Labor's $36.7M Facilities Contract with Fluor Federal Solutions Faces Scrutiny Over Long Duration and Lack of Small Business Participation

Contract Overview

Contract Amount: $36,717,729 ($36.7M)

Contractor: Fluor Federal Solutions, LLC

Awarding Agency: Department of Labor

Start Date: 2002-01-01

End Date: 2007-05-31

Contract Duration: 1,976 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATE GAINESVILLES JCC

Place of Performance

Location: GAINESVILLE, ALACHUA County, FLORIDA, 32609

State: Florida Government Spending

Plain-Language Summary

Department of Labor obligated $36.7 million to FLUOR FEDERAL SOLUTIONS, LLC for work described as: OPERATE GAINESVILLES JCC Key points: 1. The contract, valued at $36.7 million, was awarded to Fluor Federal Solutions, LLC. 2. It falls under Facilities Support Services (NAICS 561210) and was awarded via full and open competition. 3. The contract's long duration (1976 days) and lack of small business subcontracting raise potential concerns. 4. The sector is Facilities Support Services, a common area for government contracting.

Value Assessment

Rating: fair

The contract's total value is $36.7 million over nearly 2000 days. Without specific per-unit cost data or benchmarks for similar facilities support services over this extended period, a precise value assessment is difficult. However, the long duration might suggest potential for cost efficiencies if managed well, or conversely, risks of cost escalation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and aims to secure the best value for the government. However, the long duration could potentially limit the number of bidders interested in such a long-term commitment.

Taxpayer Impact: The competitive award process is intended to ensure taxpayer funds are used efficiently. The long duration, however, warrants scrutiny to ensure continued value and prevent potential cost overruns over the contract's lifespan.

Public Impact

Taxpayers may be impacted by the long-term commitment of $36.7 million for facilities support services. The lack of specific small business participation could mean missed opportunities for smaller businesses to contribute and benefit. The extended contract period raises questions about the government's ability to adapt to changing facility needs or adopt newer, potentially more cost-effective solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1976 days)
No small business participation reported
Cost Plus Incentive Fee contract type can lead to higher costs if not managed tightly

Positive Signals

Awarded via full and open competition
Contract has a defined end date

Sector Analysis

Facilities Support Services contracts are common across government agencies, encompassing a wide range of maintenance, operation, and management services for government buildings and grounds. Spending benchmarks vary significantly based on the size and complexity of the facilities managed.

Small Business Impact

This contract does not appear to have involved small businesses, either as prime contractors or through subcontracting. This represents a missed opportunity to leverage the capabilities of small businesses and promote economic growth within this sector.

Oversight & Accountability

The long duration of this contract necessitates robust oversight to ensure performance standards are met and costs remain controlled. Regular reviews and performance evaluations are crucial for accountability, especially with a Cost Plus Incentive Fee structure.

Related Government Programs

Facilities Support Services
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Extended contract duration may reduce flexibility and increase risk of cost overruns.
Lack of small business subcontracting limits opportunities for smaller enterprises.
Cost Plus Incentive Fee contracts can sometimes lead to higher final costs if not managed stringently.
Potential for vendor lock-in due to the long-term nature of the agreement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $36.7 million to FLUOR FEDERAL SOLUTIONS, LLC. OPERATE GAINESVILLES JCC

Who is the contractor on this award?

The obligated recipient is FLUOR FEDERAL SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Employment and Training Administration).

What is the total obligated amount?

The obligated amount is $36.7 million.

What is the period of performance?

Start: 2002-01-01. End: 2007-05-31.

What was the rationale for awarding a contract with such a long duration for facilities support services, and how was value for money ensured over its lifespan?

The rationale for the long duration likely stemmed from the need for stable, long-term facility operations and maintenance. Value for money would ideally be ensured through competitive bidding, performance incentives, and rigorous oversight to manage costs and ensure service quality. However, without detailed justification, the extended period raises questions about flexibility and potential missed opportunities for cost savings through re-competition.

Given the lack of small business participation, were there specific justifications, or were opportunities for small businesses overlooked in the procurement process?

The absence of small business participation suggests either a lack of suitable small business offerings for this specific requirement, or that the procurement strategy did not prioritize or adequately solicit small business involvement. Agencies are typically required to set small business goals; their absence here warrants investigation into whether these goals were met or if waivers were granted.

How did the Cost Plus Incentive Fee (CPIF) structure impact the final cost and Fluor Federal Solutions' performance over the contract's duration?

A CPIF contract incentivizes the contractor to control costs while meeting performance targets. The final cost would depend on Fluor's ability to stay within target costs and achieve performance objectives, with potential for bonuses or penalties. Effective management of the CPIF mechanism is crucial to ensure it drives efficiency rather than simply inflating costs, requiring close monitoring by the agency.

Industry Classification

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

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation ID: AE9401000

Offers Received: 7

Pricing Type: COST PLUS INCENTIVE FEE (V)

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, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,570,884

Exercised Options: $37,203,650

Current Obligation: $36,717,729

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline