DoD's $12.6M Katrina Remediation Contract Awarded to URS Group Inc. Faces Scrutiny
Contract Overview
Contract Amount: $9,871,827 ($9.9M)
Contractor: URS Group, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-09-11
End Date: 2012-09-30
Contract Duration: 2,211 days
Daily Burn Rate: $4.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: 200612!002079!5700!FA3002!AETC CONS/CC !FA890304D8679 !A!N! !N!SK06 ! !20060911!20070629!126483903!126483903!043271568!N!URS GROUP, INC !200 ORCHARD RIDGE DRIVE, S!GAITHERSBURG !MD!20878!37200!047!28!KEESLER AFB !HARRISON !MISS !+000008599869!N!N!000000000000!Y141!HOSPITALS & INFIRMARIES !C2 !CONSTRUCTION !ZHK !HURRICANE KATRINA !236220!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!U!2!027!B! !Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!Y! !N! ! !5700!FA3002!0001! !
Place of Performance
Location: ABBEVILLE, LAFAYETTE County, MISSISSIPPI, 38601
Plain-Language Summary
Department of Defense obligated $9.9 million to URS GROUP, INC. for work described as: 200612!002079!5700!FA3002!AETC CONS/CC !FA890304D8679 !A!N! !N!SK06 ! !20060911!20070629!126483903!126483903!043271568!N!URS GROUP, INC !200 ORCHARD RIDGE DRIVE, S!GAITHERSBURG !MD!20878!37200!047!28!KEESLER AFB !HARR… Key points: 1. Contract awarded for Hurricane Katrina remediation services. 2. URS Group, Inc. secured the $12.6M contract. 3. Full and open competition was utilized. 4. The contract duration was 2211 days. 5. The sector is Construction, specifically Remediation Services.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure for remediation services warrants scrutiny. Without detailed cost breakdowns, it's difficult to assess if the $12.6M price was optimal compared to similar post-disaster cleanup contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the cost-plus-fixed-fee pricing type can sometimes lead to less aggressive cost control by the contractor.
Taxpayer Impact: Taxpayers bore the cost of remediation services, with the total contract value reaching $12.6M. The effectiveness of the spending in achieving the remediation goals is a key consideration for taxpayer value.
Public Impact
Directly addresses the aftermath of Hurricane Katrina, a major natural disaster. Funds allocated for essential infrastructure and environmental cleanup. Impacts the local economy in Mississippi through job creation and resource utilization. Demonstrates government's role in disaster response and recovery efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee pricing can incentivize higher costs.
- Long contract duration may indicate potential for cost overruns.
- Lack of specific performance metrics makes value assessment difficult.
Positive Signals
- Awarded under full and open competition.
- Addresses critical post-disaster needs.
- Contractor has experience in remediation services.
Sector Analysis
The construction sector, particularly remediation services, is critical for post-disaster recovery. Spending benchmarks for such contracts can vary widely based on the scale of the disaster and the specific services required.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
Oversight of this contract would involve monitoring the contractor's performance against the fixed fee and ensuring that costs incurred are reasonable and allocable to the contract's objectives. The long duration necessitates sustained oversight.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost-plus-fixed-fee pricing model.
- Long contract duration (over 5 years).
- Lack of detailed performance metrics in the provided data.
- Potential for scope creep in remediation projects.
- Post-disaster environment can lead to unforeseen challenges and costs.
Tags
remediation-services, department-of-defense, ms, do, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.9 million to URS GROUP, INC.. 200612!002079!5700!FA3002!AETC CONS/CC !FA890304D8679 !A!N! !N!SK06 ! !20060911!20070629!126483903!126483903!043271568!N!URS GROUP, INC !200 ORCHARD RIDGE DRIVE, S!GAITHERSBURG !MD!20878!37200!047!28!KEESLER AFB !HARRISON !MISS !+000008599869!N!N!000000000000!Y141!HOSPITALS & INFIRMARIES !C2 !CONSTRUCTION !ZHK !HURRICANE KATRINA !236220!E! !5!B!M! !A! !999
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 Air Force).
What is the total obligated amount?
The obligated amount is $9.9 million.
What is the period of performance?
Start: 2006-09-11. End: 2012-09-30.
What specific remediation tasks were performed under this contract, and how effectively were they completed?
The provided data does not detail the specific remediation tasks undertaken. To assess effectiveness, a review of performance reports, completion certificates, and potentially environmental impact assessments would be necessary. Understanding the scope of work is crucial for evaluating whether the $12.6M investment achieved its intended outcomes for Hurricane Katrina recovery.
Were there any cost efficiencies realized or potential cost overruns during the contract's extended period?
The cost-plus-fixed-fee structure inherently carries a risk of cost overruns if not tightly managed. Without detailed financial reporting and performance audits, it's challenging to determine if cost efficiencies were achieved or if the final cost significantly exceeded initial projections. The contract's duration of over 5 years warrants a thorough review of its financial execution.
How did the competition under 'full and open' translate into competitive pricing for these remediation services?
While 'full and open' competition suggests multiple bidders participated, the ultimate price is influenced by the cost-plus-fixed-fee structure. This pricing model may reduce the incentive for contractors to minimize costs compared to fixed-price contracts. A comparative analysis against similar contracts awarded during the same period would be needed to gauge the competitiveness of the final price.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: AECOM Global II, LLC (UEI: 043271568)
Address: 10101 REUNION PLACE, SUITE, SAN ANTONIO, TX, 90
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: FA890304D8679
IDV Type: IDC
Timeline
Start Date: 2006-09-11
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2012-07-12
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