DoD's $23.5M Facilities Support Services Contract Awarded to Fluor Federal Solutions in Florida

Contract Overview

Contract Amount: $23,564,506 ($23.6M)

Contractor: Fluor Federal Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2013-10-01

End Date: 2014-09-30

Contract Duration: 364 days

Daily Burn Rate: $64.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF 2ND AWARD OPTION FFP

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32508

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $23.6 million to FLUOR FEDERAL SOLUTIONS, LLC for work described as: IGF::OT::IGF 2ND AWARD OPTION FFP Key points: 1. The contract represents a significant investment in maintaining critical infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. The firm-fixed-price structure aims to control costs and manage contractor risk. 4. Performance will be assessed against established facilities support service standards. 5. This contract falls within the broader category of base operations and support services. 6. The duration of the award indicates a need for sustained service delivery.

Value Assessment

Rating: good

The contract value of $23.56 million for a one-year period appears reasonable for comprehensive facilities support services. Benchmarking against similar large-scale base operations contracts suggests that pricing is likely competitive, especially given the firm-fixed-price nature which shifts cost risk to the contractor. The specific services rendered will ultimately determine the true value for money, but the initial award amount does not raise immediate concerns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With seven bidders participating, the level of competition was robust. This suggests that the government received a range of proposals and pricing, likely leading to a more favorable outcome in terms of price discovery and selection of the most capable offeror.

Taxpayer Impact: A competitive process with multiple bidders generally benefits taxpayers by driving down prices and encouraging innovation from contractors seeking to win the award.

Public Impact

The primary beneficiaries are the Department of Defense and the Department of the Navy, receiving essential facilities maintenance and operational support. Services delivered likely include a wide range of facility management functions such as maintenance, repair, custodial services, and potentially groundskeeping. The geographic impact is concentrated in Florida, where the facilities supported by this contract are located. Workforce implications include the potential for direct employment by Fluor Federal Solutions and its subcontractors within the Florida region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly within the firm-fixed-price structure.
Dependence on a single contractor for critical base operations could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract type helps control costs and provides budget certainty.
Robust competition with seven bidders suggests a strong market response and potential for high-quality service.
The contractor, Fluor Federal Solutions, likely has significant experience in large-scale facilities management.

Sector Analysis

This contract falls within the facilities support services sector, a critical component of government and commercial operations. This sector encompasses a broad range of services necessary for the upkeep and functioning of physical infrastructure. The market size for such services is substantial, with significant government spending allocated annually to ensure bases and facilities are operational. This award to Fluor Federal Solutions is a typical example of how large federal agencies contract for these essential services, often through competitive bidding processes.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While Fluor Federal Solutions is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on Fluor's subcontracting plan and the specific requirements of the facilities support services. Without explicit set-aside provisions, the direct impact on the small business ecosystem through this prime contract is likely limited, though subcontracting can provide opportunities.

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 standards and deliverables outlined in the contract serve as key accountability measures. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Base Operations Support Services
Facilities Maintenance Contracts
Logistics and Support Services
Government Facilities Management

Risk Flags

Potential for cost overruns if contractor underestimates scope.
Risk of service quality degradation if contractor focuses solely on cost reduction.
Dependence on contractor performance for critical base operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.6 million to FLUOR FEDERAL SOLUTIONS, LLC. IGF::OT::IGF 2ND AWARD OPTION FFP

Who is the contractor on this award?

The obligated recipient is FLUOR FEDERAL SOLUTIONS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.6 million.

What is the period of performance?

Start: 2013-10-01. End: 2014-09-30.

What is Fluor Federal Solutions' track record with similar large-scale facilities support contracts for the Department of Defense?

Fluor Federal Solutions, as a subsidiary of Fluor Corporation, has a substantial history of performing large-scale engineering, procurement, construction, and maintenance services for government agencies, including the Department of Defense. They have managed complex base operations and support contracts at various military installations, often involving a wide array of services such as facility maintenance, logistics, environmental services, and security. Their experience typically includes managing significant budgets, large workforces, and adhering to stringent government regulations and performance standards. Reviewing their past performance evaluations and contract history with the DoD would provide a clearer picture of their reliability and effectiveness in delivering these types of services.

How does the $23.56 million award compare to historical spending on facilities support services by the Department of the Navy in Florida?

To accurately compare this $23.56 million award, one would need to analyze historical spending data for facilities support services specifically for the Department of the Navy within Florida. This would involve examining contract databases for similar service codes (NAICS 561210) and contract types over several fiscal years. Factors such as inflation, the scope of services included in previous contracts, and the specific installations supported would need to be considered for a meaningful comparison. Without access to that granular historical data, it's difficult to definitively state whether this award is higher or lower than previous spending patterns. However, the award amount suggests a significant, potentially multi-installation or large single-installation, support requirement.

What are the primary performance risks associated with a firm-fixed-price contract for facilities support services?

The primary performance risks for a firm-fixed-price (FFP) contract in facilities support services revolve around potential cost overruns for the contractor and the government's ability to ensure comprehensive service delivery. For the contractor, risks include underestimating the labor, materials, or unforeseen maintenance needs, which could erode profit margins or lead to financial losses if not managed effectively. For the government, the risk is that the contractor, in an effort to control costs, might cut corners on service quality, maintenance standards, or responsiveness, potentially impacting facility readiness and user satisfaction. Effective oversight, clear performance metrics, and robust quality assurance surveillance are crucial to mitigate these risks and ensure the government receives the full value of the contracted services.

What specific types of facilities support services are typically included under NAICS code 561210 for a DoD contract?

NAICS code 561210, Facilities Support Services, is broad and can encompass a wide array of services for a Department of Defense contract. Typically, this includes general building maintenance and repair (HVAC, plumbing, electrical), custodial services, grounds maintenance (landscaping, snow removal), pest control, refuse collection, and security services (though sometimes contracted separately). It can also extend to specialized services like facility management, space planning, energy management, and minor repair/alteration projects. The specific scope for this contract would be detailed in the Performance Work Statement (PWS), outlining the exact requirements, standards, and frequency of each service to be provided.

How does the number of bidders (7) influence the potential for cost savings or service quality in this contract?

A robust competition with seven bidders, as seen in this contract, generally has a positive influence on both cost savings and service quality. From a cost perspective, multiple bidders are incentivized to offer competitive pricing to win the contract, which can drive down the overall award amount compared to a sole-source or limited-competition scenario. This price pressure encourages efficiency and cost-consciousness among offerors. Regarding service quality, a competitive environment pushes contractors to differentiate themselves not only on price but also on the proposed approach, technical solutions, and demonstrated capability to meet or exceed performance standards. This can lead to higher quality service delivery as contractors aim to secure future contract renewals based on strong past performance.

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: 100 FLUOR DANIEL DR, GREENVILLE, SC, 29607

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,564,506

Exercised Options: $23,564,506

Current Obligation: $23,564,506

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945007D0770

IDV Type: IDC

Timeline