DoD's $39M landscaping contract with PRIDE INDUSTRIES awarded via sole-source vehicle

Contract Overview

Contract Amount: $38,950,670 ($39.0M)

Contractor: Pride Industries

Awarding Agency: Department of Defense

Start Date: 2002-12-24

End Date: 2011-09-30

Contract Duration: 3,202 days

Daily Burn Rate: $12.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: TRAVIS AFB, SOLANO County, CALIFORNIA, 94535

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $39.0 million to PRIDE INDUSTRIES for work described as: Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Long contract duration of over 8 years suggests potential for price escalation. 3. The contract's value of nearly $39 million over its life cycle warrants scrutiny for cost-effectiveness. 4. Fixed-price contract type may offer cost certainty but could limit flexibility for unforeseen issues. 5. The absence of a small business set-aside raises questions about opportunities for smaller landscaping firms. 6. Performance was managed by the Defense Contract Audit Agency, indicating a focus on financial oversight.

Value Assessment

Rating: fair

Benchmarking the value of this landscaping contract is challenging without specific service details and comparable contract data. However, a nearly $39 million expenditure over more than eight years for landscaping services suggests a significant investment. The fixed-price nature of the contract provides some cost predictability, but the long duration could mask inefficiencies if not closely monitored. Without more granular data on the scope of services and market rates for similar large-scale landscaping projects, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a 'NOT AVAILABLE FOR COMPETITION' (sole-source) justification, meaning it was not openly competed. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific circumstances, they generally lead to less price competition and potentially higher costs for the government compared to fully competed contracts.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the most competitive pricing achievable through open competition, potentially leading to higher overall spending for the same services.

Public Impact

The Department of the Air Force benefits from contracted landscaping services, likely maintaining grounds and facilities at military installations. This contract supports the upkeep and aesthetic presentation of federal properties, contributing to the operational environment. Services are geographically concentrated in California, impacting local economies and employment within that state. The contract likely supports jobs in the landscaping and grounds maintenance sector, benefiting the local workforce in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially increasing costs.
Long contract duration (over 8 years) increases risk of price creep and reduced value over time.
Lack of transparency on specific service deliverables makes it hard to assess performance value.
No indication of small business participation or subcontracting opportunities.

Positive Signals

Fixed-price contract type offers cost certainty for the government.
Awarded by the Department of Defense, suggesting a critical operational need.
Managed by the Defense Contract Audit Agency, implying financial oversight.

Sector Analysis

Landscaping services represent a segment of the broader facilities management and maintenance industry. This contract falls under the services sector, specifically focusing on grounds maintenance for government installations. While not a high-technology or defense-specific procurement, such contracts are essential for maintaining the operational readiness and appearance of military bases. Comparable spending benchmarks for large-scale landscaping contracts are difficult to ascertain without specific service scope, but the nearly $39 million value indicates a significant, long-term commitment.

Small Business Impact

The contract data indicates that this was not set aside for small businesses (ss: false, sb: false). The sole-source nature of the award further suggests that opportunities for small businesses to participate, either as prime contractors or through subcontracting, were likely limited or non-existent. This raises questions about the government's utilization of small business programs in this procurement and the potential impact on the small business ecosystem within the landscaping industry.

Oversight & Accountability

The contract was awarded by the Department of the Air Force, with oversight likely involving contracting officers and program managers responsible for ensuring service delivery and compliance. The mention of the Defense Contract Audit Agency (DCAA) suggests financial audits and cost reviews may have been part of the oversight process, particularly given the contract's value and duration. Transparency regarding specific performance metrics and oversight reports would be necessary for a full assessment of accountability.

Related Government Programs

Base Operations Support Contracts
Facilities Maintenance Services
Groundskeeping Contracts
Department of Defense Service Contracts

Risk Flags

Sole-source award may limit price competition.
Long contract duration increases risk of cost escalation and reduced value.
Lack of small business participation noted.
Specific service details and performance metrics not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.0 million to PRIDE INDUSTRIES. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is PRIDE INDUSTRIES.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $39.0 million.

What is the period of performance?

Start: 2002-12-24. End: 2011-09-30.

What specific landscaping services were included in this contract, and how were they priced?

The provided data does not detail the specific landscaping services covered under this contract, nor does it break down the pricing structure beyond indicating a 'FIRM FIXED PRICE' type. Typically, such contracts could encompass a wide range of services including mowing, irrigation, tree care, pest control, snow removal, and landscape design/installation. The total award amount of $38,950,669.60 over a period of 3,202 days (approximately 8.77 years) suggests a comprehensive and ongoing maintenance program. Without a detailed statement of work (SOW) or contract line item numbers (CLINs), it is impossible to ascertain the exact services and their associated costs, making a granular value assessment difficult.

How does the per-year cost of this contract compare to industry benchmarks for similar services?

Calculating a precise per-year cost requires dividing the total award amount by the contract duration. $38,950,669.60 / 8.77 years ≈ $4.44 million per year. However, comparing this figure to industry benchmarks is challenging without knowing the specific geographic location (beyond 'CALIFORNIA'), the size and type of military installations serviced, and the exact scope of services. Large-scale government contracts often include extensive requirements that may differ from private sector benchmarks. Furthermore, the sole-source nature of this award means the price may not reflect competitive market rates. A true benchmark would require access to data on comparable sole-source or competitively awarded landscaping contracts for large federal facilities.

What was the justification for awarding this contract on a sole-source basis?

The data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION' (CT: 'NOT AVAILABLE FOR COMPETITION'), which is synonymous with a sole-source justification. Specific reasons for sole-source awards typically fall under categories such as urgency, unique capabilities of a single provider, or when only one responsible source exists. Without the official justification document (e.g., a Justification and Approval - J&A), the precise rationale remains unknown. However, sole-source awards are generally exceptions to the rule, requiring strong justification to ensure fair and open competition is bypassed only when absolutely necessary.

What is the track record of PRIDE INDUSTRIES in performing similar government contracts?

PRIDE INDUSTRIES is a large, established company that provides facilities management and operational services, including landscaping, to various clients, including government entities. While the provided data snippet focuses on this specific contract, a comprehensive assessment of their track record would involve reviewing their performance history across multiple contracts, including past performance evaluations, any contract disputes or terminations, and their ability to meet delivery schedules and quality standards. Information on their past performance on other Department of Defense or federal contracts would be crucial for evaluating their reliability and capability in fulfilling this $39 million landscaping agreement.

Are there any performance risks associated with this long-term, sole-source landscaping contract?

Yes, several performance risks are associated with this contract. The primary risk stems from its sole-source nature, which reduces competitive pressure, potentially leading to complacency and less incentive for PRIDE INDUSTRIES to optimize costs or service quality over time. The long duration (over 8 years) exacerbates this risk, as market conditions, technology, and government needs can change significantly, making the original contract terms potentially outdated or inefficient. Without robust performance metrics and active government oversight, there's a risk of service degradation or cost overruns that might not be immediately apparent or addressable due to the lack of competitive alternatives. Ensuring strong contract management and clear performance standards is critical to mitigate these risks.

How has federal spending on landscaping services evolved over time, and where does this contract fit?

Federal spending on landscaping and grounds maintenance services is part of the broader facilities management budget across various agencies. While this specific data point doesn't provide historical spending trends, such contracts are recurring needs for maintaining military bases, government buildings, and public lands. The $39 million awarded to PRIDE INDUSTRIES represents a significant, long-term investment in a specific region (California) for the Department of Defense. Analyzing historical spending patterns for similar landscaping contracts within the DoD or across the federal government would reveal trends in contract values, durations, and competition levels, helping to contextualize whether this award is typical, high, or low relative to past procurements.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Landscaping Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10030 FOOTHILLS BLVD, ROSEVILLE, CA, 03

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

Contract Characteristics

Cost or Pricing Data: NO

Timeline