DoD's $61.7M Ukraine/Moldova Support Services Contract Awarded to URS Federal Services International, Inc

Contract Overview

Contract Amount: $61,695,714 ($61.7M)

Contractor: URS Federal Services International, Inc

Awarding Agency: Department of Defense

Start Date: 2022-05-25

End Date: 2023-11-24

Contract Duration: 548 days

Daily Burn Rate: $112.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: UKRAINE AND MOLDOVA SUPPORT SERVICES & EQUIPMENT

Plain-Language Summary

Department of Defense obligated $61.7 million to URS FEDERAL SERVICES INTERNATIONAL, INC for work described as: UKRAINE AND MOLDOVA SUPPORT SERVICES & EQUIPMENT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns if not closely monitored. 3. Performance period spans 548 days, indicating a medium-term engagement for support services. 4. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services,' a broad category. 5. The award was a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 6. The contract value of $61.7 million represents a significant investment in support services for the specified regions.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without knowing the specific services rendered and the scope of work. The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks of cost escalation, as the contractor is reimbursed for allowable costs plus a fixed fee. While CPFF can be appropriate for research and development or when costs are uncertain, it requires robust oversight to ensure value for money. Comparing this to similar support services contracts for international operations would provide a clearer picture of its pricing reasonableness.

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 5 bids suggests a reasonable level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government. However, the effectiveness of this competition in driving down costs depends on the number of qualified bidders and the specific requirements of the solicitation.

Taxpayer Impact: A competitive award process is beneficial for taxpayers as it increases the likelihood of obtaining services at a fair market price, preventing potential overpayment that could occur with less competitive or sole-source awards.

Public Impact

Provides critical support services and equipment to Ukraine and Moldova, potentially bolstering their defense and security capabilities. The services likely involve technical assistance, logistical support, and potentially training or advisory roles. Geographic impact is focused on Eastern Europe, specifically Ukraine and Moldova. Workforce implications may include the deployment of specialized personnel from URS Federal Services International, Inc. to the region or supporting them remotely.

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.
The broad NAICS code suggests a wide range of potential services, making it difficult to assess specific cost-effectiveness without further detail.
The contract duration of 548 days requires ongoing monitoring to ensure performance aligns with objectives.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Multiple bids (5) were received, suggesting market interest and potential for competitive pricing.
The contract supports critical geopolitical regions, aligning with national security interests.

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.' This sector is vital for government operations, providing expertise and support across various domains. The market for such services is competitive, with numerous firms offering specialized capabilities. The value of this contract, approximately $61.7 million, is moderate within the context of large federal procurements, but significant for the specific support services provided to Ukraine and Moldova.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While URS Federal Services International, Inc. is the prime contractor, there is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether URS actively seeks small business subcontractors for specialized tasks within the scope of this broad service requirement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Threat Reduction Agency (DTRA) within the Department of Defense. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure costs are reasonable and allocable, and that the fixed fee is earned through satisfactory performance. Transparency would be enhanced through regular reporting requirements from the contractor and potential reviews by the agency's contracting officer and potentially the Inspector General's office, especially given the sensitive nature of support services in international conflict zones.

Related Government Programs

Foreign Military Sales Program
International Security Assistance
Defense Threat Reduction Agency (DTRA) Operations
Support Services for Eastern European Allies
Geopolitical Stability Initiatives

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Broad NAICS code may obscure specific service details and cost-effectiveness.
Geopolitical instability in the region could impact performance and costs.
Contract performance history of URS Federal Services International, Inc. needs review for potential risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $61.7 million to URS FEDERAL SERVICES INTERNATIONAL, INC. UKRAINE AND MOLDOVA SUPPORT SERVICES & EQUIPMENT

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 $61.7 million.

What is the period of performance?

Start: 2022-05-25. End: 2023-11-24.

What specific types of 'support services and equipment' are included under this contract?

The provided data does not specify the exact 'support services and equipment.' However, given the contracting agency (Defense Threat Reduction Agency - DTRA) and the recipient regions (Ukraine and Moldova), the services likely pertain to defense support, potentially including technical assistance for existing equipment, logistical coordination, training on defense systems, or advisory services related to threat reduction and security cooperation. Equipment could range from specialized tools and communication devices to non-lethal defense articles. A detailed statement of work (SOW) within the contract documents would provide precise details.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar international support services?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or involves significant uncertainty, such as research and development or complex international operations. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the contractor to adapt to unforeseen circumstances, but it shifts more cost risk to the government. For stable, well-defined services, FFP is generally preferred for better cost control. Other types like Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) introduce performance incentives. The choice of CPFF here suggests the DoD anticipated uncertainties in delivering support services in the specified regions.

What is the historical spending pattern of the Defense Threat Reduction Agency (DTRA) on support services for Ukraine and Moldova?

The provided data only includes details for this specific $61.7 million contract awarded in May 2022. To assess historical spending patterns, one would need to analyze DTRA's procurement history over several fiscal years, looking for contracts with similar objectives, geographic focus (Ukraine, Moldova), and service types (support services, equipment). This would involve searching federal procurement databases like FPDS or USASpending.gov for DTRA awards related to these countries and comparing the volume, value, and types of services procured over time to understand trends and the significance of this particular award.

What are the potential risks associated with URS Federal Services International, Inc. performing this contract, given their track record?

Assessing the specific risks associated with URS Federal Services International, Inc. requires examining their past performance on similar government contracts. Key areas to investigate would include their history of cost control (especially on CPFF contracts), on-time delivery, quality of services, and any past performance issues or disputes. Without access to their detailed contract performance history, it's difficult to pinpoint specific risks. However, general risks for international support contracts include geopolitical instability, logistical challenges, security concerns for personnel, and potential for scope creep, all of which require robust contractor management and oversight.

How does the $61.7 million contract value compare to the overall budget or spending of the Defense Threat Reduction Agency (DTRA)?

The $61.7 million contract value represents a portion of DTRA's overall budget. DTRA's annual budgets typically range in the billions of dollars, allocated across various programs focused on countering weapons of mass destruction. This specific contract, while substantial in absolute terms, is likely a component of DTRA's broader efforts in security cooperation and threat reduction in Eastern Europe. To provide a precise comparison, one would need to know DTRA's total enacted budget for the relevant fiscal years (FY22/FY23) and how much was specifically earmarked for Ukraine/Moldova support or similar international programs.

What are the implications of awarding a delivery order under a potentially larger IDIQ contract for this type of service?

Awarding a delivery order (DO) under an Indefinite Delivery/Indefinite Quantity (IDIQ) contract signifies that this $61.7 million is one task order against a pre-established contract vehicle. IDIQs are often used for services that are expected to be needed over time but with uncertain quantities or timing. This approach allows the government flexibility to order services as needed. For taxpayers, it can mean efficient procurement if the IDIQ itself was competitively awarded. However, it also means the total spending under the IDIQ could exceed this single delivery order's value, requiring ongoing monitoring of the overall contract ceiling and performance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HDTRA122R0029

Offers Received: 5

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: $62,450,586

Exercised Options: $62,450,586

Current Obligation: $61,695,714

Actual Outlays: $57,835,029

Subaward Activity

Number of Subawards: 34

Total Subaward Amount: $31,027,704

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