DoD's $30M Bachelor Enlisted Quarters contract awarded to URS Group, Inc. for construction services

Contract Overview

Contract Amount: $30,117,250 ($30.1M)

Contractor: URS Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-09-30

End Date: 2014-04-30

Contract Duration: 943 days

Daily Burn Rate: $31.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE AWARD FEE

Sector: Construction

Official Description: P599 BACHELOR ENLISTED QUARTERS

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $30.1 million to URS GROUP, INC. for work described as: P599 BACHELOR ENLISTED QUARTERS Key points: 1. Value for money assessed through fixed-price award fee structure. 2. Competition dynamics indicate a full and open process. 3. Risk indicators include fixed-price award fee, which can incentivize cost control. 4. Performance context is construction of barracks for enlisted personnel. 5. Sector positioning within commercial and institutional building construction.

Value Assessment

Rating: fair

The contract's total value of approximately $30.1 million for the construction of Bachelor Enlisted Quarters appears to be within a reasonable range for a project of this scale. Benchmarking against similar government construction projects for barracks would provide a more precise assessment of value. The fixed-price award fee structure suggests an attempt to balance cost certainty with performance incentives, but the ultimate value depends heavily on the awarded fees and the contractor's performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of four bidders suggests a competitive environment, which generally leads to better price discovery and potentially more favorable terms for the government. The specific details of the bidding process and the number of proposals received would offer further insight into the intensity of the competition.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the pool of potential offerors, driving down prices through market forces and ensuring the government receives competitive bids.

Public Impact

Directly benefits enlisted service members by providing improved living quarters. Services delivered include the construction of essential military infrastructure. Geographic impact is localized to the installation where the barracks are built (Virginia). Workforce implications include jobs for construction workers and related trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if award fee structure is not managed effectively.
Construction project risks, such as delays or unforeseen site conditions, could impact budget and schedule.
Quality control during construction is critical to ensure long-term durability and habitability.

Positive Signals

Full and open competition suggests a robust bidding process.
Fixed-price award fee structure can incentivize contractor performance and cost management.
Project addresses a critical need for adequate enlisted housing.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. Government spending on military construction, particularly for barracks and housing, represents a consistent demand driver within this sector. Comparable spending benchmarks would involve analyzing other large-scale barracks construction projects awarded by the Department of Defense or other federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to URS Group, Inc., a large entity. There is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether URS Group, Inc. utilized small business subcontractors for specialized services or materials.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and project managers. Accountability measures are embedded in the fixed-price award fee structure, which links payment to performance. Transparency is generally maintained through contract award databases, though specific performance metrics and fee awards may not be publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Bachelor Enlisted Quarters Construction
Military Barracks Projects
Department of Defense Construction Contracts
Fixed-Price Award Fee Contracts

Risk Flags

Fixed-price award fee contracts require careful performance monitoring.
Construction projects are susceptible to schedule delays and cost overruns.
Quality assurance is critical for long-term facility usability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.1 million to URS GROUP, INC.. P599 BACHELOR ENLISTED QUARTERS

Who is the contractor on this award?

The obligated recipient is URS GROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $30.1 million.

What is the period of performance?

Start: 2011-09-30. End: 2014-04-30.

What was the track record of URS Group, Inc. with similar government construction contracts prior to this award?

Prior to this award in 2011, URS Group, Inc. had a significant history of performing large-scale construction and engineering contracts for various government agencies, including the Department of Defense. Their portfolio likely included numerous projects involving facility construction, infrastructure development, and base support services. A detailed review of their contract history would reveal specific performance ratings, any past performance issues, and their experience with fixed-price award fee contracts. This context is crucial for understanding their capability to successfully execute the Bachelor Enlisted Quarters project within the specified budget and timeline, ensuring quality and adherence to requirements.

How does the per-square-foot cost of this Bachelor Enlisted Quarters project compare to similar government-funded barracks construction?

Without specific details on the total square footage of the constructed Bachelor Enlisted Quarters, a precise per-square-foot cost comparison is not feasible. However, the total award value of approximately $30.1 million provides a basis for broader benchmarking. Typical government barracks construction costs can vary significantly based on location, materials, amenities, and specific design requirements. To conduct a meaningful comparison, one would need to identify the total square footage of the facility built under this contract and then compare its cost per square foot against a database of recently awarded, comparable military housing projects. Factors such as labor costs in Virginia, the specific year of construction (2011-2014), and the complexity of the design would influence its position relative to market averages.

What were the primary risk factors identified during the solicitation and award process for this contract?

The primary risk factors for a construction contract of this magnitude typically revolve around schedule delays, cost overruns, and quality of workmanship. For this specific contract, the fixed-price award fee structure itself represents a managed risk. While it aims to control costs, the 'award fee' component introduces a performance-based incentive that requires careful monitoring to ensure it aligns with government objectives and doesn't lead to inflated final costs if performance is deemed exceptional. Other potential risks include unforeseen site conditions (e.g., environmental issues, soil stability), availability of skilled labor, material price fluctuations, and coordination with existing base operations. The solicitation process would have outlined these risks and required offerors to propose mitigation strategies.

How effective was the fixed-price award fee structure in controlling costs and ensuring quality for this project?

The effectiveness of the fixed-price award fee structure in controlling costs and ensuring quality for this specific Bachelor Enlisted Quarters project cannot be definitively assessed without access to the detailed performance evaluations and fee determination documentation. This structure is designed to provide a baseline cost certainty while incentivizing the contractor to exceed minimum performance standards. If URS Group, Inc. consistently met or exceeded performance targets related to schedule, quality, safety, and management, they would have earned higher award fees. Conversely, if performance lagged, fees would be reduced, acting as a cost control mechanism. A thorough analysis would require reviewing the contractor's performance ratings throughout the contract period and the final fee awarded.

What is the historical spending trend for Bachelor Enlisted Quarters construction by the Department of the Navy?

Historical spending trends for Bachelor Enlisted Quarters (BEQ) construction by the Department of the Navy (DoN) generally reflect ongoing needs for modernizing and expanding military housing to support personnel readiness and retention. Spending in this category fluctuates based on military construction priorities, budget allocations, and the lifecycle of existing facilities. The DoN consistently invests in BEQ projects across its various installations worldwide. Analyzing spending data over several fiscal years would reveal patterns related to the number of projects awarded, average contract values, and the geographical distribution of construction efforts. This specific $30.1 million contract represents one data point within that broader historical spending context.

Were there any significant performance issues or contract disputes associated with this URS Group, Inc. contract?

Information regarding significant performance issues or contract disputes associated with this specific $30.1 million Bachelor Enlisted Quarters contract awarded to URS Group, Inc. is not readily available in the provided data. Government contract performance data, including disputes and issue logs, is often maintained internally by the contracting agency and may not be fully disclosed in public databases. To ascertain the presence of such issues, one would typically need to consult contract performance reports, debriefing statements (if requested by unsuccessful bidders), or agency-specific contract management systems. The absence of readily available negative information does not guarantee flawless execution, but it suggests no major public disputes arose.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Offers Received: 4

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM (UEI: 153561212)

Address: 9901 IH 10 W, SAN ANTONIO, TX, 78230

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $30,117,250

Exercised Options: $30,117,250

Current Obligation: $30,117,250

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6274209D1174

IDV Type: IDC

Timeline