DoD's $27.4M Facilities Support Services Contract Awarded to PRIDE INDUSTRIES for JB MDL Operations

Contract Overview

Contract Amount: $27,399,317 ($27.4M)

Contractor: Pride Industries

Awarding Agency: Department of Defense

Start Date: 2015-09-01

End Date: 2017-02-28

Contract Duration: 546 days

Daily Burn Rate: $50.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF; AWARD IS FOR THE BASE OPERATIONS MAINTENANCE SERVICE CONTRACT WITH A PERIOD OF PERFORMANCE OF 1 SEP 15-31 AUG 16. THE CONTRACTOR IS RESPONSIBLE FOR PROVIDING ALL THE NECESSARY RESOURCES AND MANAGEMENT TO PERFORM OPERATION AND MAINTENANCE SERVICES IN SUPPORT OF INSTALLATION ACTIVITIES AT JB MDL, NJ (DIX AREA ONLY).

Place of Performance

Location: TRENTON, BURLINGTON County, NEW JERSEY, 08641

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $27.4 million to PRIDE INDUSTRIES for work described as: IGF::OT::IGF; AWARD IS FOR THE BASE OPERATIONS MAINTENANCE SERVICE CONTRACT WITH A PERIOD OF PERFORMANCE OF 1 SEP 15-31 AUG 16. THE CONTRACTOR IS RESPONSIBLE FOR PROVIDING ALL THE NECESSARY RESOURCES AND MANAGEMENT TO PERFORM OPERATION AND MAINTENANCE SERVICES IN SUPPORT OF INST… Key points: 1. The contract focuses on base operations and maintenance, a critical function for installation activities. 2. The award was not competed, raising questions about potential cost savings through competitive bidding. 3. The duration of the contract (546 days) suggests a need for sustained support services. 4. The firm-fixed-price structure shifts cost risk to the contractor, which can be beneficial if managed effectively. 5. The geographic focus on JB MDL, NJ (Dix Area) indicates a localized service requirement.

Value Assessment

Rating: fair

The contract value of approximately $27.4 million over 546 days averages to roughly $50,182 per day. Without specific performance metrics or a comparison to similar contracts for facilities support at other installations, it is difficult to definitively assess value for money. The firm-fixed-price nature suggests the contractor bears the risk of cost overruns, which can be a positive indicator if the price is competitive. However, the lack of competition makes benchmarking against market rates challenging.

Cost Per Unit: $50,182 per day

Competition Analysis

Competition Level: sole-source

This contract was not competed, meaning it was awarded directly to PRIDE INDUSTRIES without offering other companies the opportunity to bid. The reason for this sole-source award is not provided in the data. A lack of competition can sometimes lead to higher prices as there is no market pressure to drive down costs. It also limits the government's ability to explore innovative solutions or potentially better pricing from a wider pool of vendors.

Taxpayer Impact: Taxpayers may have missed out on potential cost savings that could have been achieved through a competitive bidding process. Without competition, there is less assurance that the government secured the best possible price for these essential facilities support services.

Public Impact

The primary beneficiaries are the Department of the Air Force and personnel stationed at Joint Base McGuire-Dix-Lakehurst (JB MDL), NJ. The services delivered include essential base operations and maintenance, ensuring the functionality of the installation. The geographic impact is concentrated at the Dix Area of JB MDL, NJ. Workforce implications include the employment of personnel by PRIDE INDUSTRIES to perform these maintenance and operational tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a significant contract value raises concerns about potential overpayment and missed opportunities for cost savings.
The absence of details regarding the justification for a sole-source award prevents a thorough assessment of its necessity.
Benchmarking the value for money is difficult without comparative data on similar facilities support contracts.

Positive Signals

The firm-fixed-price contract structure places cost control responsibility on the contractor.
The contract addresses essential operational and maintenance needs, ensuring the smooth functioning of a military installation.
The specific geographic focus allows for tailored support to JB MDL, NJ.

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 essential for the upkeep and operation of government facilities, including maintenance, repair, and operational support. The total federal spending in this sector can be substantial, with numerous contracts awarded annually across various agencies. This particular contract, valued at approximately $27.4 million, falls within the mid-to-large range for a single installation's operational support, highlighting the importance of reliable service providers in maintaining military readiness and infrastructure.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false) and there is no specific mention of small business subcontracting requirements (sb: false). This suggests that the primary contractor, PRIDE INDUSTRIES, likely handled the majority of the work internally or with larger subcontractors. Consequently, the direct impact on the small business ecosystem for this specific award appears minimal, and there is no explicit mechanism identified for promoting small business participation through this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force, which awarded the contract. The firm-fixed-price nature of the contract implies that the contractor is responsible for managing costs and performance. However, the lack of competition and the absence of specific performance metrics in the provided data make it difficult to assess the robustness of oversight mechanisms. Transparency is limited by the sole-source nature of the award and the lack of publicly available justification. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Base Operations Support (BOS)
Facilities Maintenance Contracts
Installation Support Services
Department of Defense Operations and Maintenance

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated costs due to lack of competition.
Limited transparency regarding the necessity of sole-sourcing.
Difficulty in benchmarking value for money without comparative data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.4 million to PRIDE INDUSTRIES. IGF::OT::IGF; AWARD IS FOR THE BASE OPERATIONS MAINTENANCE SERVICE CONTRACT WITH A PERIOD OF PERFORMANCE OF 1 SEP 15-31 AUG 16. THE CONTRACTOR IS RESPONSIBLE FOR PROVIDING ALL THE NECESSARY RESOURCES AND MANAGEMENT TO PERFORM OPERATION AND MAINTENANCE SERVICES IN SUPPORT OF INSTALLATION ACTIVITIES AT JB MDL, NJ (DIX AREA ONLY).

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 $27.4 million.

What is the period of performance?

Start: 2015-09-01. End: 2017-02-28.

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

PRIDE INDUSTRIES is a large facilities management company that has a history of performing various services, including maintenance and operations, for government and commercial clients. While the provided data does not detail their specific performance on this particular contract, their general experience suggests they possess the capacity to handle such requirements. A deeper dive into past performance evaluations, contract awards, and any reported issues or successes with PRIDE INDUSTRIES on similar DoD contracts would be necessary for a comprehensive assessment of their track record. This would include examining their performance on other base operations support contracts, their safety records, and their ability to meet delivery timelines and quality standards.

How does the daily cost of this contract compare to similar facilities support contracts at other military installations?

The daily cost for this contract is approximately $50,182 ($27.4M / 546 days). Benchmarking this against similar facilities support contracts at other military installations is challenging without access to a broader dataset of comparable contracts. Factors such as the size and scope of the installation, the specific services required (e.g., complexity of infrastructure, security needs), geographic location (affecting labor and material costs), and the level of competition can significantly influence pricing. A comprehensive comparison would require analyzing contracts with similar service requirements, durations, and installation types, ideally from the same or comparable military branches, while accounting for regional economic differences.

What are the specific risks associated with a sole-source award for facilities support services?

The primary risks associated with a sole-source award for facilities support services include a lack of price competition, which can lead to inflated costs for the government. Without multiple bids, there is less incentive for the contractor to offer the most competitive pricing. Additionally, a sole-source award limits the government's ability to explore a wider range of potential solutions or innovative approaches that might be offered by other qualified vendors. There's also a potential risk of complacency from the awarded contractor, as they face no immediate threat of losing the contract to a competitor. This can sometimes impact service quality or responsiveness over the contract's life cycle.

What is the typical duration for base operations and maintenance contracts of this nature?

The typical duration for base operations and maintenance contracts can vary significantly depending on the scope of services, the complexity of the installation, and the agency's long-term planning. Contracts can range from one to five years, often with options for extension. This specific contract had a period of performance of 546 days (approximately 1.5 years), which is on the shorter side for comprehensive base operations support, suggesting it might have been a bridge contract, a specific project phase, or a contract with limited initial funding. Longer-term contracts (3-5 years) are more common for full-scope base operations to ensure stability and allow contractors to amortize investments.

How does the firm-fixed-price contract type affect cost control and risk allocation in this scenario?

A firm-fixed-price (FFP) contract type, as used here, places the primary responsibility for cost control and risk on the contractor, PRIDE INDUSTRIES. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. If their costs exceed the fixed price, they absorb the loss. Conversely, if they manage costs effectively and complete the work for less than the fixed price, they retain the profit. This structure is generally favored by the government when the scope of work is well-defined and the risk of unforeseen cost increases is manageable. It provides cost certainty for the government but requires careful contractor selection and oversight to ensure quality is not sacrificed to meet the fixed price.

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

Solicitation ID: FA448415R0015

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: $27,482,385

Exercised Options: $27,482,385

Current Obligation: $27,399,317

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline