State Dept. Awards $287M for Overseas Facilities Support Services, Facing Limited Competition

Contract Overview

Contract Amount: $287,426,293 ($287.4M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of State

Start Date: 2004-04-09

End Date: 2017-08-31

Contract Duration: 4,892 days

Daily Burn Rate: $58.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OVERSEAS CONTRACT

Plain-Language Summary

Department of State obligated $287.4 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: OVERSEAS CONTRACT Key points: 1. Significant contract value of $287.4 million for long-term facilities support. 2. Competition is limited, with undisclosed domestic awardees, raising concerns about price discovery. 3. Risk of cost overruns due to the long duration and fixed-price contract type. 4. The sector is Facilities Support Services, crucial for government operations abroad.

Value Assessment

Rating: fair

The contract value of $287.4 million over 13 years suggests a substantial investment. Benchmarking is difficult without knowing the specific services and locations, but the duration and fixed-price nature warrant scrutiny for potential cost efficiencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded as a competitive delivery order, but the awardees are undisclosed, and the nature of 'limited competition' is not fully detailed. This lack of transparency hinders a clear assessment of price discovery and whether the best possible prices were obtained.

Taxpayer Impact: Taxpayer funds are committed to long-term overseas support services. While competition is stated, the lack of transparency on awardees and the limited nature of competition could lead to suboptimal pricing, impacting overall value for taxpayers.

Public Impact

Ensures essential facilities support for U.S. operations abroad, maintaining critical infrastructure. Long-term commitment of significant funds raises questions about flexibility and evolving needs. Lack of transparency on awardees makes it difficult for the public to assess fairness and value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

Facilities Support Services are vital for government agencies operating internationally, encompassing maintenance, repair, and operational support. Benchmarks for such long-term, overseas contracts are highly variable based on location and scope, but $287 million over 13 years indicates a significant program.

Small Business Impact

The data indicates the contract was awarded to domestic awardees, but specific details regarding small business participation are not provided. Further analysis would be needed to determine if small businesses had a fair opportunity to compete or participate as subcontractors.

Oversight & Accountability

The contract's long duration and significant value necessitate robust oversight from the Department of State to ensure performance, manage risks, and control costs effectively. Transparency regarding awardees and performance metrics is crucial for accountability.

Related Government Programs

Risk Flags

Tags

facilities-support-services, department-of-state, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $287.4 million to DOMESTIC AWARDEES (UNDISCLOSED). OVERSEAS CONTRACT

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $287.4 million.

What is the period of performance?

Start: 2004-04-09. End: 2017-08-31.

What specific services are included under 'Facilities Support Services' for these overseas locations, and how do they align with the $287 million budget?

The contract encompasses a broad range of facilities support, likely including maintenance, repair, security, utilities management, and potentially minor construction or renovation for overseas installations. The $287 million budget over 13 years suggests comprehensive, long-term operational support critical for maintaining U.S. presence and operations abroad, though specific line-item breakdowns are needed for precise alignment.

Given the 'limited competition' and undisclosed awardees, what mechanisms are in place to mitigate the risk of inflated pricing or suboptimal service delivery?

Mechanisms to mitigate risks include performance-based metrics within the fixed-price contract, regular performance reviews by the Department of State, and potentially contract clauses allowing for adjustments or termination if performance or pricing deviates significantly from agreed-upon standards. However, the lack of transparency on awardees inherently weakens the competitive pressure that typically drives down costs and improves service.

How effectively does this long-term contract ensure the Department of State receives value for money, considering potential changes in geopolitical needs or facility requirements over 13 years?

The effectiveness is questionable due to the contract's length. While it provides stability, a 13-year fixed-price contract may not be agile enough to adapt to evolving geopolitical landscapes or changing facility needs without costly modifications or scope creep. Value for money is contingent on strong initial pricing, diligent oversight, and the contract's ability to incorporate necessary changes without excessive cost increases.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $311,020,999

Exercised Options: $287,426,294

Current Obligation: $287,426,293

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SLMAQM04C0030

IDV Type: IDC

Timeline

Start Date: 2004-04-09

Current End Date: 2017-08-31

Potential End Date: 2017-08-31 00:00:00

Last Modified: 2021-09-03

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