DoD's $61.8M Facilities Support Contract with PRIDE INDUSTRIES Faces Limited Competition

Contract Overview

Contract Amount: $61,827,136 ($61.8M)

Contractor: Pride Industries

Awarding Agency: Department of Defense

Start Date: 2021-12-01

End Date: 2026-11-30

Contract Duration: 1,825 days

Daily Burn Rate: $33.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PRIDE FACILITY MAINTENANCE AND ENGINEERING & ENVIRONMENTAL SERVICES.

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $61.8 million to PRIDE INDUSTRIES for work described as: PRIDE FACILITY MAINTENANCE AND ENGINEERING & ENVIRONMENTAL SERVICES. Key points: 1. The contract awarded to PRIDE INDUSTRIES for facilities support services is valued at $61.8 million. 2. Competition is limited, raising questions about price discovery and potential overspending. 3. The contract duration is 5 years, ending in November 2026. 4. The primary sector is Facilities Support Services, with a specific NAICS code of 561210.

Value Assessment

Rating: questionable

The contract's value of $61.8 million over five years needs comparison against similar facilities support services contracts. Without benchmark data, assessing if the pricing is competitive is difficult, especially given the limited competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is marked as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition award. This significantly restricts price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: Limited competition can result in taxpayers paying more than necessary for services, as competitive pressures that drive down costs are absent.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. The long-term nature of the contract (5 years) locks in current pricing, potentially missing out on future cost savings. Reliance on a single provider for essential facilities maintenance could pose a risk if performance issues arise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under Facilities Support Services, a broad category encompassing maintenance, repair, and operational services for government facilities. Benchmarks for this sector vary widely based on scope and location, but competitive bidding is typically expected to yield better value.

Small Business Impact

The provided data does not indicate any specific provisions or set-asides for small businesses in this contract. Further investigation is needed to determine if small businesses had an opportunity to participate.

Oversight & Accountability

Oversight is crucial for this limited-competition contract to ensure PRIDE INDUSTRIES delivers services effectively and at a reasonable cost. Regular performance reviews and cost audits are recommended.

Related Government Programs

Risk Flags

Tags

facilities-support-services, department-of-defense, ca, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $61.8 million to PRIDE INDUSTRIES. PRIDE FACILITY MAINTENANCE AND ENGINEERING & ENVIRONMENTAL SERVICES.

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 $61.8 million.

What is the period of performance?

Start: 2021-12-01. End: 2026-11-30.

What specific factors led to this contract being 'NOT AVAILABLE FOR COMPETITION'?

The determination of 'NOT AVAILABLE FOR COMPETITION' typically arises from unique circumstances such as urgent needs, the unavailability of other sources, or specific statutory requirements. Without further details from the Department of Defense, the exact justification remains unclear. Understanding this rationale is key to assessing if the limited competition was truly unavoidable or a missed opportunity for broader engagement.

How does the $61.8 million contract value compare to industry benchmarks for similar facilities support services?

A direct comparison of the $61.8 million contract value against industry benchmarks for facilities support services is challenging without more specific details on the scope of work, geographic location, and service level agreements. However, given the limited competition, there is a heightened risk that this price may exceed what would be achievable in a fully competitive environment. Further analysis would require detailed cost breakdowns and comparable contract data.

What are the potential risks associated with a sole-source or limited-competition contract for essential facilities maintenance?

The primary risk of a sole-source or limited-competition contract for essential facilities maintenance is the potential for inflated costs due to the absence of competitive pressure. This can lead to taxpayers overpaying for services. Additionally, there's a risk of reduced service quality or innovation if the contractor faces no external pressure to improve. Over-reliance on a single provider also creates vulnerability if the contractor experiences performance issues or financial instability.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA281621R0003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10030 FOOTHILLS BLVD, ROSEVILLE, CA, 95747

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

Financial Breakdown

Contract Ceiling: $72,595,208

Exercised Options: $72,595,208

Current Obligation: $61,827,136

Actual Outlays: $13,222,018

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2021-12-01

Current End Date: 2026-11-30

Potential End Date: 2026-11-30 00:00:00

Last Modified: 2026-01-08

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