DoD's $24.3M Facilities Support Services Contract Awarded to Fluor Federal Solutions Shows Strong Competition

Contract Overview

Contract Amount: $24,347,535 ($24.3M)

Contractor: Fluor Federal Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2014-10-01

End Date: 2015-09-30

Contract Duration: 364 days

Daily Burn Rate: $66.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF 3RD AWARD OPTION FFP

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32508

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $24.3 million to FLUOR FEDERAL SOLUTIONS, LLC for work described as: IGF::OT::IGF 3RD AWARD OPTION FFP Key points: 1. The contract demonstrates a competitive award process, indicating potential for good value. 2. Fluor Federal Solutions, a large business, secured this award, suggesting established market presence. 3. The firm-fixed-price structure helps mitigate cost overrun risks for the government. 4. This award falls within the facilities support services sector, a common government need. 5. The contract duration of one year is typical for service-based delivery orders. 6. The award was made under full and open competition, maximizing potential bidder participation.

Value Assessment

Rating: good

The contract's value of approximately $24.3 million for a one-year period for facilities support services appears reasonable within the context of large-scale government contracts. Benchmarking against similar contracts for comprehensive facilities management in large installations would be necessary for a definitive value assessment. However, the firm-fixed-price nature of the award suggests that the price was determined upfront and is less susceptible to cost escalations, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with seven bids received. This level of competition is a strong positive signal, suggesting that the solicitation attracted a significant number of interested and capable contractors. A robust competitive environment typically drives down prices and encourages contractors to offer their best value propositions to secure the award.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition award. It ensures that government funds are being utilized efficiently by selecting the most cost-effective and capable provider.

Public Impact

The Department of the Navy benefits from comprehensive facilities support services, ensuring operational readiness. This contract supports the maintenance and operation of government facilities, likely in Florida. The services provided contribute to the smooth functioning of military installations. The contract supports jobs within the facilities management and support services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in if performance is consistently good over multiple awards.
Dependence on a single large contractor for critical facility operations.

Positive Signals

Awarded under full and open competition, indicating a healthy market.
Firm-fixed-price contract type helps control costs.
Multiple bidders participated, suggesting a competitive landscape.

Sector Analysis

Facilities Support Services represent a significant segment of the government contracting market, encompassing a wide range of activities from maintenance and repair to groundskeeping and custodial services. This contract, valued at over $24 million, falls within the mid-to-large range for individual service delivery orders. The industry is characterized by a mix of large, established players like Fluor Federal Solutions and numerous smaller specialized firms. Government spending in this area is consistent due to the ongoing need to maintain federal infrastructure.

Small Business Impact

This contract was awarded to Fluor Federal Solutions, a large business, and there is no indication of a small business set-aside. While this specific award may not directly benefit small businesses through a set-aside, large prime contractors are often required to meet subcontracting goals with small businesses. The extent to which Fluor Federal Solutions will utilize small business subcontractors for specialized services under this contract will determine the broader impact on the small business ecosystem.

Oversight & Accountability

The contract is subject to standard government oversight mechanisms, including performance monitoring by the contracting officer and the relevant Department of the Navy personnel. As a delivery order under a larger contract vehicle, it likely falls under the purview of the Department of Defense's Inspector General for audits and investigations. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed spending breakdowns may not be publicly available.

Related Government Programs

Base Operations Support Services
Logistics and Facilities Management Contracts
Government Property Management
Maintenance, Repair, and Operations (MRO)

Risk Flags

Potential for cost overruns if major unforeseen repairs are needed.
Risk of service disruption due to contractor performance issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 million to FLUOR FEDERAL SOLUTIONS, LLC. IGF::OT::IGF 3RD 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 $24.3 million.

What is the period of performance?

Start: 2014-10-01. End: 2015-09-30.

What is the historical spending pattern for facilities support services by the Department of the Navy?

The Department of the Navy consistently allocates substantial funds towards facilities support services, reflecting the vastness of its real estate portfolio and operational requirements. Historical data indicates a steady demand for these services, encompassing everything from routine maintenance and repairs to specialized environmental services and groundskeeping. Annual spending can fluctuate based on infrastructure upgrades, new construction projects, and shifts in operational tempo. Analyzing trends over the past five to ten years reveals a significant portion of the Navy's operational budget dedicated to ensuring its facilities are functional, safe, and compliant with environmental regulations. This contract, valued at over $24 million for a single year, represents a typical investment within this broader spending category, highlighting the ongoing need for reliable facility management.

How does the awarded price compare to market rates for similar facilities support services?

Determining the precise market rate comparison for this $24.3 million contract is challenging without access to detailed service scopes and specific geographic cost-of-living data. However, given that it was awarded under full and open competition with seven bidders, it suggests the price is likely competitive. Industry benchmarks for large-scale facilities support contracts often consider factors like square footage managed, types of services provided (e.g., HVAC, electrical, plumbing, janitorial, landscaping), and labor costs in the specific region. Fluor Federal Solutions, as an experienced provider, would have priced competitively to win the bid. A detailed analysis would involve comparing the proposed labor rates, overhead, and profit margins against industry averages for similar government contracts, taking into account the specific deliverables outlined in the contract.

What are the key performance indicators (KPIs) typically used to evaluate contractor performance in facilities support services?

Key Performance Indicators (KPIs) for facilities support services contracts are designed to ensure operational efficiency, safety, and client satisfaction. Common KPIs include response times for service requests (e.g., emergency repairs, routine maintenance), completion rates for scheduled preventive maintenance, customer satisfaction scores from facility occupants, compliance with safety regulations (e.g., OSHA standards), energy efficiency targets, and adherence to environmental standards. For this contract, the Department of the Navy would likely monitor metrics related to the uptime of critical building systems, the cleanliness and upkeep of facilities, and the effectiveness of grounds maintenance. Performance is typically assessed through regular reporting, site inspections, and feedback mechanisms, with potential for award fee adjustments based on KPI achievement.

What is Fluor Federal Solutions' track record with similar government contracts?

Fluor Federal Solutions, a subsidiary of Fluor Corporation, has an extensive track record of performing large-scale government contracts, including significant work in facilities management and support services for various federal agencies. They have historically secured and executed complex projects for the Department of Defense, Department of Energy, and other civilian agencies. Their experience often spans base operations support, infrastructure maintenance, and specialized technical services. While specific performance details for every contract are not always public, Fluor's consistent ability to win competitive bids and secure multi-year awards suggests a generally positive performance history and a strong understanding of government requirements. Reviewing past performance evaluations and contract close-out reports, where available, would provide a more granular assessment.

What are the potential risks associated with this type of facilities support contract?

Potential risks associated with this facilities support contract include unforeseen infrastructure failures requiring extensive and costly repairs beyond the scope of routine maintenance, fluctuations in labor costs impacting profitability for the contractor, and potential changes in government requirements or priorities that necessitate contract modifications. There's also the risk of performance deficiencies leading to service disruptions, safety incidents, or non-compliance with environmental regulations. For the government, risks include potential cost overruns if the firm-fixed-price structure is insufficient for unexpected major repairs, contractor default, or a decline in service quality over time. Effective risk mitigation relies on robust contract oversight, clear performance standards, and proactive communication between the government and the contractor.

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,347,535

Exercised Options: $24,347,535

Current Obligation: $24,347,535

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945007D0770

IDV Type: IDC

Timeline