DHS awards $17.9M facilities support contract to Summit Point Raceway, Associates, Inc. without competition

Contract Overview

Contract Amount: $17,935,190 ($17.9M)

Contractor: Summit Point Raceway, Associates, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2020-08-18

End Date: 2025-08-25

Contract Duration: 1,833 days

Daily Burn Rate: $9.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE MAINTENANCE CONTRACT

Place of Performance

Location: SUMMIT POINT, JEFFERSON County, WEST VIRGINIA, 25446

State: West Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $17.9 million to SUMMIT POINT RACEWAY, ASSOCIATES, INC. for work described as: BASE MAINTENANCE CONTRACT Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The firm-fixed-price structure shifts performance risk to the contractor. 3. Contract duration of 1833 days (approx. 5 years) indicates a long-term need for services. 4. The contractor's primary NAICS code is Facilities Support Services, aligning with the contract's purpose. 5. Awarded by U.S. Customs and Border Protection, a component of DHS, highlighting a critical operational need. 6. The contract is not set aside for small businesses, suggesting a focus on specialized capabilities.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and lack of publicly available comparable contract data. The firm-fixed-price (FFP) contract type is generally favorable for cost control when the scope is well-defined. However, without competition, it's difficult to ascertain if the negotiated price represents a fair market value. The contract's base value of approximately $17.9 million over five years suggests a significant investment in facilities support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or resources required for the service, or in cases of urgent need. The absence of competition means that taxpayers did not benefit from the potential cost savings and innovation that can arise from a competitive bidding process.

Taxpayer Impact: The lack of competition means taxpayers may have paid a premium for these services, as there was no market pressure to drive down prices. This also limits opportunities for other qualified businesses to secure government contracts.

Public Impact

The primary beneficiary of this contract is U.S. Customs and Border Protection, ensuring the operational readiness of its facilities. Services delivered include comprehensive base maintenance, supporting the agency's mission. The contract's geographic impact is focused on West Virginia, where the contractor is located. Workforce implications include potential job creation or retention at Summit Point Raceway, Associates, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the procurement process due to non-competitive award.
Potential for cost overruns if the FFP contract scope is not meticulously managed.
Limited opportunities for small businesses to participate in this significant contract.

Positive Signals

Firm-fixed-price contract shifts performance risk to the contractor.
Long-term contract (approx. 5 years) provides stability for service delivery.
Contract aligns with the contractor's stated NAICS code for facilities support services.

Sector Analysis

The facilities support services sector is a broad category encompassing maintenance, repair, and operational services for government and commercial properties. This contract falls within the broader professional, scientific, and technical services industry. The market for these services is substantial, with government agencies being significant consumers. Benchmarking against similar facilities support contracts can be difficult without knowing the specific scope and location, but a five-year contract of this value suggests a substantial service requirement.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. The sole-source nature of the award further limits opportunities for small businesses to participate. This suggests that the primary contractor was selected based on unique capabilities rather than a mandate to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Customs and Border Protection contracting officer and program managers. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is limited due to the sole-source award, but performance metrics and payment milestones would be monitored. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Facilities Maintenance Services
Base Operations Support
Government Property Management
Department of Homeland Security Contracts
U.S. Customs and Border Protection Procurement

Risk Flags

Sole-source award
Lack of competition
Potential for uncompetitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $17.9 million to SUMMIT POINT RACEWAY, ASSOCIATES, INC.. BASE MAINTENANCE CONTRACT

Who is the contractor on this award?

The obligated recipient is SUMMIT POINT RACEWAY, ASSOCIATES, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $17.9 million.

What is the period of performance?

Start: 2020-08-18. End: 2025-08-25.

What is the track record of Summit Point Raceway, Associates, Inc. in performing similar federal contracts?

Information regarding Summit Point Raceway, Associates, Inc.'s track record with federal contracts is not detailed in the provided data. As this contract was awarded sole-source, it implies a specific justification for selecting this particular contractor, potentially based on prior performance, unique capabilities, or a pre-existing relationship. Further investigation into the Federal Procurement Data System (FPDS) or other government contract databases would be necessary to assess their history with federal agencies, including past performance ratings, contract types, and any reported issues or successes on previous awards. Without this historical data, it is difficult to definitively assess their reliability and capability for this specific $17.9 million facilities support contract.

How does the $17.9 million contract value compare to similar facilities support contracts awarded by DHS or CBP?

Directly comparing the $17.9 million value of this sole-source contract to similar facilities support contracts is challenging without more specific details on the scope of services and geographic location. Facilities support contracts can vary widely in cost depending on the size and complexity of the facilities, the range of services (e.g., janitorial, groundskeeping, HVAC maintenance, security), and the contract duration. However, a five-year contract of this magnitude suggests a significant scope of services is required. To provide a meaningful comparison, one would need to identify other CBP or DHS contracts for base maintenance or facilities support services of similar duration and complexity, ideally within the same region, and analyze their awarded values and pricing structures. The sole-source nature of this award also complicates direct value benchmarking, as competitive pressures are absent.

What are the primary risks associated with a sole-source award for facilities support services?

The primary risks associated with a sole-source award for facilities support services include a lack of competitive pricing, potentially leading to higher costs for taxpayers. Without multiple bids, there is less incentive for the contractor to offer the most cost-effective solution. Another risk is reduced innovation, as the absence of competition can stifle the introduction of new or more efficient service delivery methods. Furthermore, a sole-source award may indicate a lack of market research or an over-reliance on a single provider, which could create vulnerabilities if that provider experiences financial difficulties or performance issues. Transparency is also reduced, making it harder to justify the expenditure and ensure accountability.

How effective is the firm-fixed-price (FFP) contract type in managing costs for facilities support services?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and unlikely to change significantly. For facilities support services, where many tasks are routine and predictable (e.g., routine maintenance, cleaning), FFP can provide cost certainty for the government. It shifts the risk of cost overruns to the contractor, who is obligated to perform the specified work for the agreed-upon price. However, if the scope is poorly defined or unforeseen issues arise, the contractor may seek change orders, potentially increasing the overall cost. Effective management and clear performance standards are crucial to ensure the FFP structure delivers value and prevents scope creep.

What is the historical spending pattern for facilities support services by U.S. Customs and Border Protection?

Analyzing the historical spending patterns for facilities support services by U.S. Customs and Border Protection (CBP) requires access to comprehensive procurement data. While this specific contract represents a $17.9 million award over approximately five years, CBP, as a large agency within DHS, likely procures a wide range of facilities support services across numerous locations. Historical data would reveal trends in contract values, types of services procured (e.g., maintenance, repair, custodial, security), the prevalence of competitive versus sole-source awards, and the average duration and cost of such contracts. Understanding these patterns is crucial for assessing whether this particular award is consistent with past spending, whether it represents an increase or decrease in investment, and whether the agency is effectively leveraging competition to manage its facilities support budget.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Summit Point Raceway Associates Inc.

Address: 201 MOTORSPORTS PARK CIR, SUMMIT POINT, WV, 25446

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

Financial Breakdown

Contract Ceiling: $17,935,190

Exercised Options: $17,935,190

Current Obligation: $17,935,190

Actual Outlays: $11,116,424

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline