GSA awards $16.7M contract for radar sustainment services to URS Federal Services, Inc

Contract Overview

Contract Amount: $16,719,603 ($16.7M)

Contractor: URS Federal Services, Inc.

Awarding Agency: General Services Administration

Start Date: 2010-07-30

End Date: 2012-06-30

Contract Duration: 701 days

Daily Burn Rate: $23.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: ENGINEERING ASSIGNMENT 02 (EA 02) FOR LIGHTWEIGHT COUNTER MORTAR RADAR (LCMR) SUSTAINMENT SERVICES TO SUPPORT ARMY, CECOM, PM RADARS.

Place of Performance

Location: FORT MONMOUTH, MONMOUTH County, NEW JERSEY, 07703

State: New Jersey Government Spending

Plain-Language Summary

General Services Administration obligated $16.7 million to URS FEDERAL SERVICES, INC. for work described as: ENGINEERING ASSIGNMENT 02 (EA 02) FOR LIGHTWEIGHT COUNTER MORTAR RADAR (LCMR) SUSTAINMENT SERVICES TO SUPPORT ARMY, CECOM, PM RADARS. Key points: 1. Contract awarded on a Time and Materials basis, which can lead to cost overruns if not closely managed. 2. The contract was not competed, raising questions about potential price discovery and value for money. 3. Sustainment services for radar systems are critical for maintaining military readiness. 4. The contract duration of 701 days suggests a significant need for ongoing support. 5. The North American Industry Classification System (NAICS) code 811213 indicates a focus on communication equipment repair and maintenance. 6. The award was made by the General Services Administration (GSA), a common contracting vehicle for federal agencies.

Value Assessment

Rating: questionable

The contract's value of $16.7 million for sustainment services over approximately two years warrants scrutiny, especially given the lack of competition. Without benchmark data or competitive bids, it is difficult to definitively assess if the pricing represents good value for money. Time and Materials contracts can be prone to cost escalation, and the absence of a fixed price or ceiling makes it harder to control expenditures. Further analysis would be needed to compare this to similar sustainment contracts for radar systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT COMPETED' basis, indicating that a full and open competition was not conducted. This suggests that either only one source was deemed capable of performing the work, or there were other justifications for not competing the award. The lack of multiple bidders means that the government did not benefit from a competitive bidding process, which typically drives down prices and encourages innovation.

Taxpayer Impact: The absence of competition means taxpayers may not have received the best possible price for these sustainment services. Without a competitive environment, there is a risk that the contractor could charge higher rates than if they had to compete for the business.

Public Impact

The U.S. Army benefits from the sustainment of its Lightweight Counter Mortar Radar (LCMR) systems, ensuring operational readiness. This contract provides essential repair and maintenance services for critical communication equipment. The services are primarily delivered in New Jersey, impacting the local workforce and economy in that region. The contract supports the Army's communication and radar capabilities, indirectly benefiting national defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially increases costs for taxpayers.
Time and Materials contract type carries inherent risk of cost overruns without strict oversight.
The specific sustainment needs and associated costs are not publicly detailed, hindering transparency.
The contract's duration and value, without competitive justification, raise questions about efficiency.

Positive Signals

Contract addresses a critical need for radar system sustainment, supporting military operations.
Awarded by GSA, a reputable agency for managing federal procurement.
The contractor, URS Federal Services, Inc., is likely experienced in providing such technical services.

Sector Analysis

The defense electronics market, particularly for radar systems and their sustainment, is a specialized sector. Companies like URS Federal Services, Inc. operate within this niche, providing essential support to military branches. The market is characterized by high technological requirements, long product lifecycles, and significant government spending. Comparable spending benchmarks are difficult to establish without more specific details on the LCMR system and the scope of sustainment required, but radar sustainment is a consistent area of federal expenditure.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary contractor, URS Federal Services, Inc., will likely perform the majority of the work, with limited direct benefit or opportunity for the small business ecosystem through this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA) and the Army's Communications-Electronics Command (CECOM), which is the end-user. As a Time and Materials contract, rigorous monitoring of labor hours, material costs, and adherence to the scope of work would be crucial. Transparency is limited by the lack of public detail on performance metrics and cost breakdowns. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Communications-Electronics Command (CECOM) Programs
Lightweight Counter Mortar Radar (LCMR) Systems
Defense Communication Equipment Maintenance
Federal Acquisition Service Contracts

Risk Flags

Lack of Competition
Time and Materials Contract Type
Potential for Cost Overruns
Limited Transparency on Pricing

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $16.7 million to URS FEDERAL SERVICES, INC.. ENGINEERING ASSIGNMENT 02 (EA 02) FOR LIGHTWEIGHT COUNTER MORTAR RADAR (LCMR) SUSTAINMENT SERVICES TO SUPPORT ARMY, CECOM, PM RADARS.

Who is the contractor on this award?

The obligated recipient is URS FEDERAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $16.7 million.

What is the period of performance?

Start: 2010-07-30. End: 2012-06-30.

What is the track record of URS Federal Services, Inc. in providing radar sustainment services to the U.S. military?

URS Federal Services, Inc., now part of AECOM, has a history of providing a wide range of technical and support services to government agencies, including the Department of Defense. Their experience often encompasses logistics, maintenance, and engineering support for complex systems. While specific details on their performance for the LCMR sustainment prior to this contract are not readily available in the provided data, their general profile suggests they possess the capabilities required for such a role. A deeper dive into past performance reviews, contract awards, and any reported issues on similar defense contracts would be necessary for a comprehensive assessment of their track record.

How does the $16.7 million contract value compare to similar radar sustainment contracts?

Direct comparison of the $16.7 million contract value for LCMR sustainment is challenging without more granular data on the scope of services, specific radar models supported, and contract duration for comparable awards. However, sustainment contracts for complex military hardware like radar systems can range significantly, from a few million to tens or even hundreds of millions of dollars, depending on the system's age, technological sophistication, and the level of support required (e.g., depot-level maintenance, field support, parts replacement). The fact that this contract was not competed makes benchmarking against competitive awards difficult, as competitive processes typically drive prices down. Further research into GSA schedules or other defense procurement databases for similar NAICS codes (811213) and contract types might yield comparative data.

What are the primary risks associated with a 'NOT COMPETED' Time and Materials contract for radar sustainment?

The primary risks associated with a 'NOT COMPETED' Time and Materials (T&M) contract for radar sustainment are twofold. Firstly, the lack of competition means the government likely did not secure the lowest possible price, potentially leading to higher costs for taxpayers. There's a reduced incentive for the contractor to be efficient or offer competitive rates. Secondly, the T&M structure itself poses a risk. Without a fixed price or a clearly defined ceiling, costs can escalate unpredictably as the contractor bills for actual labor hours and materials used. This necessitates extremely diligent oversight from the contracting agency to prevent overcharging and ensure the work performed aligns with the necessity and scope defined.

How effective is the GSA in ensuring value for money on non-competed contracts?

The General Services Administration (GSA) employs various mechanisms to ensure value for money, even on non-competed contracts, though the effectiveness can vary. GSA utilizes established pricing agreements, conducts market research, and often has internal review processes to validate cost reasonableness. However, the inherent limitation of a non-competed award is the absence of direct price comparison from multiple bidders. For T&M contracts, GSA relies heavily on robust contract administration, requiring detailed justification for hours and materials, and often negotiating rates beforehand. While GSA aims for efficiency, the lack of a competitive bid process inherently reduces the pressure on contractors to offer the absolute best price, making oversight and negotiation critical factors in achieving value.

What are the historical spending patterns for radar sustainment services by the U.S. Army?

Historical spending patterns for radar sustainment services by the U.S. Army are substantial and consistent, reflecting the critical role of radar technology in modern warfare. The Army procures and maintains a diverse array of radar systems, from tactical battlefield radars like the LCMR to larger surveillance and air defense systems. Spending in this category typically involves contracts for repair, overhaul, spare parts, software updates, and technical support. These expenditures are often multi-year and can run into billions of dollars annually across all radar platforms, driven by the need to maintain operational readiness, upgrade aging systems, and adapt to evolving threats. The specific amount spent on LCMR sustainment would be a subset of this larger category.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 10RT0209

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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

Address: 20501 SENECA MEADOWS PKWY STE 300, GERMANTOWN, MD, 06

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

Financial Breakdown

Contract Ceiling: $16,719,603

Exercised Options: $16,719,603

Current Obligation: $16,719,603

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: GS08T10BPC0103

IDV Type: IDC

Timeline