State Department's $29M Facilities Support Contract Awarded to Muscogee International LLC

Contract Overview

Contract Amount: $29,010,091 ($29.0M)

Contractor: Muscogee International LLC

Awarding Agency: Department of State

Start Date: 2017-09-30

End Date: 2022-09-25

Contract Duration: 1,821 days

Daily Burn Rate: $15.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: STAFF SUPPORT IN THE WASHINGTON METRO AREA. IGF::CL::IGF

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $29.0 million to MUSCOGEE INTERNATIONAL LLC for work described as: STAFF SUPPORT IN THE WASHINGTON METRO AREA. IGF::CL::IGF Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential cost savings through competition. 2. Significant contract duration of 1821 days suggests a long-term need for these services. 3. Services provided in the Washington Metro Area indicate a focus on critical administrative or operational support. 4. The contract's value of approximately $29 million over its term warrants scrutiny for value for money. 5. Lack of competition may limit opportunities for smaller businesses to participate in subcontracting. 6. The 'Facilities Support Services' NAICS code suggests a broad range of potential tasks, from maintenance to administrative support.

Value Assessment

Rating: fair

The contract value of $29 million over nearly five years for facilities support services in the Washington Metro Area appears substantial. Without comparable contract data or a competitive bidding process, it is difficult to definitively benchmark the value for money. The pricing structure, based on labor hours, can be prone to cost overruns if not managed effectively. Further analysis would be needed to compare rates to market standards for similar support services in the region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating a sole-source procurement. This means that only one vendor, Muscogee International LLC, was considered for this award. The lack of a competitive process means that the government did not solicit bids from multiple potential suppliers. This can occur for various reasons, such as the unique capabilities of the contractor or urgent needs, but it typically results in less price discovery and potentially higher costs.

Taxpayer Impact: Taxpayers may not be receiving the best possible price for these services due to the absence of competitive bidding. The government missed an opportunity to leverage market forces to drive down costs and ensure optimal value.

Public Impact

The primary beneficiaries are likely the Department of State personnel and operations within the Washington Metro Area who rely on these facilities support services. Services delivered likely encompass a range of facility management tasks, potentially including maintenance, repairs, cleaning, and administrative support for government buildings. The geographic impact is concentrated within the Washington Metro Area, supporting federal operations in the nation's capital. Workforce implications could include direct employment by Muscogee International LLC and potential indirect employment through any subcontractors utilized.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits price discovery and potentially leads to higher costs for taxpayers.
Long contract duration (1821 days) increases the risk of cost escalation and reduced flexibility.
Lack of transparency in the sole-source justification requires further review.
Potential for vendor lock-in due to the absence of competition.
Scope of 'Facilities Support Services' is broad and may lack specific performance metrics without further detail.

Positive Signals

Contract provides essential support services to a critical government agency.
Established contract with a defined period of performance.
Services are geographically focused, potentially leading to efficient service delivery within the metro area.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, represent a significant segment of the government contracting market. This sector encompasses a wide array of services essential for the operation and maintenance of government facilities. Spending in this area is often driven by the need to maintain secure and functional workspaces for federal agencies. Benchmarking this contract's value would require comparing it to other similar facilities support contracts awarded by federal agencies, particularly those with operations in high-cost metropolitan areas like Washington D.C.

Small Business Impact

The contract data indicates that small business participation was not a stated requirement (ss: false, sb: false). As this was a sole-source award, there was no formal subcontracting plan mandated through competition. This limits opportunities for small businesses to engage with this specific contract, either as prime contractors or subcontractors, potentially impacting the small business ecosystem in the region for these types of services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. The Inspector General for the Department of State would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award. Transparency is limited due to the sole-source nature of the award; however, contract performance metrics and payment details should be available through federal procurement databases.

Related Government Programs

General Services Administration (GSA) Facilities Management Contracts
Department of Defense Base Operations Support (BOS)
Federal Agency Building Maintenance and Operations
Government Administrative Support Services

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns due to labor-hour pricing.
Limited transparency on performance metrics.
No explicit small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $29.0 million to MUSCOGEE INTERNATIONAL LLC. STAFF SUPPORT IN THE WASHINGTON METRO AREA. IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is MUSCOGEE INTERNATIONAL LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $29.0 million.

What is the period of performance?

Start: 2017-09-30. End: 2022-09-25.

What specific justification was provided for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not included in the abbreviated data. Typically, sole-source justifications are based on factors such as the unique capabilities of the contractor, urgent and compelling needs that preclude full and open competition, or when only one responsible source is capable of meeting the requirement. A thorough review of the contract file and associated documentation would be necessary to ascertain the precise rationale used by the Department of State in making this determination. Without this justification, it is difficult to assess whether the non-competitive award was appropriate and in the best interest of the government.

How does the labor hour pricing compare to industry benchmarks for similar facilities support services in the Washington D.C. metropolitan area?

The provided data does not include specific labor rates or the total hours worked, making a direct comparison to industry benchmarks impossible. The contract value of $29 million is an aggregate figure over nearly five years. To assess the labor hour pricing, one would need access to the contract's detailed pricing structure, including hourly rates for different labor categories (e.g., project managers, technicians, administrative staff). These rates would then need to be compared against prevailing wage data, GSA schedules, or other publicly available market research for facilities support services in the Washington D.C. area. Given the high cost of living and operating in this region, rates might be expected to be higher than national averages, but a formal benchmark analysis is required to determine if they are reasonable and competitive.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The abbreviated data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Facilities support contracts typically include metrics related to response times for maintenance requests, quality of cleaning services, uptime of critical building systems, energy efficiency targets, and customer satisfaction. The effectiveness of Muscogee International LLC's performance would be measured against these agreed-upon standards. Without access to the contract's statement of work (SOW) and performance requirements, it is impossible to evaluate the specific performance expectations or assess the contractor's adherence to them. These details are crucial for understanding the value delivered beyond the financial outlay.

Has Muscogee International LLC performed similar facilities support services for other federal agencies, and what is their track record?

The provided data identifies Muscogee International LLC as the contractor but does not offer details on their past performance history or experience with similar contracts. To assess their track record, one would need to consult federal procurement databases like SAM.gov (System for Award Management) or FPDS (Federal Procurement Data System) for a history of their contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past issues or disputes. A positive track record with relevant experience would lend more confidence to the award, while a history of poor performance or limited relevant experience would raise concerns, especially in a sole-source context.

What is the historical spending trend for facilities support services by the Department of State in the Washington Metro Area?

The provided data only pertains to this single contract award ($29,010,090.67) with a start date of September 30, 2017, and an end date of September 25, 2022. It does not provide historical spending trends for facilities support services by the Department of State in the Washington Metro Area. To analyze historical spending, one would need to aggregate data for all similar contracts awarded by the Department of State within that geographic region over multiple fiscal years. This would involve searching procurement databases for contracts with relevant NAICS codes (e.g., 561210) and filtering by agency and location. Such an analysis could reveal patterns in spending, identify major contractors, and highlight any significant increases or decreases in investment in facilities support.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Muscogee Creek Nation

Address: 1018 SOUTH WOOD DR, OKMULGEE, OK, 74447

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,797,450

Exercised Options: $30,797,450

Current Obligation: $29,010,091

Actual Outlays: $7,006,318

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA16D0177

IDV Type: IDC

Timeline