Justice Department awards $2.6M for parking, highlighting potential for cost efficiencies in facility management

Contract Overview

Contract Amount: $2,605,500 ($2.6M)

Contractor: ID Fort LLC

Awarding Agency: Department of Justice

Start Date: 2024-06-01

End Date: 2027-05-31

Contract Duration: 1,094 days

Daily Burn Rate: $2.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PARKING SPACES

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48226

State: Michigan Government Spending

Plain-Language Summary

Department of Justice obligated $2.6 million to ID FORT LLC for work described as: PARKING SPACES Key points: 1. The contract's fixed-price nature suggests a clear scope, potentially limiting cost overruns. 2. Competition under SAP indicates a streamlined process, but may not yield the lowest possible price. 3. The duration of nearly three years allows for consistent service delivery. 4. The specific NAICS code (812930) points to a niche service within facility operations. 5. The award to ID FORT LLC warrants a review of their past performance in similar contracts.

Value Assessment

Rating: fair

The contract value of $2.6 million over approximately three years for parking services appears reasonable given the scope. However, without specific details on the number of parking spaces or the geographic coverage, a direct comparison to similar contracts is challenging. Benchmarking against industry standards for parking management services would be necessary to definitively assess value for money. The firm fixed-price structure provides cost certainty, which is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a limited number of bidders and a less formal solicitation process than full and open competition. While this can expedite the acquisition, it may not always result in the most competitive pricing. The number of bidders (5) is a moderate level of competition for this type of procurement.

Taxpayer Impact: For taxpayers, limited competition under SAP means there's a possibility that the government did not secure the absolute lowest price achievable through a broader, more rigorous bidding process.

Public Impact

Federal employees at ID Fort LLC's location in Michigan will benefit from managed parking. The contract ensures the availability and maintenance of parking facilities. The geographic impact is localized to the area where the Department of Justice offices are situated. The contract supports jobs within the parking management and maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation if scope changes significantly despite fixed-price.
Limited competition may have resulted in a higher-than-market price.
Dependence on a single contractor for a critical facility service.

Positive Signals

Firm fixed-price contract provides budget certainty.
Clear performance period of nearly three years.
Awarded to a contractor with a stated presence in Michigan.

Sector Analysis

The parking services sector is a component of the broader facility management industry. This contract falls under the 'Parking Lots and Garages' (NAICS 812930) category. Spending in this area is typically driven by the need to provide essential employee and visitor parking at federal facilities. Benchmarking would involve comparing this contract's value to other government or private sector contracts for similar parking management services, considering factors like the number of spaces, security, and maintenance levels.

Small Business Impact

This contract was not specifically set aside for small businesses, and the data indicates the awardee is ID FORT LLC. Further investigation would be needed to determine if ID FORT LLC qualifies as a small business. There is no explicit information regarding subcontracting plans for small businesses within this award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's contracting officers and relevant program managers. Accountability is ensured through the firm fixed-price agreement and the defined performance period. Transparency is facilitated by the public availability of contract awards, though detailed performance metrics are not typically disclosed.

Related Government Programs

Federal Facility Management Contracts
Department of Justice Operational Support
Parking Infrastructure Services

Risk Flags

Limited competition may impact price.
Need for detailed performance metrics review.
Contractor past performance verification required.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2.6 million to ID FORT LLC. PARKING SPACES

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 $2.6 million.

What is the period of performance?

Start: 2024-06-01. End: 2027-05-31.

What is the specific location and number of parking spaces covered by this contract?

The provided data indicates the contract is for 'PARKING SPACES' with a total value of $2,605,500. The award notice specifies the state as 'MI' (Michigan). However, the exact number of parking spaces and the precise geographic location within Michigan are not detailed in the summary data. This information is crucial for a thorough value assessment and comparison with other parking contracts. Without these specifics, it's difficult to benchmark the cost per space or evaluate the efficiency of the service delivery.

What is the track record of ID FORT LLC in managing federal parking contracts?

Information regarding ID FORT LLC's specific track record with federal parking contracts is not detailed in the provided summary. To assess their performance, a review of their past federal contract history, including any awards, past performance evaluations (e.g., CPARS), and any instances of contract disputes or terminations, would be necessary. Understanding their experience with similar-sized contracts and their ability to meet performance requirements is key to evaluating the risk associated with this award.

How does the $2.6 million contract value compare to market rates for parking management in Michigan?

Benchmarking the $2.6 million contract value against market rates for parking management in Michigan requires more granular data. Factors such as the number of spaces managed, the level of service (e.g., security, maintenance, attendant services), and the specific location within Michigan significantly influence pricing. While the contract is firm fixed-price, suggesting cost certainty for the government, a detailed analysis comparing the cost per space or per facility managed to prevailing commercial rates in the relevant Michigan area would be needed to determine if it represents good value for money.

What are the specific performance standards and deliverables outlined in the contract?

The provided summary data does not detail the specific performance standards and deliverables for this parking services contract. Typically, such contracts would include requirements related to the maintenance of parking lot surfaces, lighting, security, snow removal (if applicable), and potentially customer service if attendants are involved. The firm fixed-price nature suggests these are clearly defined. A review of the contract's statement of work (SOW) would be necessary to understand the exact expectations and the metrics used for performance evaluation.

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

The provided data focuses on a single contract award and does not offer historical spending patterns for parking services by the Department of Justice. To analyze historical spending, one would need to examine contract databases over several fiscal years, filtering for relevant NAICS codes (like 812930) and agencies. This would reveal trends in contract values, award types, and contractor choices, helping to contextualize the current $2.6 million award and identify any significant shifts in spending or strategy.

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: 15JA0524Q00000043

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 333 W FORT ST, 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: $4,401,000

Exercised Options: $2,605,500

Current Obligation: $2,605,500

Actual Outlays: $1,440,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline