Air Force Awards $72.6M Facilities Support Contract to Call Henry Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $72,571,177 ($72.6M)

Contractor: Call Henry Inc

Awarding Agency: Department of Defense

Start Date: 2017-12-01

End Date: 2025-06-30

Contract Duration: 2,768 days

Daily Burn Rate: $26.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIXED PRICE INCENTIVE

Sector: Other

Official Description: THIS CONTRACT FA4610-18-C-0005 REPLACES FA4610-12-C-0004

Place of Performance

Location: LOMPOC, SANTA BARBARA County, CALIFORNIA, 93437

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $72.6 million to CALL HENRY INC for work described as: THIS CONTRACT FA4610-18-C-0005 REPLACES FA4610-12-C-0004 Key points: 1. The contract, valued at $72.6 million, is for facilities support services. 2. It replaces a previous contract, FA4610-12-C-0004, indicating a continuation of services. 3. The award was made under full and open competition after exclusion of sources, suggesting a competitive process. 4. The fixed-price incentive contract type aims to balance cost control with performance incentives. 5. The duration of the contract is substantial, spanning over 2700 days.

Value Assessment

Rating: good

The contract value of $72.6M over approximately 7.6 years suggests a significant but potentially reasonable annual spend for comprehensive facilities support services. Benchmarking against similar large-scale government facilities maintenance contracts would provide a clearer picture of its pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through 'full and open competition after exclusion of sources,' indicating a competitive bidding process where multiple qualified vendors could participate. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely benefiting from a price that has been vetted against market offerings, rather than a sole-source arrangement.

Public Impact

Ensures continued operation and maintenance of critical Air Force facilities. Supports the Air Force's mission readiness by providing essential support services. The fixed-price incentive structure may encourage cost savings and efficiency from the contractor. Long-term contract provides stability for both the government and the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if incentive targets are not met efficiently.
Contract duration may lead to vendor lock-in if not managed proactively.
Complexity of facilities support services can lead to performance challenges.

Positive Signals

Competitive award process likely secured favorable pricing.
Fixed-price incentive contract aligns contractor and government interests.
Long-term nature provides service continuity.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad category encompassing maintenance, operation, and management of facilities. Government spending in this sector is substantial, driven by the need to maintain extensive real property assets. Benchmarks vary widely based on facility type, size, and geographic location.

Small Business Impact

The data indicates this contract was awarded to 'CALL HENRY INC' and was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses are not direct beneficiaries of this specific award, though they may participate as subcontractors.

Oversight & Accountability

The contract type (Fixed Price Incentive) and the competitive award method suggest a degree of oversight is built into the process. However, ongoing monitoring of performance and costs against incentive targets will be crucial for ensuring accountability and value.

Related Government Programs

Facilities Support Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Contract duration exceeds 7 years.
Fixed-price incentive contract requires careful monitoring of cost targets.
No small business set-aside identified.
Competition method 'after exclusion of sources' warrants understanding of exclusion criteria.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.6 million to CALL HENRY INC. THIS CONTRACT FA4610-18-C-0005 REPLACES FA4610-12-C-0004

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 $72.6 million.

What is the period of performance?

Start: 2017-12-01. End: 2025-06-30.

What specific facilities support services are included in this contract, and how do they align with the Air Force's operational needs?

The contract covers facilities support services under NAICS code 561210. While the specific services aren't detailed here, this typically includes maintenance, repair, operations, custodial, groundskeeping, and potentially security services for Air Force installations. The alignment with operational needs would depend on the specific requirements outlined in the contract's statement of work, ensuring that facility readiness supports the Air Force's mission objectives.

How does the fixed-price incentive structure mitigate risks associated with cost overruns compared to other contract types?

A fixed-price incentive (FPI) contract establishes a target cost, target profit, and a price ceiling. If the final cost is below the target, both the government and contractor share in the savings according to a pre-negotiated formula. Conversely, if costs exceed the target, the contractor assumes a larger share of the overruns up to the ceiling. This incentivizes the contractor to control costs more effectively than a cost-plus contract, while still allowing for shared risk and reward.

What is the potential impact of the long contract duration (over 7 years) on service quality and cost-effectiveness?

A long contract duration can provide significant stability and continuity of services, potentially leading to greater efficiency and expertise development by the contractor. However, it also carries risks, such as potential complacency, reduced incentive to innovate, and difficulty adapting to changing requirements or market conditions. Effective contract management, performance metrics, and periodic reviews are essential to ensure sustained quality and cost-effectiveness throughout the contract's life.

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

Solicitation ID: FA461015R0002

Offers Received: 5

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 1425 CHAFFEE DR STE 4, TITUSVILLE, FL, 32780

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $89,774,135

Exercised Options: $84,004,405

Current Obligation: $72,571,177

Actual Outlays: $2,301,095

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline