Interior's $4.4M Paradox Valley contract awarded to VNS Federal Services for facilities support

Contract Overview

Contract Amount: $4,367,877 ($4.4M)

Contractor: VNS Federal Services LLC

Awarding Agency: Department of the Interior

Start Date: 2025-03-27

End Date: 2027-03-26

Contract Duration: 729 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PARADOX VALLEY UNIT (PVU) OPERATIONS, MAINTENANCE, AND REPAIRS (OM&R) SERVICES

Place of Performance

Location: BEDROCK, MONTROSE County, COLORADO, 81411

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $4.4 million to VNS FEDERAL SERVICES LLC for work described as: PARADOX VALLEY UNIT (PVU) OPERATIONS, MAINTENANCE, AND REPAIRS (OM&R) SERVICES Key points: 1. Contract value appears reasonable for a 2-year facilities support services agreement. 2. Full and open competition suggests a competitive bidding process. 3. Definitive contract type indicates a clear scope of work. 4. Fixed-price structure shifts performance risk to the contractor. 5. Contract duration of 729 days aligns with typical service agreements. 6. Small business set-aside was not utilized, indicating larger prime contractor involvement.

Value Assessment

Rating: good

The contract's value of approximately $4.4 million over two years for facilities support services at Paradox Valley Unit seems within a reasonable range for similar government contracts. Without specific details on the scope of services, a direct per-unit cost comparison is difficult. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the contractor performs efficiently. Benchmarking against similar facilities maintenance contracts would provide a more precise assessment of value for money.

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 a bid. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and service quality for the government. The open competition suggests that the Bureau of Reclamation sought the best possible offer from the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process, ensuring that the government receives competitive pricing and a wide range of service options.

Public Impact

The Bureau of Reclamation benefits from reliable operations and maintenance of the Paradox Valley Unit facilities. Essential services for facility upkeep, repairs, and operational support are delivered. The contract's geographic impact is localized to the Paradox Valley Unit in Colorado. Workforce implications include potential job creation for skilled trades and facility management personnel by the prime contractor and any subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor to under-deliver on scope if profit margins are too thin.
Reliance on a single contractor for critical facility operations could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a competitive market for these services.
Definitive contract provides clarity on the scope and duration of services.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, represent a significant segment of the government contracting market. This sector encompasses a wide range of services including building operation, maintenance, and repair. Government spending in this area is crucial for maintaining federal infrastructure across various agencies. Comparable spending benchmarks for facilities support services can vary widely based on the size, complexity, and location of the facilities being serviced.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no explicit subcontracting requirements for small businesses were mandated in this award. This suggests that the prime contractor, VNS Federal Services LLC, is expected to perform the majority of the work. While this may limit direct opportunities for small businesses on this specific contract, it does not preclude them from competing for future set-aside contracts or subcontracting roles if the prime contractor chooses to engage them.

Oversight & Accountability

Oversight for this contract will likely be managed by the Bureau of Reclamation's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Facilities Maintenance Contracts
Bureau of Reclamation Operations and Maintenance
Department of the Interior Service Contracts
Government Facilities Support Services

Risk Flags

Potential for performance issues if contractor lacks adequate resources.
Risk of cost overruns if scope is not clearly defined (mitigated by FFP).

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $4.4 million to VNS FEDERAL SERVICES LLC. PARADOX VALLEY UNIT (PVU) OPERATIONS, MAINTENANCE, AND REPAIRS (OM&R) SERVICES

Who is the contractor on this award?

The obligated recipient is VNS FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Reclamation).

What is the total obligated amount?

The obligated amount is $4.4 million.

What is the period of performance?

Start: 2025-03-27. End: 2027-03-26.

What is the track record of VNS Federal Services LLC in performing similar facilities support contracts for the federal government?

Assessing the track record of VNS Federal Services LLC requires a review of their past performance on federal contracts, particularly those involving operations, maintenance, and repairs (OM&R) for facilities. Information on past performance can often be found in federal procurement databases like SAM.gov or through agency-specific performance evaluation systems. Key indicators to examine include contract completion history, any documented performance issues or disputes, customer satisfaction ratings, and the scale and complexity of previously managed projects. A history of successful, on-time, and within-budget performance on comparable contracts would indicate a lower risk for this new award. Conversely, a pattern of performance deficiencies or contract terminations would raise concerns about the contractor's capability to meet the requirements of the Paradox Valley Unit contract.

How does the awarded amount of $4.37 million compare to similar facilities support contracts awarded by the Bureau of Reclamation or other agencies?

To benchmark the $4.37 million award for Paradox Valley Unit OM&R services, a comparative analysis with similar contracts is necessary. This involves identifying contracts with comparable scopes of work (e.g., facilities maintenance, repair, operations), contract durations (approximately two years), and geographic locations, if possible. Data from federal procurement databases can reveal the average cost per square foot or per facility for similar services. Factors such as the specific types of facilities (e.g., dams, administrative buildings, remote sites), the level of specialized equipment maintenance required, and prevailing labor rates in the region will influence cost. If this contract's value falls within or below the typical range for comparable services, it suggests good value for money. Significant deviations, either higher or lower, warrant further investigation into the specific service requirements and market conditions.

What are the primary risks associated with a definitive contract for facilities support services, and how are they mitigated?

A primary risk with definitive contracts for facilities support services is the potential for scope creep or unforeseen maintenance needs that may not be adequately covered by the initial contract terms, especially if the contract is firm-fixed-price. Another risk involves the contractor's ability to maintain consistent service quality and responsiveness over the contract duration. Mitigations typically include clearly defined performance standards and service level agreements (SLAs) within the contract, robust government oversight to monitor performance, and regular communication channels between the agency and the contractor. For unforeseen issues, contract modification procedures or contingency funds might be utilized, though this can impact the fixed-price nature. The firm-fixed-price structure itself mitigates financial risk for the government by capping costs, shifting performance risk to the contractor.

What is the expected effectiveness of VNS Federal Services LLC in ensuring the continuous operation and maintenance of the Paradox Valley Unit?

The expected effectiveness of VNS Federal Services LLC hinges on several factors, including their demonstrated past performance, the adequacy of their proposed technical approach, and the robustness of the government's oversight. Assuming VNS Federal Services has a solid track record in similar OM&R contracts, their effectiveness should be high. The firm-fixed-price nature of the contract incentivizes efficiency and timely completion of tasks. The Bureau of Reclamation's role in monitoring performance against contract requirements and service level agreements is crucial. Regular inspections, performance reviews, and prompt addressing of any deficiencies will be key to ensuring the continuous operation and maintenance of the Paradox Valley Unit. The contract's duration of two years allows for a stable service period, contributing to predictable operational outcomes.

How has federal spending on facilities support services, specifically within the Department of the Interior, trended over the past five years?

Analyzing federal spending trends on facilities support services within the Department of the Interior (DOI) over the past five years would provide context for this $4.37 million award. This would involve examining historical contract data for NAICS code 561210 (Facilities Support Services) awarded by the DOI and its various bureaus, including the Bureau of Reclamation. Trends might indicate an increase or decrease in overall spending, shifts in contract types (e.g., more fixed-price vs. cost-reimbursement), or changes in the average contract values. Such analysis could reveal whether spending on these services is growing due to aging infrastructure, new facility requirements, or budget allocations. Understanding these trends helps assess if the current contract award is consistent with historical spending patterns or represents a significant deviation, potentially due to new program needs or market dynamics.

Industry Classification

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

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140R4025Q0003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 295 BRADLEY BLVD, RICHLAND, WA, 99352

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

Financial Breakdown

Contract Ceiling: $11,121,652

Exercised Options: $4,367,877

Current Obligation: $4,367,877

Actual Outlays: $1,560,418

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline