DIX BASE SUPPORT SERVICES contract awarded to PRIDE INDUSTRIES for over $63.8 million over three years

Contract Overview

Contract Amount: $63,892,134 ($63.9M)

Contractor: Pride Industries

Awarding Agency: Department of Defense

Start Date: 2012-04-01

End Date: 2015-03-31

Contract Duration: 1,094 days

Daily Burn Rate: $58.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DIX BASE SUPPORT SERVICES

Place of Performance

Location: TRENTON, BURLINGTON County, NEW JERSEY, 08641

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $63.9 million to PRIDE INDUSTRIES for work described as: DIX BASE SUPPORT SERVICES Key points: 1. The contract's value appears reasonable given the duration and scope of facilities support services. 2. The award was not competitively procured, raising questions about potential price efficiencies. 3. The firm fixed-price contract type offers cost certainty for the government. 4. The contractor, PRIDE INDUSTRIES, has a history of performing similar base support services. 5. The contract duration of nearly three years provides stability for service delivery. 6. The services provided are essential for the operational readiness of the Air Force base.

Value Assessment

Rating: good

The contract value of approximately $63.8 million over three years for comprehensive base support services suggests a moderate annual spend. Benchmarking against similar large-scale facilities support contracts for military installations would be necessary for a definitive value assessment. However, the firm fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the price is competitive. Without specific performance metrics or comparison data, it's difficult to definitively state if this represents excellent value, but it appears to be within a reasonable range for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other potential bidders. The reason for this sole-source award is not detailed in the provided data. Sole-source procurements can sometimes lead to higher prices for the government as there is no competitive pressure to drive down costs. However, they may be justified in specific circumstances where only one contractor can provide the required services or for reasons of urgency or national security.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost savings that typically arise from a competitive bidding process. This could result in a higher overall expenditure for the services provided.

Public Impact

The primary beneficiaries are the personnel and operations of the Department of the Air Force at the specific base. Services delivered include essential facilities support, ensuring the base remains operational and habitable. The geographic impact is localized to the base in New Jersey where the services are performed. The contract supports jobs within PRIDE INDUSTRIES, contributing to the local and regional economy. The contract ensures the continuity of critical base functions, supporting national defense objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing for taxpayers.
Sole-source awards can reduce transparency and accountability in the procurement process.
Potential for vendor lock-in if services are highly specialized and difficult to transition.

Positive Signals

Firm fixed-price contract provides budget certainty for the government.
Contract duration offers stability and reduces administrative burden of frequent re-competition.
Contractor has experience in providing similar services, suggesting a lower risk of performance issues.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, represent a significant segment of the government contracting market. This sector encompasses a wide range of services necessary for the operation and maintenance of government facilities, including maintenance, custodial, and support functions. The total government spending in this sector is substantial, reflecting the vast infrastructure managed by federal agencies. Contracts like this one for DIX BASE SUPPORT SERVICES are crucial for ensuring the readiness and functionality of military installations, contributing to the overall defense budget allocation.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this specific award. However, the prime contractor, PRIDE INDUSTRIES, may engage small businesses as subcontractors, which would indirectly benefit the small business sector. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant Department of the Air Force administrative and technical points of contact. The firm fixed-price nature of the contract simplifies some aspects of financial oversight, as the total cost is predetermined. Accountability measures would be tied to performance standards outlined in the contract. Transparency might be limited due to the sole-source nature of the award, but contract award data is generally publicly available.

Related Government Programs

Base Operations Support Services
Facilities Maintenance Contracts
Logistics and Support Services
Department of Defense Service Contracts

Risk Flags

Sole-source award may indicate limited competition.
Lack of detailed performance metrics in provided data.
Potential for cost inefficiencies due to non-competitive nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.9 million to PRIDE INDUSTRIES. DIX BASE SUPPORT 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 $63.9 million.

What is the period of performance?

Start: 2012-04-01. End: 2015-03-31.

What is the track record of PRIDE INDUSTRIES in performing similar base support services for the Department of Defense?

PRIDE INDUSTRIES has a documented history of providing base support services to various government agencies, including the Department of Defense. Their experience often encompasses a broad range of services such as custodial, maintenance, groundskeeping, and other operational support functions essential for military installations. Analyzing past performance evaluations, contract modifications, and any reported disputes or terminations would provide a comprehensive understanding of their reliability and capability in fulfilling such contracts. A review of their contract history can reveal patterns in successful project completion, adherence to schedules, and quality of service delivery, which are critical indicators for assessing their suitability for ongoing or future base support requirements.

How does the pricing of this contract compare to similar facilities support services contracts awarded by the Department of the Air Force?

A direct comparison of pricing for this DIX BASE SUPPORT SERVICES contract to similar facilities support services contracts awarded by the Department of the Air Force is challenging without access to detailed pricing structures and service level agreements of comparable contracts. However, given the sole-source nature of this award, it is plausible that the pricing may not reflect the most competitive market rates achievable through open competition. Benchmarking would ideally involve analyzing contracts with similar scopes of work, geographic locations, and contract durations. Factors such as the specific services included (e.g., janitorial, maintenance, security, landscaping) and the size and complexity of the facility being supported are crucial for a meaningful comparison. Without such detailed comparative data, assessing the cost-effectiveness remains an estimation.

What are the primary risks associated with this sole-source contract for facilities support services?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the absence of competitive bidding. Without competing offers, the government may not be securing the most cost-effective solution available in the market. Another risk is the potential for reduced innovation or service improvement, as the contractor may face less pressure to enhance services when there is no threat of losing the contract to a competitor. Furthermore, sole-source awards can sometimes indicate a lack of available qualified sources or a reliance on a single provider, which can create vendor lock-in and limit future contracting flexibility. Ensuring robust performance monitoring and clear contract terms is crucial to mitigate these risks.

How effective is the firm fixed-price contract type in ensuring value for money in this context?

The firm fixed-price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and unlikely to change significantly. For facilities support services, where many tasks are routine and predictable, FFP provides cost certainty for the government, as the price is fixed regardless of the contractor's actual costs. This shifts the cost risk to the contractor, incentivizing them to manage their expenses efficiently. However, if unforeseen circumstances arise that necessitate changes to the scope, the FFP structure can make contract modifications more complex and potentially costly. The effectiveness in achieving value for money also depends on the initial price negotiation and the contractor's ability to perform efficiently within that fixed price.

What is the historical spending pattern for base support services at this specific Air Force installation?

Analyzing the historical spending patterns for base support services at this specific Air Force installation would require access to historical contract data for that location. This would involve identifying all previous contracts related to base support, facilities maintenance, and similar services awarded to various contractors over a period of years. By examining the total expenditure, contract types, durations, and awarded amounts, one could identify trends, fluctuations in spending, and the average cost of such services. This historical context is vital for understanding if the current contract's value is consistent with past investments or if there have been significant increases or decreases in spending, which could be indicative of changes in service requirements, market conditions, or procurement strategies.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

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, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $65,837,427

Exercised Options: $65,837,427

Current Obligation: $63,892,134

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline