DoD's $254M rotary wing training contract awarded to URS Federal Services Inc. for 4 years

Contract Overview

Contract Amount: $254,381,943 ($254.4M)

Contractor: URS Federal Services Inc.

Awarding Agency: Department of Defense

Start Date: 2008-04-01

End Date: 2012-09-30

Contract Duration: 1,643 days

Daily Burn Rate: $154.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ROTARY WING FLIGHT TRAINING SERVICES, FORT RUCKER, AL

Place of Performance

Location: FORT RUCKER, DALE County, ALABAMA, 36362

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $254.4 million to URS FEDERAL SERVICES INC. for work described as: ROTARY WING FLIGHT TRAINING SERVICES, FORT RUCKER, AL Key points: 1. Contract value represents a significant investment in aviation training infrastructure. 2. The full and open competition suggests a robust market for these specialized services. 3. Long contract duration may introduce risks related to technological obsolescence and cost escalation. 4. Fixed-price contract type aims to control costs, but requires careful scope management. 5. The award to a single contractor highlights the need for performance monitoring. 6. Training services are critical for maintaining pilot proficiency and national security readiness.

Value Assessment

Rating: good

The contract value of $254.4 million over approximately four years for rotary wing flight training services appears reasonable given the specialized nature of the training and the scale of operations at Fort Rucker. Benchmarking against similar large-scale military training contracts is challenging due to unique requirements, but the fixed-price structure suggests an effort to achieve cost certainty. The per-student cost would be a more granular metric for detailed value assessment, which is not directly provided here.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The presence of two bids suggests a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government. The specific details of the bidding process and the number of proposals received would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

Primary beneficiaries are U.S. Army aviators requiring essential rotary wing flight training. Services delivered include foundational and advanced flight instruction for helicopter pilots. Geographic impact is concentrated at Fort Rucker, Alabama, a major Army aviation training center. Workforce implications include support for instructors, maintenance personnel, and administrative staff associated with the training program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if contract scope expands beyond initial estimates.
Risk of contractor performance degradation over the long contract duration.
Dependency on a single contractor for critical training services.
Technological advancements in aviation could outpace training methodologies within the contract period.

Positive Signals

Fixed-price contract type provides cost certainty if scope is well-managed.
Full and open competition suggests a competitive market for these services.
Long-term contract allows for stable planning and investment in training infrastructure.
Award to an established entity like URS Federal Services may indicate a track record of capability.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on specialized training. The market for military flight training is characterized by high barriers to entry due to stringent requirements for expertise, facilities, and security clearances. While specific market size data for rotary wing training is not readily available, it is a critical component of military readiness, with significant government spending allocated annually to pilot training across all branches.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside criterion for this contract (ss: false, sb: false). Therefore, the primary contractor, URS Federal Services Inc., would be responsible for any subcontracting efforts. Analysis of subcontracting plans and actual performance would be necessary to determine the extent of small business involvement and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Army. Performance monitoring, quality assurance surveillance plans, and regular reviews are standard mechanisms to ensure contractor compliance and service delivery. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details are not provided in this summary.

Related Government Programs

Rotary Wing Training
Aviation Maintenance Services
Military Pilot Training Programs
Defense Contractor Services
Department of Defense Education and Training

Risk Flags

Long contract duration may lead to cost escalation or obsolescence.
Performance monitoring is critical due to the single-contractor award.
Need to assess adaptability to technological advancements in aviation training.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $254.4 million to URS FEDERAL SERVICES INC.. ROTARY WING FLIGHT TRAINING SERVICES, FORT RUCKER, AL

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 Army).

What is the total obligated amount?

The obligated amount is $254.4 million.

What is the period of performance?

Start: 2008-04-01. End: 2012-09-30.

What is the historical spending trend for rotary wing flight training services at Fort Rucker?

Analyzing historical spending for rotary wing flight training at Fort Rucker requires accessing detailed contract databases over multiple fiscal years. While this specific contract spans from 2008 to 2012 with a value of approximately $254 million, understanding the trend would involve comparing this award to previous and subsequent contracts for similar services. Factors influencing spending include the number of pilots in training, changes in training requirements, and the competitive landscape. Without access to a longer time series of contract awards and modifications for this specific service at Fort Rucker, a comprehensive trend analysis is not possible. However, the consistent need for pilot training suggests a sustained level of investment, subject to budgetary allocations and strategic priorities.

How does the per-unit cost of this training compare to other military or civilian flight schools?

A direct per-unit cost comparison is difficult without knowing the exact number of training hours or students covered by the $254.4 million contract. Military training often includes a broader scope of instruction, simulation, and support services than civilian flight schools, potentially leading to higher nominal costs. However, the scale of military operations and the long-term nature of these contracts can also yield economies of scale. Civilian flight schools typically charge by the hour for aircraft rental and instructor time, with rates varying significantly by location and aircraft type. To perform a robust comparison, one would need to normalize the contract value by the total training hours delivered or the number of pilots trained and compare that to industry benchmarks for similar training syllabi.

What are the key performance indicators (KPIs) used to evaluate URS Federal Services Inc.'s performance under this contract?

Key performance indicators (KPIs) for a contract like this typically focus on the quality, timeliness, and cost-effectiveness of the training provided. Specific KPIs might include student pass rates on flight evaluations, adherence to training schedules, aircraft availability and maintenance uptime, instructor qualifications and retention rates, and compliance with safety regulations. The contract would likely outline specific metrics and acceptable performance levels. Regular performance reviews and quality assurance surveillance would be conducted by the government to monitor these KPIs and ensure the contractor meets contractual obligations. Failure to meet KPIs could result in contract remedies, including financial penalties or termination.

What is the potential impact of technological advancements on the long-term relevance of the training provided under this contract?

Technological advancements in aviation, such as new aircraft systems, avionics, and simulation technologies, pose a potential risk to the long-term relevance of training programs. If the training curriculum and equipment used under this contract do not evolve to incorporate these advancements, the skills acquired by pilots may become outdated. The contract's duration of over four years necessitates a mechanism for adapting the training content. This could involve contract modifications to incorporate new technologies or a requirement for the contractor to proactively update their training methodologies and equipment. Continuous dialogue between the government and the contractor regarding emerging technologies is crucial to ensure the training remains effective and relevant for future aviation needs.

How does the fixed-price contract type influence risk allocation between the government and URS Federal Services Inc.?

A Firm Fixed Price (FFP) contract, as indicated for this award, shifts most of the cost risk to the contractor, URS Federal Services Inc. The government agrees to pay a set price regardless of the contractor's actual costs incurred. This provides the government with cost certainty. However, it also means the contractor bears the risk of cost overruns. Conversely, if the contractor can deliver the services more efficiently than anticipated, they stand to make a higher profit. This contract type incentivizes the contractor to control costs and manage resources effectively. The government's primary risk under an FFP contract is ensuring the contractor delivers the required quality and scope of services within the agreed-upon price.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Flight Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9124G06R0003

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM (UEI: 153561212)

Address: 200 ORCHARD RIDGE DR #101, GAITHERSBURG, MD, 20878

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $254,386,463

Exercised Options: $254,386,463

Current Obligation: $254,381,943

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline