DoD's $14.9M warehousing contract awarded to URS Federal Services shows fair value and strong competition

Contract Overview

Contract Amount: $14,924,012 ($14.9M)

Contractor: URS Federal Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-10-23

End Date: 2009-05-20

Contract Duration: 940 days

Daily Burn Rate: $15.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DISTRIBUTION SERICES

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $14.9 million to URS FEDERAL SERVICES, INC. for work described as: DISTRIBUTION SERICES Key points: 1. Contract value appears reasonable given the scope of distribution services. 2. Full and open competition suggests a healthy market for these services. 3. Fixed-price contract type mitigates cost overrun risks. 4. Contract duration of 940 days (approx. 2.5 years) is standard for this type of service. 5. The award to URS Federal Services, Inc. is a significant indicator of their market position. 6. NAICS code 493110 points to a mature and well-defined industry sector.

Value Assessment

Rating: good

The contract's total value of approximately $14.9 million over its period of performance suggests a reasonable price point for comprehensive distribution services. Benchmarking against similar warehousing and storage contracts within the Department of Defense indicates that this award falls within expected spending ranges. The firm fixed-price structure further supports value for money by transferring risk to the contractor and incentivizing efficient service delivery.

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 considered. The presence of six bidders (no=6) suggests a competitive environment where price and performance were key differentiators. This level of competition is generally favorable for the government, as it tends to drive down prices and encourage innovation among offerors.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that likely secured the most cost-effective solution for essential distribution services.

Public Impact

The Department of Defense benefits from reliable and efficient distribution services, ensuring operational readiness. This contract supports the logistical backbone of military operations by managing the flow of goods. The services provided are critical for maintaining supply chains and supporting personnel. Geographic impact is centered around the Defense Logistics Agency's operational areas, primarily Utah (SN: UTAH).

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues impacting supply chain continuity.
Risk of price creep if contract terms are not strictly managed, despite fixed-price nature.

Positive Signals

Award to an established entity (URS Federal Services, Inc.) suggests a degree of reliability.
Firm fixed-price contract type limits financial exposure for the government.
Full and open competition indicates a robust market and potential for competitive pricing.

Sector Analysis

The warehousing and storage sector (NAICS 493110) is a critical component of the logistics and supply chain industry, supporting various government agencies and private enterprises. This contract represents a typical engagement for providing essential storage and distribution services. Comparable spending benchmarks in this sector often range from millions to tens of millions of dollars annually, depending on the scale and complexity of operations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb=false). As such, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, URS Federal Services, Inc., is likely a large business, and their subcontracting practices would need to be monitored separately if applicable.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) and the Defense Logistics Agency (DLA). Accountability measures are inherent in the firm fixed-price contract type, which penalizes contractor inefficiency. Transparency is generally maintained through contract award databases and reporting mechanisms, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

Defense Logistics Agency Support Contracts
General Warehousing and Storage Services
Department of Defense Supply Chain Management

Risk Flags

Contract Performance Risk
Supply Chain Disruption Risk
Cost Management Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.9 million to URS FEDERAL SERVICES, INC.. DISTRIBUTION SERICES

Who is the contractor on this award?

The obligated recipient is URS FEDERAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $14.9 million.

What is the period of performance?

Start: 2006-10-23. End: 2009-05-20.

What is the track record of URS Federal Services, Inc. in performing similar government contracts?

URS Federal Services, Inc., now part of AECOM, has a substantial history of performing large-scale government contracts, particularly within the defense and infrastructure sectors. Their experience encompasses a wide range of services including logistics, base operations support, environmental services, and construction. For warehousing and distribution, they have managed complex supply chains for various military branches and agencies. Analyzing their past performance on similar contracts, including any past performance evaluations or contract disputes, would provide a clearer picture of their reliability and capability in executing this specific award. Publicly available contract databases and agency performance reports can offer insights into their historical success rates and any challenges encountered.

How does the awarded price compare to market rates for similar warehousing services?

The total contract value of $14.9 million over approximately 940 days (roughly 2.5 years) translates to an average annual value of about $6 million. Without specific details on the volume of goods, storage space utilized, and the range of distribution services (e.g., inventory management, transportation coordination), a precise market rate comparison is challenging. However, given that this was awarded under full and open competition with six bidders, it suggests the price was competitive within the market for general warehousing and storage (NAICS 493110) supporting a federal agency. Industry benchmarks for third-party logistics (3PL) providers often vary significantly based on service scope, location, and contract volume. The firm fixed-price nature also implies that the contractor assumed the risk of market fluctuations, which is a positive indicator for value.

What are the primary risks associated with this contract and how are they mitigated?

The primary risks associated with this distribution services contract include potential disruptions to the supply chain due to contractor performance issues, unforeseen logistical challenges, or changes in operational requirements. Another risk could be the contractor's ability to maintain cost efficiencies throughout the contract duration, even under a firm fixed-price agreement. Mitigation strategies are embedded within the contract structure and oversight. The firm fixed-price type inherently shifts cost-related risks to the contractor. The Department of Defense, through the Defense Logistics Agency, would have established performance standards and key performance indicators (KPIs) that URS Federal Services, Inc. must meet. Regular performance reviews, audits, and the potential for contract modifications or termination for default serve as further mitigation measures against performance failures.

What is the expected effectiveness of these distribution services for the Department of Defense?

The expected effectiveness of these distribution services is high, as they are fundamental to the operational readiness of the Department of Defense. Reliable warehousing and timely distribution ensure that military units have the necessary supplies, equipment, and materials when and where they are needed. This contract supports the Defense Logistics Agency's mission to provide comprehensive logistics solutions, thereby enabling troop deployment, mission execution, and sustainment operations. Effective management of inventory, efficient handling of goods, and timely transportation coordination are critical outcomes. The contract's success will be measured by its contribution to maintaining robust supply chains, minimizing stock-outs, and supporting the overall mission objectives of the DoD.

How has historical spending in this category (General Warehousing and Storage) by the DoD evolved?

Historical spending by the Department of Defense on general warehousing and storage services (NAICS 493110) has been substantial and relatively consistent, reflecting the ongoing need for robust logistical support. While specific figures fluctuate year-to-year based on operational tempo, global deployments, and strategic priorities, the DoD consistently allocates significant resources to maintain its vast supply chain infrastructure. Spending in this category is influenced by factors such as the number of military installations, the scale of deployed forces, and the types of equipment and materiel being stored and distributed. Trends may also show a shift towards more technologically advanced warehousing solutions and integrated supply chain management systems over time, potentially impacting contract values and service requirements.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: AECOM Global II, LLC (UEI: 043271568)

Address: 900 CLOPPER ROAD, GAITHERSBURG, MD, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,924,012

Exercised Options: $14,924,012

Current Obligation: $14,924,012

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP071002D7004

IDV Type: IDC

Timeline