DoD's $31.6M Hurricane Irma Repair Contract Awarded to URS Group, Inc. for Florida Facilities

Contract Overview

Contract Amount: $31,613,595 ($31.6M)

Contractor: URS Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-09-17

End Date: 2021-06-18

Contract Duration: 1,005 days

Daily Burn Rate: $31.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF HURRICANE IRMA REPAIRS - MAYPORT AND JAX (SRM)_

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32227

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $31.6 million to URS GROUP, INC. for work described as: IGF::OT::IGF HURRICANE IRMA REPAIRS - MAYPORT AND JAX (SRM)_ Key points: 1. Contract value of $31.6 million for hurricane repair services. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Delivery order under a larger contract vehicle, indicating potential for follow-on work. 4. Fixed-price contract type aims to control costs for the government. 5. Performance period spans nearly three years, from September 2018 to June 2021. 6. Contractor URS Group, Inc. has experience in construction and repair services. 7. Services primarily focused on commercial and institutional building construction. 8. Geographic focus on Florida, specifically Mayport and Jacksonville areas.

Value Assessment

Rating: good

The contract value of $31.6 million appears reasonable for extensive hurricane repair services covering multiple facilities. While specific benchmarks for hurricane damage repair are difficult to ascertain without detailed scope, the firm-fixed-price nature of the award suggests an effort to establish a clear cost ceiling. Comparing this to similar large-scale disaster recovery contracts would provide further context on value for money, but the scale and duration indicate a significant undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this specific delivery order. A higher number of bidders typically leads to more competitive pricing and a wider range of solutions, but even two bids can provide a basis for price discovery and selection of a qualified contractor.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple companies to bid, which can drive down prices and ensure the government receives the best value. This approach also promotes transparency and fairness in the award process.

Public Impact

Military readiness and operational capability at Mayport and Jacksonville naval facilities are enhanced through repairs. Local and regional construction workforce likely benefited from employment opportunities during the contract period. Residents and businesses in affected Florida areas indirectly benefit from the restoration of critical infrastructure. The contract supports the Department of the Navy's infrastructure maintenance and resilience efforts. Ensures continuity of operations for naval personnel and associated support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise beyond the initial scope of repairs.
Dependence on a single contractor for a significant repair effort could pose risks if performance issues emerge.
The duration of the contract may not fully account for long-term material price fluctuations.
Coordination challenges between the contractor and multiple government stakeholders at naval bases.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
Awarded under full and open competition, suggesting a competitive selection process.
Contractor URS Group, Inc. has a track record in large-scale construction and repair projects.
Delivery order mechanism allows for focused execution of specific repair needs.
Geographic concentration of work may lead to efficiencies in resource deployment.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically addressing disaster recovery and repair. The market for such services is often project-driven, with significant demand following natural disasters. Large-scale repair contracts, especially for government facilities, represent a substantial segment of this market. Benchmarks for comparable spending would typically be assessed against other post-disaster recovery efforts or major construction projects for federal agencies.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, URS Group, Inc., is likely a large business. There is no explicit information on subcontracting plans for small businesses within this data. The impact on the small business ecosystem would depend on whether URS Group, Inc. actively sought small business subcontractors for specialized services or materials, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. As a delivery order under a larger contract, it likely adheres to the oversight mechanisms of the parent contract. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance or closeout.

Related Government Programs

Hurricane Recovery Contracts
Department of Defense Construction Projects
Naval Facilities Engineering Command Contracts
Disaster Relief and Emergency Response
Commercial Building Renovation

Risk Flags

Potential for cost growth due to unforeseen conditions.
Contract duration may lead to material price volatility.
Limited competition could impact optimal price discovery.
Dependence on contractor performance over an extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.6 million to URS GROUP, INC.. IGF::OT::IGF HURRICANE IRMA REPAIRS - MAYPORT AND JAX (SRM)_

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 $31.6 million.

What is the period of performance?

Start: 2018-09-17. End: 2021-06-18.

What is the track record of URS Group, Inc. with federal contracts, particularly in disaster recovery?

URS Group, Inc., now part of AECOM, has a substantial history of performing large-scale federal contracts, including significant work in disaster recovery and infrastructure repair. They have been involved in numerous projects for various government agencies, such as the Army Corps of Engineers and the Department of Homeland Security, often related to emergency response and rebuilding efforts following natural disasters. Their experience encompasses a wide range of construction, environmental remediation, and program management services. While specific details on their performance for this particular Hurricane Irma repair contract would require deeper analysis of performance reports and payment histories, their general profile suggests they are a capable entity for such work. It's important to note that contract performance can vary, and a review of past performance evaluations for URS Group, Inc. on similar projects would provide a more nuanced understanding of their reliability and quality of work.

How does the $31.6 million award compare to similar hurricane repair contracts awarded by the Department of Defense?

Comparing the $31.6 million award for Hurricane Irma repairs to other Department of Defense (DoD) contracts requires access to a broader dataset of similar disaster recovery efforts. However, for a significant event like Hurricane Irma impacting major naval installations in Florida, this value appears commensurate with the scale of damage and repair required. Large-scale disaster recovery contracts for federal facilities can range from tens of millions to hundreds of millions of dollars, depending on the extent of the damage, the number of facilities affected, and the complexity of the repairs. Contracts awarded by agencies like the Army Corps of Engineers or FEMA for hurricane response often fall within this general magnitude. The firm-fixed-price nature of this award suggests a defined scope, which helps in cost control compared to cost-plus contracts often used in highly uncertain disaster scenarios.

What are the primary risks associated with a nearly three-year contract for post-hurricane repairs?

A primary risk associated with a nearly three-year contract for post-hurricane repairs is the potential for scope creep and unforeseen conditions that were not fully identified during the initial assessment. As repairs progress, hidden damage or structural issues may be discovered, leading to change orders and potential cost increases, even under a fixed-price contract. Another risk is the fluctuation of material costs over an extended period, which could impact the contractor's profitability and potentially lead to claims if not adequately managed. Furthermore, the availability of specialized labor and materials can become a challenge over time, especially if other recovery efforts are ongoing concurrently. Finally, ensuring consistent quality control and oversight across such a long duration requires sustained effort from the government's contracting officers and technical representatives to ensure the repairs meet all required standards and specifications.

What was the effectiveness of the competition level (2 bidders) in ensuring value for money?

The effectiveness of having only two bidders in ensuring value for money is moderate. Full and open competition theoretically allows all qualified entities to bid, and the presence of two bids indicates that at least two capable contractors were interested and submitted proposals. This provides a basis for price comparison and negotiation. However, a higher number of bidders (e.g., 3-5 or more) typically intensifies competition, potentially leading to more aggressive pricing and innovative solutions. With only two bidders, there's a greater risk that the government might not have received the absolute lowest price achievable, or that one bidder may have had a significant advantage due to prior relationships or market positioning. The contracting officer's evaluation of the proposals, including technical merit and price reasonableness, would be crucial in determining if value for money was indeed achieved in this specific instance.

How does this contract fit into the broader context of federal spending on infrastructure repair and maintenance?

This $31.6 million contract for hurricane repairs fits within the broader federal spending category of infrastructure repair and maintenance, particularly in response to natural disasters. Federal agencies, especially the Department of Defense, are responsible for maintaining vast amounts of real property. Spending on repairs and maintenance is a continuous requirement, often punctuated by significant spikes following major weather events or other catastrophic incidents. This contract represents a specific allocation of funds to address damage caused by Hurricane Irma, contributing to the overall federal investment in preserving and restoring critical assets. It highlights the recurring need for robust disaster preparedness and response capabilities within the federal government and the associated budgetary allocations required to manage such events.

What are the potential implications of this contract on small business subcontracting opportunities?

Since this contract was not a small business set-aside and was awarded to URS Group, Inc. (likely a large business), the primary implications for small businesses hinge on the subcontracting plan, if one was required and implemented. Large federal contractors are often encouraged or mandated to utilize small businesses for a portion of their subcontracted work. Therefore, small businesses specializing in construction trades, material supply, or related support services could have had opportunities to bid on subcontracts issued by URS Group, Inc. The extent of these opportunities would depend on the specific subcontracting goals set forth in the contract and URS Group, Inc.'s adherence to them. Without explicit data on subcontracting awards, it's difficult to quantify the precise impact, but the potential exists for small businesses to benefit indirectly through this prime contract.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM

Address: 1600 PERIMETER PARK DR STE 400, MORRISVILLE, NC, 27560

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

Financial Breakdown

Contract Ceiling: $31,613,595

Exercised Options: $31,613,595

Current Obligation: $31,613,595

Actual Outlays: $1,807,874

Subaward Activity

Number of Subawards: 479

Total Subaward Amount: $380,212,610

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6247013D6022

IDV Type: IDC

Timeline