Naval Air Station Operations Services contract awarded to IAP World Services, Inc. for over $55.9 million

Contract Overview

Contract Amount: $55,934,217 ($55.9M)

Contractor: IAP World Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-03-26

End Date: 2011-10-31

Contract Duration: 1,680 days

Daily Burn Rate: $33.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PAX NAVAL AIR STATION OPERATIONS SERVICES

Place of Performance

Location: PATUXENT RIVER, ST. MARY'S County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $55.9 million to IAP WORLD SERVICES, INC. for work described as: PAX NAVAL AIR STATION OPERATIONS SERVICES Key points: 1. The contract value of $55.9 million over its duration suggests a significant investment in base support services. 2. The full and open competition indicates a broad market engagement, potentially leading to competitive pricing. 3. The fixed-price contract type shifts performance risk to the contractor, incentivizing efficient service delivery. 4. The duration of 1680 days (approximately 4.6 years) allows for long-term planning and consistent service provision. 5. The contract's focus on facilities support services is critical for the operational readiness of the naval air station.

Value Assessment

Rating: good

The contract value of $55.9 million for facilities support services at a naval air station appears reasonable given the scope of operations. Benchmarking against similar contracts for base operations and maintenance at large military installations would provide a more precise value-for-money assessment. The firm fixed-price structure suggests the government has negotiated a price that accounts for anticipated costs and contractor profit, with the contractor bearing the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 4 bidders indicates a healthy level of competition for this significant facilities support services contract. This competitive environment generally fosters better price discovery and encourages contractors to offer competitive terms to secure the award.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which is expected to drive down costs and ensure the government receives fair market value for the services rendered.

Public Impact

The primary beneficiaries are the personnel and operations of the Naval Air Station, ensuring a functional and supported environment. Services delivered include a wide range of facilities support, crucial for maintaining readiness and operational capabilities. The geographic impact is localized to the specific naval air station where the services are provided. Workforce implications include the direct employment of personnel by IAP World Services, Inc. to perform the contract duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen facility issues arise that are not adequately captured in the fixed-price agreement.
Dependence on a single contractor for critical base support functions could pose a risk if performance issues emerge.
Ensuring consistent service quality across the entire contract duration requires robust oversight.

Positive Signals

The firm fixed-price contract incentivizes the contractor to manage costs efficiently.
Full and open competition suggests a competitive landscape that should drive quality and value.
The long contract duration allows for stable operations and planning for the naval installation.

Sector Analysis

This contract falls within the Facilities Support Services sector, a critical component of the broader government contracting landscape. This sector encompasses a wide array of services necessary for the operation and maintenance of government facilities, including military bases. The market for these services is substantial, with significant spending allocated annually by various federal agencies to ensure infrastructure is functional and secure. This specific contract represents a portion of the Department of Defense's overall expenditure on base operations and maintenance.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the impact on the small business ecosystem would depend on whether IAP World Services, Inc. voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Accountability measures are inherent in the firm fixed-price contract structure, which holds the contractor responsible for delivering services within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight activities may not always be publicly detailed.

Related Government Programs

Naval Air Station Operations
Base Operations Support Services
Facilities Maintenance Contracts
Department of Defense Service Contracts

Risk Flags

Contract Duration
Contract Value
Contract Type
Competition Level

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.9 million to IAP WORLD SERVICES, INC.. PAX NAVAL AIR STATION OPERATIONS SERVICES

Who is the contractor on this award?

The obligated recipient is IAP WORLD SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $55.9 million.

What is the period of performance?

Start: 2007-03-26. End: 2011-10-31.

What is the track record of IAP World Services, Inc. in performing similar large-scale facilities support contracts for the Department of Defense?

IAP World Services, Inc. has a substantial history of performing large-scale government contracts, including extensive work in base operations support, facilities management, and logistics for the Department of Defense and other federal agencies globally. Their experience often spans complex environments and diverse service requirements. While specific performance metrics for this particular contract are not detailed here, their general profile suggests a capacity to handle such requirements. A deeper dive into past performance reviews, any contract disputes, or awards for exceptional performance related to similar contracts would provide a more granular understanding of their track record.

How does the awarded amount of $55.9 million compare to the estimated value or budget for similar Naval Air Station operations services?

Without access to the specific budget or estimated value for this contract at the time of award, a direct comparison is challenging. However, $55.9 million over approximately 4.6 years represents an average annual value of roughly $12.15 million. This figure should be benchmarked against the size and operational tempo of the specific Naval Air Station. Larger, more active bases typically incur higher operational support costs. Comparing this to publicly available data on similar base operations contracts at comparable naval installations would be the most effective way to assess if this amount is within the expected range for the services provided.

What are the key performance indicators (KPIs) used to measure the success of this contract, and how is contractor performance monitored?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, typical KPIs for facilities support services at a naval air station often include response times for maintenance requests, uptime of critical infrastructure (e.g., power, HVAC), cleanliness and upkeep of facilities, safety compliance, and customer satisfaction surveys from base personnel. Contractor performance is generally monitored by a Contracting Officer's Representative (COR) who conducts regular site visits, reviews performance reports submitted by the contractor, and assesses adherence to service level agreements (SLAs) outlined in the contract.

What is the potential impact of the firm fixed-price contract type on cost control and service quality?

The firm fixed-price (FFP) contract type places the primary responsibility for cost control on the contractor, IAP World Services, Inc. This means the contractor assumes the risk of cost overruns; if their expenses exceed the agreed-upon price, their profit margin decreases or they may incur a loss. This structure strongly incentivizes the contractor to manage resources efficiently and control costs. For service quality, FFP contracts can sometimes lead to a focus on meeting minimum requirements to stay within budget. However, robust performance standards and quality assurance surveillance plans within the contract are crucial to ensure that cost control does not compromise essential service quality.

How has federal spending on Naval Air Station operations services evolved over the past decade, and what trends are evident?

Federal spending on Naval Air Station operations services has generally remained a significant component of the Department of Defense's budget, reflecting the ongoing need to maintain readiness and operational capabilities across numerous installations. Trends often include a push towards greater efficiency, consolidation of services where feasible, and increased emphasis on performance-based contracting. While specific historical spending data for this exact contract or installation isn't provided, broader trends indicate a continuous requirement for these services, with spending levels influenced by geopolitical factors, defense priorities, and budget appropriations. There's also a growing focus on modernizing infrastructure and incorporating sustainable practices, which can influence contract scope and value over time.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008006R0470

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cerberus Capital Management, L.P. (UEI: 014784388)

Address: 7315 N ATLANTIC AVE, CAPE CANAVERAL, FL, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $190,233,778

Exercised Options: $68,142,426

Current Obligation: $55,934,217

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: N4008007D0470

IDV Type: IDC

Timeline