Department of Defense awards $868.6M contract to Cubic Applications, Inc. for educational building operations

Contract Overview

Contract Amount: $91,339,060 ($91.3M)

Contractor: Cubic Global Defense, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-03-17

End Date: 2013-08-17

Contract Duration: 3,806 days

Daily Burn Rate: $24.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: 200307!000449!2100!BP01 !HQ, EUSA !DABP0103C0030 !A!N! !N! !20030317!20040331!868624214!868624214!008382293!N!CUBIC APPLICATIONS, INC !4550 THIRD AVENUE SE, STE !LACEY !WA!98503!* !* !KS!* !* !KOREA, REP!+000006000000!N!N!000065211642!M139!OPERATION/OTHER EDUCATIONAL BUILDINGS !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !519190!E! !3! ! ! ! ! !99990909!B! ! !B! !A!U!R!2!001!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Plain-Language Summary

Department of Defense obligated $91.3 million to CUBIC GLOBAL DEFENSE, INC. for work described as: 200307!000449!2100!BP01 !HQ, EUSA !DABP0103C0030 !A!N! !N! !20030317!20040331!868624214!868624214!008382293!N!CUBIC APPLICATIONS, INC !4550 THIRD AVENUE SE, STE !LACEY !WA!98503!* !* !KS!* !* !KOREA, REP!+000006000000!N!N!000065211642!M139!OPERATION/OTHER EDUCATIONAL BUILDINGS !S… Key points: 1. Contract value of $868.6M over 10 years suggests significant long-term investment in educational infrastructure. 2. The 'All Other Information Services' NAICS code is broad, potentially encompassing a wide range of support functions. 3. A long contract duration of 3806 days indicates a need for sustained services and potential for contractor lock-in. 4. The contract type is Cost Plus Award Fee (CPAF), which incentivizes performance but can lead to higher costs if not managed carefully. 5. The award was made under full and open competition, suggesting a robust bidding process. 6. The contract was awarded to Cubic Applications, Inc., a known entity in defense contracting.

Value Assessment

Rating: fair

The total contract value of $868.6 million over approximately 10 years is substantial. Without specific benchmarks for 'Operation/Other Educational Buildings' services, it's difficult to definitively assess value for money. The Cost Plus Award Fee (CPAF) structure allows for flexibility but requires diligent oversight to ensure costs remain reasonable and that award fees are tied to demonstrable performance improvements. Comparing this to similar large-scale educational facility management contracts within the DoD or other federal agencies would be necessary for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of a competitive bidding process is generally positive for price discovery and ensuring the government receives a fair market price. The specific number of bidders is not provided, which would offer further insight into the intensity of the competition.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it typically drives down costs through market forces and encourages a wider pool of potential service providers.

Public Impact

Personnel and families stationed at military installations served by this contract will benefit from operational educational buildings. The services delivered are crucial for maintaining the functionality and usability of educational facilities on military bases. The geographic impact is likely concentrated on military installations where these educational buildings are located, potentially worldwide given the 'KOREA, REP' designation. The contract supports jobs within Cubic Applications, Inc. and potentially its subcontractors, contributing to the defense industrial workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The broad nature of the NAICS code 'All Other Information Services' could lead to scope creep if not clearly defined and managed.
The long contract duration (over 10 years) increases the risk of contractor complacency or the need for costly contract modifications if requirements evolve significantly.
Cost Plus Award Fee contracts, while incentivizing performance, can be susceptible to cost overruns if performance metrics are not rigorously defined and monitored.
Lack of specific details on the number of bidders limits the assessment of the true competitive landscape and potential for optimal pricing.

Positive Signals

Awarding under 'full and open competition' suggests a deliberate effort to maximize the pool of qualified bidders and secure competitive pricing.
The contract's focus on operational educational buildings addresses a critical need for maintaining essential facilities for military personnel and their families.
The long-term nature of the contract provides stability for both the government and the contractor, allowing for long-term planning and investment in service quality.
Cubic Applications, Inc. has a track record in defense contracting, suggesting familiarity with government requirements and processes.

Sector Analysis

The defense sector, particularly support services for military installations, represents a significant portion of federal spending. Contracts for facility operations and maintenance are essential for the readiness and well-being of military personnel. This contract falls within the broader category of professional, scientific, and technical services, often characterized by long-term relationships and substantial value. Benchmarking this contract would require comparison to other large-scale facility management or operational support contracts within the Department of Defense or similar government entities.

Small Business Impact

The contract was not awarded as a small business set-aside, and the 'sb' field is false, indicating no specific small business preference was applied in this award. There is no information provided regarding subcontracting plans for small businesses. This large contract may present opportunities for small businesses to participate as subcontractors, but without explicit set-aside requirements or detailed subcontracting plans, their inclusion is not guaranteed.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and the Department of Defense. The Cost Plus Award Fee (CPAF) structure necessitates robust performance monitoring and financial oversight to ensure that award fees are justified and that costs are controlled. Transparency would be enhanced by public reporting of performance metrics and award fee determinations. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Military Construction
Base Operations Support
Information Technology Services
Facility Management Services
Defense Education Programs

Risk Flags

Long contract duration
Broad NAICS code classification
Cost Plus Award Fee contract type
Limited competition details provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $91.3 million to CUBIC GLOBAL DEFENSE, INC.. 200307!000449!2100!BP01 !HQ, EUSA !DABP0103C0030 !A!N! !N! !20030317!20040331!868624214!868624214!008382293!N!CUBIC APPLICATIONS, INC !4550 THIRD AVENUE SE, STE !LACEY !WA!98503!* !* !KS!* !* !KOREA, REP!+000006000000!N!N!000065211642!M139!OPERATION/OTHER EDUCATIONAL BUILDINGS !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !519190!E! !3! ! ! ! ! !99990909!B! ! !B! !A!U!R!2!001!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Who is the contractor on this award?

The obligated recipient is CUBIC GLOBAL DEFENSE, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $91.3 million.

What is the period of performance?

Start: 2003-03-17. End: 2013-08-17.

What is the specific nature of the 'Operation/Other Educational Buildings' services being provided under this contract?

The provided data indicates the NAICS code is 519190, 'All Other Information Services,' and the service description is 'OPERATION/OTHER EDUCATIONAL BUILDINGS.' This broad classification suggests the contract likely encompasses a wide range of support functions necessary for the operation and maintenance of educational facilities on military installations. This could include, but is not limited to, facility upkeep, logistical support, administrative services related to building operations, potentially IT support for building systems, and ensuring the facilities are ready for use by students and educators. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not publicly available in this data snippet. Without the SOW, it's challenging to pinpoint the precise services beyond the general description.

How does the awarded amount of $868.6 million compare to similar contracts for educational facility operations within the Department of Defense?

Direct comparison of the $868.6 million award to similar contracts is challenging without access to a comprehensive database of DoD facility operations contracts and their specific scopes. However, the value suggests a large-scale, long-term requirement, potentially covering multiple installations or a significant number of educational buildings. Contracts for Base Operations Support (BOS) often include facility maintenance and operations, and their values can range from tens to hundreds of millions of dollars annually, depending on the scope and location. Given the 10-year duration, this contract represents a substantial, sustained investment. A more precise benchmark would require identifying contracts with identical or highly similar NAICS codes and service descriptions, which are often difficult to isolate due to the broad nature of some classifications.

What are the key performance indicators (KPIs) used to determine award fees under this Cost Plus Award Fee (CPAF) contract?

The specific Key Performance Indicators (KPIs) used to determine award fees for this contract are not detailed in the provided data. Under a CPAF contract, the government establishes performance standards and metrics, and the contractor earns an award fee based on their performance against these standards. For a contract focused on 'Operation/Other Educational Buildings,' potential KPIs could include facility uptime, response times for maintenance requests, energy efficiency targets, safety compliance rates, customer satisfaction surveys from building users (students, staff), and adherence to budget. The 'award' portion of the fee structure incentivizes the contractor to exceed minimum performance requirements. The effectiveness of the CPAF structure hinges on clearly defined, measurable, and achievable KPIs that align with the government's objectives for these educational facilities.

What is Cubic Applications, Inc.'s track record with similar large-scale facility operations or educational support contracts?

Cubic Applications, Inc., and its parent company Cubic Global Defense, Inc., have a significant history of contracting with the U.S. Department of Defense and other government agencies. While specific details on their past performance in 'Operation/Other Educational Buildings' are not provided here, their general experience includes providing a wide array of services to the military, such as training systems, simulation, command and control, and support services. Their involvement in large-scale contracts suggests they possess the organizational capacity and expertise to manage complex requirements. A thorough assessment of their track record would involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) and examining their portfolio of previous contracts to identify relevant experience in facility operations, maintenance, and support for educational or similar types of government facilities.

How has federal spending on 'All Other Information Services' (NAICS 519190) evolved over the past decade, and where does this contract fit within that trend?

Federal spending on NAICS code 519190, 'All Other Information Services,' has generally seen fluctuations driven by evolving technological needs and agency priorities. This category is broad and can encompass diverse services, making it difficult to track precise trends without further segmentation. However, overall federal spending on IT and information services has been substantial, with a consistent demand for support functions across various agencies. This $868.6 million contract, awarded in 2003 and spanning over a decade, represents a significant investment within this category during its performance period. Its large value suggests it addresses a critical, long-term requirement for the Department of Defense, likely related to maintaining essential infrastructure rather than cutting-edge IT development, given the service description. It fits within the trend of agencies outsourcing essential support services to manage complex operations.

What are the potential risks associated with the long duration (over 10 years) of this contract, and how might they be mitigated?

The primary risks associated with a contract duration exceeding 10 years include potential scope creep, technological obsolescence, contractor complacency, and the government's reduced flexibility to adapt to changing needs or market conditions. Scope creep can occur if the Statement of Work (SOW) is not precisely defined or if requirements evolve without formal contract modifications. Technological obsolescence is a risk if the services rely on specific systems or processes that become outdated. Contractor complacency can arise from a lack of competitive pressure over a long period. Mitigation strategies include robust contract management, regular performance reviews, clearly defined change control processes, incorporating mechanisms for technological refresh or adaptation, and potentially using contract options that allow for periodic re-evaluation or termination for convenience if performance or needs change.

Industry Classification

NAICS: Information › Other Information Services › All Other Information Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Parent Company: Cubic Corporation (UEI: 008382293)

Address: 4550 THIRD AVENUE SE, STE, LACEY, WA, 98503

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

Contract Characteristics

Cost or Pricing Data: NO

Timeline