DoD Awards $69.6M for Pan African Veterinary Vaccine Center Construction by URS Federal Services

Contract Overview

Contract Amount: $69,598,912 ($69.6M)

Contractor: URS Federal Services International, Inc

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2028-12-31

Contract Duration: 1,920 days

Daily Burn Rate: $36.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PAN AFRICAN VETERINARY VACCINE CENTER OF THE AFRICAN UNION LABORATORY CONSTRUCTION

Plain-Language Summary

Department of Defense obligated $69.6 million to URS FEDERAL SERVICES INTERNATIONAL, INC for work described as: PAN AFRICAN VETERINARY VACCINE CENTER OF THE AFRICAN UNION LABORATORY CONSTRUCTION Key points: 1. Significant investment in critical infrastructure for disease prevention in Africa. 2. URS Federal Services International, Inc. secured the contract, indicating potential concentration in this specialized area. 3. The contract's duration and cost warrant close monitoring for potential overruns. 4. This project falls under 'All Other Professional, Scientific, and Technical Services', a broad category.

Value Assessment

Rating: fair

The contract is Cost Plus Fixed Fee, which can lead to higher costs if not managed tightly. Benchmarking against similar large-scale construction projects is difficult without more granular cost data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific award mechanism (Delivery Order) implies it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which could limit the number of actual bidders for this specific order.

Taxpayer Impact: Taxpayer funds are being used for a critical international health and security initiative, aiming to prevent zoonotic disease outbreaks.

Public Impact

Enhances global health security by strengthening veterinary infrastructure in Africa. Supports the African Union's mission to prevent and control animal diseases. Potential to reduce the risk of pandemics originating from animal-to-human transmission. Facilitates research and development of veterinary vaccines in a key region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending.
Long contract duration (over 4 years) increases risk of scope creep and cost escalation.
Lack of small business participation noted.

Positive Signals

Awarded under full and open competition.
Addresses a critical global health and security need.
Supports a major international organization (African Union).

Sector Analysis

This contract falls under 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). Construction projects of this scale, especially for specialized facilities like laboratories, can vary widely in cost depending on location, complexity, and specific requirements. Benchmarking is challenging without more specific project details.

Small Business Impact

The data indicates no small business participation in this contract. Given the large contract value, it's possible that the prime contractor did not subcontract to small businesses, or the nature of the work did not lend itself to small business involvement.

Oversight & Accountability

The Department of Defense, specifically the Defense Threat Reduction Agency, is overseeing this project. Oversight will be crucial given the Cost Plus Fixed Fee structure and the long duration to ensure funds are used efficiently and effectively towards the stated goals.

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.
Long contract duration.
No small business participation.
Potential for cost overruns due to project complexity and international location.
Dependence on a single contractor for a critical infrastructure project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.6 million to URS FEDERAL SERVICES INTERNATIONAL, INC. PAN AFRICAN VETERINARY VACCINE CENTER OF THE AFRICAN UNION LABORATORY CONSTRUCTION

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 $69.6 million.

What is the period of performance?

Start: 2023-09-29. End: 2028-12-31.

What specific cost controls and performance metrics are in place to manage the Cost Plus Fixed Fee structure effectively for this laboratory construction?

Effective management of a Cost Plus Fixed Fee contract requires robust oversight mechanisms. This includes detailed cost tracking, regular progress reviews, and clearly defined performance milestones. The agency should ensure that the fixed fee is justified based on the estimated cost and complexity, and that any deviations from the plan are rigorously scrutinized and approved.

How does the selection of URS Federal Services International, Inc. align with the strategic goals of the Defense Threat Reduction Agency in promoting global health security?

The selection of URS Federal Services International, Inc. likely hinges on their demonstrated capability and experience in managing complex, large-scale construction projects, potentially including international or specialized facilities. DTRA's strategic goals often involve mitigating threats, including biological ones, and supporting international partners. This contract directly addresses those goals by building critical infrastructure for disease surveillance and response in Africa.

What are the potential long-term operational and maintenance implications for the Pan African Veterinary Vaccine Center post-construction, and how is this factored into the overall value?

The long-term operational and maintenance implications are crucial for the sustained value of this investment. While this contract focuses on construction, the planning phase should ideally consider future operational costs, sustainability, and local capacity building for maintenance. The overall value is maximized if the facility is designed for durability, ease of maintenance, and integration with local resources to ensure its long-term effectiveness.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

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: $69,598,912

Exercised Options: $69,598,912

Current Obligation: $69,598,912

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