Fluor Federal Solutions awarded $35.7M for facilities support, a significant portion of a larger contract

Contract Overview

Contract Amount: $35,735,925 ($35.7M)

Contractor: Fluor Federal Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2014-07-01

End Date: 2015-06-30

Contract Duration: 364 days

Daily Burn Rate: $98.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF FFP FUNDING ASSOCIATED WITH BASIC CONTRACT P00139 (EXERCISING OPTION 02).

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32211

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $35.7 million to FLUOR FEDERAL SOLUTIONS, LLC for work described as: IGF::OT::IGF FFP FUNDING ASSOCIATED WITH BASIC CONTRACT P00139 (EXERCISING OPTION 02). Key points: 1. Value for money appears reasonable given the scope of facilities support services. 2. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 3. Risk indicators are moderate, with a fixed-price contract type mitigating cost overrun risks. 4. Performance context is within a multi-year delivery order for a larger basic contract. 5. Sector positioning is in facilities support services, a common requirement for government agencies.

Value Assessment

Rating: good

The contract value of $35.7 million for facilities support services over one year appears to be within a reasonable range for the scope of work. Benchmarking against similar large-scale facilities management contracts for federal agencies suggests that the pricing is competitive, especially considering the fixed-price nature of the award which shifts cost risk to the contractor. The award represents a significant portion of a larger basic contract, indicating a substantial service requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 10 bidders suggests a healthy level of competition for this facilities support services requirement. This broad competition is generally expected to drive more competitive pricing and encourage contractors to offer their best value propositions.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it increases the likelihood of securing services at a fair market price, preventing potential overpayment that could occur with less competitive solicitations.

Public Impact

The Department of the Navy benefits from comprehensive facilities support services, ensuring operational readiness. Services delivered likely include maintenance, repair, and management of physical infrastructure. The geographic impact is concentrated in Florida, where the services are presumably performed. Workforce implications include employment opportunities for skilled trades and facility management professionals in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly within the fixed-price structure.
Dependence on contractor performance for critical facility operations.
Ensuring consistent quality across all contracted services.

Positive Signals

Fixed-price contract type limits government exposure to cost overruns.
Full and open competition suggests a competitive pricing environment.
Award to an established entity (Fluor Federal Solutions) may indicate a track record of performance.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad category encompassing a wide range of services essential for the operation and maintenance of government facilities. This sector is characterized by numerous providers, from large integrated service companies to specialized local firms. The market size is substantial, driven by consistent government demand for maintaining its vast real estate portfolio. This contract fits within the typical spending patterns for agencies requiring comprehensive facility management.

Small Business Impact

The contract was awarded under full and open competition and there is no indication of a small business set-aside. While Fluor Federal Solutions is a large business, the subcontracting opportunities generated by this contract could potentially benefit small businesses if Fluor actively engages them for specialized services or support roles within the scope of work.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of the Navy. Performance monitoring, quality assurance checks, and invoice reviews are standard accountability measures. Transparency is generally maintained through contract databases and reporting, though specific operational oversight details are not provided.

Related Government Programs

Base Operations Support (BOS)
Logistics and Facilities Management
Government Property Management
Maintenance, Repair, and Operations (MRO)

Risk Flags

Potential for performance issues if not adequately monitored.
Risk of scope creep in fixed-price contracts.
Dependence on contractor's ability to maintain qualified personnel.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.7 million to FLUOR FEDERAL SOLUTIONS, LLC. IGF::OT::IGF FFP FUNDING ASSOCIATED WITH BASIC CONTRACT P00139 (EXERCISING OPTION 02).

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 $35.7 million.

What is the period of performance?

Start: 2014-07-01. End: 2015-06-30.

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

The Department of the Navy, like other branches of the military, consistently allocates significant funds towards facilities support services due to its extensive infrastructure needs. Historical data indicates a steady demand for services such as maintenance, repair, custodial, and groundskeeping across numerous bases and installations. Spending in this category can fluctuate based on infrastructure modernization projects, base realignments, and overall defense budgets. While specific year-over-year figures for this exact contract are not available, the overall trend shows a sustained requirement for these essential services, often awarded through competitive solicitations to manage costs effectively.

How does the awarded price compare to similar facilities support contracts?

Benchmarking the $35.7 million award against similar facilities support contracts is challenging without detailed scope of work and performance metrics. However, given that it's a fixed-price contract awarded under full and open competition with 10 bidders, it suggests a competitive pricing environment. Large-scale facilities support contracts for federal agencies can range from tens to hundreds of millions of dollars annually, depending on the size and complexity of the facilities managed. The price per square foot or per facility managed would be a more granular metric for comparison, but such data is not provided here. The value is likely considered good if it meets performance standards and aligns with market rates for comparable services.

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

The primary risks associated with this facilities support contract include potential performance deficiencies, where the contractor may fail to meet service level agreements, leading to operational disruptions. Cost risk is mitigated by the firm-fixed-price contract type, but scope creep could still occur if contract modifications are not managed carefully. There's also a risk of contractor personnel turnover impacting service quality and continuity. Furthermore, unforeseen facility issues or emergencies could strain the contractor's resources and require careful management and potential contract adjustments. Ensuring robust oversight and clear performance standards are key to mitigating these risks.

What is Fluor Federal Solutions' track record with similar government contracts?

Fluor Federal Solutions, as a subsidiary of Fluor Corporation, has a substantial track record of performing large-scale government contracts, including extensive work in facilities management, base operations support, and construction for various federal agencies. They have historically managed complex projects requiring a wide array of services, often in challenging environments. While specific performance ratings for this particular delivery order are not detailed in the provided data, Fluor's general experience suggests a capacity to handle significant contracts. A deeper dive into their past performance databases and contract award histories would provide more granular insights into their reliability and quality of service delivery on similar engagements.

What is the expected impact of this contract on the local Florida economy?

This contract is expected to have a positive impact on the local Florida economy through job creation and local spending. Fluor Federal Solutions will likely hire a significant number of personnel in the Florida region to perform the facilities support services, including skilled trades, maintenance staff, and administrative support. Additionally, the company may procure goods and services from local suppliers and subcontractors, further injecting capital into the regional economy. The duration of the contract and the scale of services provided will influence the magnitude of this economic impact.

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: $35,735,925

Exercised Options: $35,735,925

Current Obligation: $35,735,925

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945012D7582

IDV Type: IDC

Timeline