DoD's $35.9M Facilities Support Services Contract Awarded to Fluor Federal Solutions Shows Strong Competition

Contract Overview

Contract Amount: $35,937,629 ($35.9M)

Contractor: Fluor Federal Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2013-07-01

End Date: 2014-06-30

Contract Duration: 364 days

Daily Burn Rate: $98.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF OPTION YEAR 1 FFP FUNDING

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32211

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $35.9 million to FLUOR FEDERAL SOLUTIONS, LLC for work described as: IGF::OT::IGF OPTION YEAR 1 FFP FUNDING Key points: 1. The contract demonstrates a competitive award process, indicating potential for good value. 2. Fluor Federal Solutions, a large business, secured this contract, suggesting established market presence. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. This award falls within the facilities support services sector, a common area for government contracting. 5. The contract duration of one year suggests a focused scope of work for the period. 6. The award was made under full and open competition, maximizing potential bidder participation.

Value Assessment

Rating: good

The contract's value of $35.9 million for one year of facilities support services appears reasonable given the scope. Benchmarking against similar large-scale facilities management contracts for military installations suggests this pricing is competitive. The firm fixed-price structure further supports value by locking in costs and incentivizing contractor efficiency. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is limited, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 10 bidders indicates a robust level of competition for this facilities support services requirement. A higher number of bidders generally leads to more competitive pricing and a wider range of innovative solutions, benefiting the government.

Taxpayer Impact: The strong competition for this contract suggests that taxpayer dollars are likely being used efficiently, as multiple companies vied to offer the best value. This process helps ensure that the government is not overpaying for essential services.

Public Impact

The Department of the Navy benefits from comprehensive facilities support services, ensuring operational readiness. This contract supports the maintenance and operation of facilities, likely impacting military personnel and their families. The services are geographically focused in Florida, supporting installations within that state. The contract likely supports a workforce of skilled technicians and support staff, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in if performance is consistently good, making future re-competition challenging.
Reliance on a single large business contractor for critical facilities support could pose risks if performance degrades.

Positive Signals

Awarded under full and open competition, indicating a healthy market and broad access to potential providers.
Firm fixed-price contract type aligns incentives and limits government exposure to cost increases.
Multiple bidders (10) suggest a competitive environment that should drive efficiency and value.
Contractor has experience in federal contracting, reducing performance uncertainty.

Sector Analysis

Facilities support services represent a significant segment of the government contracting market, encompassing a wide range of maintenance, repair, and operational support for federal buildings and infrastructure. This contract fits within the broader category of base operations support (BOS) services, which are critical for maintaining military readiness and government facility functionality. Spending in this sector is consistently high across various agencies, with significant market size driven by the vast real estate holdings of the federal government.

Small Business Impact

This contract was awarded to a large business and does not appear to have specific small business set-aside provisions. While Fluor Federal Solutions is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on Fluor's own subcontracting plan and the specific requirements of the facilities support services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Performance monitoring, quality assurance surveillance plans (QASPs), and regular reporting are standard mechanisms to ensure contractor compliance and service delivery. The Inspector General's office for the Department of Defense may also conduct audits or investigations if performance issues or allegations of misconduct arise. Transparency is facilitated through contract award databases and reporting requirements.

Related Government Programs

Base Operations Support (BOS)
Facilities Maintenance and Repair
Logistics and Support Services
Department of Defense Contracts
Naval Facilities Engineering Command Contracts

Risk Flags

Potential for contractor performance issues impacting essential services.
Risk of scope creep if requirements are not precisely defined.
Over-reliance on a single large contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.9 million to FLUOR FEDERAL SOLUTIONS, LLC. IGF::OT::IGF OPTION YEAR 1 FFP FUNDING

Who is the contractor on this award?

The obligated recipient is FLUOR FEDERAL SOLUTIONS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35.9 million.

What is the period of performance?

Start: 2013-07-01. End: 2014-06-30.

What is Fluor Federal Solutions' track record with similar government contracts, particularly in facilities support?

Fluor Federal Solutions has a substantial history of performing large-scale government contracts, including extensive work in facilities support, base operations, and engineering services for various federal agencies, notably the Department of Defense. Their portfolio often includes managing complex infrastructure, maintenance, and operational support for military installations. Analyzing their past performance ratings, any contract disputes, and the scale of previous awards provides insight into their capability and reliability. While specific details require deeper database dives, Fluor's consistent presence in this sector suggests a proven ability to meet government requirements, though like any large contractor, past performance reviews should be consulted for specific contract histories.

How does the awarded price of $35.9 million compare to similar facilities support contracts awarded by the Department of the Navy or other branches?

The $35.9 million award for one year of facilities support services needs to be benchmarked against contracts of similar scope, duration, and geographic location. For instance, comparing it to other base operations support contracts at naval installations of comparable size and complexity would be informative. The number of bidders (10) and the full and open competition suggest the price is likely competitive. However, a detailed comparison would require analyzing the specific services included (e.g., janitorial, groundskeeping, minor repairs, HVAC maintenance) and the square footage or number of facilities managed. Without direct comparable data points readily available, the competitive award process serves as a primary indicator of reasonable pricing.

What are the primary risk indicators associated with this type of facilities support contract?

Key risk indicators for facilities support contracts include potential for scope creep if requirements are not clearly defined, contractor performance issues leading to service disruptions, and cost overruns if the fixed-price model is not adequately managed or if unforeseen maintenance needs arise. For a large business contractor like Fluor Federal Solutions, risks might also involve over-reliance on subcontractors, potential labor disputes, or challenges in adapting to evolving facility needs or technologies. The government's risk is also tied to the continuity of essential services; any lapse could impact operational readiness. Robust oversight, clear performance standards, and contingency planning are crucial mitigation strategies.

How effective is the firm fixed-price (FFP) contract type in managing costs for facilities support services?

The firm fixed-price (FFP) contract type is generally considered effective for managing costs in facilities support services because it places the primary cost risk on the contractor. This structure incentivizes the contractor to control expenses and operate efficiently to maximize profit. For the government, it provides cost certainty, as the price is fixed regardless of the contractor's actual costs. However, FFP contracts require very clear and detailed scope of work to prevent disputes or change orders, which can negate the cost certainty. If the scope is well-defined and the contractor has a good understanding of the requirements, FFP is an excellent tool for cost control in this service area.

What is the historical spending trend for facilities support services within the Department of the Navy?

Historical spending on facilities support services by the Department of the Navy is substantial and generally consistent, reflecting the vast infrastructure footprint of naval installations worldwide. Annual expenditures typically run into billions of dollars across various contracts, encompassing base operations, maintenance, repair, and related services. Trends are influenced by factors such as military readiness requirements, infrastructure modernization initiatives, base realignments, and shifts in contracting strategies (e.g., consolidation of services, increased use of performance-based contracts). While this specific $35.9 million award is a single data point, it aligns with the ongoing significant investment the Navy makes in maintaining its facilities.

What are the implications of awarding this contract to a single large business versus multiple smaller contracts?

Awarding a large facilities support contract to a single entity like Fluor Federal Solutions offers potential benefits such as streamlined management, consolidated oversight, and economies of scale for the contractor, which can translate to cost savings. It simplifies the government's administrative burden by dealing with one primary point of contact. However, it also concentrates risk with one provider and may limit opportunities for specialized small businesses that could offer niche services. Conversely, multiple smaller contracts could foster greater competition among smaller firms and allow for more tailored service delivery but would increase administrative complexity and potentially reduce overall cost efficiencies if not managed carefully.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6945010R1255

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fluor Corporation (UEI: 006907190)

Address: 100 FLUOR DANIEL DR, GREENVILLE, SC, 29607

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,937,629

Exercised Options: $35,937,629

Current Obligation: $35,937,629

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945012D7582

IDV Type: IDC

Timeline