Department of Defense awards $128M for facilities support services, with a 3-year duration
Contract Overview
Contract Amount: $128,168,402 ($128.2M)
Contractor: Del-Jen, Inc.
Awarding Agency: Department of Defense
Start Date: 2002-03-04
End Date: 2012-08-12
Contract Duration: 3,814 days
Daily Burn Rate: $33.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200206!000137!5700!JA02 !AETC CONS/CC !F4168902C0010 !A!N! !Y! !20020304!20020930!059220632!059220632!059220632!N!TREND WESTERN TECHNICAL CORP !4128 W COMMONWEALTH AVE !FULLERTON !CA!92833!41704!465!48!LAUGHLIN AFB !VAL VERDE !TEXAS !+000006310405!N!N!000000000000!R799!OTHER MANAGEMENT SUPPORT SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !561210!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!013!K! !C!N!Z! ! !N!B!N!N! ! !Z! !B!A!000!A!B!N! ! ! ! ! ! !0001!
Place of Performance
Location: LAUGHLIN AFB, VAL VERDE County, TEXAS, 78843
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $128.2 million to DEL-JEN, INC. for work described as: 200206!000137!5700!JA02 !AETC CONS/CC !F4168902C0010 !A!N! !Y! !20020304!20020930!059220632!059220632!059220632!N!TREND WESTERN TECHNICAL CORP !4128 W COMMONWEALTH AVE !FULLERTON !CA!92833!41704!465!48!LAUGHLIN AFB !VAL V… Key points: 1. Contract awarded to DEL-JEN, INC. for facilities support services. 2. The contract has a duration of 3814 days, spanning from March 2002 to August 2012. 3. The total award amount is $128,168,402.14. 4. The contract was awarded under full and open competition after exclusion of sources. 5. The primary North American Industry Classification System (NAICS) code is 561210 for Facilities Support Services. 6. The contract was awarded by the Department of the Air Force. 7. The place of performance is Laughlin Air Force Base, Texas.
Value Assessment
Rating: fair
The contract value of $128 million over approximately 10.5 years for facilities support services at a single Air Force base appears to be within a reasonable range for such long-term, comprehensive support. However, without specific details on the scope of services and performance metrics, a precise value-for-money assessment is challenging. Benchmarking against similar large-scale facilities management contracts at other military installations would provide a clearer picture of cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'full and open competition after exclusion of sources,' which suggests that while the competition was intended to be broad, specific sources may have been excluded for defined reasons. The number of bidders is not explicitly stated, but the 'limited' competition level implies fewer than a truly 'full and open' scenario. This could potentially impact price discovery, as a smaller pool of bidders might lead to less aggressive pricing.
Taxpayer Impact: Taxpayers may have received less competitive pricing due to the limited nature of the competition, as fewer bidders could mean less pressure to offer the lowest possible cost.
Public Impact
The primary beneficiaries are the personnel and operations at Laughlin Air Force Base, Texas, who receive essential facilities support services. Services delivered include a broad range of facilities support, crucial for the daily functioning and readiness of the military installation. The geographic impact is concentrated at Laughlin Air Force Base in Texas. The contract likely supports a significant workforce, including direct employees of DEL-JEN, INC. and potentially subcontractors, contributing to local employment in the Val Verde County area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'limited' competition aspect raises concerns about whether the most cost-effective solution was secured for taxpayers.
- The long duration of the contract (over 10 years) could lead to potential inefficiencies or a lack of adaptability to changing needs if not managed proactively.
- Lack of detailed service scope and performance metrics makes it difficult to fully assess value for money and contractor performance.
Positive Signals
- The contract was awarded to a single entity, DEL-JEN, INC., suggesting a potentially streamlined management approach for comprehensive facilities support.
- The award to a single contractor for a long duration can provide stability and predictability for essential services at the base.
- The contract falls under the Department of the Air Force, indicating alignment with specific military operational requirements.
Sector Analysis
Facilities Support Services, categorized under NAICS code 561210, is a significant sector within the broader professional, scientific, and technical services industry. This contract represents a substantial investment in maintaining the operational infrastructure of a key military installation. Comparable spending benchmarks for facilities management at large government facilities, particularly military bases, would typically range from tens to hundreds of millions of dollars over multi-year periods, depending on the size and complexity of the installation.
Small Business Impact
The 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 arising from a set-aside provision. The prime contractor, DEL-JEN, INC., would determine any subcontracting opportunities. Without specific subcontracting plans or goals, the impact on the small business ecosystem is not directly discernible from this award data.
Oversight & Accountability
Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of the Air Force. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Base Operations Support (BOS)
- Facilities Maintenance Contracts
- Logistics and Support Services
- Government Infrastructure Management
Risk Flags
- Limited competition may have impacted price.
- Long contract duration could lead to inflexibility or cost escalation.
- Specific scope of services and performance metrics not detailed.
Tags
department-of-defense, department-of-the-air-force, facilities-support-services, laughlin-air-force-base, texas, firm-fixed-price, limited-competition, large-contract, management-support-services, defense-sector
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $128.2 million to DEL-JEN, INC.. 200206!000137!5700!JA02 !AETC CONS/CC !F4168902C0010 !A!N! !Y! !20020304!20020930!059220632!059220632!059220632!N!TREND WESTERN TECHNICAL CORP !4128 W COMMONWEALTH AVE !FULLERTON !CA!92833!41704!465!48!LAUGHLIN AFB !VAL VERDE !TEXAS !+000006310405!N!N!000000000000!R799!OTHER MANAGEMENT SUPPORT SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !561210!E! !3! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is DEL-JEN, 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 $128.2 million.
What is the period of performance?
Start: 2002-03-04. End: 2012-08-12.
What specific services are included under 'Facilities Support Services' for this contract?
The provided data identifies the contract as being for 'OTHER MANAGEMENT SUPPORT SERVICES' with a primary NAICS code of 561210, 'Facilities Support Services.' While the exact scope is not detailed, Facilities Support Services typically encompass a wide array of activities necessary for the operation and maintenance of buildings and grounds. This can include, but is not limited to, custodial services, grounds maintenance, pest control, refuse collection, security, mail services, and minor repairs. For a military installation like Laughlin Air Force Base, these services are critical for maintaining readiness, safety, and habitability for personnel and operations. The extensive duration and high value suggest a comprehensive suite of services rather than isolated tasks.
How does the award amount of $128 million compare to similar facilities support contracts for Air Force bases?
Benchmarking the $128 million award for facilities support services over approximately 10.5 years requires context regarding the size and specific needs of Laughlin Air Force Base. Large military installations often have extensive infrastructure requiring significant maintenance and operational support. Contracts for Base Operations Support (BOS) or comprehensive facilities management at major Air Force bases can easily reach hundreds of millions of dollars over similar timeframes. Factors influencing cost include the square footage of facilities, the scope of services (e.g., including utilities management, transportation, or specialized technical support), and the geographic location. While $128 million is a substantial sum, it may be within the expected range for a long-term, all-encompassing facilities support contract at a significant Air Force installation.
What are the potential risks associated with a contract of this duration (over 10 years)?
Contracts with durations exceeding ten years, like this one (March 2002 - August 2012), carry several potential risks. Firstly, there's the risk of cost escalation if the contract doesn't include robust mechanisms for price adjustments tied to inflation or market rates, potentially leading to the government overpaying over time. Secondly, the long timeframe might reduce the contractor's incentive to innovate or improve efficiency, as they may be locked into established, potentially outdated, methods. Conversely, if the government's needs change significantly over the decade, the contract might become inflexible, requiring costly modifications or leading to a mismatch between services provided and requirements. Finally, long-term contracts can sometimes stifle competition for future work, as the incumbent contractor may have a significant advantage in subsequent procurements.
What does 'full and open competition after exclusion of sources' imply about the bidding process?
The term 'full and open competition after exclusion of sources' indicates a procurement process that began with the intent of broad competition but ultimately involved excluding certain potential bidders. This typically occurs when a contracting agency determines that specific sources are not capable or suitable for the requirement, or when certain statutory exceptions apply. While it aims for a competitive environment, the exclusion of sources inherently limits the pool of bidders compared to a standard 'full and open' competition. The specific reasons for exclusion are crucial for understanding the impact on price discovery and overall value. If the exclusions were well-justified and only a few highly capable sources remained, the competition might still yield good results. However, if the exclusions were arbitrary or overly restrictive, it could lead to reduced competition and potentially higher costs for the government.
What is the significance of the NAICS code 561210 for Facilities Support Services?
The North American Industry Classification System (NAICS) code 561210, 'Facilities Support Services,' is significant as it categorizes the primary business activity for which this contract was awarded. This code encompasses establishments primarily engaged in providing operating and maintaining facilities services for others. This includes services such as operating and maintaining buildings and other facilities on a contract basis. It's a broad category that can cover a wide range of activities, from janitorial and landscaping to security and minor repair work. For analysts, this code helps in understanding the nature of the services procured, benchmarking costs against industry standards, and identifying the relevant sector for market analysis.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fluor Corporation (UEI: 006907190)
Address: 879 W 190TH ST STE 1000, GARDENA, CA, 43
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2002-03-04
Current End Date: 2012-08-12
Potential End Date: 2012-08-12 00:00:00
Last Modified: 2012-08-17
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