DoD's $16.8M Facilities Support Services Contract Awarded to LB & B Associates Inc

Contract Overview

Contract Amount: $16,858,991 ($16.9M)

Contractor: LB & B Associates Inc

Awarding Agency: Department of Defense

Start Date: 2007-10-01

End Date: 2008-09-30

Contract Duration: 365 days

Daily Burn Rate: $46.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: OPTION PERIOD THREE - LEVEL I SERVICES

Place of Performance

Location: FORT LEONARD WOOD, PULASKI County, MISSOURI, 65473

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $16.9 million to LB & B ASSOCIATES INC for work described as: OPTION PERIOD THREE - LEVEL I SERVICES Key points: 1. Contract awarded for facilities support services, indicating a need for ongoing operational maintenance and management. 2. The contract type is Cost Plus Award Fee, which incentivizes contractor performance but can lead to higher costs if not managed carefully. 3. Awarded to LB & B Associates Inc., a company with a track record in government contracting. 4. The contract duration is one year, suggesting a need for flexible service delivery or a pilot phase. 5. The North American Industry Classification System (NAICS) code 561210 points to a focus on general building operations and maintenance. 6. The contract was awarded under full and open competition, suggesting a competitive bidding process. 7. The contract was awarded by the Department of the Army, a major component of the Department of Defense. 8. The contract is for Option Period Three, implying previous successful performance and renewals.

Value Assessment

Rating: fair

Benchmarking the value of this $16.8 million contract for one year of facilities support services is challenging without more detailed performance metrics and service scope. The Cost Plus Award Fee (CPAF) structure means the final cost can vary based on performance, making direct price comparisons difficult. However, the base award amount of $16.8 million for a full year of services suggests a significant operational requirement. Further analysis would require comparing the specific services provided against industry benchmarks for similar facilities and contract types, as well as examining the award fee structure and achieved performance levels.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 10 bids suggests a healthy level of interest and competition for these facilities support services. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award by offering competitive pricing and demonstrating superior capabilities.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for their money by driving down costs and encouraging innovation among bidders.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel, who receive essential facilities support services. Services delivered likely include maintenance, repair, operations, and management of government facilities. The geographic impact is concentrated in Missouri, where the contract is being performed. Workforce implications include employment opportunities for individuals in facilities management, maintenance, and related trades, both directly by the contractor and potentially through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to cost overruns if performance metrics and award criteria are not tightly defined and monitored.
The specific details of the 'Level I Services' and the award fee criteria are not provided, making it difficult to assess the true value and contractor incentive alignment.
Reliance on a single contractor for option period three might indicate a lack of robust market research for alternative providers or a strong incumbent advantage.

Positive Signals

The contract was awarded under full and open competition, suggesting a robust bidding process that likely yielded competitive pricing.
The contract has reached Option Period Three, indicating a history of satisfactory performance and successful contract management by the agency.
The award to LB & B Associates Inc. suggests they have a proven track record with the Department of the Army or similar agencies.

Sector Analysis

Facilities Support Services fall under the broader category of Commercial and Professional Services within the government contracting landscape. This sector is characterized by a wide range of service providers, from large corporations to small businesses, competing for contracts related to building operations, maintenance, and management. The market size for such services is substantial, as federal agencies consistently require these functions to maintain their infrastructure. This contract fits within the Defense sector's need for operational readiness and efficient facility management, aligning with spending benchmarks for base operations support.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contractors often utilize small businesses for specialized services.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the Department of the Army's program management office. They are responsible for monitoring contractor performance against the contract requirements and award fee criteria. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Base Operations Support (BOS)
Facilities Maintenance and Repair
Logistics and Support Services
Government Property Management

Risk Flags

Cost Plus Award Fee (CPAF) structure requires careful monitoring to ensure cost control and fair assessment of award fees.
Scope of 'Level I Services' is not detailed, necessitating review of the Performance Work Statement for full understanding of requirements.
Contract duration of one year for Option Period Three might warrant analysis of long-term strategic sourcing and potential for consolidation or re-competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to LB & B ASSOCIATES INC. OPTION PERIOD THREE - LEVEL I SERVICES

Who is the contractor on this award?

The obligated recipient is LB & B ASSOCIATES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $16.9 million.

What is the period of performance?

Start: 2007-10-01. End: 2008-09-30.

What specific services are included under 'Level I Services' for this contract?

The provided data does not detail the specific services encompassed by 'Level I Services.' Typically, for facilities support contracts, Level I services often refer to the core, essential functions required for the day-to-day operation and maintenance of facilities. This can include services such as routine maintenance, janitorial services, groundskeeping, pest control, minor repairs, and potentially energy management. However, the precise scope would be defined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Without access to these documents, a definitive list cannot be provided. The 'OPTION PERIOD THREE - LEVEL I SERVICES' designation suggests these are recurring services that have been performed under previous option periods.

How does the Cost Plus Award Fee (CPAF) structure impact the final cost and contractor incentives?

A Cost Plus Award Fee (CPAF) contract reimburses the contractor for allowable costs incurred plus a fixed fee that is earned based on performance against pre-defined criteria. The 'award fee' portion is variable and determined by the government based on subjective and objective performance evaluations. This structure incentivizes the contractor to perform well to maximize their award fee. However, it also means the final cost can exceed the initial estimate if costs are high and performance is excellent, or if the award fee criteria are met. Effective oversight is crucial to ensure that costs remain reasonable and that the award fee is justified by exceptional performance, preventing potential cost overruns and ensuring value for the government.

What is the significance of this contract being Option Period Three?

The fact that this contract is in 'Option Period Three' signifies that the contract has been extended beyond its initial base period and at least two previous option periods. This indicates a history of satisfactory performance by the contractor, LB & B Associates Inc., and a continued need for the services by the Department of the Army. Agencies typically exercise option periods when the services are still required, the contractor has performed well, and exercising the option is more cost-effective than re-competing the requirement. Reaching Option Period Three suggests a stable, ongoing relationship and a proven track record for the incumbent contractor.

What does the NAICS code 561210 (Facilities Support Services) typically entail?

The North American Industry Classification System (NAICS) code 561210, 'Facilities Support Services,' encompasses establishments primarily engaged in operating and maintaining buildings with associated staff. These establishments provide a wide range of services, such as operating building systems (e.g., heating, ventilation, air conditioning, lighting), performing routine inspection, maintenance, and repair of buildings, and providing security services. They may also provide services like cleaning, refuse collection, pest control, and groundskeeping. Essentially, these companies manage the operational aspects of facilities, ensuring they are functional, safe, and well-maintained for the occupants.

How does the base award amount of $16.8 million compare to similar facilities support contracts?

The base award amount of $16.8 million for one year of facilities support services is a substantial figure, reflecting a significant scope of work. To provide a precise comparison, one would need to analyze contracts with similar service requirements (e.g., base operations support, facility management), contract types (CPAF), and agency types (DoD components). However, for large military installations or extensive government facilities, annual spending in the tens of millions for comprehensive support services is not uncommon. Factors influencing this amount include the size and complexity of the facilities, geographic location (affecting labor costs), and the specific services mandated in the Performance Work Statement. Without more granular data on comparable contracts, it's difficult to definitively state if this represents high or low value, but it indicates a significant operational requirement.

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

Offers Received: 10

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 9891 BROKEN LAND PARKWAY,, COLUMBIA, MD, 03

Business Categories: Category Business, Not Designated a Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $16,858,991

Exercised Options: $16,858,991

Current Obligation: $16,858,991

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911S704D0018

IDV Type: IDC

Timeline