State Department awards $20.4M facilities maintenance contract to PACARCTIC, LLC, with significant funding through 2026

Contract Overview

Contract Amount: $20,361,753 ($20.4M)

Contractor: Pacarctic, LLC

Awarding Agency: Department of State

Start Date: 2019-05-01

End Date: 2026-08-31

Contract Duration: 2,679 days

Daily Burn Rate: $7.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMPLETE FACILITIES MAINTENANCE FLORIDA REGIONAL CENTER US DEPARTMENT OF STATE - INCREMENTAL FUNDING THROUGH JULY 31, 2019.

Place of Performance

Location: FORT LAUDERDALE, BROWARD County, FLORIDA, 33309

State: Florida Government Spending

Plain-Language Summary

Department of State obligated $20.4 million to PACARCTIC, LLC for work described as: COMPLETE FACILITIES MAINTENANCE FLORIDA REGIONAL CENTER US DEPARTMENT OF STATE - INCREMENTAL FUNDING THROUGH JULY 31, 2019. Key points: 1. Contract value appears reasonable for a multi-year facilities maintenance agreement of this scope. 2. Limited competition raises concerns about potential overpricing and reduced value for taxpayer funds. 3. Contract duration and incremental funding suggest potential for scope creep or extended service needs. 4. Performance context is limited without specific metrics on service quality or uptime. 5. This contract falls within the broader facilities support services sector for government operations.

Value Assessment

Rating: fair

The contract value of $20.4 million over its period of performance appears within a typical range for comprehensive facilities maintenance services for a regional center. However, without specific details on the scope of services, square footage maintained, or the specific services provided (e.g., HVAC, janitorial, groundskeeping), a precise value-for-money assessment is challenging. Benchmarking against similar contracts for facilities maintenance at Department of State facilities or comparable government installations would be necessary for a more definitive evaluation of pricing and 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. The justification for this approach is not provided, but it typically suggests that only one vendor was deemed capable of meeting the requirements, or that the circumstances of the award precluded a competitive process. The absence of multiple bidders means that price discovery through market forces was not leveraged, potentially leading to higher costs for the government.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible pricing through competitive bidding, potentially resulting in less efficient use of taxpayer funds.

Public Impact

The primary beneficiaries are the Department of State personnel and operations at the Florida Regional Center, who will receive consistent facilities maintenance. Services delivered include the upkeep and operational integrity of the physical infrastructure at the specified regional center. The geographic impact is localized to the Florida Regional Center, supporting its operational readiness. Workforce implications are primarily for PACARCTIC, LLC, which will be responsible for providing the necessary personnel to perform the maintenance services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Sole-source award raises questions about justification and potential alternatives.
Long contract duration could mask inefficiencies if not properly managed.
Incremental funding structure requires careful monitoring to ensure scope alignment.

Positive Signals

Contract ensures continuity of essential facilities maintenance services.
PACARCTIC, LLC is the awarded contractor, implying some level of vetting.
Fixed-price contract type can provide cost predictability if scope is well-defined.

Sector Analysis

This contract falls within the Facilities Support Services industry, a broad sector encompassing a wide range of services necessary for the operation and maintenance of physical infrastructure. Government spending in this area is substantial, supporting everything from office buildings to specialized operational sites. Benchmarks for facilities maintenance can vary widely based on the type of facility, its location, and the specific services required. This contract's value of approximately $20.4 million over its term places it as a significant, though not exceptionally large, award within this sector.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the sole-source nature of the award, it is unlikely that subcontracting opportunities for small businesses were a primary consideration or requirement within the solicitation process. Further analysis would be needed to determine if PACARCTIC, LLC has a history of subcontracting with small businesses on other contracts.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of State's contracting officers and program managers responsible for facilities at the Florida Regional Center. Transparency is limited due to the sole-source nature and lack of publicly available performance metrics. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse, but specific oversight mechanisms beyond standard contract management are not detailed.

Related Government Programs

General Services Administration (GSA) Facilities Management Contracts
Department of Defense Base Operations Support (BOS)
Federal Buildings Fund (FBF) Spending

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for cost overruns due to lack of competition.
Performance metrics and oversight details are not publicly available.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $20.4 million to PACARCTIC, LLC. COMPLETE FACILITIES MAINTENANCE FLORIDA REGIONAL CENTER US DEPARTMENT OF STATE - INCREMENTAL FUNDING THROUGH JULY 31, 2019.

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 $20.4 million.

What is the period of performance?

Start: 2019-05-01. End: 2026-08-31.

What is the specific justification for the sole-source award of this facilities maintenance contract?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source awards are granted when only one responsible source is available or capable of meeting the agency's needs. This could be due to unique capabilities, proprietary technology, urgent and compelling circumstances, or a previous contract that was not competitively re-awarded. Without the official justification document, it is impossible to determine the precise reasons. Agencies are required to document and justify sole-source procurements, and this documentation is often made public, though not always readily accessible through contract databases.

How does the per-square-foot maintenance cost of this contract compare to industry benchmarks for similar government facilities?

To compare the per-square-foot maintenance cost, we would need the total square footage of the Florida Regional Center facilities covered by this contract. The contract value is approximately $20.4 million over its duration. If, for example, the facility was 500,000 square feet, the annual cost would be roughly $4 million, or $8 per square foot. Industry benchmarks for government facilities can range widely, from $5 to $15+ per square foot annually, depending on the age of the building, complexity of systems (HVAC, IT infrastructure), security requirements, and geographic location. Without the square footage, a precise comparison is not possible, but the estimated range suggests it could be within typical parameters, though a definitive assessment requires more data.

What are the key performance indicators (KPIs) used to evaluate PACARCTIC, LLC's performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or performance metrics that will be used to evaluate PACARCTIC, LLC's service delivery. Standard KPIs for facilities maintenance contracts often include response times for service requests, resolution times for issues, preventative maintenance completion rates, building system uptime (e.g., HVAC, electrical), energy efficiency targets, and customer satisfaction surveys. The effectiveness of the contract and the value received by the Department of State are heavily dependent on the establishment and rigorous application of these KPIs, which are typically detailed in the contract's Performance Work Statement (PWS).

What is the historical spending pattern for facilities maintenance at the Florida Regional Center, and how does this award compare?

Historical spending data for facilities maintenance at the Florida Regional Center is not provided in the given data. To assess this award's context, one would need to examine previous contracts for similar services at this location. This would involve looking at contract awards over the past 5-10 years, noting the contractors, contract values, and durations. Comparing this $20.4 million award to previous spending would reveal whether this represents an increase, decrease, or stable level of investment in facilities maintenance. It would also help identify any trends in contractor selection or pricing over time.

What is PACARCTIC, LLC's track record with the Department of State and other federal agencies for similar facilities maintenance contracts?

Information regarding PACARCTIC, LLC's specific track record with the Department of State or other federal agencies for facilities maintenance is not included in the provided data. A comprehensive assessment would require reviewing contract databases (like FPDS or SAM.gov) for past performance records, including contract history, past performance evaluations, and any reported issues or awards. Understanding their experience with similar-sized contracts, types of facilities maintained, and overall performance ratings would provide crucial insight into their capability and reliability for this current award.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

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: $24,463,204

Exercised Options: $23,370,796

Current Obligation: $20,361,753

Actual Outlays: $5,166,204

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