State Dept. Awards $43M Facilities Maintenance Contract to PACARCTIC, LLC, Lacking Competition

Contract Overview

Contract Amount: $43,068,910 ($43.1M)

Contractor: Pacarctic, LLC

Awarding Agency: Department of State

Start Date: 2018-11-01

End Date: 2026-08-31

Contract Duration: 2,860 days

Daily Burn Rate: $15.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FACILITIES MAINTENANCE SA-26 BELTSVILLE INFORMATION MANAGEMENT CENTER

Place of Performance

Location: BELTSVILLE, PRINCE GEORGES County, MARYLAND, 20705

State: Maryland Government Spending

Plain-Language Summary

Department of State obligated $43.1 million to PACARCTIC, LLC for work described as: FACILITIES MAINTENANCE SA-26 BELTSVILLE INFORMATION MANAGEMENT CENTER Key points: 1. Significant contract value of $43 million for facilities maintenance. 2. Sole-source award raises concerns about potential overpricing and lack of market testing. 3. Long contract duration (2018-2026) may not reflect current market conditions. 4. Services fall under Facilities Support Services, a broad category with varying cost benchmarks.

Value Assessment

Rating: questionable

The contract's firm fixed price structure with no available benchmark makes a direct pricing assessment difficult. Without competitive bidding, it's hard to determine if the $43 million represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and potentially leads to higher costs for taxpayers as there was no incentive for the contractor to offer the lowest possible price.

Taxpayer Impact: The absence of competition for a contract of this magnitude means taxpayers may be paying more than necessary for these facilities maintenance services.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. The long-term nature of the contract limits opportunities for other businesses to compete for this work. Essential facilities maintenance services are being provided under potentially suboptimal pricing conditions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration
No benchmark data

Positive Signals

Essential service provision
Long-term engagement

Sector Analysis

This contract falls under Facilities Support Services, a broad sector encompassing building operations and maintenance. Spending in this sector can vary widely based on facility size, complexity, and location. Benchmarks are difficult to establish without more specific service details.

Small Business Impact

The data indicates this contract was not awarded to a small business. There is no information provided on whether small businesses were considered or subcontracted for any portion of this work.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the Department of State received fair value. Accountability for the justification of the sole-source procurement should be reviewed.

Related Government Programs

Facilities Support Services
Department of State Contracting
Department of State Programs

Risk Flags

Sole-source award limits competition and price discovery.
Potential for overpayment due to lack of competitive pressure.
Long contract duration may not reflect current market value.
No small business participation indicated.
Lack of transparency regarding justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $43.1 million to PACARCTIC, LLC. FACILITIES MAINTENANCE SA-26 BELTSVILLE INFORMATION MANAGEMENT CENTER

Who is the contractor on this award?

The obligated recipient is PACARCTIC, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $43.1 million.

What is the period of performance?

Start: 2018-11-01. End: 2026-08-31.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies explored?

The justification for the sole-source award is not provided in the data. Typically, sole-source awards are granted when only one responsible source is available or when a compelling urgency exists. Without this information, it's impossible to assess if alternative competitive strategies were adequately explored or if this was the most appropriate procurement method.

How does the per-unit cost of these facilities maintenance services compare to industry benchmarks, given the lack of competitive data?

Direct comparison to industry benchmarks is challenging due to the sole-source nature and lack of specific service details. However, the absence of competition suggests the possibility of inflated costs. A thorough review of the contractor's pricing structure against similar, competitively bid contracts would be necessary to identify potential overspending.

What measures are in place to ensure the effectiveness and quality of facilities maintenance services provided under this long-term, sole-source contract?

Effectiveness and quality assurance measures are not detailed in the provided data. For long-term, sole-source contracts, robust performance monitoring, regular quality assessments, and clear service level agreements are crucial. The Department of State should have established mechanisms to track contractor performance and ensure services meet required standards.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3800 CENTERPOINT DR STE 502, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,068,910

Exercised Options: $43,068,910

Current Obligation: $43,068,910

Actual Outlays: $9,180,641

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM18D0117

IDV Type: IDC

Timeline