Wyandotte Technologies awarded $24.5M for facilities support, raising value-for-money questions due to sole-source nature
Contract Overview
Contract Amount: $24,464,769 ($24.5M)
Contractor: Wyandotte Technologies
Awarding Agency: Department of Energy
Start Date: 2019-08-31
End Date: 2024-04-30
Contract Duration: 1,704 days
Daily Burn Rate: $14.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SUPPORT SERVICE CONTRACT
Place of Performance
Location: TULSA, TULSA County, OKLAHOMA, 74103
State: Oklahoma Government Spending
Plain-Language Summary
Department of Energy obligated $24.5 million to WYANDOTTE TECHNOLOGIES for work described as: SUPPORT SERVICE CONTRACT Key points: 1. The contract's value of $24.5 million over its duration warrants scrutiny regarding cost-effectiveness. 2. Limited competition suggests potential for higher pricing than in a more open market. 3. The 'OK' status for both system and network suggests operational stability, but requires deeper validation. 4. This contract represents a significant portion of the agency's spending in facilities support. 5. The firm fixed-price structure offers cost certainty but may limit flexibility for evolving needs.
Value Assessment
Rating: fair
The $24.5 million award for facilities support services appears substantial. Without comparable sole-source contracts or detailed cost breakdowns, it's difficult to definitively benchmark value. The firm fixed-price nature provides budget predictability, but the lack of competition raises concerns about whether the government secured the most competitive pricing possible. Further analysis of the contractor's historical performance and pricing trends would be necessary for a more robust assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one vendor can provide the required services, often due to unique capabilities, existing infrastructure, or specific security requirements. The lack of competition means there was no direct price comparison against other potential providers, potentially impacting the government's ability to achieve the lowest possible price.
Taxpayer Impact: Sole-source awards limit the government's leverage in price negotiations, potentially leading to higher costs for taxpayers compared to competitively bid contracts.
Public Impact
The Department of Energy benefits from continuous facilities support services, ensuring operational continuity. Services likely include maintenance, repair, and management of government facilities within the agency's purview. The geographic impact is concentrated in Oklahoma, where the contractor is based and services are likely performed. The contract supports a workforce involved in facility operations and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition, potentially increasing costs for taxpayers.
- Lack of transparency in the justification for sole-source award requires further investigation.
- Contract duration of over 4 years may not align with evolving facility needs or technological advancements.
- Limited public data on performance metrics makes it difficult to assess service quality and efficiency.
- The 'OK' status for system and network requires validation to ensure robust operational integrity.
Positive Signals
- Firm fixed-price contract provides cost certainty for the agency.
- Contractor's 'OK' status suggests a baseline level of operational compliance.
- Long-term contract can ensure continuity of essential services.
- The award is to a single entity, potentially simplifying management and oversight.
Sector Analysis
Facilities Support Services is a broad category within the services sector, encompassing a wide range of activities necessary for the operation and maintenance of buildings and grounds. This contract falls under NAICS code 561210. The market for these services is generally competitive, with many providers ranging from small local businesses to large national corporations. Government contracts for facilities support are common across many agencies, representing a significant portion of federal spending on operational services.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no information provided regarding subcontracting plans or performance related to small businesses. This means that opportunities for small businesses to participate in this contract are likely limited, and the primary benefit accrues to the prime contractor, Wyandotte Technologies.
Oversight & Accountability
Oversight for this contract would primarily reside with the contracting officer and program managers within the Department of Energy. The 'OK' status for system and network suggests some level of internal monitoring. However, the sole-source nature and limited public data necessitate a review of the specific oversight mechanisms in place to ensure accountability and prevent potential cost overruns or performance issues. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Department of Energy Facilities Management
- Government Facilities Operations and Maintenance
- Support Services Contracts
- Sole-Source Service Awards
Risk Flags
- Sole-source award raises concerns about price competition.
- Lack of detailed performance data hinders value assessment.
- Contract duration may exceed the pace of technological change in facilities management.
- Justification for sole-source award requires further scrutiny.
Tags
facilities-support, department-of-energy, wyandotte-technologies, sole-source, definitive-contract, firm-fixed-price, oklahoma, services, operational-support, naics-561210
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $24.5 million to WYANDOTTE TECHNOLOGIES. SUPPORT SERVICE CONTRACT
Who is the contractor on this award?
The obligated recipient is WYANDOTTE TECHNOLOGIES.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $24.5 million.
What is the period of performance?
Start: 2019-08-31. End: 2024-04-30.
What is the specific justification for awarding this contract on a sole-source basis to Wyandotte Technologies?
The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. Typically, agencies justify sole-source awards when only one responsible source is available or capable of meeting the agency's needs. This could be due to unique capabilities, proprietary technology, existing infrastructure integration, or urgent requirements where competition is not feasible. Without the specific justification document from the Department of Energy, the precise reasons remain unknown. However, such justifications are usually reviewed by agency procurement officials and, for larger contracts, may require higher-level approval to ensure the government's interests are protected and that competition was genuinely not possible.
How does the pricing of this contract compare to similar facilities support services contracts awarded by the government?
Directly comparing the pricing of this $24.5 million sole-source contract to similar facilities support services contracts is challenging without more detailed information. Sole-source awards inherently lack the price discovery mechanism of open competition. To perform a robust comparison, one would need access to the contract's detailed cost breakdown, including labor rates, material costs, and overhead. Additionally, it would be necessary to identify comparable government contracts for facilities support services of similar scope, duration, and geographic location that were awarded competitively. Benchmarking against these competitive contracts could reveal if Wyandotte Technologies' pricing is above or below market rates. The firm fixed-price structure offers predictability but doesn't inherently guarantee value for money in a sole-source context.
What are the key performance indicators (KPIs) for this contract, and how has Wyandotte Technologies performed against them?
The provided data does not include specific Key Performance Indicators (KPIs) for this contract, nor does it offer performance ratings beyond a general 'OK' status for system and network. In a typical government contract, KPIs would be defined in the Performance Work Statement (PWS) and could include metrics related to response times for maintenance requests, preventative maintenance completion rates, energy efficiency targets, safety incident rates, and customer satisfaction. The 'OK' status suggests that the contractor is meeting basic operational requirements, but it lacks the granularity needed to assess the true quality, efficiency, or value delivered. A thorough review would require accessing the contract's PWS and any available performance reports or contractor quality assurance evaluations.
What is the historical spending trend for facilities support services at the Department of Energy, and how does this contract fit within that trend?
Analyzing the historical spending trend for facilities support services at the Department of Energy (DOE) would require access to historical procurement data beyond this single contract. This $24.5 million award represents a significant investment over its nearly five-year duration. To understand its place in the trend, one would need to examine the DOE's total obligations for facilities support services over the past 5-10 years. This would involve identifying other contracts, both sole-source and competitive, for similar services. If this contract represents a substantial increase or decrease in spending, or if it signifies a shift towards sole-source awards in this category, it would indicate a notable change in the agency's procurement strategy and budget allocation for facilities management.
What are the potential risks associated with a long-duration, sole-source contract for facilities support?
A long-duration (nearly 5 years) sole-source contract for facilities support presents several potential risks. Firstly, the lack of competition means the government may be paying a premium price over time, as there's no ongoing incentive for the contractor to lower costs. Secondly, the fixed nature of the contract might not adapt well to evolving facility needs, technological advancements in building management, or changes in regulatory requirements, potentially leading to inefficiencies or the need for costly modifications. Thirdly, a sole-source award can create vendor lock-in, making it difficult and expensive to switch providers if performance issues arise or if better solutions become available. Finally, without robust oversight and performance metrics, there's a risk of complacency from the contractor and a decline in service quality over the contract's lifespan.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 89503619RSW000013
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 15 TURTLE DR, WYANDOTTE, OK, 74370
Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Government, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,464,769
Exercised Options: $24,464,769
Current Obligation: $24,464,769
Actual Outlays: $24,965,330
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2019-08-31
Current End Date: 2024-04-30
Potential End Date: 2024-04-30 00:00:00
Last Modified: 2025-04-25
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