DoD's $52.2M Environmental Remediation Contract with URS Group Faces Scrutiny Over Long Duration and Firm Fixed Price

Contract Overview

Contract Amount: $52,242,361 ($52.2M)

Contractor: URS Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-09-30

End Date: 2024-02-15

Contract Duration: 3,790 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF E - HILL AFB UTAH TEST AND TRAINING RANGE PERFORMANCE BASED ENVIRONMENTAL REMEDIATION SERVICES - P2# 144764

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $52.2 million to URS GROUP, INC. for work described as: IGF::OT::IGF E - HILL AFB UTAH TEST AND TRAINING RANGE PERFORMANCE BASED ENVIRONMENTAL REMEDIATION SERVICES - P2# 144764 Key points: 1. The contract, awarded to URS Group, Inc., has a significant value of $52.2 million. 2. It was awarded under full and open competition, indicating a broad search for qualified bidders. 3. The contract's extended duration (over 10 years) and firm fixed-price structure raise questions about potential cost overruns and adaptability. 4. The sector is Environmental Remediation Services, crucial for military base operations and compliance.

Value Assessment

Rating: fair

The $52.2 million award over more than 10 years suggests a potentially high per-year cost. Benchmarking against similar long-term environmental remediation contracts is needed to assess if the pricing is competitive, especially given the firm fixed-price nature which can sometimes lead to higher initial bids to cover unforeseen risks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded under full and open competition, this method aims to ensure the best value is obtained by soliciting bids from all responsible sources. However, the long duration and firm fixed-price type might have influenced bid strategies, potentially leading to higher prices to account for long-term uncertainties.

Taxpayer Impact: While competition was sought, the extended timeline and fixed-price nature warrant scrutiny to ensure taxpayers are not overpaying for services that could have been procured more efficiently over time.

Public Impact

Taxpayers are funding extensive environmental cleanup at a military installation. The long contract term means sustained financial commitment from the government. Potential environmental benefits from remediation services are a key public interest. The contract's performance impacts the operational readiness and environmental compliance of Hill AFB.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration (over 10 years)
Firm Fixed Price contract type
Lack of clear performance metrics in provided data

Positive Signals

Awarded under Full and Open Competition
Services are critical for environmental compliance

Sector Analysis

Environmental Remediation Services are essential for government agencies, particularly military bases, to manage hazardous waste and comply with environmental regulations. Spending in this sector can vary widely based on the scale of contamination and remediation complexity. This contract's value is substantial for a single project.

Small Business Impact

The provided data does not indicate any subcontracting to small businesses. Further investigation would be needed to determine if small business participation was a requirement or if opportunities were missed.

Oversight & Accountability

The long duration of this contract necessitates robust oversight to ensure URS Group, Inc. is meeting performance standards and that the firm fixed-price remains fair throughout the contract's life. Regular reviews and audits are crucial for accountability.

Related Government Programs

Remediation Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Extended contract duration may lead to cost inefficiencies.
Firm Fixed Price could inflate initial costs or disincentivize optimal performance.
Lack of detailed scope and performance metrics hinders value assessment.
Potential for contractor lock-in due to long-term relationship.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.2 million to URS GROUP, INC.. IGF::OT::IGF E - HILL AFB UTAH TEST AND TRAINING RANGE PERFORMANCE BASED ENVIRONMENTAL REMEDIATION SERVICES - P2# 144764

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 Army).

What is the total obligated amount?

The obligated amount is $52.2 million.

What is the period of performance?

Start: 2013-09-30. End: 2024-02-15.

What specific environmental remediation tasks are covered under this contract, and how has the scope evolved over its long duration?

The provided data lacks specifics on the remediation tasks. Understanding the scope is crucial for assessing value. Over a decade, environmental conditions and regulatory requirements can change significantly, impacting the original scope and potentially leading to change orders or disputes if not managed proactively. Detailed tasking and scope management are key to ensuring the contract remains relevant and cost-effective.

How does the firm fixed-price structure mitigate or exacerbate risks associated with long-term environmental remediation projects?

A firm fixed-price contract shifts most of the risk to the contractor, URS Group, Inc. While this protects the government from cost overruns, it can lead to higher initial bid prices to account for unforeseen challenges inherent in long-term environmental work. Conversely, it incentivizes the contractor to control costs efficiently. However, it may also disincentivize proactive problem-solving if not carefully monitored, as the contractor might focus solely on meeting minimum requirements.

What performance metrics are in place to ensure the effectiveness of the environmental remediation services provided by URS Group, Inc.?

The available data does not specify performance metrics. Effective oversight requires clearly defined, measurable performance standards tied to environmental outcomes and regulatory compliance. Without these, it's difficult to objectively assess the contractor's effectiveness and ensure taxpayer funds are yielding the desired environmental improvements. Regular reporting and independent verification of results are essential.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9128F13R0029

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM

Address: 12120 SHAMROCK PLZ STE 300, OMAHA, NE, 68154

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

Financial Breakdown

Contract Ceiling: $52,620,400

Exercised Options: $52,242,361

Current Obligation: $52,242,361

Actual Outlays: $181,512

Subaward Activity

Number of Subawards: 1136

Total Subaward Amount: $470,461,587

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline