DoD's $72.8M Facilities Support Contract with CALL HENRY INC Raises Concerns Over Competition and Value
Contract Overview
Contract Amount: $72,843,090 ($72.8M)
Contractor: Call Henry Inc
Awarding Agency: Department of Defense
Start Date: 2004-08-20
End Date: 2012-03-14
Contract Duration: 2,763 days
Daily Burn Rate: $26.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 9
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Place of Performance
Location: LOMPOC, SANTA BARBARA County, CALIFORNIA, 93436
Plain-Language Summary
Department of Defense obligated $72.8 million to CALL HENRY INC for work described as: Key points: 1. The contract awarded to CALL HENRY INC for facilities support services totaled $72.8 million. 2. The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting limited competition. 3. The contract type is 'COST PLUS AWARD FEE', which can lead to cost overruns if not managed tightly. 4. The duration of the contract was 2763 days, spanning from 2004 to 2012. 5. The absence of small business participation is noted.
Value Assessment
Rating: questionable
The Cost Plus Award Fee structure, combined with limited competition, makes it difficult to assess true value. Without clear benchmarks or competitive pricing data, the $72.8 million expenditure warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The award was made under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating that while competition was sought, certain sources were excluded. This method can limit price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The limited competition and cost-plus structure suggest potential for inflated costs, impacting taxpayer value.
Public Impact
Taxpayers may have overpaid due to a lack of robust competition and a cost-reimbursement contract type. The long duration of the contract (over 7 years) means sustained potential for inefficient spending. The exclusion of sources in the competition process raises questions about fairness and optimal pricing. Lack of small business involvement limits opportunities for smaller, potentially more agile, service providers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost-plus contract type
- No small business participation
- Long contract duration
Positive Signals
- Contract was awarded
- Services were provided
Sector Analysis
Facilities Support Services (NAICS 561210) is a broad category encompassing maintenance, operation, and management of facilities. Spending in this sector can vary widely based on the scope and complexity of services required. Benchmarks are difficult without specific service details.
Small Business Impact
The data indicates no small business participation in this contract. This is a missed opportunity to leverage the capabilities of small businesses and promote economic diversity within federal contracting.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method suggests some level of oversight in the initial bidding process, but the cost-plus award fee structure requires continuous monitoring to ensure cost control and prevent contractor overreach.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for inflated costs due to CPAF structure
- Limited competition may have resulted in suboptimal pricing
- Lack of transparency regarding excluded sources
- No small business participation
- Long contract duration increases risk of cost creep
Tags
facilities-support-services, department-of-defense, ca, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $72.8 million to CALL HENRY INC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is CALL HENRY 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 $72.8 million.
What is the period of performance?
Start: 2004-08-20. End: 2012-03-14.
What was the justification for excluding specific sources in the competition?
The justification for excluding specific sources is not provided in the data. Understanding this rationale is crucial for assessing whether the competition was truly fair and if the government secured the best possible pricing and service. Without this information, it's difficult to determine if the exclusion limited competitive pressure.
How were the award fees determined and were they justified?
The determination of award fees for a Cost Plus Award Fee (CPAF) contract is typically based on performance metrics and contractor achievements against predefined objectives. Without access to the contract's performance reports and the specific criteria for award fee determination, it's impossible to assess if the fees paid were justified or if they incentivized efficient performance or simply higher costs.
What was the total cost of the contract, including all fees and reimbursements?
The provided data lists the award amount as $72,843,089.79. However, for a Cost Plus Award Fee (CPAF) contract, this figure may represent the estimated cost plus anticipated award fees. The total expenditure could be higher or lower depending on the actual costs incurred and the final determination of award fees. A definitive total cost requires a review of final payment vouchers.
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: 9
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 308 PINE ST, TITUSVILLE, FL, 08
Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $74,260,379
Exercised Options: $74,260,379
Current Obligation: $72,843,090
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-08-20
Current End Date: 2012-03-14
Potential End Date: 2012-03-14 00:00:00
Last Modified: 2014-02-11
More Contracts from Call Henry Inc
- This Contract FA4610-18-C-0005 Replaces FA4610-12-C-0004 — $72.6M (Department of Defense)
- "NEW Award" Launch Operations Support Contract (losc) - Range Support Services - FY12 Through FY17 — $54.7M (Department of Defense)
- Facilities Maintenance and Support Services — $32.0M (Environmental Protection Agency)
- NEW Task Under Call Henry — $27.5M (National Aeronautics and Space Administration)
- Funcing — $19.9M (National Aeronautics and Space Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)