DHS awards $22.8M for TSA facilities O&M, with competition impacting value

Contract Overview

Contract Amount: $22,802,281 ($22.8M)

Contractor: THE Building People LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-11-10

End Date: 2026-05-09

Contract Duration: 2,006 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF TASK ORDER NO. 70T01020F3NREM013 IS TO PROVIDE OPERATIONS AND MAINTENANCE (O&M) SERVICES FOR TSA SYSTEMS INTEGRATION FACILITY (TSIF) AND FREEDOM CENTER IN THE NATIONAL CAPITAL REGION.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $22.8 million to THE BUILDING PEOPLE LLC for work described as: THE PURPOSE OF TASK ORDER NO. 70T01020F3NREM013 IS TO PROVIDE OPERATIONS AND MAINTENANCE (O&M) SERVICES FOR TSA SYSTEMS INTEGRATION FACILITY (TSIF) AND FREEDOM CENTER IN THE NATIONAL CAPITAL REGION. Key points: 1. Value for money appears reasonable given the scope of facilities support services. 2. The contract was competed broadly, suggesting potential for competitive pricing. 3. Risk indicators are moderate, primarily related to performance and schedule adherence. 4. Performance context involves critical operations and maintenance for sensitive TSA facilities. 5. Sector positioning is within facilities support services, a common government need. 6. The contract duration extends over several years, indicating a long-term requirement.

Value Assessment

Rating: good

The contract's value of $22.8 million for over five years of operations and maintenance for critical TSA facilities appears to be within a reasonable range for such services. Benchmarking against similar facilities support contracts for government agencies of comparable size and complexity would provide a more precise assessment. However, the firm-fixed-price structure generally encourages cost control by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple bidders were likely considered. This approach is generally favorable for price discovery and ensuring a competitive market. The specific number of bidders is not provided, but the broad competition suggests that the government sought the best value from a wide range of qualified contractors.

Taxpayer Impact: A competitive bidding process for facilities support services helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation from contractors.

Public Impact

Benefits TSA by ensuring the operational readiness of critical systems integration and command facilities. Delivers essential operations and maintenance services, including facility upkeep and system support. Geographic impact is concentrated in the National Capital Region, supporting key federal operations. Workforce implications include the potential for direct and indirect employment in facilities management and technical support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen maintenance issues arise.
Dependence on contractor performance for critical facility uptime.
Ensuring consistent service quality across all O&M tasks.

Positive Signals

Full and open competition can lead to better pricing and service.
Firm-fixed-price contract type incentivizes contractor cost management.
Long-term contract provides stability for essential services.

Sector Analysis

Facilities Support Services (NAICS 561210) is a significant sector within government contracting, encompassing a wide range of services from building maintenance to specialized technical support. This contract fits within the broader category of base operations support, which is crucial for the functioning of federal agencies. Comparable spending benchmarks for similar O&M contracts can vary widely based on facility size, complexity, and geographic location.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a full and open competition, it is unlikely that small businesses were exclusively targeted, though they may have participated as subcontractors. Further analysis would be needed to determine subcontracting opportunities and their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security and the Transportation Security Administration. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to meet defined performance standards. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Department of Homeland Security Facilities Operations
Transportation Security Administration Infrastructure Support
Federal Building Operations and Maintenance Contracts
Government Facilities Management Services

Risk Flags

Contract Duration
Performance Risk
Cost Control

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $22.8 million to THE BUILDING PEOPLE LLC. THE PURPOSE OF TASK ORDER NO. 70T01020F3NREM013 IS TO PROVIDE OPERATIONS AND MAINTENANCE (O&M) SERVICES FOR TSA SYSTEMS INTEGRATION FACILITY (TSIF) AND FREEDOM CENTER IN THE NATIONAL CAPITAL REGION.

Who is the contractor on this award?

The obligated recipient is THE BUILDING PEOPLE LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $22.8 million.

What is the period of performance?

Start: 2020-11-10. End: 2026-05-09.

What is the contractor's track record with similar facilities operations and maintenance contracts for federal agencies?

The contractor, The Building People LLC, has experience in providing facilities support services. A comprehensive review of their past performance on federal contracts, particularly those involving critical infrastructure or sensitive government operations, would be necessary to fully assess their capabilities and reliability. This would involve examining past performance evaluations, any contract disputes or terminations, and their history of meeting delivery schedules and quality standards. Without specific performance data for this contractor on similar projects, it is difficult to definitively gauge their suitability beyond the initial award.

How does the awarded price compare to industry benchmarks for similar facilities support services?

The total award amount of $22.8 million over approximately 5.6 years (November 2020 to May 2026) equates to an average annual cost of roughly $4.07 million. To benchmark this effectively, one would need to compare it against the cost of similar operations and maintenance services for facilities of comparable size, complexity, and security requirements within the National Capital Region or other high-cost areas. Factors such as the specific systems being maintained (e.g., HVAC, electrical, security systems), the level of 24/7 support required, and the square footage of the facilities are critical for a meaningful comparison. Given the critical nature of TSA facilities, costs might be expected to be higher than for standard office buildings.

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

Primary risks include potential performance failures by the contractor leading to disruptions in TSA operations, cost overruns if the firm-fixed-price contract doesn't adequately account for unforeseen issues, and schedule delays in maintenance or repairs. Mitigation strategies typically involve robust performance monitoring by the government, clearly defined service level agreements (SLAs) within the contract, regular progress reviews, and contingency planning for critical system failures. The government's ability to enforce contract terms and potentially seek remedies for non-performance are key mitigation factors.

How effective has the Transportation Security Administration been in managing its facilities operations and maintenance contracts historically?

The effectiveness of TSA's management of O&M contracts can be assessed by examining historical data on facility uptime, maintenance backlogs, cost-efficiency trends, and any significant performance issues or contract disputes. Agencies like TSA, which manage critical national security and transportation infrastructure, often face complex challenges in ensuring consistent and high-quality facilities support. A review of Inspector General reports, GAO audits, and internal TSA performance metrics related to facilities management would provide insights into their historical effectiveness and identify areas for improvement in contract oversight and execution.

What is the historical spending trend for facilities support services by the Department of Homeland Security?

Historical spending trends for facilities support services by DHS are likely substantial, given the agency's vast portfolio of facilities across various administrations, including TSA, Customs and Border Protection, and others. Analyzing DHS's budget allocations and contract awards over the past decade for categories like facilities maintenance, operations, and management would reveal patterns of increasing or decreasing expenditure, identify major contract vehicles, and highlight any shifts in strategy, such as increased outsourcing or insourcing of services. This context is crucial for understanding the significance of the $22.8 million award within the broader DHS spending landscape.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70T01020R3NREM013

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 215 DEPOT CT SE FL 3, LEESBURG, VA, 20175

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,054,888

Exercised Options: $23,054,888

Current Obligation: $22,802,281

Actual Outlays: $14,302,731

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QSHA19D0010

IDV Type: IDC

Timeline