Army Reserve Spends $20.18M on Facilities Support Services Contract with XOTECH L.L.C

Contract Overview

Contract Amount: $20,180,196 ($20.2M)

Contractor: Xotech L.L.C.

Awarding Agency: Department of Defense

Start Date: 2013-09-03

End Date: 2019-09-30

Contract Duration: 2,218 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 18

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: USARC MMT - MATERIEL MANAGEMENT; ACCOUNTABILITY, ASSET VISIBILITY, AND SUPPORT TEAM SERVICES REQUIRED BY THE UNITED STATES ARMY RESERVE COMMAND

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28307

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $20.2 million to XOTECH L.L.C. for work described as: USARC MMT - MATERIEL MANAGEMENT; ACCOUNTABILITY, ASSET VISIBILITY, AND SUPPORT TEAM SERVICES REQUIRED BY THE UNITED STATES ARMY RESERVE COMMAND Key points: 1. Contract awarded for facilities support services to the US Army Reserve Command. 2. XOTECH L.L.C. is the contractor, with a total award of $20.18 million. 3. The contract spans from September 2013 to September 2019. 4. Services include materiel management, accountability, asset visibility, and support. 5. The contract type is Cost Plus Fixed Fee.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully. Benchmarking against similar facilities support contracts is difficult without detailed service breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method may not have resulted in the most competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for essential support services, but the limited competition raises questions about optimal value for money.

Public Impact

Ensures operational readiness of the Army Reserve by maintaining facilities. Supports personnel by providing essential materiel and asset management. Contributes to the efficient functioning of Army Reserve Command operations. Potential for cost inefficiencies due to contract type and limited competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

Facilities Support Services (NAICS 561210) are crucial for maintaining government infrastructure and operational readiness. Spending in this sector can vary widely based on the scale and complexity of facilities managed.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had opportunities to participate in subcontracting.

Oversight & Accountability

Oversight is crucial for Cost Plus Fixed Fee contracts to ensure costs are reasonable and services are delivered as specified. The 'exclusion of sources' clause warrants scrutiny to ensure fair competition was indeed maintained.

Related Government Programs

Risk Flags

Tags

facilities-support-services, department-of-defense, nc, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.2 million to XOTECH L.L.C.. USARC MMT - MATERIEL MANAGEMENT; ACCOUNTABILITY, ASSET VISIBILITY, AND SUPPORT TEAM SERVICES REQUIRED BY THE UNITED STATES ARMY RESERVE COMMAND

Who is the contractor on this award?

The obligated recipient is XOTECH L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.2 million.

What is the period of performance?

Start: 2013-09-03. End: 2019-09-30.

What specific services were included under 'Materiel Management, Accountability, Asset Visibility, and Support Team Services' to justify the $20.18M cost?

The provided data lacks the granular detail to specify the exact services. Typically, these encompass inventory management, tracking of assets, logistical support, and potentially maintenance coordination. A comprehensive review of the contract's Statement of Work (SOW) would be necessary to understand the full scope and justify the expenditure.

How did the 'exclusion of sources' impact the final price and overall value for the taxpayer?

Excluding sources inherently limits the competitive pool, which can lead to higher prices than a fully open competition. Without knowing which sources were excluded and why, it's difficult to quantify the exact impact. However, it suggests that the government may not have received the most competitive bid available in the broader market.

What mechanisms were in place to control costs and ensure efficiency under the Cost Plus Fixed Fee structure?

Cost Plus Fixed Fee contracts require robust government oversight to monitor costs and contractor performance. Mechanisms typically include regular audits, detailed cost reporting, and performance reviews against the contract's objectives. The effectiveness of these mechanisms would depend on the diligence of the contracting officer and the quality of the contractor's management.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ALTERNATIVE SOURCES

Offers Received: 18

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 150 HOWELL RD STE B, TYRONE, GA, 30290

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $20,353,170

Exercised Options: $20,353,170

Current Obligation: $20,180,196

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: W52P1J12G0021

IDV Type: BOA

Timeline

Start Date: 2013-09-03

Current End Date: 2019-09-30

Potential End Date: 2019-09-30 12:09:00

Last Modified: 2020-06-18

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