Transportation awards $17M for facility operations and security, with Raven Services Corp. as prime

Contract Overview

Contract Amount: $16,998,248 ($17.0M)

Contractor: Raven Services Corp

Awarding Agency: Department of Transportation

Start Date: 2021-06-30

End Date: 2026-06-30

Contract Duration: 1,826 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FACILITY OPERATIONS, MAINTENANCE, AND ON-SITE PHYSICAL SECURITY SUPPORT SERVICES FOR TFHRC

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22101

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $17.0 million to RAVEN SERVICES CORP for work described as: FACILITY OPERATIONS, MAINTENANCE, AND ON-SITE PHYSICAL SECURITY SUPPORT SERVICES FOR TFHRC Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type may limit cost overruns for the government. 4. Services include facility operations, maintenance, and physical security. 5. Contract duration extends over five years, indicating a long-term need. 6. Prime contractor has experience in facilities support services.

Value Assessment

Rating: good

The contract value of approximately $17 million over five years for facility operations, maintenance, and security services at TFHRC appears to be within a reasonable range for this type of support. Benchmarking against similar contracts for large federal facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government in managing costs for predictable services.

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. The presence of two bids suggests a moderate level of competition for this requirement. While more bidders could potentially drive prices lower, two bids still provide a basis for price comparison and negotiation.

Taxpayer Impact: Full and open competition, even with two bidders, generally benefits taxpayers by encouraging competitive pricing and ensuring that the government receives a fair market value for the services procured.

Public Impact

Federal Highway Administration (FHWA) facilities and personnel benefit from secure and well-maintained operations. Ensures the continuity of critical research and administrative functions at the Turner-Fairbank Highway Research Center (TFHRC). Supports the physical security of government property and personnel. Provides essential maintenance services to preserve the lifespan and functionality of federal infrastructure. Impacts the local workforce through employment opportunities generated by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues impacting facility operations or security.
Risk of scope creep or change orders increasing the overall cost.
Dependence on a single contractor for critical facility support.

Positive Signals

Firm-fixed-price contract helps control costs.
Long-term contract allows for stable service provision.
Full and open competition suggests a competitive award process.

Sector Analysis

This contract falls within the Facilities Support Services sector, which is a significant segment of the government contracting market. This sector encompasses a wide range of services necessary for the operation and maintenance of federal buildings and infrastructure. Spending in this area is consistent across various agencies to ensure the functionality and security of government assets. Comparable spending benchmarks would typically be found by analyzing other large-scale facility management contracts awarded by agencies like GSA or DoD.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem through this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Highway Administration contracting officer and program managers. Performance monitoring, delivery of services, and adherence to contract terms are key oversight functions. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Building Operations and Maintenance
Government Facility Security Services
Infrastructure Support Services
Real Property Management

Risk Flags

Potential for performance deficiencies impacting critical facility functions.
Risk of cost increases if scope changes or unforeseen issues arise.
Dependence on a single contractor for essential support services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $17.0 million to RAVEN SERVICES CORP. FACILITY OPERATIONS, MAINTENANCE, AND ON-SITE PHYSICAL SECURITY SUPPORT SERVICES FOR TFHRC

Who is the contractor on this award?

The obligated recipient is RAVEN SERVICES CORP.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $17.0 million.

What is the period of performance?

Start: 2021-06-30. End: 2026-06-30.

What is Raven Services Corp.'s track record with federal contracts, particularly in facility operations and security?

Raven Services Corp. has a history of performing federal contracts, including those related to facility operations, maintenance, and security. Reviewing their past performance evaluations and contract history within the Federal Procurement Data System (FPDS) would provide specific details on their successful contract completions, any performance issues, and the types of agencies they have served. Their experience with similar scope and scale contracts is a key indicator of their capability to fulfill the requirements of this $17 million award over five years.

How does the awarded price of $17 million compare to market rates for similar facility operations and security services?

A precise comparison to market rates requires detailed benchmarking against contracts with similar scope, duration, geographic location, and service complexity. However, for a five-year contract encompassing comprehensive facility operations, maintenance, and physical security for a significant federal research center, $17 million (averaging $3.4 million annually) appears to be within a reasonable range. Factors such as the specific security requirements, the size and complexity of the facilities, and the labor costs in the Northern Virginia area would influence the final price. Further analysis would involve comparing this contract's unit costs (if applicable) or total value against industry benchmarks for similar government or large commercial facility management contracts.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential disruptions to facility operations or security due to contractor performance issues, unexpected maintenance needs exceeding budget, or contractor personnel turnover impacting service quality. Mitigation strategies are embedded in the contract structure and oversight. The firm-fixed-price nature helps control costs for defined services. The contract duration allows for stable service delivery, reducing risks associated with frequent contractor changes. The Federal Highway Administration's oversight, performance monitoring, and defined contract terms are crucial for ensuring contractor accountability and mitigating performance-related risks. Clear communication channels and defined remedies for non-performance also serve as risk mitigation tools.

How effective is the current service delivery likely to be, given the contract terms and competition level?

The effectiveness of service delivery is likely to be good, supported by several factors. The firm-fixed-price contract incentivizes the contractor to perform efficiently. The five-year duration allows for the development of expertise and streamlined processes. While only two bids were received, full and open competition suggests that the selected contractor, Raven Services Corp., was deemed capable and competitive. The Federal Highway Administration's oversight and performance management will be critical in ensuring that the contractor meets or exceeds performance standards throughout the contract period. Past performance data for Raven Services Corp. would offer further insight into expected effectiveness.

What are the historical spending patterns for facility operations and security at TFHRC or similar FHWA facilities?

Historical spending patterns for facility operations and security at TFHRC or similar FHWA facilities would typically show consistent annual expenditures for these essential services. Analyzing prior contracts for these functions at the Turner-Fairbank Highway Research Center would reveal trends in cost, scope, and contractor performance over time. If this $17 million award represents a significant increase or decrease compared to previous spending, it would warrant further investigation into the reasons, such as changes in facility needs, security requirements, or market conditions. Understanding historical spending provides context for the current award's value and necessity.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 693JJ321Q000022

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Raven Services JV LLC

Address: 10529 CRESTWOOD DR STE 201, MANASSAS, VA, 20109

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,998,248

Exercised Options: $16,998,248

Current Obligation: $16,998,248

Actual Outlays: $15,391,684

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06Q16BQDS118

IDV Type: IDC

Timeline