DoD's $31.7M Facilities Support Services Contract with NANA SERVICES, LLC Raises Questions on Value and Competition
Contract Overview
Contract Amount: $31,685,132 ($31.7M)
Contractor: Nana Services, LLC
Awarding Agency: Department of Defense
Start Date: 2006-11-01
End Date: 2012-03-31
Contract Duration: 1,977 days
Daily Burn Rate: $16.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: INSTALLATION SERVICES
Place of Performance
Location: FRENCH CAMP, SAN JOAQUIN County, CALIFORNIA, 95231, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $31.7 million to NANA SERVICES, LLC for work described as: INSTALLATION SERVICES Key points: 1. The contract awarded to NANA SERVICES, LLC for installation services represents a significant expenditure of $31.7 million. 2. The contract type, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggests a potentially limited competitive landscape. 3. The duration of the contract (1977 days) and its firm fixed price nature warrant scrutiny for potential cost overruns or underperformance. 4. The lack of small business participation is noted, potentially limiting broader economic impact. 5. The sector is Facilities Support Services, a critical but often complex area for government procurement.
Value Assessment
Rating: questionable
The total award amount of $31.7 million for facilities support services needs comparison against similar contracts to assess value. Without benchmarks, it's difficult to determine if this price is competitive or inflated for the scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicates that while competition was sought, certain sources were excluded, potentially limiting the pool of bidders and impacting price discovery.
Taxpayer Impact: The significant contract value suggests a substantial taxpayer investment. The effectiveness of the competition method directly influences whether taxpayers received the best possible value for these services.
Public Impact
Taxpayers funded a $31.7 million contract for installation and facilities support services. The limited competition may have resulted in higher costs than a fully open process. The long contract duration could indicate a need for consistent services, but also risks price stagnation or missed opportunities for cost savings through re-competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of small business participation
- Long contract duration
Positive Signals
- Firm fixed price contract type can provide cost certainty if well-defined
- Awarded by Defense Logistics Agency, suggesting a structured procurement process
Sector Analysis
Facilities Support Services are crucial for maintaining government infrastructure. Benchmarks for similar contracts are essential to evaluate if $31.7 million over approximately 5.4 years represents fair market value.
Small Business Impact
The contract data indicates that small businesses were not involved in this award (ss: false, sb: false). This suggests a missed opportunity to leverage small business capabilities and promote economic diversity within this contract.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method implies some level of oversight in the exclusion process. However, further review of the justification for exclusion and the overall procurement process is needed to ensure accountability.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Limited competition raises concerns about potential overpricing.
- Lack of small business participation.
- Long contract duration may not reflect current market conditions or technological advancements.
- The specific nature of 'exclusion of sources' requires further investigation.
- Potential for cost inefficiencies over the contract's extended period.
Tags
facilities-support-services, department-of-defense, ca, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.7 million to NANA SERVICES, LLC. INSTALLATION SERVICES
Who is the contractor on this award?
The obligated recipient is NANA SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $31.7 million.
What is the period of performance?
Start: 2006-11-01. End: 2012-03-31.
What was the specific justification for excluding certain sources in the competition for this facilities support services contract?
The justification for excluding sources in a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' contract typically relates to specific technical requirements, past performance, or unique capabilities that only a limited number of vendors possess. Without access to the contract's documentation, the precise reasons remain unknown, but it suggests a deliberate narrowing of the competitive field based on perceived necessity.
How does the $31.7 million award compare to industry benchmarks for similar facilities support services over a 1977-day period?
Comparing the $31.7 million award to industry benchmarks is crucial for assessing value. Facilities support services encompass a wide range of tasks, and costs vary significantly by location, scope, and service level. A detailed analysis against comparable government or commercial contracts would reveal if this price is competitive or if potential cost savings were missed due to the procurement method or other factors.
What performance metrics were established, and how were they monitored to ensure effective service delivery under this long-term contract?
Effective service delivery under a long-term contract like this hinges on robust performance metrics and diligent monitoring. Understanding the key performance indicators (KPIs) used, the frequency of performance reviews, and any documented issues or successes would provide insight into the contract's effectiveness and whether the government received the intended value and quality of services.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: SP070005R7018
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Nana Regional Corporation Inc (UEI: 079253761)
Address: 1010 S 336TH ST STE 115, FEDERAL WAY, WA, 98003
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,685,132
Exercised Options: $31,685,132
Current Obligation: $31,685,132
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-11-01
Current End Date: 2012-03-31
Potential End Date: 2012-03-31 00:00:00
Last Modified: 2016-03-17
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