Treasury's $33M General Property Services Contract with VSE Corp. Awarded via Not Competed Method
Contract Overview
Contract Amount: $33,025,120 ($33.0M)
Contractor: VSE Corporation
Awarding Agency: Department of the Treasury
Start Date: 2011-12-30
End Date: 2012-12-29
Contract Duration: 365 days
Daily Burn Rate: $90.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: GENERAL PROPERTY SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005
Plain-Language Summary
Department of the Treasury obligated $33.0 million to VSE CORPORATION for work described as: GENERAL PROPERTY SERVICES Key points: 1. The contract value of $33M for general property services is significant. 2. VSE Corporation is the sole awardee, indicating a lack of competition. 3. The 'Not Competed' award method raises concerns about price discovery and potential overpayment. 4. The sector is General Warehousing and Storage, a common area for government services.
Value Assessment
Rating: questionable
The contract was awarded on a firm-fixed-price basis. Without competitive bidding, it's difficult to assess if the $33M price represents fair market value compared to similar warehousing and storage services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, meaning VSE Corporation was the only entity considered. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these services, impacting taxpayer funds.
Public Impact
Taxpayers may be overpaying for general property services due to the absence of competitive bidding. The sole-source nature of the award limits transparency in how the $33M was allocated. Government reliance on non-competed contracts can stifle innovation and reduce overall efficiency in service delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Firm-fixed-price contract type can provide cost certainty if priced appropriately
Sector Analysis
The General Warehousing and Storage sector involves managing and maintaining government property. Spending in this area can vary widely based on agency needs and asset types. Benchmarks are difficult without specific service details.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature further limits opportunities for small business participation.
Oversight & Accountability
The 'Not Competed' award method suggests that standard competitive oversight processes may have been bypassed. Further review is needed to understand the justification for this approach and ensure accountability.
Related Government Programs
- General Warehousing and Storage
- Department of the Treasury Contracting
- Departmental Offices Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of market comparison.
- Lack of transparency in the procurement process.
- No indication of small business participation.
Tags
general-warehousing-and-storage, department-of-the-treasury, dc, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $33.0 million to VSE CORPORATION. GENERAL PROPERTY SERVICES
Who is the contractor on this award?
The obligated recipient is VSE CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Departmental Offices).
What is the total obligated amount?
The obligated amount is $33.0 million.
What is the period of performance?
Start: 2011-12-30. End: 2012-12-29.
What was the justification for awarding this contract on a sole-source basis instead of through a competitive process?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, urgent needs, or specific government property requirements. Without the specific justification documentation, it's impossible to determine the validity of this decision and its impact on fair pricing.
How does the $33M contract value compare to industry benchmarks for similar general property services, considering the lack of competition?
Benchmarking is challenging without competitive data. However, a $33M contract awarded without competition warrants scrutiny. Industry benchmarks for warehousing and storage services vary greatly by location, scope, and duration. The absence of competitive bids means the government lacks a market-tested price, increasing the risk of paying above fair market value.
What measures were in place to ensure the effectiveness and efficiency of VSE Corporation's services under this sole-source contract?
Effectiveness and efficiency under a sole-source contract rely heavily on robust performance monitoring and clear contract requirements. The government should have established key performance indicators (KPIs) and a system for tracking VSE Corporation's adherence to them. Regular performance reviews and feedback mechanisms are crucial to ensure taxpayer funds are used effectively, even without competitive pressure.
Industry Classification
NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6348 WALKER LANE, ALEXANDRIA, VA, 08
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,025,120
Exercised Options: $33,025,120
Current Obligation: $33,025,120
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2011-12-30
Current End Date: 2012-12-29
Potential End Date: 2012-12-29 00:00:00
Last Modified: 2014-02-12
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