IRS Facilities Maintenance Contract Awarded to IAP World Services for Over $41 Million

Contract Overview

Contract Amount: $41,694,453 ($41.7M)

Contractor: IAP World Services, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2005-08-25

End Date: 2014-08-14

Contract Duration: 3,276 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATION & MAINTENANCE SERVICES @ 6 IRS LOCATIONS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20224

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $41.7 million to IAP WORLD SERVICES, INC. for work described as: OPERATION & MAINTENANCE SERVICES @ 6 IRS LOCATIONS Key points: 1. Contract provides essential operation and maintenance services across six IRS locations. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The duration of the contract, spanning nearly a decade, indicates a long-term need for these services. 4. The firm-fixed-price structure aims to control costs by setting a predetermined price. 5. The services provided are critical for the operational continuity of IRS facilities. 6. The contract's value places it in the mid-to-large range for facilities support services.

Value Assessment

Rating: good

The contract value of approximately $41.7 million over its nearly 10-year term suggests an average annual cost of around $4.2 million for facilities maintenance across six IRS locations. Benchmarking this against similar large-scale facilities support contracts for federal agencies indicates a potentially competitive price point, especially considering the scope and duration. The firm-fixed-price contract type helps manage cost predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit bids. The presence of four bids indicates a reasonable level of competition for this significant facilities support requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition likely resulted in a more cost-effective outcome for taxpayers by encouraging multiple companies to offer their best pricing and service proposals.

Public Impact

Employees at six IRS locations benefit from a well-maintained and operational working environment. The contract ensures the continuous functioning of critical infrastructure supporting IRS operations. The services encompass a range of facilities management tasks, contributing to the overall efficiency of the agency. The contract supports jobs within the facilities management and maintenance sector, primarily in the Washington D.C. metropolitan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to complacency or reduced innovation if not actively managed.
Potential for cost overruns if scope creep occurs without proper change order management.
Dependence on a single contractor for critical infrastructure maintenance poses a risk if performance falters.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, suggesting a competitive market was leveraged.
Long-term contract allows for stable planning and execution of maintenance services.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, represent a significant segment of the government contracting market. This sector includes a wide array of services essential for the operation and upkeep of federal buildings and installations. Spending in this area is consistent across many agencies, with contracts often ranging from several million to hundreds of millions of dollars depending on the scale and complexity of the facilities managed. This particular contract, valued at over $41 million, falls within the mid-to-large tier for supporting multiple government sites.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, IAP World Services, Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless IAP World Services voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The firm-fixed-price structure provides a degree of financial oversight by locking in costs. Accountability is managed through performance metrics and contract clauses. Transparency is generally maintained through federal contract databases like FPDS. The Inspector General for the Department of the Treasury would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

General Services Administration (GSA) Facilities Management Contracts
Department of Defense Base Operations Support (BOS)
Federal Buildings Fund (FBF) Expenditures
IRS Real Property Management

Risk Flags

Long-term contract duration
Firm-fixed-price contract type
Single award for multiple locations

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $41.7 million to IAP WORLD SERVICES, INC.. OPERATION & MAINTENANCE SERVICES @ 6 IRS LOCATIONS

Who is the contractor on this award?

The obligated recipient is IAP WORLD SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $41.7 million.

What is the period of performance?

Start: 2005-08-25. End: 2014-08-14.

What is the historical spending trend for facilities maintenance at the six IRS locations covered by this contract?

Analyzing historical spending for facilities maintenance at these specific IRS locations prior to this contract award is crucial for understanding cost trends and identifying potential efficiencies or escalations. Without access to granular historical data for these six sites, it's difficult to establish a precise trend. However, the total award of $41.7 million over approximately 9.6 years (August 2005 to August 2014) suggests an average annual expenditure of roughly $4.3 million for all six locations combined. This figure should be compared against previous contract values or internal maintenance budgets for these sites to assess if spending has increased, decreased, or remained stable over time. Factors such as facility age, expansion, or changes in service requirements could influence these historical spending patterns.

How does the per-square-foot maintenance cost under this contract compare to industry benchmarks for similar federal facilities?

To compare the per-square-foot maintenance cost, we would need the total square footage of the six IRS locations covered by this contract. Assuming an average annual cost of approximately $4.3 million and a hypothetical total facility size (e.g., 1 million square feet), the cost would be $4.30 per square foot. Federal facility maintenance costs can vary widely based on building age, complexity, security requirements, and geographic location. General industry benchmarks for commercial office space might range from $2 to $6 per square foot annually for comprehensive maintenance. If the IRS facilities are older or have specialized requirements, costs could be higher. A detailed comparison requires specific facility data and a more precise understanding of the services included in the contract.

What is the track record of IAP World Services, Inc. in performing similar large-scale facilities maintenance contracts for federal agencies?

IAP World Services, Inc. has a substantial history of performing large-scale facilities operations and maintenance (O&M) services, often in complex and remote environments, for various U.S. federal agencies, including the Department of Defense and other civilian agencies. Their experience typically includes managing infrastructure, logistics, and support services. For contracts similar to this IRS requirement, their track record generally indicates experience in managing diverse building systems, groundskeeping, security support, and emergency response. Performance reviews and past performance evaluations from previous government contracts would provide a more detailed assessment of their reliability, quality of service, and ability to meet contractual obligations on time and within budget.

What are the key performance indicators (KPIs) used to measure the success of this facilities maintenance contract?

Key Performance Indicators (KPIs) for a facilities maintenance contract like this typically focus on service delivery, responsiveness, and cost control. Common KPIs include response times for service requests (e.g., emergency repairs, routine maintenance), completion rates for scheduled preventive maintenance, facility uptime for critical systems (HVAC, electrical), energy efficiency metrics, safety incident rates, and customer satisfaction scores from building occupants. The contract likely specifies these KPIs, along with acceptable performance thresholds and potential remedies for non-performance. Regular performance reviews between the IRS and IAP World Services would track these metrics to ensure the contractor is meeting its obligations.

Were there any significant performance issues or contract disputes during the life of this contract?

Information regarding specific performance issues or contract disputes during the 2005-2014 period of this contract is not readily available in the provided data summary. Federal contract databases often track major disputes, claims, or contract modifications that indicate performance problems. However, minor issues or day-to-day operational challenges are typically resolved between the contracting officer and the contractor without being publicly documented in summary data. A thorough review of contract modification history, performance reports, or any associated litigation or arbitration records would be necessary to identify any significant disputes or persistent performance problems.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cerberus Capital Management, L.P. (UEI: 014784388)

Address: 7315 N. ATLANTIC AVE, CAPE CANAVERAL, FL, 08

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,698,518

Exercised Options: $41,698,518

Current Obligation: $41,694,453

Contract Characteristics

Cost or Pricing Data: NO

Timeline