DOT's $50.6M Facilities Support Contract Awarded to Fedcap Rehabilitation Services, Inc

Contract Overview

Contract Amount: $50,639,348 ($50.6M)

Contractor: Fedcap Rehabilitation Services, Inc

Awarding Agency: Department of Transportation

Start Date: 2010-09-23

End Date: 2016-09-22

Contract Duration: 2,191 days

Daily Burn Rate: $23.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CENTER OPERATIONS AND MAINTENANCE CONTRACT FOR WILLIAM J. HUGHES TECHNICAL CENTER

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10011

State: New York Government Spending

Plain-Language Summary

Department of Transportation obligated $50.6 million to FEDCAP REHABILITATION SERVICES, INC for work described as: CENTER OPERATIONS AND MAINTENANCE CONTRACT FOR WILLIAM J. HUGHES TECHNICAL CENTER Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. Duration of the contract was 6 years, suggesting a long-term need for services. 3. The contract was not competed, raising questions about potential cost savings through competition. 4. Services provided fall under Facilities Support Services, a broad category with varying market rates. 5. Awardee is a non-profit organization, potentially influencing cost structures and mission alignment. 6. The contract was awarded in New York, providing localized economic impact.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details and comparable contract data. The firm-fixed-price structure provides cost certainty for the government. However, the lack of competition means there's no direct market comparison to assess if the price was optimal. Given the duration and scope, the total value of over $50 million warrants careful review to ensure efficiency and effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one source is capable of meeting the requirement, or in specific circumstances like follow-on work. The lack of competition limits the government's ability to leverage market forces to achieve the best possible pricing and service levels.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, potentially leading to higher costs than if multiple vendors had vied for the contract.

Public Impact

The primary beneficiary is the Federal Aviation Administration (FAA) through the continued operation and maintenance of the William J. Hughes Technical Center. Services delivered include essential facilities support, ensuring the functionality of a critical research and development hub. The geographic impact is localized to Egg Harbor Township, New Jersey, where the technical center is located. Workforce implications include employment opportunities for individuals employed by Fedcap Rehabilitation Services, Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potential cost savings for taxpayers.
Firm-fixed-price contracts can sometimes lead to contractor complacency if not actively managed.
The broad nature of 'Facilities Support Services' can obscure specific cost drivers and performance metrics.

Positive Signals

Award to a non-profit organization may align with social impact goals.
Long-term contract duration suggests a stable and reliable service provider.
Firm-fixed-price contract provides budget certainty for the agency.

Sector Analysis

Facilities Support Services is a broad category within the broader commercial services sector. This contract likely encompasses a range of activities such as maintenance, repair, janitorial services, groundskeeping, and potentially security for the William J. Hughes Technical Center. The market for these services is generally competitive, with many providers ranging from large corporations to smaller specialized firms. The total contract value of over $50 million over six years places it as a significant award within this service category.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this specific contract is not readily available in the provided data. As a sole-source award, the typical mechanisms for ensuring small business participation through competitive bidding may not have been applicable. Further investigation into Fedcap Rehabilitation Services, Inc.'s subcontracting practices would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Aviation Administration (FAA), a division of the Department of Transportation. Specific oversight mechanisms would include contract performance reviews, financial audits, and adherence to the terms and conditions of the firm-fixed-price agreement. Transparency would depend on the FAA's reporting practices and any public disclosures related to contract performance and expenditures.

Related Government Programs

Federal Aviation Administration Facilities Maintenance
Department of Transportation Operations and Maintenance
William J. Hughes Technical Center Support Services
Facilities Support Services Contracts

Risk Flags

Lack of Competition
Long Contract Duration
Sole-Source Award

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $50.6 million to FEDCAP REHABILITATION SERVICES, INC. CENTER OPERATIONS AND MAINTENANCE CONTRACT FOR WILLIAM J. HUGHES TECHNICAL CENTER

Who is the contractor on this award?

The obligated recipient is FEDCAP REHABILITATION SERVICES, INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $50.6 million.

What is the period of performance?

Start: 2010-09-23. End: 2016-09-22.

What specific services were included under this "Center Operations and Maintenance Contract"?

The provided data categorizes this contract under "Facilities Support Services" (NAICS code 561210). This broad category typically includes a wide range of services essential for the operation and upkeep of buildings and grounds. Examples commonly include routine maintenance and repair of building systems (HVAC, electrical, plumbing), janitorial services, landscaping and groundskeeping, pest control, waste management, and potentially security services. Without more specific line-item details or a statement of work, the precise scope of services rendered under this $50.6 million contract remains general. The William J. Hughes Technical Center is a significant research and development facility for the FAA, suggesting the services were critical to maintaining its operational integrity and safety standards.

How does the $50.6 million total contract value compare to similar facilities support contracts?

Comparing the $50.6 million total contract value for this 6-year Facilities Support Services contract requires context regarding the size and complexity of the facility being supported. The William J. Hughes Technical Center is a major FAA research and development hub, implying a substantial requirement for maintenance and operational support. Annualized, this contract represents approximately $8.44 million per year. Benchmarking this against other large-scale federal facilities support contracts would depend on factors like square footage, geographic location, specific services required (e.g., specialized lab support vs. general office maintenance), and security requirements. Generally, contracts of this magnitude are considered significant, but without specific comparable data points for similar technical centers or research facilities, a precise value-for-money assessment relative to the market is difficult.

What are the potential risks associated with awarding a 6-year sole-source contract for facilities support?

The primary risk associated with a 6-year sole-source contract for facilities support is the potential for reduced cost efficiency due to the lack of competition. Over a long duration, without competitive pressure, the contractor may have less incentive to innovate or reduce costs, potentially leading to prices that are higher than market rates. Another risk is vendor lock-in; if the contractor's performance is merely adequate rather than exceptional, switching providers after six years can be a complex and costly process. Furthermore, if the scope of services or the needs of the facility evolve significantly, a sole-source contract may not be flexible enough to adapt without costly renegotiations. Finally, there's a risk that emerging technologies or more efficient service delivery models are not adopted if the incumbent contractor is not incentivized to do so.

What is the track record of Fedcap Rehabilitation Services, Inc. in performing large federal contracts?

Fedcap Rehabilitation Services, Inc. is a non-profit organization with a mission focused on providing vocational training and employment services to individuals with barriers to employment. While their primary mission is social impact, they do engage in government contracting to support their operations and mission. Information on their specific track record with large federal contracts, particularly in the facilities support services domain, would require a deeper dive into their contract history beyond the provided data. It's important to assess whether their experience aligns with the scale and technical requirements of maintaining a major FAA technical center. Their non-profit status might influence their operational approach and cost structure compared to for-profit entities.

How does the 'Facilities Support Services' category (NAICS 561210) typically perform in terms of cost and efficiency?

The 'Facilities Support Services' category (NAICS 561210) encompasses a wide array of services, making generalizations about cost and efficiency challenging. Efficiency is highly dependent on the specific services included, the scale of the operation, the technology employed, and the management practices of the contractor. Contracts can range from basic janitorial services to comprehensive building operations and maintenance. For large, complex facilities like the William J. Hughes Technical Center, efficiency often hinges on effective preventative maintenance programs, energy management, and streamlined logistical support. Cost-effectiveness is best assessed through benchmarking against similar facilities and by analyzing the contractor's performance metrics against defined service level agreements. The firm-fixed-price nature of this contract aims to provide cost certainty, but actual efficiency relies on the contractor's operational effectiveness.

What is the significance of this contract being awarded in New York (ST: NY, SN: NEW YORK) when the facility is in New Jersey?

The provided data indicates the contract was awarded to Fedcap Rehabilitation Services, Inc., located in New York (ST: NY, SN: NEW YORK), but the services were for the William J. Hughes Technical Center, which is located in Egg Harbor Township, New Jersey. This discrepancy likely reflects the administrative or corporate location of the contractor, not the physical location of service delivery. Federal contracts are often awarded to companies based on their headquarters or primary place of business, even if the work is performed elsewhere. The actual performance of the contract, including employment and local economic impact, would be concentrated in the vicinity of the William J. Hughes Technical Center in New Jersey, not New York.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 211 W 14TH ST, NEW YORK, NY, 10011

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

Financial Breakdown

Contract Ceiling: $51,956,548

Exercised Options: $50,639,348

Current Obligation: $50,639,348

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $87,940,444

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline