DoD's $22M Nuclear Security Contract with URS Federal Services in Kazakhstan Faces Scrutiny
Contract Overview
Contract Amount: $22,042,190 ($22.0M)
Contractor: URS Federal Services International, Inc
Awarding Agency: Department of Defense
Start Date: 2019-09-18
End Date: 2024-09-22
Contract Duration: 1,831 days
Daily Burn Rate: $12.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: GLOBAL NUCLEAR SECURITY (GNS) KAZAKHSTAN NUCLEAR SECURITY ENGAGEMENT (KNSE)
Plain-Language Summary
Department of Defense obligated $22.0 million to URS FEDERAL SERVICES INTERNATIONAL, INC for work described as: GLOBAL NUCLEAR SECURITY (GNS) KAZAKHSTAN NUCLEAR SECURITY ENGAGEMENT (KNSE) Key points: 1. Contract awarded to URS Federal Services International, Inc. for $22.04M. 2. Focuses on nuclear security engagement in Kazakhstan. 3. Competition method is 'Full and Open', but specific price discovery impact is unclear. 4. Sector is Defense, specifically 'All Other Professional, Scientific, and Technical Services'. 5. No small business participation noted.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar international security engagement contracts is difficult due to unique geopolitical factors.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a broad search for qualified contractors. However, the specific impact on price discovery is not detailed, leaving potential for unoptimized pricing.
Taxpayer Impact: Taxpayer funds are allocated for international nuclear security, aiming to reduce global threats. The effectiveness and efficiency of this spending will determine the ultimate taxpayer value.
Public Impact
Enhances global nuclear security by engaging with Kazakhstan. Supports U.S. foreign policy objectives in non-proliferation. Potential for technology transfer and capacity building in nuclear safety. Long-term contract duration (over 5 years) indicates sustained commitment. Lack of small business involvement may limit broader economic impact.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Lack of small business participation
- Limited transparency on price discovery impact
Positive Signals
- Full and open competition
- Addresses critical global security issue
- Long contract duration
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically related to defense and international security. Spending benchmarks for such specialized international engagements are highly variable and depend on geopolitical context and specific project scope.
Small Business Impact
The contract data indicates no small business participation. This suggests that the prime contractor, URS Federal Services International, Inc., is likely a large business, and subcontracting opportunities for small businesses were either not pursued or not significant.
Oversight & Accountability
The Department of Defense, through the Defense Threat Reduction Agency, is responsible for oversight. The long duration and international nature of the contract necessitate robust oversight mechanisms to ensure funds are used effectively and objectives are met.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type can lead to higher costs.
- Lack of transparency on price discovery impact.
- No small business participation noted.
- Long contract duration may increase risk exposure over time.
- Geopolitical instability in the region could impact project execution.
Tags
all-other-professional-scientific-and-te, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.0 million to URS FEDERAL SERVICES INTERNATIONAL, INC. GLOBAL NUCLEAR SECURITY (GNS) KAZAKHSTAN NUCLEAR SECURITY ENGAGEMENT (KNSE)
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 $22.0 million.
What is the period of performance?
Start: 2019-09-18. End: 2024-09-22.
What specific nuclear security threats or capabilities is this engagement designed to address in Kazakhstan?
The contract aims to enhance nuclear security engagement, likely focusing on securing or dismantling legacy nuclear materials, improving physical protection of nuclear facilities, and preventing proliferation. Specific threats could include theft of materials for illicit use, sabotage, or accidental release, particularly given Kazakhstan's history with Soviet-era nuclear infrastructure.
How does the Cost Plus Fixed Fee structure mitigate risks of cost overruns in this complex international environment?
The Cost Plus Fixed Fee structure allows for reimbursement of allowable costs plus a predetermined fixed fee. While it provides flexibility for unforeseen international challenges, it inherently carries a risk of cost overruns if the government doesn't maintain strict oversight on allowable costs. The fixed fee component aims to incentivize efficiency, but its effectiveness depends heavily on the baseline cost estimates and ongoing monitoring.
What metrics are used to measure the effectiveness of this nuclear security engagement in achieving its stated goals?
Effectiveness metrics likely include the successful securing or removal of specific nuclear materials, improvements in physical security at designated sites, successful training of local personnel, and adherence to international non-proliferation standards. The Defense Threat Reduction Agency would typically establish specific, measurable, achievable, relevant, and time-bound (SMART) goals and key performance indicators for such engagements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HDTRA116R0027
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pae-Parsons Global Logistics Services, LLC
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: $22,503,483
Exercised Options: $22,503,483
Current Obligation: $22,042,190
Actual Outlays: $9,678,634
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
Start Date: 2019-09-18
Current End Date: 2024-09-22
Potential End Date: 2024-09-22 00:00:00
Last Modified: 2026-01-28
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