Fluor Federal Solutions awarded $56.2M contract for operation of Albuquerque JCC, spanning over 5 years

Contract Overview

Contract Amount: $56,241,441 ($56.2M)

Contractor: Fluor Federal Solutions, LLC

Awarding Agency: Department of Labor

Start Date: 2011-10-01

End Date: 2017-06-22

Contract Duration: 2,091 days

Daily Burn Rate: $26.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF ALBUQUERQUE JCC

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87104

State: New Mexico Government Spending

Plain-Language Summary

Department of Labor obligated $56.2 million to FLUOR FEDERAL SOLUTIONS, LLC for work described as: OPERATION OF ALBUQUERQUE JCC Key points: 1. Contract value of $56.2M over 2091 days suggests a daily operational cost of approximately $26,897. 2. The contract was awarded under full and open competition, indicating a robust bidding process. 3. The use of a Cost Plus Incentive Fee (CPIF) pricing structure suggests a focus on performance and cost control. 4. The contract duration of nearly 6 years provides stability for the contractor and continuity of services. 5. The NAICS code 611519 points to services related to technical and trade schools, implying a specific operational focus. 6. The contract was awarded to a single entity, Fluor Federal Solutions, LLC.

Value Assessment

Rating: fair

The total contract value of $56.2M over approximately 5.75 years results in an average annual value of roughly $9.8M. The daily cost of operations is estimated at $26,897. Benchmarking this against similar contracts for facility operations or educational support services would be necessary to definitively assess value for money. Without specific performance metrics or comparison data, it is difficult to ascertain if this represents an optimal price.

Cost Per Unit: Approximately $26,897 per day.

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that multiple bidders were likely considered. The presence of open competition generally fosters price discovery and can lead to more competitive pricing for the government. The specific number of bids received is not provided, which would offer further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at a competitive market rate, preventing potential overspending.

Public Impact

The primary beneficiaries are likely the Department of Labor and potentially individuals utilizing the services provided by the Albuquerque JCC. The contract supports the operation of the Albuquerque JCC, which likely involves administrative, logistical, or educational functions. The geographic impact is centered in New Mexico, specifically Albuquerque. Workforce implications may include employment opportunities for personnel required to operate the JCC, both directly by the contractor and indirectly through support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the contractor's effectiveness beyond cost.
The CPIF contract type, while incentivizing performance, can lead to cost overruns if not managed carefully.
Limited information on the specific services delivered by the JCC makes a comprehensive value assessment challenging.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
The contract duration provides a stable operational period.
The CPIF structure includes incentives, potentially driving better performance outcomes.

Sector Analysis

The contract falls under the administrative and support services sector, specifically related to the operation of a Justice Center Complex (JCC). This type of contract often involves facility management, administrative support, and potentially specialized services depending on the JCC's function. Comparable spending benchmarks would typically be found within government contracts for facility operations, administrative services, or specialized training/support centers.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). Therefore, small businesses were likely not prioritized in the initial award. However, Fluor Federal Solutions, as the prime contractor, may engage small businesses for subcontracting opportunities to fulfill the contract requirements, though this is not explicitly detailed.

Oversight & Accountability

Oversight mechanisms would typically be managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). Accountability measures would be tied to the CPIF contract terms, performance standards, and regular reporting requirements. Transparency is generally facilitated through contract award databases, but detailed operational reports may not be publicly available.

Related Government Programs

Department of Labor Facility Operations
Government Administrative Support Services
Justice Center Complex Management
Cost Plus Incentive Fee Contracts

Risk Flags

Long contract duration may not adapt to evolving needs.
CPIF structure requires diligent oversight to ensure cost control.
Limited public data on specific services and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $56.2 million to FLUOR FEDERAL SOLUTIONS, LLC. OPERATION OF ALBUQUERQUE 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 (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $56.2 million.

What is the period of performance?

Start: 2011-10-01. End: 2017-06-22.

What specific services does the 'OPERATION OF ALBUQUERQUE JCC' entail?

The provided data indicates the contract is for the 'OPERATION OF ALBUQUERQUE JCC' and falls under NAICS code 611519 (Other Technical and Trade Schools). While the specific services are not detailed, this suggests the JCC likely involves functions related to technical training, trade education, or administrative support for such programs. The contract's duration and value imply a significant operational scope, potentially including facility management, program administration, student support services, and compliance with relevant regulations. Further details would be required from the contract's statement of work to fully understand the scope of services delivered.

How does the daily operational cost of $26,897 compare to similar JCC operations?

The daily operational cost of approximately $26,897 for the Albuquerque JCC is a significant figure. To assess its value, this cost needs to be benchmarked against similar Justice Center Complexes or comparable facilities offering technical and trade education services. Factors such as facility size, staffing levels, types of training offered, and geographic location all influence operational costs. Without access to data on similar contracts or industry cost standards for JCC operations, it is difficult to definitively state whether this daily cost is high, low, or reasonable. A comparative analysis with other Department of Labor facilities or similar government-run training centers would provide a more robust assessment.

What are the key performance indicators (KPIs) associated with the Cost Plus Incentive Fee (CPIF) structure?

The Cost Plus Incentive Fee (CPIF) contract structure implies that Fluor Federal Solutions, LLC is incentivized to meet or exceed certain performance targets while managing costs. Key performance indicators (KPIs) would typically be defined in the contract's statement of work and could include metrics related to operational efficiency, program completion rates, participant satisfaction, facility maintenance standards, safety compliance, and adherence to budget. The 'incentive fee' portion means the contractor earns a higher profit if they achieve these KPIs, while the 'cost' portion covers allowable expenses. The government benefits by potentially receiving better performance at a controlled cost, but oversight is crucial to ensure the KPIs are meaningful and achievable.

What is the track record of Fluor Federal Solutions, LLC in managing similar government contracts?

Fluor Federal Solutions, LLC is a large government contractor with a history of managing complex projects across various sectors, including facility operations, engineering, and construction. While specific details on their track record for operating Justice Center Complexes are not provided in this data, their general experience suggests they possess the capacity to handle such contracts. A thorough assessment would involve reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or contract terminations, and their success in managing similar CPIF contracts. Their ability to successfully execute this contract depends on their specific experience with the JCC's unique requirements and their demonstrated ability to meet performance and cost objectives.

What is the historical spending trend for the operation of the Albuquerque JCC prior to this contract?

The provided data only details this specific contract awarded from 2011 to 2017. It does not offer information on historical spending for the operation of the Albuquerque JCC before or after this period. To understand historical spending trends, one would need to access federal procurement databases for previous contracts related to this facility or similar functions managed by the Department of Labor. Analyzing prior contract values, durations, and award types would reveal patterns in investment and operational costs over time, helping to contextualize the $56.2M awarded for this period.

What are the potential risks associated with a nearly 6-year contract for facility operations?

Potential risks associated with a nearly 6-year contract for facility operations include scope creep, where the requirements of the JCC may evolve over time, potentially leading to cost increases if not managed through contract modifications. There's also the risk of contractor complacency, where performance may decline over a long period if oversight is not consistent. Furthermore, changes in government priorities or funding could impact the contract's long-term viability or necessitate renegotiation. Technological advancements or changes in best practices for facility management could also render the current operational approach suboptimal. Finally, the long duration might not fully account for unforeseen economic fluctuations that could affect the cost of labor and materials.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

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: S12YANM002 - ABQ

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fluor Corporation

Address: 100 FLUOR DANIEL DR, GREENVILLE, SC, 29607

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

Financial Breakdown

Contract Ceiling: $103,098,827

Exercised Options: $56,241,441

Current Obligation: $56,241,441

Actual Outlays: $584,715

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline