State Department's $53.6M Facilities Support Services contract awarded competitively, spanning over three years

Contract Overview

Contract Amount: $53,626,577 ($53.6M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of State

Start Date: 2007-03-28

End Date: 2010-06-28

Contract Duration: 1,188 days

Daily Burn Rate: $45.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OVERSEAS CONTRACT

Plain-Language Summary

Department of State obligated $53.6 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: OVERSEAS CONTRACT Key points: 1. The contract was awarded as a competitive delivery order, suggesting a degree of market vetting. 2. The firm-fixed-price contract type shifts performance risk to the contractor. 3. With a duration of 1188 days, this represents a significant, long-term commitment. 4. The North American Industry Classification System (NAICS) code 561210 indicates a focus on facilities support services. 5. The contract's value of over $53 million warrants scrutiny for cost-effectiveness and performance. 6. The domestic awardees are undisclosed, limiting transparency on contractor selection.

Value Assessment

Rating: fair

Benchmarking the value of this $53.6 million contract is challenging without specific performance metrics or comparable contract data. However, the firm-fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for value if managed effectively. The duration of nearly three years suggests a substantial service requirement, and the price should reflect economies of scale and efficient service delivery. Without more granular data on the specific services rendered and their associated costs, a definitive value assessment is difficult, but the competitive award mechanism provides a baseline for price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating that it was competed under a broader contract vehicle that allowed for full and open competition. The presence of 3 bids suggests a moderate level of competition for this specific delivery order. While more than one bidder participated, the exact number of potential bidders and the extent of outreach are not detailed, which could influence the intensity of price competition.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price compared to a sole-source or limited competition scenario. The presence of multiple bids provides a basis for price negotiation and ensures that the government is not overpaying for the required services.

Public Impact

The primary beneficiaries are likely Department of State personnel and operations requiring facilities support services. Services delivered would encompass a range of facility maintenance, management, and operational support. The geographic impact is presumed to be at the facilities managed by the Department of State, potentially domestic or overseas. Workforce implications would include employment opportunities for individuals in facilities management and support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the specific domestic awardees hinders assessment of contractor track record and potential conflicts of interest.
The undisclosed nature of awardees makes it difficult to verify if small businesses were involved in subcontracting opportunities.
Without detailed performance metrics, it's challenging to assess the true value for money delivered over the contract's duration.

Positive Signals

The contract was awarded through a competitive process, indicating that multiple vendors had the opportunity to bid.
The firm-fixed-price contract type aligns incentives by placing cost control responsibility on the contractor.
The substantial duration suggests a stable, long-term requirement, potentially allowing for contractor efficiencies and economies of scale.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, is a broad sector encompassing a wide range of services essential for the operation and maintenance of buildings and infrastructure. This includes services like building operation and maintenance, cleaning, security, and groundskeeping. The market for these services is typically large and fragmented, with numerous providers ranging from small, specialized firms to large, diversified corporations. Federal spending in this sector is consistent across various agencies to ensure the functionality and safety of government facilities. This contract represents a significant portion of spending within this category for the Department of State.

Small Business Impact

The provided data indicates that small business participation (sb) was false (false) and there was no specific small business set-aside (st). This suggests that the contract was not specifically targeted towards small businesses, and there is no explicit information on subcontracting plans. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is limited by the undisclosed nature of the awardees. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
Department of Defense Facilities Maintenance Contracts
Department of Homeland Security Facilities Management

Risk Flags

Undisclosed Awardees
Limited Performance Data
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $53.6 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 $53.6 million.

What is the period of performance?

Start: 2007-03-28. End: 2010-06-28.

What specific facilities support services were included under this contract?

The provided data identifies the contract under NAICS code 561210, which corresponds to Facilities Support Services. This broad category typically includes a range of services such as building operation and maintenance, cleaning services, security services, landscaping services, pest control, and waste management. However, the specific scope of work, detailed service level agreements, and deliverables for this particular $53.6 million contract are not detailed in the provided summary. A thorough review of the contract's statement of work (SOW) would be necessary to ascertain the precise services rendered, their frequency, and any performance standards associated with them.

How does the $53.6 million contract value compare to similar facilities support contracts awarded by the Department of State or other agencies?

Benchmarking the $53.6 million value requires comparison with similar facilities support contracts, considering factors like contract duration, scope of services, geographic location, and the specific agency. For a contract spanning approximately three years (1188 days), this value suggests a substantial service requirement. Without access to a database of comparable contracts with detailed service descriptions and pricing, a precise comparison is difficult. However, federal agencies often award multi-million dollar contracts for facilities support, especially for large complexes or overseas operations. The competitive nature of this award (3 bids) provides some assurance that the price was vetted against market alternatives at the time of award.

What are the primary risks associated with a firm-fixed-price contract for facilities support services?

The primary risk with a firm-fixed-price (FFP) contract for facilities support services lies in the potential for the contractor to cut corners on service quality to maintain profitability if costs exceed estimates. While FFP shifts cost overrun risk to the contractor, it necessitates robust performance monitoring by the government to ensure that the contracted services are delivered to the required standards. If unforeseen issues arise that significantly increase the contractor's costs (e.g., unexpected repairs, material price hikes), the contractor may face financial strain, potentially impacting service continuity. Conversely, if the contractor is highly efficient, the government benefits from predictable costs.

What does the 'COMPETITIVE DELIVERY ORDER' designation imply about the procurement process?

The designation 'COMPETITIVE DELIVERY ORDER' implies that this contract was awarded under a pre-existing contract vehicle (like a Multiple Award Indefinite Delivery/Indefinite Quantity contract) that was itself competed on a full and open basis. For this specific delivery order, multiple vendors were invited to submit proposals, and it was awarded to the best value offeror. This process ensures that the government receives competitive pricing and considers factors beyond just the lowest price. The fact that there were 3 bids suggests a reasonable level of competition for this particular order, contributing to price discovery and potentially better value for the government.

Given the contract's duration of over three years, what are the implications for contractor performance and government oversight?

A contract duration of over three years (1188 days) allows for potential economies of scale and the development of specialized expertise by the contractor. It also provides a stable environment for service delivery. However, it necessitates sustained and diligent government oversight to ensure consistent performance and prevent complacency. The Department of State would need to actively monitor service quality, contractor responsiveness, and adherence to contract terms throughout the period. Regular performance reviews, site inspections, and feedback mechanisms are crucial to manage risks associated with long-term contracts and ensure continued value for money.

Why are the domestic awardees undisclosed, and what is the impact of this lack of transparency?

The reason for the undisclosed domestic awardees is not provided in the summary data. In some cases, awardee information might be redacted for specific reasons, such as protecting proprietary business information or if the contract involves sensitive security aspects. However, the general lack of transparency regarding who received this $53.6 million contract makes it difficult for the public and watchdog groups to assess the contractor's past performance, financial stability, and potential conflicts of interest. It also hinders the ability to track the distribution of federal funds and verify compliance with regulations, including small business subcontracting goals.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SAQMPD-07-R-0036

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $53,626,577

Exercised Options: $53,626,577

Current Obligation: $53,626,577

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SLMAQM04C0032

IDV Type: IDC

Timeline