Commerce Department awards $314M custodial services contract to PDO - AIT JV LLC for facilities support

Contract Overview

Contract Amount: $3,142,057 ($3.1M)

Contractor: PDO - AIT JV LLC

Awarding Agency: Department of Commerce

Start Date: 2023-01-01

End Date: 2026-12-31

Contract Duration: 1,460 days

Daily Burn Rate: $2.2K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CUSTODIAL SERVICES

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98115

State: Washington Government Spending

Plain-Language Summary

Department of Commerce obligated $3.1 million to PDO - AIT JV LLC for work described as: CUSTODIAL SERVICES Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential cost savings and market competitiveness. 2. The firm fixed-price structure provides cost certainty but may limit flexibility for unforeseen service needs. 3. Long contract duration of 4 years suggests a need for stable, ongoing facility maintenance. 4. The absence of small business set-aside indicates potential missed opportunities for smaller contractors. 5. Focus on facilities support services highlights the critical infrastructure needs of NOAA. 6. The contract's value is substantial, requiring robust oversight to ensure efficient use of taxpayer funds.

Value Assessment

Rating: fair

Benchmarking the value of this $314 million custodial services contract is challenging without comparable data for similar NOAA facilities. The firm fixed-price (FFP) contract type offers predictability in costs, but the lack of competition means there's no direct market comparison to assess if the pricing is optimal. Without a competitive bidding process, it's difficult to ascertain if the government secured the best possible value for these essential facilities support services. Further analysis would require understanding the scope of services and comparing them to industry standards for similar-sized government installations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and is listed as a definitive contract awarded to PDO - AIT JV LLC. The 'NOT COMPETED UNDER SAP' designation, coupled with the 'sole-source' classification, indicates that a competitive bidding process was likely bypassed. This could be due to various reasons, such as specific capabilities required, existing relationships, or emergency needs, but it limits the opportunity for other vendors to offer their services and potentially lower costs through competition.

Taxpayer Impact: The lack of competition means taxpayers may not benefit from the price reductions typically achieved through a bidding process. This could result in a higher overall cost for the custodial services provided.

Public Impact

The National Oceanic and Atmospheric Administration (NOAA) facilities will receive essential custodial and facilities support services. Federal employees working within NOAA facilities will benefit from a clean and well-maintained working environment. The contract supports the operational continuity of NOAA's scientific and administrative functions. The geographic impact is concentrated in Washington, D.C., where the services are being rendered. The contract likely supports jobs within the contractor organization, PDO - AIT JV LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Firm fixed-price contract might not accommodate scope changes efficiently.
Long-term nature of the contract requires continuous monitoring for performance and value.
Absence of small business participation could limit economic opportunities for smaller firms.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Long duration suggests a stable, ongoing need for these services.
Contract awarded to a specific joint venture, potentially indicating specialized capabilities.

Sector Analysis

The facilities support services sector is a critical component of government operations, encompassing a wide range of activities from cleaning and maintenance to security and groundskeeping. This contract falls under the broader category of commercial and institutional building services. The market for these services is competitive, with numerous providers ranging from large corporations to small businesses. Government contracts in this space often represent significant value due to the scale and duration of the required services, making effective procurement and oversight crucial for ensuring value for money.

Small Business Impact

This contract does not appear to have a small business set-aside (sb: false). The absence of specific small business subcontracting requirements or set-asides means that opportunities for small businesses to participate in this significant contract may be limited. While the prime contractor, PDO - AIT JV LLC, might engage small businesses as subcontractors, there is no explicit mandate within the provided data. This could represent a missed opportunity to foster small business growth and participation in federal contracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Commerce and the National Oceanic and Atmospheric Administration (NOAA). As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. The firm fixed-price nature requires monitoring of performance against contract requirements rather than cost accumulation. Transparency would be enhanced by public reporting of performance metrics and any contract modifications. The Inspector General for the Department of Commerce would have jurisdiction for audits and investigations if any issues of fraud, waste, or abuse arise.

Related Government Programs

Federal Facilities Maintenance Contracts
Government Custodial Services
NOAA Support Services
Department of Commerce Contracts
Facilities Support Services

Risk Flags

Non-competitive award
Potential for cost overruns due to lack of market price discovery
Long contract duration requires sustained oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $3.1 million to PDO - AIT JV LLC. CUSTODIAL SERVICES

Who is the contractor on this award?

The obligated recipient is PDO - AIT JV LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $3.1 million.

What is the period of performance?

Start: 2023-01-01. End: 2026-12-31.

What is the specific scope of 'Custodial Services' and 'Facilities Support Services' covered under this contract?

The provided data indicates the contract is for 'CUSTODIAL SERVICES' and falls under the 'Facilities Support Services' NAICS code (561210). While the exact scope is not detailed, these services typically encompass a broad range of activities necessary for the upkeep and operational readiness of government facilities. This can include routine cleaning, waste management, pest control, minor repairs, grounds maintenance, and potentially security-related support. For NOAA facilities, this likely involves maintaining laboratories, office spaces, and common areas to ensure a safe, clean, and functional environment conducive to scientific research and administrative operations. A detailed statement of work (SOW) within the contract would specify the precise tasks, frequency, and performance standards.

Why was this contract awarded on a sole-source basis instead of being competed?

The data indicates the contract was 'NOT COMPETED UNDER SAP' and is classified as 'sole-source'. Federal agencies can award sole-source contracts under specific circumstances outlined in the Federal Acquisition Regulation (FAR). These circumstances often include situations where only one responsible source can provide the required supplies or services, or when there is a compelling urgency. Without further details on the justification provided by NOAA, it's impossible to definitively state the reason. However, potential justifications could include the unique capabilities of PDO - AIT JV LLC, a critical need for continuity of services with minimal disruption, or specific requirements that only this contractor could meet. The lack of competition, however, necessitates careful review to ensure the government's interests were protected and fair value was obtained.

How does the firm fixed-price (FFP) contract type impact the government's risk and flexibility for this custodial services contract?

A Firm Fixed-Price (FFP) contract, as used here, shifts the majority of the cost risk from the government to the contractor. The contractor agrees to a set price for the defined scope of work, and is responsible for managing their costs to achieve profitability. This provides the government with significant cost certainty, as the total price is fixed regardless of the contractor's actual costs. However, this also reduces flexibility. If the scope of work needs to change significantly, or if unforeseen circumstances arise that increase the contractor's costs, modifications to the contract price would need to be negotiated, which can be a complex process. For custodial services, where needs might fluctuate slightly, the FFP structure requires a very well-defined scope of work upfront to avoid extensive change order negotiations.

What are the potential implications of the 4-year contract duration for NOAA's facilities management?

The 4-year duration (1460 days) for this custodial services contract suggests a long-term, stable need for these essential facilities support functions within NOAA. This extended period allows the contractor, PDO - AIT JV LLC, to establish efficient operations and potentially invest in specialized equipment or training. For NOAA, it provides continuity of service, reducing the administrative burden and potential disruption associated with frequent re-procurement. However, a long duration also means that NOAA must ensure robust performance monitoring throughout the contract term to guarantee that service quality remains high and that the fixed price continues to represent good value over time. It also means that any necessary adjustments to service scope or standards will need to be managed through contract modifications.

Are there any known performance issues or track record concerns with PDO - AIT JV LLC on previous federal contracts?

Based solely on the provided data, there is no information available regarding the past performance or track record of PDO - AIT JV LLC on previous federal contracts. The data includes the contractor's name, award details, and contract specifics, but not historical performance ratings or past performance evaluations. To assess the contractor's reliability and quality of service, a review of their performance history in the Federal Awardee Performance and Integrity Information System (FAPIIS) or other relevant government databases would be necessary. This would provide insights into their past adherence to contract terms, quality of work, and overall customer satisfaction on prior government engagements.

How does the $314 million contract value compare to typical spending on custodial and facilities support services for federal agencies of NOAA's size?

The $314 million contract value for custodial and facilities support services is substantial and reflects the significant operational footprint of the National Oceanic and Atmospheric Administration (NOAA). While direct comparisons are difficult without knowing the exact square footage, number of facilities, and specific service requirements across NOAA, this figure suggests a comprehensive service agreement. Federal spending on facilities support can vary widely based on agency mission, geographic distribution of assets, and the age and complexity of facilities. For large agencies with extensive research, administrative, and operational sites, multi-million dollar contracts for these services are not uncommon. However, the non-competitive nature of this award warrants scrutiny to ensure this value is aligned with market benchmarks for similar-sized federal entities.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3215 W STATE ST STE 309C1, MILWAUKEE, WI, 53208

Business Categories: Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,254,341

Exercised Options: $4,308,277

Current Obligation: $3,142,057

Actual Outlays: $1,884,911

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline