DOJ awards $1.5M for parking services, with 2 bids received under simplified acquisition procedures

Contract Overview

Contract Amount: $1,535,942 ($1.5M)

Contractor: ID Fort LLC

Awarding Agency: Department of Justice

Start Date: 2022-06-01

End Date: 2024-05-31

Contract Duration: 730 days

Daily Burn Rate: $2.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PARKING SERVICES

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48226

State: Michigan Government Spending

Plain-Language Summary

Department of Justice obligated $1.5 million to ID FORT LLC for work described as: PARKING SERVICES Key points: 1. Value for money appears reasonable given the firm-fixed-price structure and 2-year duration. 2. Competition dynamics indicate a limited but present market for these services. 3. Risk indicators are low due to the straightforward nature of parking services. 4. Performance context is a standard service contract for facility support. 5. Sector positioning is within general administrative and facility support services.

Value Assessment

Rating: good

The contract value of $1.54 million over two years for parking services suggests a moderate annual spend. Benchmarking against similar contracts is challenging without more specific location and service scope details. However, the firm-fixed-price award type generally indicates that the government has a clear understanding of the costs involved, and the contractor assumes the risk of cost overruns, which can be favorable for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for a streamlined procurement process for purchases below the simplified acquisition threshold. While the data indicates 'COMPETED UNDER SAP', it also shows 2 offers were received. This suggests some level of competition, though the specific number of solicitations and bidders beyond the two offers is not detailed. SAP is intended to promote competition among small businesses and other sources.

Taxpayer Impact: The use of SAP and the receipt of two bids suggest a potentially efficient use of taxpayer funds by leveraging a streamlined process while still achieving some price competition.

Public Impact

Federal employees and visitors at the Department of Justice facility in Michigan will benefit from accessible and maintained parking. The service delivered is the operation and maintenance of parking lots and garages. The geographic impact is localized to the area where the DOJ facility is located in Michigan. Workforce implications may include employment for parking attendants, maintenance staff, and administrative personnel by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition remains limited.
Dependence on a single contractor for essential parking services could create operational risks if performance falters.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
Awarded under simplified acquisition procedures, suggesting efficient procurement.
Contract duration of two years allows for stable service provision.

Sector Analysis

The parking services sector is a mature industry that supports various commercial and government operations. This contract falls under the broader category of facility support services. While specific market size data for government parking services is not readily available, the industry is characterized by numerous providers ranging from small local operators to large facility management companies. The contract's value is modest within the context of overall federal facility spending.

Small Business Impact

The data does not indicate if this contract was specifically set aside for small businesses, nor does it detail subcontracting plans. However, Simplified Acquisition Procedures (SAP) are often used to encourage small business participation. Without explicit set-aside information, it's unclear what direct impact this contract has on the small business ecosystem, though the contractor may utilize small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the designated contract specialist within the Department of Justice. Performance monitoring would likely involve regular reviews of service delivery against the contract's requirements. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Maintenance Contracts
Government Facility Management Services
Transportation Infrastructure Support
Administrative Support Services

Risk Flags

Limited competition noted under SAP.
Potential for price increases in future renewals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $1.5 million to ID FORT LLC. PARKING SERVICES

Who is the contractor on this award?

The obligated recipient is ID FORT LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $1.5 million.

What is the period of performance?

Start: 2022-06-01. End: 2024-05-31.

What is the track record of ID FORT LLC with federal contracts, particularly in parking services?

A review of federal procurement data indicates that ID FORT LLC has been awarded contracts primarily for parking services and related facility support. The provided data shows this specific contract with the Department of Justice is one of their federal awards. Further analysis would require examining their complete contract history across various agencies to assess performance trends, past issues, and overall reliability. Without a broader dataset, it's difficult to definitively characterize their track record beyond this single award, but the firm-fixed-price nature and relatively short duration suggest a manageable scope for this particular engagement.

How does the awarded price compare to market rates for similar parking services in Michigan?

Benchmarking the $1.54 million contract value for parking services against market rates is challenging without granular data on the specific location, size of the parking facilities, and the exact scope of services (e.g., attendant staffing levels, maintenance frequency, security provisions). However, the annual value of approximately $770,000 for parking services at a federal facility suggests a significant operation. Market research would typically involve comparing this to rates charged by private parking operators for comparable facilities in the same geographic area. Given the firm-fixed-price award and the receipt of two bids, it implies the price was deemed competitive by the procuring agency at the time of award.

What are the primary risks associated with this parking services contract?

The primary risks associated with this parking services contract are relatively low, given the nature of the service. Potential risks include service disruptions due to contractor performance issues (e.g., inadequate maintenance, insufficient staffing), which could impact federal employees and visitors. Another risk is potential price escalation in future contract renewals if competition does not increase or if market conditions change unfavorably. Operational risks are mitigated by the firm-fixed-price contract, which shifts cost overrun risk to the contractor. The relatively short two-year duration also limits long-term exposure to these risks.

How effective is the Simplified Acquisition Procedure (SAP) in ensuring value for money for parking services?

Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for purchases below the simplified acquisition threshold, aiming for efficiency and cost savings. For services like parking, where requirements can be relatively standardized, SAP can be effective in reducing administrative burden and speeding up award times. The fact that this contract received two bids suggests that SAP facilitated a degree of competition. However, the effectiveness in ensuring maximum value for money depends on the specific implementation, the number of potential bidders solicited, and the clarity of the requirements. While SAP promotes efficiency, it may not always yield the same level of price competition as larger, more complex procurement methods.

What is the historical spending trend for parking services by the Department of Justice?

Analyzing the historical spending trend for parking services by the Department of Justice (DOJ) requires access to comprehensive federal procurement databases covering multiple fiscal years. The provided data point represents a single award of $1.54 million over two years. To understand the trend, one would need to aggregate all similar parking service contracts awarded by the DOJ over several years, noting any fluctuations in total spending, average contract values, and the number of contracts awarded. This would help identify whether spending on parking services is increasing, decreasing, or remaining stable, and whether the DOJ is consolidating or decentralizing these services.

What are the implications of the 'COMPETED UNDER SAP' designation for taxpayer value?

The 'COMPETED UNDER SAP' designation implies that the procurement process was streamlined, potentially reducing administrative costs associated with a full and open competition. Receiving two bids suggests that some level of market interest was generated. For taxpayers, this can translate to value through faster service acquisition and potentially lower overhead costs compared to more complex, lengthy procurement processes. However, the ultimate value depends on whether the competition level (two bids) was sufficient to drive prices down to the lowest feasible point. If the market for such services is robust, a more extensive competition might have yielded better pricing, but SAP is often employed when efficiency is prioritized for smaller dollar values.

Industry Classification

NAICS: Other Services (except Public Administration) › Other Personal Services › Parking Lots and Garages

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 15JA0522Q00000040

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 333 W FORT ST STE 1350, DETROIT, MI, 48226

Business Categories: Category Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,535,942

Exercised Options: $1,535,942

Current Obligation: $1,535,942

Actual Outlays: $1,537,195

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline