State Department's $82M Facilities Support Services contract awarded non-competitively over 8 years

Contract Overview

Contract Amount: $82,083,063 ($82.1M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of State

Start Date: 2004-12-15

End Date: 2013-01-24

Contract Duration: 2,962 days

Daily Burn Rate: $27.7K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: OVERSEAS CONTRACT

Plain-Language Summary

Department of State obligated $82.1 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: OVERSEAS CONTRACT Key points: 1. Significant long-term commitment to a single vendor raises questions about potential price escalation and lack of competitive pressure. 2. The contract's duration and value suggest a critical need for facilities support, but the absence of competition limits transparency on value. 3. Lack of disclosed domestic awardees makes it difficult to assess the competitive landscape and potential for broader economic impact. 4. Performance context is limited without specific metrics on service delivery and quality over the contract's extensive period. 5. The contract falls within the Facilities Support Services sector, which is essential for government operations but often prone to long-term, sole-source arrangements. 6. The non-competitive nature of this award is a key risk indicator, potentially leading to suboptimal pricing and reduced innovation.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its non-competitive nature and the lack of disclosed awardee details. The extended duration of over 8 years (2962 days) for a facilities support services contract valued at approximately $82 million suggests a substantial commitment. Without comparable contracts or market rate data for similar services over such a long period, it's difficult to definitively assess if the pricing represents good value for money. The absence of competition inherently limits the government's ability to secure the most favorable terms.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a non-competitive delivery order, indicating that a full and open competition was not conducted. The specific reasons for this sole-source award are not detailed in the provided data. Typically, sole-source awards occur when only one responsible source can provide the required services, or in situations where urgency or specific technical requirements preclude competition. The lack of multiple bidders means there was no direct price comparison or negotiation driven by market forces.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. This can lead to higher overall costs for the services rendered.

Public Impact

The primary beneficiaries are the Department of State personnel and operations that rely on consistent and reliable facilities support services. Services delivered likely include maintenance, repair, custodial, and potentially other operational support for government facilities. The geographic impact is likely concentrated around the facilities managed by the Department of State, potentially domestic or overseas depending on contract specifics. Workforce implications could involve direct employment by the contractor or its subcontractors, supporting the facilities management sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits price discovery and potentially leads to higher costs.
Extended contract duration (over 8 years) increases risk of price creep and vendor lock-in.
Lack of disclosed awardee makes it impossible to assess contractor's past performance or track record.
Absence of competition hinders opportunities for small businesses to participate.
Limited transparency on specific services and performance metrics makes value assessment difficult.

Positive Signals

Ensures continuity of essential facilities support services for the Department of State.
Long-term award provides stability for the contractor and potentially ensures dedicated resources.
Facilities support is critical for the functioning of government operations.

Sector Analysis

The Facilities Support Services sector encompasses a broad range of services essential for the operation and maintenance of physical infrastructure. This includes everything from janitorial and landscaping to complex building systems management and repairs. Government agencies are significant consumers of these services, often requiring long-term, stable contracts to ensure the continuous operation of their facilities. Comparable spending benchmarks are difficult to establish without more specific service details, but large-scale facilities management contracts can run into hundreds of millions of dollars annually.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false). Furthermore, the non-competitive nature of the award significantly limits opportunities for small businesses to participate, either as prime contractors or potentially as subcontractors, unless specifically included by the sole-source awardee. Without details on subcontracting plans, the impact on the small business ecosystem remains unclear but is likely minimal given the award type.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided data. However, for a contract of this duration and value, oversight would typically involve contract officers, program managers, and potentially an Inspector General's office to ensure compliance with terms, conditions, and performance standards. Transparency is limited due to the non-competitive nature and lack of disclosed awardee information, making independent assessment of accountability challenging.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
Department of Defense Facilities Maintenance Contracts
Public Buildings Service (PBS) Contracts
Government-wide Facilities Management Contracts

Risk Flags

Non-competitive award
Long contract duration
Undisclosed awardee
Lack of performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $82.1 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 $82.1 million.

What is the period of performance?

Start: 2004-12-15. End: 2013-01-24.

What specific facilities support services were included under this $82 million contract?

The provided data categorizes this contract under 'Facilities Support Services' (NAICS 561210) but does not specify the exact services rendered. Typically, this category can encompass a wide array of activities including, but not limited to, building operations and maintenance, repair services, custodial services, groundskeeping, pest control, and potentially security system maintenance. For a contract valued at $82 million over more than eight years, it likely involved comprehensive support for a significant number of facilities or a very large, complex facility. Without further documentation or contract details, the precise scope of services remains undefined.

Why was this contract awarded on a non-competitive basis?

The data indicates this was a 'NON-COMPETITIVE DELIVERY ORDER' (ct: NON-COMPETITIVE DELIVERY ORDER). Federal procurement regulations allow for non-competitive awards under specific circumstances, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling requirements where competition is not feasible. Other justifications can include follow-on work to a previous contract where a sole-source award was justified, or if the value falls below certain thresholds for full and open competition. The specific justification for this particular award is not provided in the data, making it impossible to determine the exact reason for bypassing the competitive bidding process.

What is the track record of the undisclosed contractor for this facilities support services contract?

The provided data explicitly states 'DOMESTIC AWARDEES (UNDISCLOSED)' (co: DOMESTIC AWARDEES (UNDISCLOSED)), meaning the identity of the contractor is not available. Consequently, it is impossible to assess the contractor's track record, past performance, or experience with similar facilities support services contracts. This lack of transparency prevents any analysis of their reliability, quality of service, or history of meeting contractual obligations. Without knowing who the contractor is, any evaluation of their performance or suitability for the role is purely speculative.

How does the duration of this contract compare to typical facilities support service contracts?

This contract had a duration of 2962 days, which is approximately 8 years and 2 months (ed: 2013-01-24, sd: 2004-12-15). While facilities support services are often long-term due to the nature of maintaining physical infrastructure, an 8-year period, especially for a non-competitively awarded delivery order, is on the longer side. Many government contracts, particularly those that are competed, might have initial terms of 1-5 years with options for renewal. Longer durations can be justified for significant investments or specialized services, but they also increase the risk of price escalation and reduced flexibility. The extended period here, coupled with the non-competitive award, warrants scrutiny regarding potential value and adaptability.

What are the potential risks associated with an $82 million non-competitive facilities support contract lasting over 8 years?

Several risks are associated with this contract's profile. Firstly, the non-competitive award means the government likely did not benefit from the price reductions and service improvements that competition typically drives. This could lead to paying above-market rates. Secondly, the long duration of over 8 years increases the risk of price creep, where costs gradually increase over time without adequate justification. It also creates a 'vendor lock-in' situation, making it difficult and costly to switch providers even if performance is subpar. Furthermore, the lack of transparency regarding the awardee and specific performance metrics hinders effective oversight and accountability, making it harder to identify and mitigate issues before they significantly impact service delivery or cost.

What does the NAICS code 561210 for Facilities Support Services typically entail for federal contracts?

The North American Industry Classification System (NAICS) code 561210 covers establishments primarily engaged in providing operating engineers/janitorial services and/or building maintenance for others. This includes services such as cleaning, operating, maintaining, and repairing buildings and other physical facilities. For federal contracts, this can range from routine janitorial and landscaping services for government buildings to more complex facility management, including HVAC maintenance, electrical systems upkeep, plumbing, and general repairs. Contracts under this code are crucial for ensuring the functionality, safety, and upkeep of government infrastructure across various agencies.

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: NON-COMPETITIVE DELIVERY ORDER

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $89,310,000

Exercised Options: $82,083,063

Current Obligation: $82,083,063

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SLMAQM04C0030

IDV Type: IDC

Timeline