Department of Labor's $50.5M Mississippi JCC contract awarded to DEL-JEN, INC. for facilities support services
Contract Overview
Contract Amount: $50,514,273 ($50.5M)
Contractor: Del-Jen, Inc.
Awarding Agency: Department of Labor
Start Date: 2004-04-01
End Date: 2009-08-31
Contract Duration: 1,978 days
Daily Burn Rate: $25.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: OPERATE THE MISSISSIPPI JCC
Place of Performance
Location: CRYSTAL SPRINGS, COPIAH County, MISSISSIPPI, 39059
Plain-Language Summary
Department of Labor obligated $50.5 million to DEL-JEN, INC. for work described as: OPERATE THE MISSISSIPPI JCC Key points: 1. Value for money appears fair given the contract duration and cost-plus incentive fee structure. 2. Competition dynamics indicate a full and open competition, suggesting potential for price discovery. 3. Risk indicators are moderate, with a long duration and cost-reimbursement type potentially leading to cost overruns. 4. Performance context is for facilities support services at the Mississippi JCC. 5. Sector positioning is within facilities management and government support services.
Value Assessment
Rating: fair
The contract's total value of $50.5 million over approximately 5 years (April 2004 - August 2009) averages to about $10.1 million per year. This is a significant amount for facilities support services, but the cost-plus incentive fee (CPIF) structure aims to control costs by incentivizing the contractor to stay within budget. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging. However, the duration and scope suggest a substantial operational requirement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 10 bidders (no) suggests a healthy level of interest and competition for this type of service. This broad competition is generally favorable for price discovery and ensures the government can select from a range of qualified providers.
Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which is expected to drive down costs and ensure the government receives competitive pricing for the facilities support services.
Public Impact
The primary beneficiaries are the Department of Labor and the personnel utilizing the Mississippi JCC facilities. Services delivered include comprehensive facilities support, ensuring the operational readiness and maintenance of the JCC. The geographic impact is localized to Mississippi, where the JCC is located. Workforce implications include employment opportunities for DEL-JEN, INC. staff and potentially local subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 5 years) increases the risk of cost escalation, especially with a cost-plus contract type.
- Cost-plus incentive fee (CPIF) can sometimes lead to less stringent cost control if incentives are not well-defined or monitored.
- Lack of specific performance metrics in the provided data makes it difficult to assess efficiency and effectiveness.
- The 'Facilities Support Services' category is broad and could encompass a wide range of activities, potentially leading to scope creep if not managed tightly.
Positive Signals
- Awarded under full and open competition, indicating a robust bidding process.
- The presence of 10 bidders suggests significant market interest and a competitive environment.
- The CPIF structure, if properly managed, can align contractor and government interests towards cost efficiency.
- The contract is for essential operational support, ensuring the continuity of JCC functions.
Sector Analysis
Facilities Support Services fall under the broader commercial and institutional building services industry. This sector includes a wide range of activities from maintenance and repair to specialized support functions. Government contracts for these services are substantial, driven by the need to maintain federal buildings and installations. Benchmarks for such contracts vary widely based on size, location, and specific services required, but large, multi-year contracts like this represent significant portions of a company's revenue.
Small Business Impact
The data indicates that small business participation (sb) was not a specific set-aside for this contract (ss: false, sb: false). While DEL-JEN, INC. may engage small businesses as subcontractors, there is no explicit requirement or indication of a small business set-aside in the provided information. This means the primary contract was not specifically targeted to encourage small business prime contracting.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of Labor's contracting officers and program managers. The cost-plus incentive fee structure implies a need for close monitoring of costs and performance against established targets. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Federal Buildings Fund
- General Services Administration (GSA) Facilities Management Contracts
- Department of Defense Base Operations Support (BOS)
Risk Flags
- Long contract duration may increase cost risk.
- Cost-plus contract type requires diligent oversight to prevent overruns.
- Scope of 'Facilities Support Services' needs clear definition to avoid creep.
Tags
facilities-support-services, department-of-labor, employment-and-training-administration, definitive-contract, cost-plus-incentive-fee, full-and-open-competition, mississippi, large-contract, facilities-management, government-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $50.5 million to DEL-JEN, INC.. OPERATE THE MISSISSIPPI JCC
Who is the contractor on this award?
The obligated recipient is DEL-JEN, INC..
Which agency awarded this contract?
Awarding agency: Department of Labor (Employment and Training Administration).
What is the total obligated amount?
The obligated amount is $50.5 million.
What is the period of performance?
Start: 2004-04-01. End: 2009-08-31.
What was the specific performance history of DEL-JEN, INC. on similar federal contracts prior to this award?
Assessing DEL-JEN, INC.'s prior performance is crucial for understanding the risk associated with this $50.5 million contract. While the provided data doesn't detail their track record, a thorough analysis would involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or terminations, and the successful completion of contracts of similar scope and value. A history of successful, on-time, and within-budget performance on complex facilities support contracts would significantly de-risk this award. Conversely, a history of performance issues could indicate potential problems in delivering the required services for the Mississippi JCC.
How does the average annual cost of $10.1 million compare to market rates for similar facilities support services in Mississippi?
Benchmarking the average annual cost of approximately $10.1 million against market rates for comparable facilities support services in Mississippi is essential for evaluating value for money. This comparison would involve analyzing data from commercial service providers offering similar scopes of work (e.g., building maintenance, security, janitorial, groundskeeping) in the same geographic region. Factors such as the specific services included, the size and complexity of the facilities managed, and the level of service required would need to be considered. Without this market data, it's difficult to definitively state whether the government is receiving a competitive price. However, given the scale and duration, the contract likely encompasses a comprehensive suite of services.
What were the key performance indicators (KPIs) and incentive targets within the Cost Plus Incentive Fee (CPIF) structure?
The effectiveness of the Cost Plus Incentive Fee (CPIF) structure hinges on the clarity and measurability of its Key Performance Indicators (KPIs) and incentive targets. For this contract, understanding these elements would reveal how DEL-JEN, INC. was motivated to control costs and achieve performance goals. KPIs might have included metrics related to response times for maintenance requests, energy efficiency targets, safety incident rates, or facility uptime. The incentive targets would define the cost ceiling, target cost, and the sharing arrangement for savings or overruns. Without these specifics, it's challenging to fully assess the alignment of contractor and government interests and the potential for cost efficiencies or overruns.
What is the historical spending trend for facilities support services at the Mississippi JCC or similar DOL facilities?
Analyzing historical spending trends for facilities support services at the Mississippi JCC, or comparable Department of Labor (DOL) facilities, provides crucial context for this $50.5 million award. Understanding past expenditures, contract durations, and service providers can reveal patterns of cost escalation, efficiency improvements, or changes in service requirements. If spending has been consistently high or increasing, it might suggest underlying challenges or a growing need. Conversely, stable or decreasing costs could indicate effective management. This historical perspective helps in evaluating whether the current contract's value and duration are consistent with past investments and operational needs.
What specific types of facilities support services are included under the broad NAICS code 561210?
The North American Industry Classification System (NAICS) code 561210, 'Facilities Support Services,' is broad and encompasses a wide array of activities. For this contract, it likely includes services such as building operations and maintenance (HVAC, electrical, plumbing), janitorial and housekeeping, groundskeeping and landscaping, security services, waste management, and potentially minor repairs and renovations. The specific mix and emphasis of these services would be detailed in the contract's Statement of Work (SOW). Understanding the precise scope is vital for evaluating the contract's value, comparing it to benchmarks, and assessing performance risks.
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 Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: MISSISSIPPI JCC
Offers Received: 10
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fluor Corporation (UEI: 006907190)
Address: 28441 HIGHRIDGE RD # 401, ROLLING HILLS ESTATES, CA, 90274
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $50,514,273
Exercised Options: $50,514,273
Current Obligation: $50,514,273
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2004-04-01
Current End Date: 2009-08-31
Potential End Date: 2009-09-09 00:00:00
Last Modified: 2021-04-30
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