DHS awarded $91.5M for seized property services, with URS Federal Services Inc. as the sole provider

Contract Overview

Contract Amount: $91,496,519 ($91.5M)

Contractor: URS Federal Services, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2005-07-12

End Date: 2007-01-16

Contract Duration: 553 days

Daily Burn Rate: $165.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: SEIZED PROPERTY SERVICES

Place of Performance

Location: MANASSAS PARK, PRINCE WILLIAM County, VIRGINIA, 20111

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $91.5 million to URS FEDERAL SERVICES, INC. for work described as: SEIZED PROPERTY SERVICES Key points: 1. Contract awarded on a cost-plus award fee basis, suggesting potential for cost overruns if not managed closely. 2. Sole-source award indicates a lack of competition, potentially leading to higher prices than a competitive process. 3. The contract duration of 553 days (approx. 1.5 years) is relatively short for a service of this nature. 4. Administrative Management and General Management Consulting Services (NAICS 541611) is a broad category, requiring specific performance metrics to assess value. 5. The contract was awarded by U.S. Customs and Border Protection, a key component of DHS. 6. The contract was awarded in 2005, indicating historical spending patterns rather than current market conditions.

Value Assessment

Rating: fair

Benchmarking the value for this contract is challenging due to its sole-source nature and the specific services provided under 'Seized Property Services'. Without competitive bids or comparable contracts for similar services, it's difficult to definitively assess if the $91.5 million represents a fair price. The cost-plus award fee structure also introduces variability, making a fixed value assessment problematic. However, the absence of competition inherently raises concerns about optimal price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that URS Federal Services, Inc. was the only vendor considered. This typically occurs when a specific capability is required that only one vendor possesses, or in urgent situations. The lack of competition means that the government did not benefit from the price reductions and service improvements that often arise from a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive pressure. Without multiple bids, there is less assurance that the most cost-effective solution was secured.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection, which receives essential services for managing seized property. Services delivered likely include inventory, storage, maintenance, and disposition of assets seized during law enforcement operations. The geographic impact is likely national, given the scope of CBP operations, though specific locations of seized property would determine localized effects. Workforce implications could include direct employment by URS Federal Services, Inc. and potentially indirect employment through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits opportunities for other businesses, including small businesses, to compete for this contract.
Cost-plus award fee contracts can incentivize higher spending if not rigorously monitored, potentially leading to less cost efficiency.
The broad nature of 'Administrative Management and General Management Consulting Services' could lead to scope creep if not clearly defined and managed.

Positive Signals

URS Federal Services, Inc. likely possesses specialized expertise required for handling seized property, justifying a sole-source award in certain circumstances.
The contract was awarded to a single entity, potentially allowing for streamlined management and consistent service delivery.
The award fee component, if structured effectively, can incentivize performance and quality improvements from the contractor.

Sector Analysis

The contract falls under the broad category of professional services, specifically management consulting. The market for such services is vast, encompassing numerous firms ranging from large corporations to small specialized businesses. This particular contract addresses a niche requirement within government operations related to asset forfeiture and management. Comparable spending benchmarks are difficult to establish without more specific details on the types and volume of seized property managed.

Small Business Impact

As a sole-source award, this contract did not include a small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. This means that opportunities for small businesses to participate in delivering these services were likely limited to those that URS Federal Services, Inc. might voluntarily engage.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Customs and Border Protection contracting officers and program managers. The effectiveness of oversight depends on the clarity of the contract's performance work statement, the rigor of monitoring contractor performance against award fee criteria, and the agency's internal controls. Transparency is limited by the sole-source nature and the proprietary information often associated with cost-plus contracts.

Related Government Programs

Federal Asset Forfeiture Program
Government Property Management Services
Law Enforcement Support Services
Consulting Services for Federal Agencies

Risk Flags

Sole-source award may indicate limited competition.
Cost-plus award fee contracts require diligent oversight to ensure cost efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $91.5 million to URS FEDERAL SERVICES, INC.. SEIZED PROPERTY SERVICES

Who is the contractor on this award?

The obligated recipient is URS FEDERAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $91.5 million.

What is the period of performance?

Start: 2005-07-12. End: 2007-01-16.

What specific types of seized property were managed under this contract?

The provided data does not specify the exact types of seized property managed under this contract. 'Seized Property Services' is a broad term that could encompass a wide range of assets, including vehicles, real estate, cash, electronics, artwork, and other items confiscated during law enforcement operations. U.S. Customs and Border Protection (CBP) seizes various types of property related to smuggling, trade violations, and other illicit activities. Understanding the specific categories of assets would provide better context for the scope and complexity of the services required and the associated costs.

How does the $91.5 million total award compare to similar contracts for seized property management?

Direct comparison of the $91.5 million award to similar contracts is difficult due to the sole-source nature of this award and the lack of detailed service descriptions. Sole-source contracts often do not reflect market-driven pricing. Furthermore, the value of seized property management contracts can vary significantly based on the volume, type, location, and required services (e.g., storage, maintenance, auction, destruction). Without access to data on other competitively awarded contracts for similar services within DHS or other agencies, it is challenging to benchmark this expenditure effectively and determine if it represents optimal value for taxpayer dollars.

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

The provided data does not detail the specific Key Performance Indicators (KPIs) used for the award fee determination under this Cost Plus Award Fee (CPAF) contract. CPAF contracts typically link a portion of the contractor's profit to achieving specific performance objectives outlined in the contract's Performance Work Statement (PWS). These objectives could include metrics related to timeliness of property processing, security of stored assets, cost control, accuracy of inventory, and successful disposition of property. The effectiveness of the award fee mechanism in incentivizing superior performance and ensuring value for money hinges on the clarity, measurability, and relevance of these underlying KPIs.

What is the track record of URS Federal Services, Inc. in managing government contracts, particularly those involving sensitive assets?

URS Federal Services, Inc., now part of AECOM, has a history of performing various government contracts across different agencies. While specific details on their track record for managing seized property are not provided in this dataset, the company has experience in areas such as base operations support, environmental services, and construction management for federal clients. Assessing their performance on this specific contract would require reviewing past performance evaluations, any contract disputes or claims, and the overall success in meeting the objectives outlined in the PWS. Their broader experience suggests a capacity to handle complex government requirements, but a deep dive into contract-specific performance data is necessary for a comprehensive evaluation.

What was the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' which is synonymous with a sole-source award. The specific justification for this determination is not included in the dataset. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source is available, or in cases of urgent and compelling need. For a contract valued at $91.5 million, the justification would likely have been based on unique capabilities possessed by URS Federal Services, Inc., or a critical, time-sensitive requirement that precluded a full and open competition. Without the official justification document, the precise reasons remain speculative.

How has DHS spending on seized property services evolved since this 2005 contract?

This dataset only provides information on a single contract awarded in 2005. To understand the evolution of DHS spending on seized property services, one would need to analyze subsequent contracts awarded by DHS and its components (like CBP) for similar services. This would involve examining trends in contract values, competition levels, contract types, and the specific services procured over time. Factors such as changes in law enforcement priorities, legislative changes affecting asset forfeiture, and shifts in agency operational needs would likely influence spending patterns. Without this broader historical data, it's impossible to assess spending evolution based solely on this 2005 award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $282,317,060

Exercised Options: $282,317,059

Current Obligation: $91,496,519

Timeline