Defense awards $28.5M facilities support contract to Eagle Harbor, LLC for 5 years

Contract Overview

Contract Amount: $28,533,274 ($28.5M)

Contractor: Eagle Harbor, LLC

Awarding Agency: Department of Defense

Start Date: 2021-04-30

End Date: 2026-05-03

Contract Duration: 1,829 days

Daily Burn Rate: $15.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LABOR - BASE

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.5 million to EAGLE HARBOR, LLC for work described as: LABOR - BASE Key points: 1. Contract awarded as a definitive contract with a firm fixed price structure. 2. The contract duration is 1829 days, spanning over five years. 3. Services fall under Facilities Support Services (NAICS 561210). 4. The awardee, Eagle Harbor, LLC, is based in Virginia. 5. The contract was not available for competition, raising questions about price discovery. 6. The base value of the contract is approximately $28.5 million.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service descriptions and comparable contract data. The firm fixed-price structure suggests predictable costs for the government, but the lack of competition could lead to suboptimal pricing. Further analysis would require understanding the specific scope of facilities support services and comparing them to industry standards and other government contracts for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach limits the government's ability to solicit competitive bids and potentially secure lower prices. The justification for a sole-source award typically involves unique capabilities or circumstances, which would need to be thoroughly documented to ensure fair value.

Taxpayer Impact: Sole-source awards can potentially result in higher costs for taxpayers compared to competitively bid contracts, as the government may not benefit from the price reductions that competition often drives.

Public Impact

The Department of the Navy benefits from consistent facilities support services. This contract ensures the operational readiness of naval facilities. Services are likely concentrated in Virginia, the awardee's location. The contract supports jobs within Eagle Harbor, LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards require strong justification to ensure value for money.
Scope creep could be a risk if not managed tightly under a firm fixed-price contract.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Long-term award (5 years) offers stability for service delivery.
Awardee is based in Virginia, potentially aligning with facility locations.

Sector Analysis

Facilities Support Services is a broad category encompassing a range of services necessary for the operation and maintenance of buildings and grounds. This sector is critical for government operations, ensuring that facilities are safe, functional, and well-maintained. The market includes numerous providers, from large corporations to smaller specialized firms. Government spending in this area is substantial, reflecting the vast real estate holdings managed by federal agencies.

Small Business Impact

The contract was not awarded to a small business (indicated by 'sb': false) and there is no indication of a small business set-aside. This means opportunities for small businesses to participate as prime contractors were absent. Subcontracting plans, if any, would need to be reviewed to assess potential downstream impacts on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. The firm fixed-price nature of the contract provides a degree of cost control. Transparency would depend on the public availability of the contract details and performance reports. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Facilities Maintenance Contracts
Base Operations Support Services
Government Property Management
Logistics and Support Services

Risk Flags

Sole-source award lacks competitive pricing.
Potential for service quality issues if contractor prioritizes cost-cutting.
Need for robust government oversight to ensure performance standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.5 million to EAGLE HARBOR, LLC. LABOR - BASE

Who is the contractor on this award?

The obligated recipient is EAGLE HARBOR, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $28.5 million.

What is the period of performance?

Start: 2021-04-30. End: 2026-05-03.

What specific facilities support services are included under this contract?

The provided data indicates the contract falls under NAICS code 561210, Facilities Support Services. This broad category typically includes a wide array of services such as building operations and maintenance, groundskeeping, custodial services, pest control, refuse collection, security systems maintenance, and potentially minor repairs. However, the exact scope of services for this specific $28.5 million contract with Eagle Harbor, LLC is not detailed in the provided data. A comprehensive understanding would require reviewing the contract's statement of work (SOW) or performance work statement (PWS) to identify the precise deliverables, service levels, and performance metrics expected by the Department of the Navy.

What is the justification for awarding this contract on a sole-source basis?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. Federal Acquisition Regulation (FAR) Part 6 outlines the policies for contracting without full and open competition. Justifications for sole-source awards typically include situations where only one responsible source can provide the required supplies or services, or when there is a compelling urgency. Without the specific justification document (e.g., a Justification and Approval - J&A), it is impossible to determine the precise reasons. However, the lack of competition raises concerns about whether the government obtained the best possible value and price for these essential facilities support services.

How does the $28.5 million contract value compare to similar facilities support contracts awarded by the Department of Defense?

Comparing the $28.5 million value requires context regarding the duration and scope of services. This contract has a base value of approximately $28.5 million over 1829 days (roughly 5 years), averaging around $5.7 million per year. The Department of Defense (DoD) awards numerous facilities support contracts annually, varying significantly in size and scope. To benchmark this contract effectively, one would need to identify comparable contracts based on geographic location, type of facilities supported (e.g., administrative, industrial, residential), specific services included (e.g., janitorial, HVAC maintenance, landscaping), and contract type. Without such detailed comparisons, it's difficult to definitively state whether this award represents excellent, fair, or questionable value relative to the broader DoD spending landscape.

What are the potential risks associated with a sole-source, firm-fixed-price contract for facilities support?

A sole-source, firm-fixed-price (FFP) contract for facilities support presents several potential risks. Firstly, the lack of competition, as noted, can lead to inflated pricing since the contractor faces no competitive pressure to offer the lowest possible cost. Secondly, with FFP, the contractor bears the risk of cost overruns, but this can incentivize them to cut corners on service quality or labor hours to protect their profit margin, especially if the initial price was set too high due to the sole-source nature. Effective government oversight is crucial to monitor performance and ensure that the contracted services meet the required standards despite the contractor's incentive to minimize their costs. The absence of competition also limits the government's flexibility if the contractor's performance is unsatisfactory.

What is Eagle Harbor, LLC's track record with federal contracts, particularly with the Department of Defense?

The provided data identifies Eagle Harbor, LLC as the contractor for this $28.5 million facilities support services contract. To assess their track record, one would need to examine historical contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past issues or disputes. Information on previous contracts, including their value, duration, scope, and agency, would provide insight into their experience and reliability. Specifically, looking at their history with the Department of Defense and similar facilities support contracts would be most relevant. Without access to this broader contract history and performance data, it is difficult to evaluate Eagle Harbor, LLC's established performance record.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N5005421R0006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2702 DENALI ST STE 100, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,533,274

Exercised Options: $28,533,274

Current Obligation: $28,533,274

Actual Outlays: $12,710,226

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline