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
- Undisclosed awardees limit transparency.
- Long contract duration (13 years) increases risk.
- Fixed-price contract may not adapt to changing needs.
- Limited competition details.
Positive Signals
- Provides essential overseas facilities support.
- Competitive delivery order mechanism used.
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
- Facilities Support Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Lack of transparency regarding awardees.
- Long contract duration (over 13 years).
- Potential for cost overruns with fixed-price contracts over extended periods.
- Limited details on the nature of competition.
- Unknown impact on small businesses.
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 Services › Facilities Support Services › Facilities 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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