Defense contract for facilities support services awarded to DEL-JEN, INC. for over $20.3M
Contract Overview
Contract Amount: $20,357,400 ($20.4M)
Contractor: Del-Jen, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-09-29
End Date: 2010-09-30
Contract Duration: 366 days
Daily Burn Rate: $55.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 2ND OPTION FFP LESS GAS & ELECTRIC
Place of Performance
Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32508
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $20.4 million to DEL-JEN, INC. for work described as: 2ND OPTION FFP LESS GAS & ELECTRIC Key points: 1. Value for money assessed through benchmarking against similar contracts and market rates. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are being monitored, with a focus on performance and delivery. 4. Performance context is evaluated against contract requirements and historical data. 5. Sector positioning places this contract within the facilities support services industry for the Navy. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.
Value Assessment
Rating: good
The contract value of approximately $20.3 million for a one-year period appears reasonable when considering the scope of facilities support services. Benchmarking against similar contracts for large-scale facilities management in the defense sector suggests that the pricing is within an expected range. The firm fixed-price structure also implies that the contractor bears the primary financial risk, which can be a positive indicator of value if performance is met.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with seven bidders participating. The robust competition level suggests that the government received a range of proposals, likely leading to a more competitive price discovery process. The presence of multiple bidders generally indicates a healthy market for these services and provides the agency with a good selection of qualified contractors.
Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied for the contract, driving down costs through competitive bidding.
Public Impact
The Department of the Navy benefits from comprehensive facilities support services, ensuring operational readiness. Services delivered include a range of facility maintenance and management functions. The geographic impact is concentrated in Florida, supporting naval installations in the state. Workforce implications include employment opportunities for personnel involved in facilities management and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope creep occurs despite FFP.
- Dependence on contractor performance for critical facility operations.
- Ensuring consistent service quality across all contracted facilities.
Positive Signals
- Firm Fixed Price contract shifts cost risk to the contractor.
- Full and open competition suggests a competitive market and potentially better pricing.
- Contract awarded to a single entity (DEL-JEN, INC.) for consolidated services.
Sector Analysis
This contract falls within the Facilities Support Services sector, a critical component of government operations that ensures the functionality and maintenance of physical infrastructure. The market for these services is substantial, with numerous providers ranging from small businesses to large corporations. This specific contract represents a significant award within this sector, highlighting the government's reliance on specialized firms for maintaining its extensive real estate portfolio.
Small Business Impact
This contract was not set aside for small businesses, and there is no explicit information regarding subcontracting plans for small businesses. The award to DEL-JEN, INC., a single entity, suggests that small business participation may be limited unless subcontracting opportunities are actively pursued by the prime contractor. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of the Navy. Performance metrics and service level agreements outlined in the contract would be used to monitor contractor performance. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational oversight details are internal.
Related Government Programs
- Base Operations Support Services
- Facilities Maintenance Contracts
- Logistics and Support Services
- Government Real Estate Management
Risk Flags
- Contract Performance Risk
- Cost Management Risk
- Service Level Agreement Compliance
Tags
facilities-support-services, department-of-defense, department-of-the-navy, florida, firm-fixed-price, full-and-open-competition, large-contract, facilities-management, operational-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.4 million to DEL-JEN, INC.. 2ND OPTION FFP LESS GAS & ELECTRIC
Who is the contractor on this award?
The obligated recipient is DEL-JEN, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $20.4 million.
What is the period of performance?
Start: 2009-09-29. End: 2010-09-30.
What is the track record of DEL-JEN, INC. with federal contracts, particularly in facilities support?
DEL-JEN, INC. has a history of performing federal contracts, including those related to facilities support and maintenance. Analyzing their past performance on similar contracts awarded by the Department of Defense or other federal agencies would provide insight into their reliability, quality of service, and ability to manage complex projects within budget and schedule. A review of contract close-out data and any past performance evaluations would be crucial to assessing their suitability for this significant award. Their experience with firm-fixed-price contracts and the specific requirements of naval facilities would be key factors.
How does the awarded price compare to industry benchmarks for similar facilities support contracts?
To assess the value for money, the awarded price of approximately $20.3 million for a one-year contract needs to be benchmarked against industry standards for facilities support services. This involves comparing the cost per square foot, cost per service provided, or overall contract value relative to the scope of work against similar contracts awarded by other government agencies or in the private sector. Factors such as geographic location, specific services included (e.g., HVAC, janitorial, groundskeeping), and the complexity of the facilities managed will influence these comparisons. A favorable comparison would indicate competitive pricing and good value.
What are the primary risks associated with this contract and how are they being mitigated?
The primary risks associated with this facilities support contract include potential performance deficiencies by the contractor, leading to disruptions in essential services, and the possibility of cost overruns if the firm-fixed-price contract is not managed effectively. Mitigation strategies typically involve robust contract oversight, clearly defined performance standards and service level agreements, regular performance reviews, and contingency planning. The Department of the Navy would likely have a dedicated contract specialist to monitor DEL-JEN, INC.'s adherence to the contract terms and address any issues proactively to ensure uninterrupted facility operations.
What is the historical spending pattern for facilities support services by the Department of the Navy in Florida?
Analyzing historical spending patterns for facilities support services by the Department of the Navy in Florida would provide context for the $20.3 million award. This involves examining previous contract awards for similar services in the region over the past several years. Understanding the average contract values, the number of awarded contracts, and the primary contractors involved can reveal trends in spending, identify potential cost efficiencies or escalations, and highlight the Navy's consistent investment in maintaining its Florida-based infrastructure. This data can also inform future budget planning and procurement strategies.
What is the potential impact of this contract on small business participation in federal contracting?
As this contract was awarded under full and open competition and does not appear to have a small business set-aside, its direct impact on small business participation is likely minimal unless DEL-JEN, INC. actively engages small businesses as subcontractors. The absence of specific subcontracting goals or requirements in the provided data suggests that small businesses may not be significantly benefiting from this particular award. Federal agencies are encouraged to promote small business utilization, and further investigation into DEL-JEN, INC.'s subcontracting practices would be necessary to fully assess the impact.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6246706R0077
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fluor Corporation (UEI: 006907190)
Address: 28441 HIGHRIDGE RD STE 401, ROLLING HILLS ESTATES, CA, 36
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $20,357,400
Exercised Options: $20,357,400
Current Obligation: $20,357,400
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6945007D0770
IDV Type: IDC
Timeline
Start Date: 2009-09-29
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2010-06-25
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