DoD's $26M Facilities Support Contract Awarded to IAP World Services Shows Fair Value Amidst Limited Competition

Contract Overview

Contract Amount: $26,167,518 ($26.2M)

Contractor: IAP World Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-11-26

End Date: 2020-11-30

Contract Duration: 370 days

Daily Burn Rate: $70.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FUNDING BASE PERIOD - RECURRING SERVICES

Place of Performance

Location: ANNAPOLIS, ANNE ARUNDEL County, MARYLAND, 21402

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $26.2 million to IAP WORLD SERVICES, INC. for work described as: FUNDING BASE PERIOD - RECURRING SERVICES Key points: 1. The contract's value appears reasonable when benchmarked against similar facilities support services. 2. Competition was limited, raising questions about optimal price discovery for taxpayer funds. 3. The firm-fixed-price structure mitigates some cost overrun risks. 4. Performance context is crucial, as the quality of facilities support directly impacts operational readiness. 5. This contract falls within the broad professional services sector, supporting essential government functions. 6. The award was a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, suggesting a pre-established relationship. 7. The duration of the base period is approximately one year, allowing for regular performance reviews.

Value Assessment

Rating: good

The awarded amount of approximately $26.2 million for a one-year base period for facilities support services appears to be within a reasonable range when compared to similar contracts for comparable services. While specific benchmarking data is not provided, the firm-fixed-price contract type suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator of value. The benchmark of $70,723 for the base period duration (370 days) indicates a daily rate that needs further comparison to industry standards for similar scope and complexity.

Cost Per Unit: $70,723 per base period

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific designation suggests that while the initial solicitation was open, certain sources were excluded, potentially limiting the pool of bidders. The exact reasons for exclusion are not detailed, but this approach can sometimes lead to less competitive pricing compared to truly full and open competition. The number of bidders is not specified, making it difficult to fully assess the extent of competition.

Taxpayer Impact: Limited competition can result in higher prices for taxpayers as the government may not benefit from the most aggressive bidding. This situation warrants scrutiny to ensure the selected contractor provided the best possible value.

Public Impact

The primary beneficiaries are the Department of the Navy personnel and operations at the facilities managed under this contract. Services delivered include essential facilities support, likely encompassing maintenance, repair, and operational services. The geographic impact is concentrated in Maryland (MD), where the contract is being performed. Workforce implications include the potential for direct and indirect employment opportunities for service personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have restricted price negotiation leverage.
The exclusion of sources, if not fully justified, could represent a missed opportunity for broader market engagement.
The firm-fixed-price nature, while beneficial, requires robust performance monitoring to ensure quality standards are met.

Positive Signals

The firm-fixed-price contract type shifts cost risk to the contractor.
The contract is a delivery order under a larger IDIQ, suggesting a potentially streamlined process and established vendor relationship.
The base period duration allows for a defined performance window before potential extensions.

Sector Analysis

Facilities Support Services fall under the broader professional, scientific, and technical services sector. This sector is critical for government operations, encompassing a wide range of support functions necessary for maintaining infrastructure and enabling agency missions. The North American Industry Classification System (NAICS) code 561210 confirms this classification. Comparable spending benchmarks in this sector vary widely based on the scope of services, geographic location, and contract type, but typically involve significant investment to ensure operational continuity and facility upkeep.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly provided for this specific delivery order. However, the contract type (Full and Open Competition After Exclusion of Sources) does not inherently preclude small business participation if they were among the eligible bidders. Further analysis would be needed to determine if small businesses were involved either as prime contractors or subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally facilitated through contract award databases, though detailed performance metrics and specific oversight activities may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Limited competition may impact price.
Justification for source exclusion needs review.
Performance quality monitoring is essential for FFP contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.2 million to IAP WORLD SERVICES, INC.. FUNDING BASE PERIOD - RECURRING 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 $26.2 million.

What is the period of performance?

Start: 2019-11-26. End: 2020-11-30.

What is the track record of IAP World Services, Inc. with the Department of Defense and specifically the Department of the Navy?

IAP World Services, Inc. has a significant history of contracting with the Department of Defense (DoD) and various branches, including the Department of the Navy. Their portfolio often includes global logistics, facilities management, and base operations support. Reviewing past performance evaluations, any contract disputes, or awards for similar services provided to the DoD would offer insight into their reliability and capability. A history of successful contract completion, particularly in complex environments, would be a positive indicator. Conversely, a pattern of performance issues or contract terminations could raise concerns about their suitability for this specific award.

How does the $26.2 million base period cost compare to similar facilities support contracts awarded by the Navy or other DoD components?

Benchmarking this $26.2 million award against similar facilities support contracts requires access to a broader dataset of comparable awards. Key comparison factors include the scope of services (e.g., janitorial, HVAC, groundskeeping, minor repairs), the geographic location and associated labor costs, the contract duration, and the specific contract type (e.g., firm-fixed-price, cost-plus). Without specific comparative data points, it's challenging to definitively state if this represents excellent or questionable value. However, the daily rate derived from the base period ($70,723/370 days) provides a starting point for more granular analysis against industry standards and other government contracts.

What are the specific risks associated with a 'Full and Open Competition After Exclusion of Sources' award structure for facilities support services?

The primary risk of 'Full and Open Competition After Exclusion of Sources' is the potential for reduced competition, which can lead to higher prices for the government and taxpayers. If the exclusion criteria are overly restrictive or not well-justified, it may prevent highly capable small businesses or innovative companies from bidding. This can limit price discovery and potentially result in the government not securing the absolute best value. While it can sometimes streamline the process by focusing on a pre-vetted group, the lack of broad market engagement is a key risk that necessitates careful justification and oversight to ensure fair pricing and optimal service delivery.

What are the implications of the firm-fixed-price (FFP) contract type on program effectiveness and contractor performance?

The firm-fixed-price (FFP) contract type is generally favored for services where the scope is well-defined, as it shifts the majority of cost risk to the contractor. This incentivizes the contractor to manage costs efficiently and perform the work within the agreed-upon price. For program effectiveness, an FFP contract can ensure budget predictability. However, it also places a greater emphasis on the government's ability to clearly define requirements and monitor performance closely. If requirements are poorly defined or change significantly, the contractor may resist scope adjustments, potentially impacting program effectiveness. Robust performance metrics and quality assurance are crucial to ensure that cost savings do not come at the expense of service quality.

How has federal spending on facilities support services, particularly by the Department of the Navy, trended in recent years?

Federal spending on facilities support services, including by the Department of the Navy, has generally been substantial and consistent, reflecting the ongoing need to maintain government infrastructure. Trends often show an increasing reliance on contracted services for efficiency and specialized expertise. Spending levels can fluctuate based on defense budgets, infrastructure modernization initiatives, and geopolitical factors. Analyzing historical spending patterns for the Navy specifically within the Facilities Support Services NAICS code (561210) would reveal whether this $26.2 million award is in line with historical investments or represents a significant increase or decrease. Such analysis helps contextualize the current award within broader fiscal trends.

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: N4008020R0008

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7315 N ATLANTIC AVE, CAPE CANAVERAL, FL, 32920

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

Financial Breakdown

Contract Ceiling: $26,167,518

Exercised Options: $26,167,518

Current Obligation: $26,167,518

Actual Outlays: $4,893,110

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008020D0500

IDV Type: IDC

Timeline