Treasury's $62M facilities contract with PRIDE INDUSTRIES shows questionable value and limited competition

Contract Overview

Contract Amount: $62,236,568 ($62.2M)

Contractor: Pride Industries

Awarding Agency: Department of the Treasury

Start Date: 2015-03-01

End Date: 2021-02-15

Contract Duration: 2,178 days

Daily Burn Rate: $28.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF TO PROVIDE OPERATIONS AND MAINTENANCE SERVICES FOR THE WESTERN CURRENCY FACILITY

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76131

State: Texas Government Spending

Plain-Language Summary

Department of the Treasury obligated $62.2 million to PRIDE INDUSTRIES for work described as: IGF::OT::IGF TO PROVIDE OPERATIONS AND MAINTENANCE SERVICES FOR THE WESTERN CURRENCY FACILITY Key points: 1. The contract's value proposition is unclear given the lack of competitive bidding. 2. Limited competition raises concerns about potential overpayment and reduced innovation. 3. The contract duration of nearly 6 years suggests a long-term reliance on a single provider. 4. Performance context is missing, making it difficult to assess the quality of services rendered. 5. Facilities support services are critical but often lack transparent performance metrics. 6. The firm-fixed-price structure may not fully account for potential cost efficiencies.

Value Assessment

Rating: questionable

Benchmarking the value of this $62.2 million facilities support contract is challenging due to the absence of competitive data. The firm-fixed-price contract was awarded on a non-competitive basis, making direct comparisons to similar contracts difficult. Without multiple bids, it's hard to ascertain if the pricing reflects market rates or if taxpayers received the best possible value. The long duration of the contract (over 5 years) further complicates value assessment, as market conditions and service needs can change significantly over time.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not openly competed. This approach limits the number of potential bidders to one, significantly reducing the opportunity for price discovery and innovation. While sole-source awards can be justified in specific circumstances, they generally lead to higher prices and less accountability compared to full and open competition. The lack of a competitive process here means the government did not explore alternative providers or potentially more cost-effective solutions.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the most competitive pricing. The absence of competition limits the government's leverage to negotiate favorable terms, potentially leading to higher overall expenditures for essential services.

Public Impact

The Bureau of Engraving and Printing benefits from the continuity of operations and maintenance services. Essential facility services, including maintenance and support, are delivered to ensure operational readiness. The contract's geographic impact is concentrated in Texas, where the facility is located. The contract supports jobs within the facilities management sector, primarily through the contractor's workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Absence of performance metrics makes value assessment difficult.
Long contract duration limits flexibility and potential for cost savings through re-competition.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contract ensures continuous operations for a critical government facility.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of physical infrastructure. The market for these services is substantial, with numerous private sector providers ranging from small businesses to large corporations. Government spending in this area is consistent, driven by the need to maintain federal buildings and installations. Comparable spending benchmarks are difficult to establish precisely due to the varied nature of facilities and the specific services required, but this contract represents a significant investment in maintaining a key government asset.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a single, likely larger, entity suggests that opportunities for small business participation may be limited unless PRIDE INDUSTRIES voluntarily engages them. Further analysis would be needed to determine if subcontracting plans were in place or if small businesses were excluded from bidding.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Engraving and Printing's contracting officers and program managers. The Inspector General for the Department of the Treasury would have jurisdiction for audits and investigations. Transparency is limited by the sole-source nature of the award; however, contract performance reviews and payment approvals are standard accountability measures. The firm-fixed-price nature of the contract provides some level of financial accountability.

Related Government Programs

Federal Buildings and Facilities Maintenance
Government Operations Support Services
Bureau of Engraving and Printing Contracts
Department of the Treasury Procurement

Risk Flags

Sole-source award limits competition and price discovery.
Lack of performance data hinders value assessment.
Potential for higher costs due to non-competitive nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $62.2 million to PRIDE INDUSTRIES. IGF::OT::IGF TO PROVIDE OPERATIONS AND MAINTENANCE SERVICES FOR THE WESTERN CURRENCY FACILITY

Who is the contractor on this award?

The obligated recipient is PRIDE INDUSTRIES.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of Engraving and Printing).

What is the total obligated amount?

The obligated amount is $62.2 million.

What is the period of performance?

Start: 2015-03-01. End: 2021-02-15.

What is the track record of PRIDE INDUSTRIES in performing similar federal contracts?

PRIDE INDUSTRIES has a history of performing facilities management and operations services for various government agencies. While specific details on past performance for this exact type of facility are not provided in the summary data, their general experience suggests a capability to handle such contracts. However, the effectiveness and value delivered on previous contracts would require a deeper dive into performance reports, customer satisfaction surveys, and any documented issues or commendations. Without this granular data, assessing their track record specifically for this Treasury contract remains incomplete, especially given the non-competitive award.

How does the cost of this contract compare to similar facilities support contracts awarded competitively?

Direct comparison of this contract's cost to competitively awarded contracts is not feasible with the provided data because this contract was awarded on a sole-source basis. Competitive bidding typically drives prices down as contractors vie for the award. In the absence of competition, the government may not achieve the most favorable pricing. To benchmark effectively, one would need to identify similar-sized facilities support contracts awarded competitively by agencies with comparable operational needs and analyze their per-square-foot costs, service inclusions, and overall value.

What are the primary risks associated with a sole-source award for facilities support services?

The primary risks associated with a sole-source award for facilities support services include inflated costs due to a lack of competitive pressure, potential for complacency in service quality, and reduced innovation. Taxpayers may end up paying more than necessary. Furthermore, the government becomes heavily reliant on a single provider, creating a risk if that provider experiences financial difficulties, operational failures, or decides to terminate the contract. Without alternatives readily available or vetted, the government's ability to ensure uninterrupted service could be compromised.

How effective has PRIDE INDUSTRIES been in meeting the performance requirements of this contract?

The provided data does not include specific performance metrics or evaluations for this contract, making it impossible to assess the effectiveness of PRIDE INDUSTRIES. Typically, government contracts include performance standards, and agencies monitor contractor performance through various means, including quality assurance surveillance plans (QASPs) and contractor performance assessment reporting (CPARS). Without access to these reports or specific details on service delivery, the effectiveness of PRIDE INDUSTRIES in fulfilling the operations and maintenance services for the Western Currency Facility remains unknown.

What has been the historical spending trend for facilities support services at the Western Currency Facility?

The provided data only details this specific contract awarded from March 2015 to February 2021 for $62.2 million. It does not offer historical spending trends for facilities support services at the Western Currency Facility prior to or after this period. To understand historical spending, one would need to access procurement records for previous contracts related to the facility's maintenance and operations, analyze their values, durations, and competitive nature, and compare them to current or subsequent contract awards.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10030 FOOTHILLS BLVD, ROSEVILLE, CA, 95747

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $62,236,568

Exercised Options: $62,236,568

Current Obligation: $62,236,568

Actual Outlays: $17,615,563

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline