DoD's $14.3M aircraft maintenance contract awarded to URS Federal Services Inc. for California support

Contract Overview

Contract Amount: $14,255,881 ($14.3M)

Contractor: URS Federal Services Inc.

Awarding Agency: Department of Defense

Start Date: 2008-08-04

End Date: 2009-02-28

Contract Duration: 208 days

Daily Burn Rate: $68.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: LABOR SERVICES TO ACCOMPLISH THE AIRCRAFT MAINTENANCE FIELD-LEVEL SUPPORT FOR THE CA AVCRAD.

Place of Performance

Location: FRESNO, FRESNO County, CALIFORNIA, 93706

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $14.3 million to URS FEDERAL SERVICES INC. for work described as: LABOR SERVICES TO ACCOMPLISH THE AIRCRAFT MAINTENANCE FIELD-LEVEL SUPPORT FOR THE CA AVCRAD. Key points: 1. Contract value represents a significant investment in specialized aircraft maintenance. 2. The award to a single contractor suggests a focused approach to meeting specific support needs. 3. The relatively short duration of the contract may indicate a need for agile or short-term support. 4. Performance context is critical given the specialized nature of aircraft maintenance. 5. This contract falls within the broader Defense sector's extensive spending on operational support. 6. The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code points to a niche within the aerospace supply chain.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns. The total award of $14.3 million for a period of approximately 7 months (208 days) suggests a substantial daily expenditure. Comparing this to similar field-level aircraft maintenance contracts would be necessary to assess if the pricing is competitive. The Time and Materials (T&M) contract type can sometimes lead to cost overruns if not closely monitored, which warrants careful review of the final expenditure against the initial estimate.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. With 4 bidders identified, this suggests a reasonable level of competition for this specialized service. The presence of multiple bidders generally aids in price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at a fair market price, preventing potential overpayment.

Public Impact

The primary beneficiaries are the U.S. Department of Defense, specifically units requiring aircraft maintenance support in California. The contract delivers essential field-level maintenance services for the CA AVCRAD (Air Combat Vulnerability Reduction Assessment Directorate) aircraft. The geographic impact is concentrated in California, where the maintenance services will be performed. Workforce implications include the potential employment of skilled technicians and support staff by URS Federal Services Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost uncertainty if not managed rigorously.
The specific nature of 'field-level support' may introduce logistical and operational complexities.
The relatively short contract duration could imply a need for rapid deployment or a temporary surge in support requirements.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
The contract specifies a clear deliverable: aircraft maintenance field-level support.
The award to a known entity (URS Federal Services Inc.) may indicate a level of established capability.

Sector Analysis

This contract operates within the broader aerospace and defense industry, a sector characterized by high technological sophistication and significant government procurement. The NAICS code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' places this contract within a specialized segment of the supply chain that supports aircraft operations and readiness. Spending in this area is crucial for maintaining military aviation capabilities. Comparable spending benchmarks would typically involve analyzing other contracts for aircraft maintenance, repair, and overhaul (MRO) services across different military branches and defense contractors.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, URS Federal Services Inc., would be responsible for fulfilling the contract requirements, and any subcontracting would be at their discretion, not mandated by a set-aside provision.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. DCMA is responsible for ensuring contractors meet performance, quality, and delivery requirements. Transparency is generally facilitated through contract award databases like FPDS. Accountability measures would be tied to the contract's performance clauses and the T&M payment structure, requiring diligent monitoring of hours and materials used.

Related Government Programs

Aircraft Maintenance Services
Aerospace Support Contracts
Defense Logistics and Support
Field Service Contracts
Military Aviation Readiness

Risk Flags

Time and Materials contract type requires diligent oversight to control costs.
Short contract duration may indicate specific, potentially temporary, support needs.
Field-level support can introduce logistical and operational complexities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.3 million to URS FEDERAL SERVICES INC.. LABOR SERVICES TO ACCOMPLISH THE AIRCRAFT MAINTENANCE FIELD-LEVEL SUPPORT FOR THE CA AVCRAD.

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $14.3 million.

What is the period of performance?

Start: 2008-08-04. End: 2009-02-28.

What is the historical spending pattern for URS Federal Services Inc. with the Department of Defense for similar aircraft maintenance services?

Analyzing the historical spending patterns of URS Federal Services Inc. with the Department of Defense for similar aircraft maintenance services is crucial for assessing their track record and the value proposition of this specific contract. Without access to detailed historical procurement data for URS Federal Services Inc., a precise analysis is not possible. However, generally, a contractor with a consistent history of performing well on similar DoD contracts, delivering on time and within budget, would be considered a lower-risk awardee. Conversely, a history of performance issues, cost overruns, or contract disputes would raise concerns. The $14.3 million value of this contract should be viewed in the context of the company's overall contract portfolio with the DoD. A large contract for a company with limited prior DoD experience might represent a higher risk than for a seasoned contractor.

How does the awarded amount of $14.3 million compare to the estimated value or benchmark for similar field-level aircraft maintenance contracts?

Comparing the $14.3 million awarded amount to benchmarks for similar field-level aircraft maintenance contracts is essential for evaluating value for money. This comparison requires access to a database of comparable contracts, considering factors such as the type of aircraft, the scope of maintenance (e.g., scheduled, unscheduled, depot-level), the duration of the contract, and the geographic location. Given that this is a Time and Materials (T&M) contract, the final cost can fluctuate based on actual hours worked and materials used. Therefore, a comparison should ideally look at the estimated ceiling price and the historical spending on similar T&M contracts. If this contract's estimated cost per day or per labor hour is significantly higher than industry averages or previously awarded government contracts for comparable services, it could indicate potential overpricing or inefficiencies.

What are the specific risks associated with a Time and Materials (T&M) contract for aircraft maintenance, and how are they mitigated in this case?

Time and Materials (T&M) contracts, like the one awarded to URS Federal Services Inc. for $14.3 million, carry inherent risks, primarily the potential for cost escalation if not managed effectively. The government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or fixed hourly rate. This structure can lead to higher-than-anticipated costs if the contractor's efficiency is low or if scope creep occurs without proper change order management. Risks include inflated labor hours, unnecessary material charges, and extended project timelines. Mitigation strategies typically involve robust government oversight, including detailed review of timesheets and invoices, establishing a 'not-to-exceed' (NTE) ceiling for the contract, and implementing strict change control processes. The Defense Contract Management Agency (DCMA) would play a critical role in monitoring contractor performance and costs to ensure adherence to the contract terms and prevent excessive spending.

What is the expected performance standard or key performance indicators (KPIs) for this aircraft maintenance contract?

The expected performance standards and Key Performance Indicators (KPIs) for this aircraft maintenance contract are not explicitly detailed in the provided data. However, for field-level aircraft maintenance, critical KPIs typically revolve around aircraft availability rates, turnaround times for maintenance tasks, quality of repairs (e.g., defect rates, rework), adherence to safety protocols, and compliance with technical orders and regulations. For a contract of this nature, the Department of Defense would likely establish specific metrics related to mission readiness and operational availability of the supported aircraft. URS Federal Services Inc. would be expected to meet or exceed these standards to ensure the effectiveness of the aircraft and the safety of personnel. Failure to meet these KPIs could result in contract penalties or non-renewal.

How does the competition level (4 bidders) for this $14.3M contract influence the pricing and potential for innovation?

A competition level involving four bidders for this $14.3 million aircraft maintenance contract generally suggests a healthy market response and provides a solid basis for price discovery. With multiple firms vying for the contract, the government is more likely to receive competitive bids that reflect fair market value. This level of competition can incentivize contractors to offer not only competitive pricing but also to propose innovative solutions or efficiencies to win the award. However, the degree to which innovation is fostered also depends on the specific evaluation criteria used in the source selection process. If the evaluation heavily favors technical approach and past performance over innovative methods, the impact on innovation might be limited. Nonetheless, the presence of four bidders is a positive indicator for taxpayers, suggesting that the government secured the services through a process designed to yield favorable terms.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM Global II, LLC (UEI: 043271568)

Address: 175 ADMIRAL COCHRANE DR, ANNAPOLIS, MD, 03

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,676,100

Exercised Options: $14,676,100

Current Obligation: $14,255,881

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F3460197D0423

IDV Type: IDC

Timeline