DoD's $6.5M Facilities Support Services Contract Awarded to The Building People LLC
Contract Overview
Contract Amount: $6,487,123 ($6.5M)
Contractor: THE Building People LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-14
End Date: 2026-09-28
Contract Duration: 1,110 days
Daily Burn Rate: $5.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FACILITIES SUPPORT SERVICES
Place of Performance
Location: HANAHAN, BERKELEY County, SOUTH CAROLINA, 29410
Plain-Language Summary
Department of Defense obligated $6.5 million to THE BUILDING PEOPLE LLC for work described as: FACILITIES SUPPORT SERVICES Key points: 1. Contract awarded for facilities support services, indicating a need for ongoing building maintenance and operational assistance. 2. The Building People LLC secured this contract, suggesting they possess the capabilities and competitive edge for government facilities management. 3. Awarded under full and open competition, this contract implies a robust bidding process and potential for competitive pricing. 4. The firm-fixed-price contract type shifts cost risk to the contractor, potentially leading to more predictable government expenditures. 5. The contract duration of approximately three years allows for sustained service delivery and performance evaluation. 6. Services are to be performed in South Carolina, indicating a specific geographic focus for this facilities support effort.
Value Assessment
Rating: good
The contract value of approximately $6.5 million over three years for facilities support services appears reasonable given the scope of work typically involved in maintaining government facilities. Benchmarking against similar contracts for facilities support services across the Department of Defense would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the contractor has priced the services to cover all anticipated costs and profit, which can be advantageous for the government if the contractor manages costs effectively. Without specific details on the exact services included, a direct comparison is challenging, but the award suggests the government found the proposed value to be competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded using full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was competed openly suggests a healthy level of competition, which typically drives down prices and encourages innovation. While the number of bidders is not specified, the open competition framework is a positive sign for price discovery and ensuring the government receives competitive offers. This approach allows the government to select the best value solution from a wide range of potential providers.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services. It ensures that government funds are used efficiently by preventing sole-source awards that might otherwise be more expensive.
Public Impact
The Department of the Navy benefits from reliable facilities support services, ensuring operational readiness and a safe working environment. This contract supports the maintenance and upkeep of government facilities, contributing to the longevity and functionality of critical infrastructure. Services are concentrated in South Carolina, directly impacting the local economy and potentially creating or sustaining jobs in the region. The successful execution of this contract ensures that military personnel and civilian employees have access to well-maintained facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the firm-fixed-price contract does not accurately account for unforeseen maintenance issues.
- Dependence on a single contractor for critical facilities support could pose a risk if performance falters.
- Geographic concentration in South Carolina may limit broader applicability or scalability of lessons learned.
- The specific scope of 'facilities support services' can be broad; clarity on deliverables is crucial for performance management.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
- Firm-fixed-price contract type provides budget certainty for the government.
- Contract duration of over three years allows for stable service provision and contractor performance evaluation.
- The Building People LLC's selection indicates they met the government's requirements and demonstrated capability.
Sector Analysis
Facilities support services fall under the broader commercial and institutional building services industry. This sector encompasses a wide range of activities, including maintenance, repair, cleaning, and operational support for various types of properties. Government contracts for these services are substantial, reflecting the vast real estate holdings of federal agencies. The market is competitive, with numerous providers ranging from large facility management corporations to smaller, specialized service companies. This contract represents a portion of the government's overall spending on maintaining its physical infrastructure, which is crucial for agency operations.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). This suggests that the primary competition was likely among larger firms or that small businesses may participate as subcontractors. Without explicit subcontracting plans or goals mandated in the award details, the direct impact on the small business ecosystem is unclear. However, large prime contractors are often encouraged or required to subcontract portions of their work to small businesses, which could still provide opportunities for smaller entities.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Navy's contracting officers and program managers. Performance will be monitored against the terms and conditions of the firm-fixed-price delivery order, including service level agreements and delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for the Department of Defense may conduct audits or investigations if performance issues, fraud, or waste are suspected. Accountability rests with The Building People LLC to deliver services as specified and with the government to ensure proper oversight and payment.
Related Government Programs
- Base Operations Support (BOS)
- Logistics and Supply Chain Management
- Real Property Maintenance
- Government Facilities Management
- Building Operations and Maintenance Services
Risk Flags
- Potential for scope creep if 'facilities support services' is not clearly defined.
- Contractor performance risk associated with firm-fixed-price contracts.
- Geographic concentration may limit broader application of lessons learned.
Tags
facilities-support, department-of-defense, department-of-the-navy, south-carolina, firm-fixed-price, full-and-open-competition, delivery-order, services, facilities-maintenance, government-contracting
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.5 million to THE BUILDING PEOPLE LLC. FACILITIES SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is THE BUILDING PEOPLE 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 $6.5 million.
What is the period of performance?
Start: 2023-09-14. End: 2026-09-28.
What is the specific breakdown of facilities support services included in this contract?
The provided data indicates the contract is for 'Facilities Support Services' (NAICS code 561210) awarded to The Building People LLC. However, the specific deliverables, scope of work, and detailed service requirements are not itemized in the summary data. Typically, facilities support services can encompass a wide range of activities such as routine maintenance (HVAC, plumbing, electrical), janitorial services, groundskeeping, pest control, minor repairs, space management, and potentially security or mailroom operations. A comprehensive understanding would require reviewing the full contract statement of work (SOW) to ascertain the precise services expected, performance metrics, and any exclusions.
How does the awarded amount compare to similar facilities support contracts within the Department of Defense?
The awarded amount of approximately $6.5 million over a duration of roughly 3.6 years (1110 days) for facilities support services needs to be benchmarked against comparable contracts to assess value. Without access to a database of similar DoD facilities support contracts, a precise comparison is difficult. However, the average annual value of this contract is roughly $1.78 million. Factors influencing comparability include the geographic location, size and type of facilities supported, specific services required (e.g., janitorial vs. full-spectrum maintenance), and the contract type. Generally, larger installations or those requiring more complex services command higher contract values. The firm-fixed-price nature suggests a defined scope, which aids in comparison if the scope is well-understood.
What is The Building People LLC's track record with federal government contracts, particularly in facilities support?
The Building People LLC was awarded this contract, indicating they have met the government's requirements. To assess their track record, one would typically examine their past performance on federal contracts, including previous awards, contract values, duration, and any performance evaluations or past performance questionnaires (PPQs). Information on their history with facilities support services specifically would be crucial. A review of federal procurement databases (like SAM.gov or FPDS) could reveal prior awards, their performance history, and any potential issues or commendations. Their ability to win this contract suggests they have a relevant history and demonstrated capability, but a deeper dive into past performance is necessary for a full assessment.
What are the potential risks associated with this firm-fixed-price contract for facilities support?
Firm-fixed-price (FFP) contracts place the primary responsibility for cost control on the contractor. For facilities support, potential risks include the contractor underestimating the scope or complexity of maintenance required, leading to potential quality compromises to maintain profitability, or seeking change orders for unforeseen issues. Conversely, if the contractor accurately estimates and manages costs effectively, the government benefits from budget certainty. Another risk is contractor default or poor performance, which, despite the FFP structure, can still disrupt services. The government's risk mitigation involves thorough pre-award evaluation of the contractor's technical approach and financial stability, and robust post-award oversight to monitor performance and compliance.
How does the 'Facilities Support Services' category (NAICS 561210) typically perform in terms of government spending trends?
The Facilities Support Services sector (NAICS 561210) represents a significant and consistent area of government spending. Federal agencies manage vast portfolios of real property, requiring ongoing maintenance, operations, and support to ensure functionality and safety. Spending in this category tends to be stable, driven by the continuous need to maintain infrastructure, although it can fluctuate based on agency budgets, infrastructure investment priorities, and specific mission requirements. Major agencies like the Department of Defense, General Services Administration, and others are significant buyers in this space. Trends can be influenced by factors such as aging infrastructure requiring more maintenance, shifts towards energy efficiency, and the increasing use of integrated facility management solutions.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6523623Q0572
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 215 DEPOT CT SE, LEESBURG, VA, 20175
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $6,487,123
Exercised Options: $6,487,123
Current Obligation: $6,487,123
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS21F056CA
IDV Type: FSS
Timeline
Start Date: 2023-09-14
Current End Date: 2026-09-28
Potential End Date: 2026-09-28 00:00:00
Last Modified: 2025-12-08
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