Treasury's $73M Facilities Contract with Pride Industries Faces Limited Competition, Raising Oversight Concerns
Contract Overview
Contract Amount: $73,144,838 ($73.1M)
Contractor: Pride Industries
Awarding Agency: Department of the Treasury
Start Date: 2021-02-16
End Date: 2025-07-31
Contract Duration: 1,626 days
Daily Burn Rate: $45.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: MAINTENANCE AND OPERATION (M&O) SERVICES FOR WCF
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76131
State: Texas Government Spending
Plain-Language Summary
Department of the Treasury obligated $73.1 million to PRIDE INDUSTRIES for work described as: MAINTENANCE AND OPERATION (M&O) SERVICES FOR WCF Key points: 1. Contract awarded to a single vendor, limiting competitive pricing. 2. Significant duration (over 3 years) with substantial value. 3. Lack of clear competition raises questions about value for taxpayer money. 4. Facilities support services sector often has opportunities for competition.
Value Assessment
Rating: questionable
The contract's Time and Materials pricing structure, combined with limited competition, makes it difficult to assess value for money. Benchmarking against similar facilities support contracts is challenging without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition award. This significantly restricts price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of robust competition may result in taxpayers paying more than necessary for these essential facilities maintenance services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long contract duration could lock in potentially inflated prices. Government agencies rely on these services, making vendor lock-in a risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Time and Materials pricing
- Long contract duration
- Lack of small business participation
Positive Signals
- Essential service provision
- Established vendor relationship
Sector Analysis
This contract falls under Facilities Support Services, a broad category encompassing maintenance, cleaning, and operational support for government buildings. Spending in this sector can vary widely, but competitive bidding is typically encouraged to ensure cost-effectiveness.
Small Business Impact
The data indicates no specific small business set-aside or participation. Given the contract's nature and value, there may have been missed opportunities to engage small businesses in providing these services.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' status warrants closer oversight to ensure the pricing is fair and reasonable. Regular performance reviews and cost audits are crucial for accountability.
Related Government Programs
- Facilities Support Services
- Department of the Treasury Contracting
- Bureau of Engraving and Printing Programs
Risk Flags
- Potential for overpayment due to limited competition
- Lack of transparency in pricing with T&M structure
- Missed opportunities for small business engagement
- Extended contract duration without re-competition
Tags
facilities-support-services, department-of-the-treasury, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $73.1 million to PRIDE INDUSTRIES. MAINTENANCE AND OPERATION (M&O) SERVICES FOR WCF
Who is the contractor on this award?
The obligated recipient is PRIDE INDUSTRIES.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of Engraving and Printing).
What is the total obligated amount?
The obligated amount is $73.1 million.
What is the period of performance?
Start: 2021-02-16. End: 2025-07-31.
What specific factors justified the 'NOT AVAILABLE FOR COMPETITION' designation for this substantial facilities support contract?
The justification for a 'NOT AVAILABLE FOR COMPETITION' designation typically involves factors such as unique capabilities, urgent needs, or the unavailability of other sources. Without further documentation, it's unclear if these criteria were met, raising questions about whether competition was truly impossible or simply not pursued.
How does the Time and Materials pricing structure impact the government's ability to control costs on this contract?
Time and Materials (T&M) contracts can be risky for the government as they incentivize vendor effort rather than specific outcomes. Without strong oversight and defined labor rates/material markups, T&M can lead to cost overruns and make it difficult to benchmark against industry standards, potentially increasing overall expenditure.
What is the potential long-term financial impact on taxpayers given the contract's duration and limited competition?
The combination of a long contract duration (ending in 2025) and limited competition suggests a significant risk of taxpayers overpaying. Without periodic re-competition or robust cost controls, the government may be locked into paying above-market rates for facilities maintenance services over the contract's life.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 2031ZA20Q00218
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 10030 FOOTHILLS BLVD, ROSEVILLE, CA, 95747
Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $87,208,638
Exercised Options: $73,144,838
Current Obligation: $73,144,838
Actual Outlays: $70,665,753
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-02-16
Current End Date: 2025-07-31
Potential End Date: 2025-07-31 00:00:00
Last Modified: 2025-06-09
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