation and scope creep.
- Award fee structure requires careful monitoring to ensure contractor performance and value.
- Lack of explicit small business participation data warrants further investigation.
- Fixed-price contracts can shift risk to the contractor, potentially impacting quality if not managed well.
Tags
commercial-and-institutional-building-co, department-of-defense, ca, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $128.0 million to URS GROUP, INC.. FIXED PRICE AWARD FEE CONSTRUCTION - GMAC
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 Navy).
What is the total obligated amount?
The obligated amount is $128.0 million.
What is the period of performance?
Start: 2010-09-28. End: 2014-11-06.
What specific construction projects were undertaken under this contract, and how did they align with the Navy's strategic infrastructure goals?
The contract was for general construction services, likely encompassing a range of building and infrastructure projects for the Navy in California. Specific project details would require access to contract modifications and task orders. Alignment with strategic goals would depend on the Navy's infrastructure modernization and operational needs at the time of award.
How did the award fee structure influence URS Group, Inc.'s performance and cost management throughout the contract's duration?
The award fee mechanism incentivized URS Group, Inc. to meet or exceed performance standards set by the government. The extent to which the company achieved these targets would determine the final fee amount, directly impacting the contractor's profit and potentially influencing their management of costs and quality to maximize the award.
Were there any significant challenges or disputes encountered during the contract's execution, and how were they resolved?
Information regarding specific challenges or disputes is not provided in the summary data. However, with a contract duration of 1500 days (approximately 4 years) and a substantial value, it is common for complex construction projects to encounter issues such as unforeseen site conditions, design changes, or scheduling delays. Resolution would typically involve negotiation between the contractor and the contracting officer.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIXED PRICE AWARD FEE (M)
Evaluated Preference: NONE
Contractor Details
Parent Company: AECOM (UEI: 153561212)
Address: 9901 IH 10 W, SAN ANTONIO, TX, 78230
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $127,995,043
Exercised Options: $127,995,043
Current Obligation: $127,995,043
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $173,262,134
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6274209D1174
IDV Type: IDC
Timeline
Start Date: 2010-09-28
Current End Date: 2014-11-06
Potential End Date: 2014-11-06 00:00:00
Last Modified: 2015-10-06
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