DoD's $45M PMO and SRM transportation contract awarded to URS Federal Services International, Inc

Contract Overview

Contract Amount: $45,065,569 ($45.1M)

Contractor: URS Federal Services International, Inc

Awarding Agency: Department of Defense

Start Date: 2008-02-01

End Date: 2012-09-05

Contract Duration: 1,678 days

Daily Burn Rate: $26.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PMO AND SRM IN-PLANT TRANSPORTATION

Place of Performance

Location: INDEPENDENCE, CUYAHOGA County, OHIO, 44131

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $45.1 million to URS FEDERAL SERVICES INTERNATIONAL, INC for work described as: PMO AND SRM IN-PLANT TRANSPORTATION Key points: 1. Contract value of $45M over a 4-year period suggests significant operational support. 2. Awarded under full and open competition, indicating a potentially competitive bidding process. 3. The 'All Other Professional, Scientific, and Technical Services' NAICS code covers a broad range of activities. 4. Delivery Order contract type implies it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The Cost Plus Fixed Fee (CPFF) pricing structure may lead to cost overruns if not managed carefully. 6. The contractor, URS Federal Services International, Inc., has a substantial contract award history. 7. The contract duration of 1678 days (approx. 4.6 years) indicates a long-term need for these services.

Value Assessment

Rating: fair

The contract's total value of $45M over approximately 4.6 years averages around $9.8M annually. Without specific benchmarks for PMO and SRM transportation services within the DoD, it's difficult to definitively assess value for money. The CPFF contract type can sometimes lead to higher costs compared to fixed-price contracts if cost controls are not robust. Further analysis would require comparing this contract's scope and pricing to similar support services awarded by the Defense Threat Reduction Agency or other DoD components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit bids. The presence of 2 bids indicates some level of competition, but the limited number of bidders might suggest a specialized service or a market with few qualified providers. This level of competition is generally favorable for price discovery, but a deeper dive into the bidding pool and the specific requirements would be needed to confirm optimal price outcomes.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally provides a better opportunity for taxpayers to receive competitive pricing compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Defense Threat Reduction Agency, which receives essential project management and transportation support. Services delivered likely include planning, coordination, execution, and oversight of transportation logistics critical to agency operations. The geographic impact is likely concentrated within the operational areas of the Defense Threat Reduction Agency, potentially worldwide. Workforce implications could involve specialized logistics, project management, and administrative personnel employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored.
Limited number of bidders (2) may indicate a lack of robust competition, potentially impacting price.
The broad NAICS code (541990) makes it challenging to pinpoint the exact nature and efficiency of services without further detail.

Positive Signals

Awarded under full and open competition, suggesting an effort to maximize bidder participation.
The contract duration of over 4 years indicates a stable, long-term requirement, allowing for efficient planning and execution.
The contractor, URS Federal Services International, Inc., is a known entity in federal contracting, suggesting experience.

Sector Analysis

The contract falls under the 'Professional, Scientific, and Technical Services' sector, specifically within the 'All Other' category (NAICS 541990). This broad classification encompasses a wide array of services. Within the federal contracting landscape, professional services represent a significant portion of spending, supporting various agency functions from management and logistics to specialized technical expertise. Benchmarking this contract's value would require comparing it to other large-scale support service contracts within the DoD or similar agencies, considering the specific nature of PMO and SRM functions.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, URS Federal Services International, Inc., would be responsible for managing the entire scope of work.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Defense Threat Reduction Agency. As a Delivery Order under a potential IDIQ, oversight might also be influenced by the terms of the base contract. Accountability measures would be defined by the contract's performance work statement and the CPFF structure, requiring detailed reporting and justification of costs. Transparency is generally facilitated through contract award databases, but specific performance metrics and oversight activities are typically internal to the agency.

Related Government Programs

Defense Logistics Agency Support Services
Department of Defense Project Management Support
Transportation and Logistics Services
Professional and Technical Services Contracts
Defense Threat Reduction Agency Operations Support

Risk Flags

Cost Plus Fixed Fee contract type
Limited competition (2 bidders)
Broad NAICS code classification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.1 million to URS FEDERAL SERVICES INTERNATIONAL, INC. PMO AND SRM IN-PLANT TRANSPORTATION

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 Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $45.1 million.

What is the period of performance?

Start: 2008-02-01. End: 2012-09-05.

What specific transportation and project management services were included under this contract?

The contract, awarded to URS Federal Services International, Inc. for $45,065,568.56, covered 'PMO AND SRM IN-PLANT TRANSPORTATION.' PMO typically refers to Project Management Office, and SRM could stand for Service, Resource, or Supply Chain Management, depending on the specific context within the Defense Threat Reduction Agency (DTRA). 'In-plant transportation' suggests services related to moving goods or personnel within a specific facility or campus, rather than long-haul transportation. This could encompass fleet management, shuttle services, material handling, and the associated project management oversight for these internal logistics operations. The broad NAICS code 541990 ('All Other Professional, Scientific, and Technical Services') further indicates a diverse scope that likely included planning, coordination, execution, and reporting related to these transportation functions.

How does the Cost Plus Fixed Fee (CPFF) pricing structure impact the value for money in this contract?

The Cost Plus Fixed Fee (CPFF) pricing structure means the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. While this structure is often used for research and development or when cost uncertainties are high, it can present risks to value for money. The 'fixed fee' component is negotiated upfront, but the 'cost' component is variable. If the contractor's costs exceed initial estimates, the government pays the actual costs, plus the fixed fee. This can incentivize less cost-consciousness from the contractor compared to fixed-price contracts. For this $45M contract over approximately 4.6 years, effective oversight by the Defense Threat Reduction Agency is crucial to scrutinize costs, ensure efficiency, and prevent potential overruns that could diminish the overall value realized by the taxpayer.

What does the limited competition (2 bidders) suggest about the market for these services?

The fact that only two bids were received for this $45M contract, despite being awarded under 'full and open competition,' suggests a potentially concentrated market for these specific 'PMO AND SRM IN-PLANT TRANSPORTATION' services. This could be due to several factors: the specialized nature of the requirements, high barriers to entry (e.g., security clearances, specific equipment, established relationships), or perhaps the timing and scope of the solicitation limited the pool of interested and capable contractors. While competition is generally preferred, a limited number of bidders can sometimes lead to higher prices than if a broader range of companies competed. It warrants further investigation into whether the solicitation was structured in a way that might have inadvertently restricted competition or if the market genuinely has few players.

What is the historical spending trend for similar services by the Defense Threat Reduction Agency?

Analyzing historical spending trends for similar services by the Defense Threat Reduction Agency (DTRA) is essential for context. Without access to DTRA's specific procurement history for 'PMO AND SRM IN-PLANT TRANSPORTATION' or closely related logistics and project management support, a direct comparison is difficult. However, federal spending databases often show significant investments by DoD agencies in professional, scientific, and technical services, including logistics and program management. The $45M awarded to URS Federal Services International, Inc. over roughly 4.6 years represents a substantial, ongoing commitment. Understanding if DTRA has consistently awarded similar large-value contracts for internal transportation and PMO functions, or if this represents a new or expanded requirement, would provide valuable insight into the agency's strategic resource allocation and the stability of this spending category.

What are the potential risks associated with a contract of this size and duration?

Contracts of this magnitude ($45M) and duration (over 4 years) carry inherent risks. For this specific contract, potential risks include: 1) Cost Overruns: The CPFF structure, if not rigorously managed, can lead to costs exceeding initial projections. 2) Performance Degradation: Over a long period, contractor performance might decline if not consistently monitored and managed. 3) Scope Creep: The definition of 'PMO AND SRM IN-PLANT TRANSPORTATION' might be broad, leading to potential expansion of services beyond the original intent without adequate cost adjustments. 4) Contractor Dependency: The agency might become overly reliant on the contractor, making transitions difficult. 5) Market Changes: Evolving transportation technologies or agency needs might render the contracted services less optimal over time. Robust oversight, clear performance metrics, and regular reviews are critical to mitigate these risks.

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 FIXED FEE (U)

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

Financial Breakdown

Contract Ceiling: $47,875,175

Exercised Options: $46,853,891

Current Obligation: $45,065,569

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: DTRA0101D0012

IDV Type: IDC

Timeline