DoD's $47.9M VCG Region 3 Implementation contract awarded to URS Federal Services International, Inc

Contract Overview

Contract Amount: $47,927,216 ($47.9M)

Contractor: URS Federal Services International, Inc

Awarding Agency: Department of Defense

Start Date: 2018-09-18

End Date: 2023-09-30

Contract Duration: 1,838 days

Daily Burn Rate: $26.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: VCG REGION 3 IMPLEMNTATION

Plain-Language Summary

Department of Defense obligated $47.9 million to URS FEDERAL SERVICES INTERNATIONAL, INC for work described as: VCG REGION 3 IMPLEMNTATION Key points: 1. Contract value represents a significant investment in regional implementation services. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Contract duration of over 5 years indicates a long-term need for these services. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code covers a broad range of activities. 5. Cost Plus Fixed Fee contract type may incentivize cost management by the contractor. 6. The award was made by the Defense Threat Reduction Agency, indicating a defense-related need.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services provided under VCG Region 3 Implementation. The Cost Plus Fixed Fee (CPFF) pricing structure means that while the fixed fee is set, the cost reimbursement component can fluctuate. This structure can sometimes lead to higher overall costs compared to fixed-price contracts if not managed carefully. Comparing it to similar large-scale regional implementation projects within the Department of Defense would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this specific requirement. While more than one bidder is positive, a higher number of bids typically leads to more robust price discovery and potentially better value for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, potentially driving down prices and improving service quality through competitive pressure.

Public Impact

The Department of Defense is the primary beneficiary, receiving implementation services for VCG Region 3. Services delivered likely involve technical, scientific, and professional support critical to regional operations. The geographic impact is focused on 'Region 3', though the specific boundaries are not detailed. Workforce implications could include employment opportunities for professionals in scientific, technical, and management fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored.
The broad NAICS code 'All Other Professional, Scientific, and Technical Services' may obscure the specific nature and cost drivers of the work.
Limited information on performance metrics makes it difficult to assess the contractor's effectiveness beyond contract completion.

Positive Signals

Awarded under full and open competition, suggesting a fair and accessible bidding process.
The contract duration of over 5 years indicates a stable, long-term requirement and potential for sustained service delivery.
The contractor, URS Federal Services International, Inc., has a track record of performing government contracts, implying some level of established capability.

Sector Analysis

The professional, scientific, and technical services sector is a large and diverse market within the federal contracting landscape. This contract falls under the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990), which encompasses a wide array of specialized services not classified elsewhere. Federal spending in this broad category often supports complex program management, research, engineering, and specialized technical support across various agencies. Comparable spending benchmarks would require identifying contracts with similar scope and service descriptions within the Department of Defense or other agencies.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. There is no information provided regarding subcontracting plans or performance related to small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless URS Federal Services International, Inc. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Threat Reduction Agency (DTRA) contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates close monitoring of incurred costs to ensure they align with the contract's objectives and the fixed fee. Transparency is dependent on the agency's reporting practices and the level of detail made public regarding contract performance and expenditures. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Threat Reduction Agency (DTRA) Contracts
Professional, Scientific, and Technical Services
Regional Implementation Projects
Department of Defense Service Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Broad NAICS code may limit transparency into specific service costs and performance.
Limited public information on specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.9 million to URS FEDERAL SERVICES INTERNATIONAL, INC. VCG REGION 3 IMPLEMNTATION

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 $47.9 million.

What is the period of performance?

Start: 2018-09-18. End: 2023-09-30.

What specific services are included under 'VCG Region 3 Implementation'?

The provided data does not specify the exact services encompassed by 'VCG Region 3 Implementation'. This designation likely refers to a specific operational region or program within the Department of Defense, possibly related to threat reduction or regional security initiatives. The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' suggests a broad scope that could include program management, technical consulting, logistical support, research, analysis, or specialized operational assistance tailored to the needs of Region 3. Further details from the contract's statement of work or performance reports would be necessary to ascertain the precise nature of the services delivered.

How does the Cost Plus Fixed Fee (CPFF) structure impact cost control for this contract?

The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fee is fixed, the total contract cost can vary based on actual expenses. Effective cost control relies heavily on robust government oversight to scrutinize and approve incurred costs, ensuring they are reasonable, allocable, and necessary for contract performance. If oversight is weak, the CPFF structure can incentivize higher spending to cover more costs, as the contractor's profit (the fee) remains constant regardless of the total cost. Conversely, a well-managed CPFF contract can provide flexibility for evolving project needs while still offering a defined profit margin.

What is the historical spending pattern for similar 'VCG Region 3 Implementation' services?

The provided data does not contain historical spending patterns for 'VCG Region 3 Implementation' or similar services. To analyze historical spending, one would need to access contract databases and search for previous awards related to this specific program or comparable regional implementation efforts within the Department of Defense or the Defense Threat Reduction Agency. Key metrics to examine would include the number of prior contracts, their values, durations, awarded contractors, and the pricing structures used. Understanding past spending trends would help contextualize the current $47.9 million award and assess whether it represents an increase, decrease, or stable level of investment in these services.

What is the track record of URS Federal Services International, Inc. with the Department of Defense?

URS Federal Services International, Inc. has a history of performing contracts with the Department of Defense. While the provided data focuses on this specific award, a comprehensive assessment of their track record would involve reviewing their past performance on other DoD contracts. This includes examining contract values, types (e.g., cost-reimbursable, fixed-price), performance evaluations, any past performance issues or awards, and their experience with similar service requirements. Their ability to secure this $47.9 million contract suggests they possess the necessary qualifications and experience deemed acceptable by the Defense Threat Reduction Agency.

How does the competition level of 3 bidders compare to industry norms for this type of service?

A competition level of 3 bidders for a contract valued at $47.9 million, awarded under full and open competition, suggests a moderate level of market interest. For complex professional, scientific, and technical services, particularly those with specialized requirements like regional implementation for a defense agency, 3 bidders can be considered a reasonable outcome. However, it is not indicative of intense competition. In highly commoditized service areas, one might expect more bidders. For niche or highly specialized services, fewer bidders might be the norm. Without specific benchmarks for NAICS 541990 contracts of this magnitude and nature, it's difficult to definitively label this competition level as high or low, but it implies that the opportunity was known and attracted multiple capable firms.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HDTRA116R0027

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Government Services Inc.

Address: 1300 EAST 9TH ST STE 500, CLEVELAND, OH, 44114

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

Financial Breakdown

Contract Ceiling: $49,708,354

Exercised Options: $49,708,354

Current Obligation: $47,927,216

Actual Outlays: $5,204,911

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDTRA118D0005

IDV Type: IDC

Timeline