Defense Threat Reduction Agency awards $58.7M for Lebanon Border Security Project Increment IV to URS Federal Services International, Inc

Contract Overview

Contract Amount: $58,739,271 ($58.7M)

Contractor: URS Federal Services International, Inc

Awarding Agency: Department of Defense

Start Date: 2022-12-16

End Date: 2026-12-15

Contract Duration: 1,460 days

Daily Burn Rate: $40.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LEBANON BORDER SECURITY PROJECT INCREMENT IV

Plain-Language Summary

Department of Defense obligated $58.7 million to URS FEDERAL SERVICES INTERNATIONAL, INC for work described as: LEBANON BORDER SECURITY PROJECT INCREMENT IV 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 lead to cost overruns if not managed carefully. 3. The duration of 1460 days (4 years) indicates a long-term commitment for border security 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 is a delivery order, implying it's part of a larger contract vehicle. 6. No small business set-aside was utilized for this contract.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services provided and comparable contracts. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee. This structure can incentivize cost increases if not rigorously overseen. Without data on the fixed fee percentage or the projected cost ceiling, a definitive value-for-money assessment is difficult. However, the competitive award process may have helped to establish a reasonable baseline price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The data shows 2 bids were received. A higher number of bidders typically suggests a more robust competition, which can lead to better pricing and innovation. With only two bids, the level of competition might be considered moderate, potentially limiting the downward pressure on price compared to a scenario with numerous competitors.

Taxpayer Impact: A competitive award process, even with two bidders, generally benefits taxpayers by fostering a more efficient market and potentially securing services at a more favorable price than a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are likely the Department of Defense and potentially the government of Lebanon, through enhanced border security capabilities. Services delivered are expected to improve border security infrastructure, surveillance, and operational effectiveness in Lebanon. The geographic impact is focused on the border regions of Lebanon. Workforce implications may include the deployment of specialized technical and security personnel by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not managed effectively.
Limited competition (2 bidders) may not have yielded the most competitive pricing.
The broad NAICS code (541990) makes it difficult to assess the specific technical expertise required and whether it was optimally sourced.
The contract is a delivery order, suggesting it's part of a larger, potentially less scrutinized, contract vehicle.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential contractors could participate.
The contract has a defined duration (4 years), providing a clear timeframe for service delivery and budget planning.
The contractor, URS Federal Services International, Inc., is likely experienced in providing such services, given the award.

Sector Analysis

The defense and security sector encompasses a wide range of services, from equipment procurement to technical support and operational assistance. Border security projects, in particular, often involve complex logistical, technological, and personnel management. Spending in this area is driven by geopolitical stability, national security interests, and international cooperation. Comparable spending benchmarks would typically be found within other international security assistance programs or large-scale infrastructure projects managed by defense agencies.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses. Therefore, its direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. The absence of set-asides means larger, established firms were the primary focus of this procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Threat Reduction Agency (DTRA) within the Department of Defense. Accountability measures would be embedded in the contract's terms and conditions, including performance metrics, reporting requirements, and payment schedules tied to milestones. Transparency is facilitated through contract award databases, but detailed operational oversight information is typically not publicly disclosed for security reasons. The Inspector General of the Department of Defense would have jurisdiction for audits and investigations.

Related Government Programs

International Security Assistance Programs
Defense Infrastructure Projects
Border Security Technology Procurement
Professional, Scientific, and Technical Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type
Limited competition (2 bidders)
Broad NAICS code classification
Long contract duration (4 years)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.7 million to URS FEDERAL SERVICES INTERNATIONAL, INC. LEBANON BORDER SECURITY PROJECT INCREMENT IV

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 $58.7 million.

What is the period of performance?

Start: 2022-12-16. End: 2026-12-15.

What is the specific nature of the 'Lebanon Border Security Project Increment IV' and the services provided under this contract?

The provided data does not detail the specific services for 'Lebanon Border Security Project Increment IV'. However, given the context of border security and the broad NAICS code (541990 - All Other Professional, Scientific, and Technical Services), it likely encompasses a range of activities. These could include technical support for surveillance equipment, infrastructure development or maintenance, training for local personnel, logistical support, or advisory services aimed at enhancing border control capabilities. The 'Increment IV' designation suggests this is a continuation or expansion of previous phases of the project, implying ongoing efforts to bolster border security.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types in terms of cost control and risk for this type of service?

The Cost Plus Fixed Fee (CPFF) contract type reimburses the contractor for all 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 when there is significant uncertainty, as is common in complex technical or R&D projects. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less cost certainty for the government, as costs can fluctuate. However, it can incentivize contractor performance by providing a stable profit margin. For border security services, where unforeseen challenges may arise, CPFF can offer flexibility. The key to cost control lies in robust government oversight, clear definition of allowable costs, and effective negotiation of the fixed fee to ensure it reflects the risk and effort involved.

What is the historical spending pattern for the Defense Threat Reduction Agency (DTRA) in border security or related international security projects?

Analyzing DTRA's historical spending requires access to detailed budget and contract databases. However, DTRA's mission focuses on reducing and eliminating weapons of mass destruction threats, which often involves international cooperation and security assistance. Border security, particularly in regions prone to instability or illicit trafficking, can fall under this umbrella if it relates to preventing the proliferation of WMD materials or related threats. Historical data would likely show fluctuating investments based on global threat assessments and specific regional needs. Examining DTRA's annual reports and contract award histories would provide a clearer picture of their engagement in border security and similar international projects over time.

What are the potential risks associated with a 4-year contract duration for border security services in a potentially volatile region?

A 4-year duration for border security services in a region like Lebanon presents several risks. Geopolitical conditions can change rapidly, potentially altering the security landscape and the effectiveness or necessity of the contracted services. The long duration also increases the risk of contractor performance degradation over time, requiring sustained oversight. Furthermore, technological advancements in border security might outpace the contracted solutions, leading to obsolescence. Economic factors, such as inflation or currency fluctuations, can also impact the cost-effectiveness of a long-term contract, especially under a CPFF structure. Finally, personnel turnover within the contractor's team could lead to a loss of institutional knowledge and continuity.

How does the 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) classification impact the assessment of contractor expertise and service quality?

The broad nature of NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' presents a challenge in assessing specific contractor expertise. This category encompasses a wide array of services that do not fit into more specialized classifications. While it allows for flexibility in procurement, it means the contracting agency must rely heavily on detailed technical specifications, past performance evaluations, and potentially specialized vetting processes to ensure the selected contractor possesses the precise skills required for border security. Without a more specific NAICS code, it's harder to benchmark the contractor against industry peers focused on a narrower set of relevant services, making a precise evaluation of their specialized capabilities more difficult.

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: HDTRA116R0027

Offers Received: 2

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: $58,739,271

Exercised Options: $58,739,271

Current Obligation: $58,739,271

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