DoD's $1.1B contract for administrative management consulting services awarded to URS Federal Services, Inc

Contract Overview

Contract Amount: $66,792,819 ($66.8M)

Contractor: URS Federal Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-11-10

End Date: 2011-07-12

Contract Duration: 609 days

Daily Burn Rate: $109.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: LABOR HOURS

Place of Performance

Location: STAFFORD, STAFFORD County, VIRGINIA, 22556

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $66.8 million to URS FEDERAL SERVICES, INC. for work described as: LABOR HOURS Key points: 1. Contract value represents a significant investment in management consulting. 2. Competition dynamics for this contract need further examination to ensure optimal value. 3. Performance period of approximately two years suggests a focused scope of work. 4. The administrative management and general management consulting sector is crucial for government operations. 5. This contract falls within a broad category of professional services supporting federal agencies.

Value Assessment

Rating: fair

The total award amount of $1.1 billion for administrative management and general management consulting services is substantial. Benchmarking this against similar large-scale consulting contracts within the Department of Defense or other federal agencies is necessary to assess value for money. Without specific deliverables or performance metrics, it is difficult to definitively assess the efficiency of this spending. The contract type (Time and Materials) can sometimes lead to cost overruns if not closely managed, which warrants scrutiny.

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 were likely considered. The presence of two bids suggests a moderate level of competition for this significant contract. While full and open competition is generally preferred, the limited number of bidders could warrant further investigation into potential barriers to entry or market concentration within this specific consulting niche.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it theoretically drives down prices through market forces. However, with only two bids, the extent of price discovery and potential savings may have been limited compared to a scenario with more robust competition.

Public Impact

The Department of Defense is the primary beneficiary, receiving management consulting expertise. Services likely support administrative functions, operational efficiency, and strategic planning within the Navy. The geographic impact is primarily within the operational areas of the Department of the Navy. Workforce implications could include the utilization of specialized consulting talent, both from the contractor and potentially within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials contract type.
Limited number of bidders may indicate reduced competitive pressure.
Scope of 'administrative management and general management consulting' is broad and could lead to undefined deliverables.

Positive Signals

Awarded under full and open competition, suggesting a fair process.
Contract duration of approximately two years allows for focused project execution.
The contractor, URS Federal Services, Inc., is a known entity in federal contracting.

Sector Analysis

The administrative management and general management consulting services sector is a vital component of the federal procurement landscape, supporting a wide array of agency functions. This contract, valued at over $1 billion, represents a significant portion of spending within this category for the Department of Defense. Comparable spending benchmarks would involve analyzing other large-scale consulting contracts awarded to support defense agencies or similar large government organizations.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'sb' (small business) flag is false. There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. This suggests that the prime contractor, URS Federal Services, Inc., likely handled the majority of the work, and the impact on the small business ecosystem may be minimal unless subcontracting occurred without explicit reporting.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Navy's contracting officers and program managers. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases, but detailed performance reports and Inspector General involvement would depend on specific contract clauses and any identified issues.

Related Government Programs

Defense Management Consulting Services
Professional Services Contracts
Government Administrative Support
Department of the Navy Contracts
Large-Scale Consulting Engagements

Risk Flags

Potential for cost overruns due to T&M contract type.
Limited competition may impact price discovery.
Broad scope of services requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $66.8 million to URS FEDERAL SERVICES, INC.. LABOR HOURS

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 Navy).

What is the total obligated amount?

The obligated amount is $66.8 million.

What is the period of performance?

Start: 2009-11-10. End: 2011-07-12.

What specific administrative and management consulting services were delivered under this contract?

The provided data indicates the contract falls under NAICS code 541611, 'Administrative Management and General Management Consulting Services.' While the specific deliverables are not detailed, these services typically encompass areas such as organizational structure analysis, process improvement, strategic planning, human capital management, financial management consulting, and operational efficiency enhancements. For a contract of this magnitude awarded to URS Federal Services, Inc. by the Department of the Navy, the scope likely involved complex, high-level advisory services aimed at improving the effectiveness and efficiency of naval operations or administrative functions. Further details would be found in the contract's Statement of Work (SOW) and any subsequent modifications or performance reports.

How does the $1.1 billion award compare to typical spending on similar consulting services by the Department of Defense?

An award of $1.1 billion for administrative management and general management consulting services is substantial, even within the context of the Department of Defense's large procurement budget. To benchmark this, one would need to analyze historical spending data for similar NAICS codes (e.g., 541611) awarded by the DoD over comparable periods. It would also be useful to compare it to contracts awarded to other large federal contractors in the management consulting space. Without access to a comprehensive database of all DoD consulting contracts, it's challenging to provide an exact comparison. However, contracts exceeding the billion-dollar mark for a single award in this service category are generally considered very large and indicate a significant, long-term need for external expertise.

What are the potential risks associated with a Time and Materials (T&M) contract of this size?

Time and Materials (T&M) contracts, like the one awarded to URS Federal Services, Inc., carry inherent risks, particularly at a $1.1 billion scale. The primary risk is cost overrun, as the government pays for the actual labor hours and materials used, plus a fixed fee or profit. If the contractor's labor hours or material costs are higher than anticipated, or if the project scope expands without adequate controls, the total cost can escalate significantly beyond initial estimates. Effective oversight, detailed tracking of hours and expenses, and robust change management processes are crucial to mitigate these risks. The government must ensure that the contractor is efficient and that the work performed directly aligns with the contract's objectives to prevent wasteful spending.

What does the limited number of bidders (two) suggest about the market for these specific consulting services?

A limited number of bidders, such as the two identified for this $1.1 billion contract, can suggest several market dynamics. It might indicate a highly specialized niche where only a few firms possess the requisite expertise, security clearances, or past performance history. Alternatively, it could point to significant barriers to entry, such as stringent pre-qualification requirements, high overhead costs for bidding, or a market dominated by a few large players. For taxpayers, fewer bidders can mean reduced price competition, potentially leading to higher costs than if a broader range of companies had competed. It also raises questions about whether the solicitation process adequately reached the entire potential market.

What is the track record of URS Federal Services, Inc. in securing large federal contracts, particularly within the Department of Defense?

URS Federal Services, Inc. (now part of AECOM) has a significant history of securing large federal contracts, including substantial awards from the Department of Defense. Their portfolio often includes engineering, construction, environmental services, and management support. Securing a $1.1 billion contract for administrative management and general management consulting services indicates a strong existing relationship and proven capability to handle complex, high-value engagements for the DoD. Their track record would typically be assessed based on past performance evaluations, on-time delivery, adherence to budget, and overall client satisfaction across previous contracts. This award suggests they met the stringent requirements set forth by the Department of the Navy for this specific service.

Industry Classification

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

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM (UEI: 153561212)

Address: 20501 SENECA MEADOWS PKWY STE 300, GERMANTOWN, MD, 20876

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

Financial Breakdown

Contract Ceiling: $66,792,819

Exercised Options: $66,792,819

Current Obligation: $66,792,819

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0202K

IDV Type: FSS

Timeline