Defense Facilities Support Contract Awarded to Pyramid Services Inc. for $67.6M Over 5 Years

Contract Overview

Contract Amount: $67,597,713 ($67.6M)

Contractor: Pyramid Services, Inc

Awarding Agency: Department of Defense

Start Date: 2000-06-15

End Date: 2005-08-31

Contract Duration: 1,903 days

Daily Burn Rate: $35.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST NO FEE

Sector: Other

Official Description: 200009!5700!000024!GU60 !ASC/EMK BLDG 8, STE. 2 !F3365799C0021 !A!*!P00001 !20000615!20010630!615057577!615057577!615057577!N!0TLA5!PYRAMID SERVICES INC. !115 S. FLORIDA AVE !ALAMOGORDO !NM!88310!01780!035!35!ALAMOGORDO !OTERO !NEW MEXICO!0001!+000000030600!N!N!000000000000!Z159!MAINT/OTHER INDUSTRIAL BUILDINGS !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !8744!3!*!*!C!B!A!*!A !U!M!2!006!K!* !C!N!Z!* !* !N!B!N!Z!*!B!A!A!A!* !*!N!A!B!N!*!*!*!*!*!

Place of Performance

Location: ASHEBORO, RANDOLPH County, NORTH CAROLINA, 27203

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $67.6 million to PYRAMID SERVICES, INC for work described as: 200009!5700!000024!GU60 !ASC/EMK BLDG 8, STE. 2 !F3365799C0021 !A!*!P00001 !20000615!20010630!615057577!615057577!615057577!N!0TLA5!PYRAMID SERVICES INC. !115 S. FLORIDA AVE !ALAMOGORDO !NM!88310!01780!035!35!ALAMOGORDO !OTE… Key points: 1. Contract awarded for facilities support services, indicating a need for ongoing building maintenance and operations. 2. The contract duration of 1903 days (over 5 years) suggests a long-term requirement for these services. 3. The award amount of $67.6 million signifies a substantial investment in maintaining defense infrastructure. 4. The contract was competed under 'Full and Open Competition After Exclusion of Sources,' which warrants further investigation into the exclusion rationale. 5. The primary service category is Facilities Support Services, a critical component of operational readiness for military installations. 6. The contractor, Pyramid Services Inc., is based in Alamogordo, New Mexico, potentially indicating a focus on regional support. 7. The contract type is 'Cost No Fee,' which can present risks if cost controls are not rigorously managed by the government. 8. The contract was awarded by the Department of the Air Force, highlighting its specific relevance to air base operations.

Value Assessment

Rating: fair

The contract value of $67.6 million over approximately five years averages to about $13.5 million annually. Benchmarking this against similar facilities support contracts for large military installations is crucial. The 'Cost No Fee' contract type requires close government oversight to ensure costs remain reasonable and that the contractor is not incentivized to inflate expenses. Without detailed cost breakdowns and performance metrics, a definitive value-for-money assessment is challenging, but the duration and scope suggest a significant, albeit potentially costly, requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific procurement method implies that while the competition was intended to be broad, certain sources were excluded. The rationale for this exclusion is not provided but is a critical factor in understanding the competitive landscape. The number of bidders is not explicitly stated, but the method suggests a limited pool of qualified or eligible entities were considered.

Taxpayer Impact: The exclusion of sources, even if justified, can limit the potential for the most competitive pricing. Taxpayers may not benefit from the full range of market competition that a truly open bid process could provide.

Public Impact

Military personnel and civilian staff at the Air Force installation benefit from well-maintained facilities, ensuring operational readiness and a safe working environment. Services delivered include maintenance and support for industrial buildings, crucial for housing equipment, operations, and personnel. The geographic impact is likely concentrated around the specific Air Force base where Pyramid Services Inc. is providing support, potentially in Alamogordo, New Mexico. Workforce implications include job creation for maintenance, janitorial, and potentially specialized technical staff managed by Pyramid Services Inc. in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost No Fee' contract type can lead to cost overruns if not managed diligently by the government.
The 'Full and Open Competition After Exclusion of Sources' requires scrutiny to ensure fair competition and prevent undue limitations on bidders.
Lack of detailed performance metrics in the provided data makes it difficult to assess the contractor's efficiency and effectiveness.
The long duration of the contract could lead to vendor lock-in or reduced flexibility for the government to adapt to changing needs.

Positive Signals

The contract addresses a long-term need for essential facilities support services, ensuring continuity of operations.
The award to a single contractor suggests a potentially streamlined management process for the government.
The contract value indicates a significant commitment to maintaining critical infrastructure, which is vital for national security.
The contractor's base in Alamogordo, NM, may indicate support for local economies and workforce development.

Sector Analysis

Facilities Support Services is a broad category within the services sector, encompassing a wide range of activities from janitorial and maintenance to groundskeeping and specialized building operations. This contract falls under the broader umbrella of facility management and infrastructure support, which is a significant market for government contractors. Comparable spending benchmarks would typically be assessed based on the square footage of facilities managed, the types of services required (e.g., HVAC, electrical, plumbing, janitorial), and the geographic location, which influences labor costs. The Department of Defense is a major consumer of these services due to its extensive real estate holdings.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Pyramid Services Inc., may choose to subcontract portions of the work to small businesses as part of their business strategy, which could provide opportunities within the small business ecosystem. The absence of a set-aside suggests the competition was open to all qualified large and small businesses, but ultimately awarded to a larger entity or one that did not qualify for small business status.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting agency, the Department of the Air Force. Given the 'Cost No Fee' contract type, rigorous financial oversight and auditing are essential to monitor expenditures and ensure compliance with the contract terms. Performance metrics and regular reporting from the contractor would be key accountability measures. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Base Operations Support (BOS)
Facilities Maintenance Contracts
Logistics and Support Services
Government Real Estate Management
Defense Infrastructure Modernization

Risk Flags

Cost Control Risk (Cost No Fee)
Limited Competition Justification
Long-Term Contract Flexibility
Performance Monitoring Gaps

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $67.6 million to PYRAMID SERVICES, INC. 200009!5700!000024!GU60 !ASC/EMK BLDG 8, STE. 2 !F3365799C0021 !A!*!P00001 !20000615!20010630!615057577!615057577!615057577!N!0TLA5!PYRAMID SERVICES INC. !115 S. FLORIDA AVE !ALAMOGORDO !NM!88310!01780!035!35!ALAMOGORDO !OTERO !NEW MEXICO!0001!+000000030600!N!N!000000000000!Z159!MAINT/OTHER INDUSTRIAL BUILDINGS !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !8744!3!*!*!C!B!A!*!A !U!M!

Who is the contractor on this award?

The obligated recipient is PYRAMID SERVICES, INC.

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 $67.6 million.

What is the period of performance?

Start: 2000-06-15. End: 2005-08-31.

What specific services are included under 'MAINT/OTHER INDUSTRIAL BUILDINGS' for this contract?

The provided data categorizes the service under NAICS code 561210 (Facilities Support Services) and describes it as 'MAINT/OTHER INDUSTRIAL BUILDINGS.' This typically encompasses a range of activities necessary for the upkeep and operational readiness of industrial facilities. These services often include routine maintenance (e.g., HVAC, plumbing, electrical), repair work, janitorial services, groundskeeping, pest control, and potentially specialized support for industrial equipment housed within these buildings. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not provided here but would specify the exact deliverables, performance standards, and frequency of services required by the Air Force.

What is the significance of the 'Cost No Fee' (PT: COST NO FEE) contract type in terms of risk and oversight?

A 'Cost No Fee' contract is a type of cost-reimbursement contract where the contractor is reimbursed for allowable costs but receives no fee or profit. This contract type is typically used when the scope of work is uncertain or when the government wants to incentivize the contractor to perform the work efficiently without the added complexity of profit calculations. For the government, the primary risk is that the contractor may not be sufficiently motivated to control costs, as their profit is not directly tied to cost savings. Therefore, rigorous government oversight is crucial to monitor expenditures, ensure costs are reasonable and allocable to the contract, and verify that the work is performed satisfactorily. The government bears the financial risk if costs exceed initial estimates.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply about the bidding process?

This procurement method, often referred to as 'Other Than Full and Open Competition' (OTFOC) under FAR 6.302, indicates that while the competition was intended to be broad, specific sources were intentionally excluded. The Federal Acquisition Regulation (FAR) outlines specific justifications for such exclusions, such as the need for a unique capability, urgency, or compatibility with existing systems. The fact that it's 'after exclusion of sources' suggests that an initial broad solicitation may have occurred, or the intent was to solicit broadly but then narrow the field based on specific criteria or pre-qualification. The justification for excluding certain sources is critical for ensuring fairness and maximizing competition within the allowed parameters. Without knowing the specific exclusion rationale, it's difficult to fully assess the competitive impact.

How does the contract duration of 1903 days (over 5 years) impact the overall value and risk?

A contract duration of 1903 days, approximately 5 years and 3 months, signifies a long-term commitment by the government to these facilities support services. This extended period can offer benefits such as price stability and continuity of essential services, potentially reducing disruption. For the contractor, it provides a predictable revenue stream. However, a long duration also increases the risk of cost escalation due to inflation or unforeseen market changes. It can also reduce the government's flexibility to adapt to evolving requirements or to take advantage of new technologies or more competitive market conditions that may arise during the contract period. Rigorous contract management and potential for contract modifications are essential over such a long term.

What is the typical market size and competitive landscape for Facilities Support Services within the Department of Defense?

The market for Facilities Support Services within the Department of Defense (DoD) is substantial, given the vast number of military installations and infrastructure worldwide. This sector includes a wide range of services from routine maintenance and janitorial work to complex facility management and specialized technical support. The competitive landscape is diverse, featuring large, established government contractors as well as numerous small and medium-sized businesses. Competition can be intense, particularly for large, multi-year contracts like this one. However, specific geographic locations, security requirements, and the need for specialized expertise can sometimes limit the pool of eligible bidders, leading to procurements that are not 'full and open' without exclusions.

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 RESTOR ACVIVS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: COST NO FEE (S)

Contractor Details

Address: 115 S. FLORIDA AVE, ALAMOGORDO, NM, 02

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline