DOT's FAA awards $46.4M facilities support contract to Fedcap Rehabilitation Services, Inc

Contract Overview

Contract Amount: $46,376,723 ($46.4M)

Contractor: Fedcap Rehabilitation Services, Inc

Awarding Agency: Department of Transportation

Start Date: 2015-10-23

End Date: 2021-12-14

Contract Duration: 2,244 days

Daily Burn Rate: $20.7K/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 BASE PERIOD OF PERFORMANCE 11/01/15-10/31/16 TAS:: ::TAS IGF::CL::IGF IGF::CL::IGF

Place of Performance

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

State: New York Government Spending

Plain-Language Summary

Department of Transportation obligated $46.4 million to FEDCAP REHABILITATION SERVICES, INC for work described as: CENTER OPERATIONS AND MAINTENANCE CONTRACT BASE PERIOD OF PERFORMANCE 11/01/15-10/31/16 TAS:: ::TAS IGF::CL::IGF IGF::CL::IGF Key points: 1. Contract awarded to a single bidder, raising questions about competition and potential price inflation. 2. The contract's duration of over 6 years suggests a long-term need for these services. 3. Fixed-price contract type may offer cost certainty but could limit flexibility for unforeseen issues. 4. The award to Fedcap Rehabilitation Services, Inc. indicates a focus on specific contractor capabilities or mission alignment. 5. Services are concentrated in New York, suggesting a localized operational requirement. 6. The absence of a small business set-aside raises questions about opportunities for smaller enterprises in this contract.

Value Assessment

Rating: fair

The contract value of $46.4 million over approximately 6 years for facilities support services appears to be within a reasonable range for large-scale operations. However, without specific benchmarks for comparable facilities support contracts of this size and scope, a definitive value-for-money assessment is challenging. The firm fixed-price structure suggests an attempt to control costs, but the lack of competition could have led to a higher-than-necessary price. Further analysis would require benchmarking against similar contracts awarded through competitive processes.

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 responsible source is available or capable of meeting the requirement. The lack of competition means that the government did not benefit from the price discovery and innovation that typically arises from multiple bidders vying for a contract. This raises concerns about whether the government secured the best possible price and terms.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without competing offers, there is less pressure on the contractor to offer the lowest possible price, potentially leading to less efficient use of federal funds.

Public Impact

The Federal Aviation Administration (FAA) benefits from the continuity of essential facilities support services at its New York locations. The contract ensures the maintenance and operation of critical facilities, supporting the FAA's broader mission. The primary geographic impact is within New York, where the facilities are located. The contract likely supports a workforce responsible for maintaining and operating these facilities, potentially including specialized technical staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits opportunities for other qualified vendors, including small businesses.
Long contract duration without competitive re-evaluation could reduce incentives for ongoing cost efficiency.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a known entity like Fedcap Rehabilitation Services, Inc. may indicate a strategic partnership or specialized capability.

Sector Analysis

Facilities Support Services is a broad category within the services sector, encompassing a wide range of activities necessary for the operation and maintenance of buildings and infrastructure. This contract, valued at approximately $46.4 million over its extended period, falls within the larger government spending on facility management. Comparable spending benchmarks are difficult to establish without more specific details on the scope of services, but large federal agencies like the FAA often award multi-million dollar contracts for such essential operational needs. The market for these services is competitive, but specific requirements or existing relationships can lead to sole-source awards.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data indicates the prime contractor, Fedcap Rehabilitation Services, Inc., is not a small business. This means that opportunities for small businesses to directly participate as prime contractors on this specific award were limited. However, it is possible that the prime contractor may engage small businesses as subcontractors, depending on the contract's requirements and the contractor's subcontracting plan. Further investigation into subcontracting would be needed to assess the full impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA), a division of the Department of Transportation. The FAA is responsible for ensuring that the contractor meets all performance requirements and adheres to the terms of the firm fixed-price contract. Accountability measures would be embedded in performance reviews and payment schedules. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. The specific Inspector General with jurisdiction would be the Department of Transportation's Office of Inspector General.

Related Government Programs

Federal Aviation Administration Operations
Department of Transportation Facilities Management
Government Facilities Support Services
Public Building Maintenance Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited transparency into the justification for sole-source award.
Potential for cost overruns without competitive benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $46.4 million to FEDCAP REHABILITATION SERVICES, INC. CENTER OPERATIONS AND MAINTENANCE CONTRACT BASE PERIOD OF PERFORMANCE 11/01/15-10/31/16 TAS:: ::TAS IGF::CL::IGF IGF::CL::IGF

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 $46.4 million.

What is the period of performance?

Start: 2015-10-23. End: 2021-12-14.

What is the track record of Fedcap Rehabilitation Services, Inc. with federal contracts, particularly with the FAA?

Fedcap Rehabilitation Services, Inc. has a history of receiving federal contracts, often with a focus on providing services that align with their mission of empowering individuals with barriers to employment. While specific details on their track record with the FAA for facilities support are not immediately available from the provided data, their ability to secure this sole-source contract suggests a prior relationship or a demonstrated capability deemed essential by the agency. A deeper dive into their contract history, performance evaluations (e.g., CPARS), and any past issues or successes would provide a more comprehensive understanding of their reliability and performance in fulfilling federal obligations.

How does the pricing of this contract compare to similar facilities support contracts awarded competitively?

Direct comparison of pricing is challenging due to the sole-source nature of this award and the lack of detailed service breakdowns. Typically, competitive bidding allows for price discovery, where multiple vendors offer proposals, driving prices down. In a sole-source scenario, the government relies on negotiation and potentially historical pricing or internal cost estimates. Without access to comparable contracts awarded competitively for similar facilities support services (considering size, scope, location, and service complexity), it is difficult to definitively state whether the pricing is optimal. Benchmarking against industry standards or government-wide contract vehicles for facilities management could offer some insights, but a precise comparison remains elusive.

What are the primary risks associated with a sole-source award for facilities support services?

The primary risks associated with a sole-source award for facilities support services include potential overpayment due to lack of competition, reduced incentive for the contractor to innovate or improve efficiency over time, and a lack of market validation for the chosen price and service levels. There's also a risk that the contractor may not possess the absolute best or most cost-effective solution available in the market. Furthermore, if the contractor's performance falters, the process of finding and transitioning to a new provider could be lengthy and disruptive, given the absence of pre-established competitive alternatives.

How effective has Fedcap Rehabilitation Services, Inc. been in delivering facilities support services based on past performance?

The provided data does not include specific performance metrics or evaluations for Fedcap Rehabilitation Services, Inc. on this particular contract or similar facilities support contracts. To assess their effectiveness, one would need to consult sources like the Contractor Performance Assessment Reporting System (CPARS), which documents past performance on federal contracts. Without this information, it's impossible to gauge their historical effectiveness in delivering facilities support services. The fact that they were awarded this sole-source contract might imply a level of trust or a perceived capability by the FAA, but this is not a substitute for documented performance data.

What are the historical spending patterns for facilities support services by the FAA in New York?

The provided data focuses on a single contract award and does not offer historical spending patterns for facilities support services by the FAA in New York. To analyze historical spending, one would need to access and aggregate data from contract databases (like FPDS) over multiple fiscal years, filtering for the FAA, the relevant geographic location (New York), and the appropriate North American Industry Classification System (NAICS) codes related to facilities support services (e.g., 561210). This would reveal trends in contract values, types of services procured, and the number and nature of contractors utilized over time.

What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The justification for a sole-source award typically stems from specific circumstances where only one responsible source is determined to be capable of meeting the government's needs. Common reasons include unique capabilities, proprietary technology, urgent requirements where competition is impractical, or when the existing contractor is the only viable option due to specialized knowledge or infrastructure. For this contract, the specific justification from the FAA would need to be documented in accordance with Federal Acquisition Regulation (FAR) Part 6. Without that official justification, it's presumed that the FAA determined Fedcap Rehabilitation Services, Inc. was the only entity that could fulfill the requirement, possibly due to specialized expertise, existing infrastructure integration, or other unique factors.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

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: 633 3RD AVE 6TH FL, NEW YORK, NY, 10017

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: $71,075,302

Exercised Options: $46,376,723

Current Obligation: $46,376,723

Actual Outlays: $1,691,330

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $86,522,975

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline