VA Medical Center Awards $24.7M Construction Phase Services Contract to URS-SmithGroup JV

Contract Overview

Contract Amount: $24,669,352 ($24.7M)

Contractor: Urs-Smithgroup Joint Venture

Awarding Agency: Department of Defense

Start Date: 2021-02-22

End Date: 2026-06-25

Contract Duration: 1,949 days

Daily Burn Rate: $12.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: LOUISVILLE VA MEDICAL CENTER (VAMC) DOR CONSTRUCTION PHASE SERVICES (CPS) - BASE AND ALL OPTIONS BEING ACCEPTED AT THIS TIME THE BASE AND OPTION 11 BEING FUNDED.

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40202

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $24.7 million to URS-SMITHGROUP JOINT VENTURE for work described as: LOUISVILLE VA MEDICAL CENTER (VAMC) DOR CONSTRUCTION PHASE SERVICES (CPS) - BASE AND ALL OPTIONS BEING ACCEPTED AT THIS TIME THE BASE AND OPTION 11 BEING FUNDED. Key points: 1. Contract awarded for construction phase services at Louisville VA Medical Center. 2. The contract has a total value of $24.7 million, including base and options. 3. The award was not competed, raising questions about price discovery. 4. Engineering services sector sees significant government spending.

Value Assessment

Rating: fair

The contract value of $24.7 million for engineering services appears substantial. Benchmarking against similar large-scale construction phase services contracts would be necessary to definitively assess its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited competition approach. This method may not ensure the best possible price discovery for the government.

Taxpayer Impact: The lack of competition could potentially lead to higher costs for taxpayers compared to a fully competed contract.

Public Impact

Veterans will benefit from improved facilities at the Louisville VA Medical Center. The project supports engineering and construction jobs. Taxpayer funds are being allocated for critical infrastructure upgrades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing due to limited competition

Positive Signals

Supports critical VA infrastructure
Long-term contract duration

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for government infrastructure projects. Spending in this sector can vary significantly based on agency needs and project scale.

Small Business Impact

The contract was awarded to a joint venture, URS-SmithGroup. There is no indication of specific provisions or set-asides for small businesses in this award.

Oversight & Accountability

Oversight will be critical to ensure the contractor meets performance requirements and that funds are used efficiently, especially given the limited competition.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition
Potential for price inflation
Lack of transparency in award process

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.7 million to URS-SMITHGROUP JOINT VENTURE. LOUISVILLE VA MEDICAL CENTER (VAMC) DOR CONSTRUCTION PHASE SERVICES (CPS) - BASE AND ALL OPTIONS BEING ACCEPTED AT THIS TIME THE BASE AND OPTION 11 BEING FUNDED.

Who is the contractor on this award?

The obligated recipient is URS-SMITHGROUP JOINT VENTURE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $24.7 million.

What is the period of performance?

Start: 2021-02-22. End: 2026-06-25.

What was the justification for not competing this significant contract?

The justification for not competing this contract is not provided in the data. Typically, sole-source or limited competition awards require a documented justification, such as a specific capability only one vendor possesses or an urgent need. Further investigation into the contract file would be needed to understand the rationale.

How does the pricing compare to similar engineering services contracts awarded through full and open competition?

Without access to a benchmark database of similar contracts awarded under full and open competition, a direct price comparison is difficult. However, the absence of competition generally suggests a higher risk of the price not being the lowest achievable, necessitating careful monitoring of performance and costs.

What are the potential risks associated with a non-competed contract of this magnitude?

The primary risks include paying a non-competitive price, potentially receiving less innovative solutions, and the perception of unfairness. For a contract of this size, ensuring robust oversight and clear performance metrics is paramount to mitigate these risks and ensure value for taxpayer money.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912QR21R0016

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM

Address: 500 W JEFFERSON ST STE 1600, LOUISVILLE, KY, 40202

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,162,210

Exercised Options: $24,669,352

Current Obligation: $24,669,352

Actual Outlays: $2,580,702

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline