DoD's $51.4M Maritime Surveillance System Contract Awarded to URS Federal Services International, Inc

Contract Overview

Contract Amount: $51,419,242 ($51.4M)

Contractor: URS Federal Services International, Inc

Awarding Agency: Department of Defense

Start Date: 2019-09-16

End Date: 2022-11-05

Contract Duration: 1,146 days

Daily Burn Rate: $44.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LB AND MARITIME SURVEILLANCE SYSTEM

Plain-Language Summary

Department of Defense obligated $51.4 million to URS FEDERAL SERVICES INTERNATIONAL, INC for work described as: LB AND MARITIME SURVEILLANCE SYSTEM Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1146 days indicates a significant, long-term need for these services. 3. The award was a delivery order, implying it's part of a larger contract vehicle. 4. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services,' a broad category. 5. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but also carries inherent risks. 6. The base award amount is substantial, requiring careful monitoring of performance and costs. 7. No small business set-aside was utilized, indicating the primary contractor is not a small business.

Value Assessment

Rating: fair

Benchmarking the value for this specific contract is challenging without more detailed cost breakdowns and performance metrics. The CPFF contract type means the final cost is not fixed upfront, making direct comparisons to fixed-price contracts difficult. However, the total award amount of over $51 million for a multi-year surveillance system suggests a significant investment. Further analysis would require comparing the delivered capabilities and operational effectiveness against the cost, as well as against similar surveillance systems procured by the Department of Defense or other agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders (as indicated by 'no': 3) suggests a moderate level of competition for this requirement. While three bidders is better than a sole-source award, a higher number of competitors could potentially drive prices down further and foster greater innovation. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide a clearer picture of the competitive intensity.

Taxpayer Impact: A full and open competition with multiple bidders generally benefits taxpayers by promoting a more competitive pricing environment and encouraging contractors to offer their best value. This approach helps ensure that government funds are used efficiently by selecting the most cost-effective solution.

Public Impact

The Department of Defense is the primary beneficiary, receiving enhanced maritime surveillance capabilities. The services delivered likely include the development, integration, and maintenance of a surveillance system, potentially involving hardware, software, and personnel. The geographic impact is likely focused on areas requiring maritime domain awareness, potentially global or specific operational theaters. Workforce implications could include specialized technical roles for system development, deployment, and ongoing support, both within the contractor's organization and potentially for government personnel. The system aims to improve situational awareness and response capabilities in maritime environments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
Lack of specific performance metrics in the provided data makes it difficult to assess the true value for money.
The broad NAICS code suggests a wide range of potential services, making it harder to pinpoint specific cost drivers without more detail.
The contract duration is long, increasing the risk of scope creep or obsolescence if not actively managed.

Positive Signals

Awarded through full and open competition, indicating a structured and potentially fair bidding process.
Multiple bidders participated, suggesting market interest and a degree of price discovery.
The contract addresses a critical defense need for maritime surveillance.
The delivery order structure implies it fits within an existing framework, potentially streamlining execution.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under the broad category of 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). This sector is characterized by a wide array of specialized services supporting government and commercial clients. The market for defense-related technical services is substantial, driven by national security needs. Comparable spending benchmarks would involve analyzing other large-scale surveillance system procurements by the DoD or other federal agencies, considering factors like system complexity, technology employed, and duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary contractor, URS Federal Services International, Inc., is likely a large business. There is no explicit information provided regarding subcontracting plans or goals for small businesses. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, large prime contractors are often encouraged or required to subcontract portions of their work to small businesses, which can provide opportunities for smaller firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting agency, the Defense Threat Reduction Agency (DTRA), and the Department of Defense. Mechanisms likely include contract performance reviews, financial audits, and program management oversight. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee contract, requiring justification for all costs incurred and adherence to the fixed fee. Transparency is generally facilitated through contract award databases and reporting requirements, though specific operational details of the surveillance system itself may be classified.

Related Government Programs

Maritime Domain Awareness Programs
Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Defense Threat Reduction Agency (DTRA) Contracts
Professional, Scientific, and Technical Services Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration increases risk of technological obsolescence and scope creep.
Broad NAICS code necessitates detailed review of services rendered to ensure value.
Limited public information on specific system capabilities and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.4 million to URS FEDERAL SERVICES INTERNATIONAL, INC. LB AND MARITIME SURVEILLANCE SYSTEM

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 $51.4 million.

What is the period of performance?

Start: 2019-09-16. End: 2022-11-05.

What is the specific nature of the 'LB AND MARITIME SURVEILLANCE SYSTEM' being procured?

The provided data does not detail the specific functionalities or components of the 'LB AND MARITIME SURVEILLANCE SYSTEM.' The NAICS code 541990 ('All Other Professional, Scientific, and Technical Services') suggests a broad scope, potentially encompassing system design, integration, software development, hardware procurement, installation, testing, and ongoing support. Given the awarding agency (Defense Threat Reduction Agency), the system likely relates to monitoring and securing maritime areas against specific threats, which could include weapons proliferation, terrorism, or other national security concerns. Further details would likely be found in the contract's Statement of Work (SOW) or technical specifications, which are not publicly available in this dataset.

How does the Cost Plus Fixed Fee (CPFF) structure impact cost control and value for money compared to other contract types?

The Cost Plus Fixed Fee (CPFF) contract type reimburses the contractor for allowable costs incurred plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or involves significant uncertainty, as is common in research and development or complex system integration projects. While the fixed fee provides some incentive for the contractor to control costs (as it doesn't increase with higher costs), it can also lead to cost overruns if the initial cost estimates are inaccurate or if the scope expands. Unlike fixed-price contracts, the government bears more of the cost risk. For value for money, CPFF requires rigorous oversight to ensure costs are reasonable and allocable, and that the final product meets the required performance standards. Benchmarking value is more complex than with fixed-price contracts, as the final cost is variable.

What is the track record of URS Federal Services International, Inc. with similar defense contracts?

URS Federal Services International, Inc. has a significant history of performing contracts for the U.S. government, particularly within the defense and engineering sectors. As a subsidiary of AECOM, it has been involved in a wide range of complex projects, including infrastructure, environmental services, and technical support for military operations. While specific details on their performance for maritime surveillance systems require deeper database searches, their extensive experience suggests a capacity to handle large-scale, technically demanding contracts. Government contract performance databases (like the Federal Procurement Data System - FPDS) would provide more granular data on past performance, including past performance ratings, any disputes, or contract modifications, which are crucial for a comprehensive assessment.

What are the potential risks associated with a multi-year contract for a surveillance system?

Multi-year contracts for complex systems like surveillance platforms carry several inherent risks. Firstly, technological obsolescence is a significant concern; technology evolves rapidly, and a system designed and implemented over several years might be outdated by the time it is fully operational or shortly thereafter. Secondly, scope creep is a common risk, where requirements may change or expand during the contract period, leading to cost increases and schedule delays if not managed effectively. Thirdly, contractor performance can degrade over long periods, or key personnel might leave, impacting the project's continuity. Finally, the long duration means the government is committed to a specific solution for an extended period, potentially limiting flexibility if a better or more cost-effective alternative emerges.

How does the 'Defense Threat Reduction Agency' (DTRA) typically utilize contracts for surveillance and technical services?

The Defense Threat Reduction Agency (DTRA) focuses on countering weapons of mass destruction (WMD) and emerging threats. Consequently, their contracts often involve advanced technologies, intelligence gathering, and specialized technical services. Surveillance systems procured by DTRA are likely geared towards monitoring activities related to WMD proliferation, counter-terrorism, or ensuring the security of sensitive materials and facilities. This could include sensor technology, data analysis platforms, and secure communication systems. DTRA frequently engages contractors for research, development, testing, evaluation, and operational support of these specialized capabilities, often requiring high levels of security clearance and technical expertise, as suggested by the broad 'All Other Professional, Scientific, and Technical Services' NAICS code in this case.

What is the significance of the contract being a 'Delivery Order' rather than a standalone contract?

A 'Delivery Order' typically indicates that this contract is a task order or delivery order issued against a previously awarded indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar type of contract vehicle. IDIQ contracts establish terms and conditions, including pricing structures and performance requirements, under which the government can issue multiple orders over a specified period. This approach allows for flexibility and streamlined procurement for anticipated needs. The significance is that the 'LB AND MARITIME SURVEILLANCE SYSTEM' award is one component of a potentially larger, pre-competed contract. This means the initial competition likely occurred when the parent IDIQ contract was awarded, and this delivery order represents a specific call for goods or services under those established terms.

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: Amentum 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: $51,708,125

Exercised Options: $51,708,125

Current Obligation: $51,419,242

Actual Outlays: $24,031,330

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $635,285

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