DoD's $195M Facilities Support Contract to IAP World Services Shows Long-Term Engagement

Contract Overview

Contract Amount: $194,926,613 ($194.9M)

Contractor: IAP World Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2000-10-10

End Date: 2012-04-26

Contract Duration: 4,216 days

Daily Burn Rate: $46.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Place of Performance

Location: AUGUSTA, RICHMOND County, GEORGIA, 30909

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $194.9 million to IAP WORLD SERVICES, INC. for work described as: Key points: 1. The contract value suggests a significant, long-term need for facilities support services. 2. The 'Cost Plus Award Fee' structure incentivizes performance but requires careful oversight to manage costs. 3. Full and open competition indicates a broad market search, potentially leading to competitive pricing. 4. The contract duration of over 11 years (including options) points to a stable, ongoing requirement. 5. The award to IAP World Services, Inc. represents a substantial commitment to a single provider for these services. 6. The 'Facilities Support Services' NAICS code covers a wide range of operational and maintenance activities.

Value Assessment

Rating: fair

Benchmarking the value of this $195 million contract is challenging without specific service details and performance metrics. However, the 'Cost Plus Award Fee' (CPAF) structure implies that the government aims to achieve good value by incentivizing contractor performance. The total value over its extended period suggests a significant investment, and its fairness hinges on the achieved award fees and the efficiency of cost management. Compared to similar large-scale facilities support contracts, the per-year average of approximately $18 million appears within a reasonable range for comprehensive services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple capable vendors were solicited and allowed to bid. The presence of three bidders (no=3) indicates a degree of competition, which is generally positive for price discovery and ensuring the government receives competitive offers. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would further illuminate the effectiveness of this competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. It ensures that the government is not limited to a single provider, potentially leading to better value for the public funds expended.

Public Impact

The Department of Defense benefits from consistent and comprehensive facilities support services, ensuring operational readiness. Military personnel and civilian employees are provided with functional and safe working and living environments. The contract supports the maintenance and operation of critical infrastructure, contributing to national security. The geographic impact is primarily within the areas where the Department of the Army operates, potentially across multiple installations. The contract likely supports a significant number of jobs, both directly with the contractor and indirectly through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can lead to cost overruns if not meticulously managed and monitored.
The long duration of the contract may reduce flexibility to adapt to changing requirements or adopt newer, more cost-effective solutions.
Reliance on a single contractor for over a decade could create vendor lock-in and reduce future competitive pressure.

Positive Signals

Award fee structure incentivizes contractor performance and quality, potentially leading to better service delivery.
Full and open competition suggests a robust market engagement, aiming for the best value.
The contract's long-term nature provides stability and predictability for essential facilities support services.

Sector Analysis

Facilities Support Services fall under the broader commercial services sector, encompassing a wide array of maintenance, repair, and operational activities for physical infrastructure. This contract, valued at nearly $200 million over its lifespan, represents a significant procurement within this sector. Comparable spending benchmarks would typically involve analyzing other large-scale government or private sector contracts for facility management, base operations support, or integrated facility services. The market for these services is competitive, with numerous providers ranging from large corporations to specialized firms.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb=false) and the contractor, IAP World Services, Inc., is a large entity. There is no explicit information on subcontracting plans for small businesses within this data. Therefore, the direct impact on the small business ecosystem is likely minimal unless specific subcontracting requirements were mandated and fulfilled. Further investigation into subcontracting reports would be necessary to assess any indirect benefits to small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting and technical representatives. The 'Cost Plus Award Fee' structure necessitates rigorous performance monitoring and evaluation to ensure the contractor meets objectives and earns award fees appropriately. Transparency is generally provided through contract award databases, but detailed performance reports and cost breakdowns may be less publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support (BOS)
Logistics and Support Services
Facilities Maintenance Contracts
Government Contracting Services

Risk Flags

Potential for cost overruns under CPAF structure.
Long contract duration may limit flexibility.
Need for robust performance monitoring and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $194.9 million to IAP WORLD SERVICES, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is IAP WORLD SERVICES, 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 $194.9 million.

What is the period of performance?

Start: 2000-10-10. End: 2012-04-26.

What specific facilities support services are included under this contract?

The provided data indicates the North American Industry Classification System (NAICS) code is 561210, which corresponds to Facilities Support Services. This broad category typically encompasses a wide range of activities, including operation and maintenance of buildings and other facilities, such as cleaning, security, refuse collection, pest control, and operation of building systems (e.g., HVAC, electrical, plumbing). However, without the specific contract statement of work (SOW), the precise scope of services, such as grounds maintenance, transportation support, or specialized technical services, remains undefined. The 'Cost Plus Award Fee' structure suggests that performance metrics and quality standards are key components of the service delivery.

How does the $195 million total contract value compare to similar facilities support contracts awarded by the DoD?

The total contract value of approximately $195 million over its potential lifespan (from 2000 to 2012, approximately 12 years) averages around $16.25 million per year. This figure is substantial but falls within the range of large-scale facilities support contracts awarded by the Department of Defense, particularly for major installations or multiple sites. For context, other Base Operations Support (BOS) contracts or large facility management agreements can range from tens to hundreds of millions of dollars annually, depending on the scope, location, and complexity of the services required. Benchmarking requires detailed comparison of service scope, geographic coverage, and performance standards.

What are the key risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude?

The primary risk with CPAF contracts is the potential for cost overruns if the government's oversight and performance evaluation are not sufficiently robust. While the award fee mechanism incentivizes performance, contractors may still incur costs that exceed initial estimates, and the government pays these costs plus a fee based on performance. Another risk is the potential for subjective evaluation of performance, leading to disputes over award fees. For a contract of this size and duration, there's also the risk of vendor lock-in, where the government becomes heavily reliant on a single provider, potentially diminishing future competitive leverage and flexibility to adapt to evolving needs or technologies.

What is the historical spending pattern for facilities support services by the Department of the Army?

The provided data reflects a single contract award from 2000 to 2012. To understand historical spending patterns for facilities support services by the Department of the Army, a broader analysis of multiple contracts over various fiscal years would be necessary. This would involve examining spending trends across different types of facilities support (e.g., maintenance, operations, construction support), geographic distributions, and contracting vehicles (e.g., IDIQs, fixed-price, cost-reimbursement). Such an analysis could reveal patterns in outsourcing, shifts in service delivery models, and the overall budget allocation towards facilities management.

What does the 'Facilities Support Services' NAICS code (561210) encompass in terms of government contracting?

NAICS code 561210, Facilities Support Services, covers establishments primarily engaged in providing operating and maintaining facilities services. This includes services such as janitorial services, building operation, security systems operation, and pest control. It can also encompass the operation of building systems like heating, ventilation, and air conditioning (HVAC), electrical, and plumbing. Government contracts under this code are often comprehensive, sometimes referred to as Base Operations Support (BOS) or Integrated Facility Management (IFM), aiming to provide a full suite of services to maintain government properties and ensure their efficient operation.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cerberus Capital Management, L.P. (UEI: 014784388)

Address: 7315 N. ATLANTIC AVE, CAPE CANAVERAL, FL, 08

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

Contract Characteristics

Cost or Pricing Data: YES

Timeline