DoD's $82.6M Contract for Program Management Services in Azerbaijan Awarded to Washington Group International
Contract Overview
Contract Amount: $48,018,694 ($48.0M)
Contractor: URS Federal Services International, Inc
Awarding Agency: Department of Defense
Start Date: 2004-10-14
End Date: 2012-02-28
Contract Duration: 2,693 days
Daily Burn Rate: $17.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200512!502297!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0012 !A!N! !N!0012 !01 !20041014!20050728!825763878!825763878!007900517!N!WASHINGTON GROUP INTERNATIONAL!1500 WEST 3RD STREET !CLEVELAND !OH!44113!00000! !AJ!* !* !AZERBAIJAN!+000009061715!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !000 !* !541330!E! !5!B!S!D! !D!20060828!B! ! !N!Z!A!U!R!2!003!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: INDEPENDENCE, CUYAHOGA County, OHIO, 44131
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $48.0 million to URS FEDERAL SERVICES INTERNATIONAL, INC for work described as: 200512!502297!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0012 !A!N! !N!0012 !01 !20041014!20050728!825763878!825763878!007900517!N!WASHINGTON GROUP INTERNATIONAL!1500 WEST 3RD STREET !CLEVELAND !OH!44113!00000! !AJ!* !* … Key points: 1. The contract, valued at $82.6 million, is for program management and support services. 2. Awarded to Washington Group International, it was procured under full and open competition. 3. The contract duration is 2693 days, ending in February 2012. 4. The sector is professional, scientific, and technical services, with a PSC code of 541330.
Value Assessment
Rating: fair
The contract value of $82.6 million over approximately 7.4 years suggests a moderate annual spend. Benchmarking against similar program management contracts would be necessary for a precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The competitive nature of the award suggests efforts to secure reasonable pricing, but the total taxpayer impact depends on the final cost and effectiveness of the services.
Public Impact
Supports critical defense operations in Azerbaijan, potentially impacting national security interests. The significant contract value indicates a substantial investment in program management expertise. Long contract duration suggests a sustained need for these services over an extended period. Award to a specific company highlights the importance of specialized capabilities in this service area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to cost overruns if not managed effectively.
- Geopolitical risks associated with operations in Azerbaijan may impact service delivery.
- Reliance on a single contractor for extended program management could limit flexibility.
Positive Signals
- Full and open competition suggests a robust procurement process.
- Awarding to a firm with demonstrated expertise in program management is a positive signal.
- The contract aims to provide essential support services for defense initiatives.
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, specifically Program Management. Spending in this area is crucial for government efficiency and project execution, with benchmarks varying widely based on service complexity and duration.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The contract was awarded to a large business, Washington Group International, suggesting limited direct opportunities for small businesses on this prime contract.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), indicating established oversight mechanisms. However, the long duration necessitates continuous monitoring to ensure performance and cost control.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration (over 7 years).
- Operations in a potentially volatile geopolitical region (Azerbaijan).
- Reliance on a single contractor for critical program management.
- Lack of specific performance metrics in the provided data.
- Potential for scope creep over an extended period.
Tags
all-other-professional-scientific-and-te, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.0 million to URS FEDERAL SERVICES INTERNATIONAL, INC. 200512!502297!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0012 !A!N! !N!0012 !01 !20041014!20050728!825763878!825763878!007900517!N!WASHINGTON GROUP INTERNATIONAL!1500 WEST 3RD STREET !CLEVELAND !OH!44113!00000! !AJ!* !* !AZERBAIJAN!+000009061715!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !000 !* !541330!E! !5!B!S!D! !D!200
Who is the contractor on this award?
The obligated recipient is URS FEDERAL SERVICES INTERNATIONAL, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $48.0 million.
What is the period of performance?
Start: 2004-10-14. End: 2012-02-28.
What specific program management functions are being performed under this contract, and how do they directly contribute to the Defense Threat Reduction Agency's mission?
The contract specifies 'Program Management/Support Services.' These likely encompass planning, organizing, directing, and controlling resources to achieve specific defense objectives related to threat reduction in Azerbaijan. This could include logistical support, technical advisory, operational planning, and coordination with local entities, all crucial for the effective execution of DTRA's mission in the region.
Given the contract's duration and value, what are the primary risks associated with potential cost overruns or performance deficiencies?
The primary risks include scope creep, unforeseen geopolitical instability in Azerbaijan impacting operations, contractor performance degradation over the long term, and potential changes in government requirements. Effective risk mitigation would involve robust contract surveillance, clear performance metrics, contingency planning, and regular performance reviews by the DCMA.
How does the performance of Washington Group International on this contract align with the overall effectiveness and efficiency goals of the Defense Threat Reduction Agency?
Assessing alignment requires performance data not present here. However, the award under full and open competition suggests the agency sought a capable provider. Continued effectiveness hinges on the contractor meeting performance standards, adapting to evolving threats, and contributing to DTRA's strategic objectives in Azerbaijan within the allocated budget.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 1500 W 3RD ST. STE 200, CLEVELAND, OH, 44113
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DTRA0101D0012
IDV Type: IDC
Timeline
Start Date: 2004-10-14
Current End Date: 2012-02-28
Potential End Date: 2012-02-28 00:00:00
Last Modified: 2024-02-09
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