DoD's $69M Hurricane Michael Repair Contract Awarded to URS Group, Inc. Faces Scrutiny
Contract Overview
Contract Amount: $69,246,765 ($69.2M)
Contractor: URS Group, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-10-10
End Date: 2022-07-31
Contract Duration: 1,390 days
Daily Burn Rate: $49.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF HURRICANE MICHAEL REPAIRS PHASE 1
Place of Performance
Location: PANAMA CITY, BAY County, FLORIDA, 32401
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $69.2 million to URS GROUP, INC. for work described as: IGF::OT::IGF HURRICANE MICHAEL REPAIRS PHASE 1 Key points: 1. The contract awarded to URS Group, Inc. for Hurricane Michael repairs is substantial at $69.2 million. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. The duration of the contract (1390 days) is significant, raising questions about project management and potential cost overruns. 4. The sector is Commercial and Institutional Building Construction, a critical area for disaster recovery.
Value Assessment
Rating: questionable
The contract's total value is $69.2 million. Benchmarking against similar large-scale construction contracts is difficult without more specific project details. However, the duration and fixed-price nature warrant close examination for potential cost efficiencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the long duration and the nature of disaster recovery work can sometimes lead to scope creep and price adjustments, even with a fixed-price contract.
Taxpayer Impact: While competition was intended to ensure fair pricing, the extended timeline and potential for unforeseen issues in disaster recovery could impact the ultimate cost to taxpayers.
Public Impact
Significant federal funds allocated for disaster recovery in Florida. Impact on local economy and infrastructure in the affected region. Potential for lessons learned in future disaster response contracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration
- Potential for scope creep in disaster recovery
- Fixed-price contract with extended timeline
Positive Signals
- Full and open competition
- Awarded for critical disaster recovery efforts
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, crucial for rebuilding after major disasters. Federal spending in this sector can fluctuate significantly based on natural disaster frequency and severity, with benchmarks varying widely based on project scope and location.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further investigation would be needed to determine if small businesses were involved or had opportunities to participate.
Oversight & Accountability
The long duration of this contract necessitates robust oversight to ensure adherence to the contract terms, manage potential scope changes, and verify that funds are being used efficiently and effectively for the intended recovery purposes.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Extended contract duration raises concerns about efficiency and potential cost overruns.
- Disaster recovery projects are inherently prone to scope creep and unforeseen challenges.
- Lack of specific detail on small business participation.
- Need for robust oversight due to long-term nature and fixed-price structure.
Tags
commercial-and-institutional-building-co, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $69.2 million to URS GROUP, INC.. IGF::OT::IGF HURRICANE MICHAEL REPAIRS PHASE 1
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 $69.2 million.
What is the period of performance?
Start: 2018-10-10. End: 2022-07-31.
What specific construction and repair tasks were included in this contract, and how did the scope evolve over its nearly four-year duration?
The contract was for Hurricane Michael repairs, Phase 1. Specific tasks likely included structural repairs, debris removal, and restoration of damaged facilities. The long duration suggests a complex, multi-faceted recovery effort. Understanding the initial scope versus any modifications or additions is crucial for assessing value and managing costs effectively over such an extended period.
Given the fixed-price nature and long duration, what mechanisms were in place to mitigate risks associated with unforeseen construction challenges or material cost fluctuations?
Fixed-price contracts aim to cap costs, but long durations in construction, especially post-disaster, present risks. Mechanisms might include contingency allowances, clear change order procedures, and robust project management oversight. The effectiveness of these would depend on the contract's specific clauses and the diligence of the contracting officer in managing potential risks and ensuring fair pricing.
How effectively did the full and open competition process ensure the best value for taxpayers, considering the project's complexity and duration?
Full and open competition is designed to maximize value by encouraging multiple bids. For a complex, long-term project like hurricane repair, the initial competition likely secured a baseline price. However, ongoing oversight and management are critical to ensure that the fixed price remains competitive throughout the project's lifecycle and that the final outcome represents true value for taxpayer investment.
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: 3
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: $69,246,765
Exercised Options: $69,246,765
Current Obligation: $69,246,765
Actual Outlays: $26,015
Subaward Activity
Number of Subawards: 2582
Total Subaward Amount: $1,282,961,247
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N6247013D6022
IDV Type: IDC
Timeline
Start Date: 2018-10-10
Current End Date: 2022-07-31
Potential End Date: 2022-07-31 00:00:00
Last Modified: 2022-04-02
More Contracts from URS Group, Inc.
- Construction of the Aegis Ashore Missile Defense Test Complex, Pacific Missile Range Facility, Kauai, Hawaii — $140.7M (Department of Defense)
- Fixed Price Award FEE Construction - Gmac — $128.0M (Department of Defense)
- Metc Buildings 1 and 2, FT. SAM Houston Texas — $104.8M (Department of Defense)
- Disposal of Hazardous Waste for Mnc-I Forward Operating Base Support, Iraq — $52.6M (Department of Defense)
- Repair/Renew Bldg #40 Ftdl/Dci Tripler — $52.3M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)