Treasury's $42.7M Property Management Contract Awarded to VSE Corporation Under Sole-Source Basis
Contract Overview
Contract Amount: $42,731,708 ($42.7M)
Contractor: VSE Corporation
Awarding Agency: Department of the Treasury
Start Date: 2010-10-01
End Date: 2012-10-02
Contract Duration: 732 days
Daily Burn Rate: $58.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: MANAGEMENT,STORAGE, AND DISPOSITION OF SEIZED, FORFEITED, AND BLOCKED GENERAL PROPERTY AND CONVEYANCES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005
Plain-Language Summary
Department of the Treasury obligated $42.7 million to VSE CORPORATION for work described as: MANAGEMENT,STORAGE, AND DISPOSITION OF SEIZED, FORFEITED, AND BLOCKED GENERAL PROPERTY AND CONVEYANCES Key points: 1. The contract value is $42.7 million for property management services. 2. VSE Corporation, the incumbent, secured this sole-source award. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The sector is Other Warehousing and Storage, a niche but essential service.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee structure, while allowing flexibility, offers less incentive for cost control compared to fixed-price contracts. Benchmarking is difficult without detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, raising concerns about whether the government obtained the best possible price and service. Sole-source awards limit price discovery and competitive pressure.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these services.
Public Impact
Citizens rely on efficient management of seized assets to ensure fairness and proper disposal. The services provided are critical for law enforcement and judicial processes. Transparency in sole-source awards is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of small business participation
Positive Signals
- Essential service provided
- Incumbent contractor likely has relevant experience
Sector Analysis
This contract falls under the Other Warehousing and Storage sector, which includes services like inventory control, storage, and disposition of various goods. Benchmarks are difficult to establish due to the specialized nature of seized property.
Small Business Impact
The data indicates no small business participation in this contract. Opportunities for small businesses in specialized warehousing and logistics should be explored.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is performing efficiently and costs are reasonable. Audits of the cost-plus fixed fee elements are essential.
Related Government Programs
- Other Warehousing and Storage
- Department of the Treasury Contracting
- Departmental Offices Programs
Risk Flags
- Sole-source award limits competition and potential cost savings.
- Cost-plus contract type may incentivize higher spending.
- No reported small business participation.
- Lack of transparency in pricing due to sole-source nature.
Tags
other-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 $42.7 million to VSE CORPORATION. MANAGEMENT,STORAGE, AND DISPOSITION OF SEIZED, FORFEITED, AND BLOCKED GENERAL PROPERTY AND CONVEYANCES
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 $42.7 million.
What is the period of performance?
Start: 2010-10-01. End: 2012-10-02.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or circumstances where competition is not feasible. Without specific documentation, it's difficult to assess the steps taken to ensure fair pricing. However, agencies should conduct market research and price analyses even in sole-source situations to validate reasonableness.
What are the potential risks associated with a Cost Plus Fixed Fee contract for property management?
Cost Plus Fixed Fee contracts carry risks of cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. This can reduce the incentive for the contractor to control expenses. For property management, this could lead to inflated storage, handling, or disposition costs if not closely monitored.
How does the lack of competition impact the overall value and effectiveness of this contract for taxpayers?
The lack of competition limits the government's ability to leverage market forces to achieve the best value. Taxpayers may bear higher costs due to the absence of competitive bidding. Effectiveness could also be impacted if alternative, more innovative solutions were available from other providers.
Industry Classification
NAICS: Transportation and Warehousing › Warehousing and Storage › Other Warehousing and Storage
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: A-10-090
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2550 HUNTINGTON AVE, 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: $42,790,508
Exercised Options: $42,731,708
Current Obligation: $42,731,708
Subaward Activity
Number of Subawards: 171
Total Subaward Amount: $47,859,729
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2010-10-01
Current End Date: 2012-10-02
Potential End Date: 2012-10-02 00:00:00
Last Modified: 2012-10-26
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