Department of the Army awards $29.5M facilities support contract to WESTECH INTERNATIONAL, INC. at Schofield Barracks

Contract Overview

Contract Amount: $29,542,684 ($29.5M)

Contractor: Westech International, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-01-05

End Date: 2026-12-05

Contract Duration: 1,065 days

Daily Burn Rate: $27.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: EAGLE SCHOFIELD BARRACKS, HAWAII RE-COMPETE.

Place of Performance

Location: SCHOFIELD BARRACKS, HONOLULU County, HAWAII, 96857

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $29.5 million to WESTECH INTERNATIONAL, INC. for work described as: EAGLE SCHOFIELD BARRACKS, HAWAII RE-COMPETE. Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a potentially competitive process. 2. The contract duration of 1065 days suggests a significant, long-term need for facilities support services. 3. The North American Industry Classification System (NAICS) code 561210 points to a focus on facilities support services. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but requires careful oversight. 5. The award was a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 6. The base award amount is $29.5 million, with potential for growth through subsequent orders.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the total value of the parent IDIQ contract or comparable facilities support contracts in Hawaii. The Cost Plus Fixed Fee (CPFF) pricing structure requires diligent monitoring to ensure costs remain reasonable and the fixed fee is appropriate for the scope of work. Without more data on the contractor's performance on similar contracts or detailed cost breakdowns, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while the competition was intended to be broad, certain sources may have been excluded for specific reasons, potentially limiting the pool of bidders. The number of bids received is not specified, making it difficult to fully assess the level of competition and its impact on price discovery.

Taxpayer Impact: The limited competition, even after an initial broad approach, may have resulted in a less competitive pricing environment than a truly unrestricted full and open competition, potentially impacting taxpayer value.

Public Impact

Military personnel and their families at Schofield Barracks will benefit from well-maintained facilities. Essential services such as maintenance, repair, and operations of facilities will be delivered. The geographic impact is concentrated at Schofield Barracks, Hawaii. The contract supports the operational readiness of the U.S. Army in Hawaii. Local workforce may see employment opportunities through WESTECH INTERNATIONAL, INC. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type requires robust oversight to manage costs and prevent overruns.
Limited competition after exclusion of sources could lead to higher prices than a fully open bid.
Performance metrics and service level agreements need to be strictly monitored to ensure quality.

Positive Signals

Awarded to a single contractor, potentially leading to streamlined service delivery.
Long-term contract duration suggests a stable and predictable service provision.
Focus on facilities support is critical for military base operations.

Sector Analysis

Facilities Support Services is a broad category within the services sector, encompassing a wide range of activities from building maintenance and repair to groundskeeping and custodial services. This contract falls under the broader umbrella of government contracting for base operations and support. Comparable spending benchmarks would typically be found within other Department of Defense installations requiring similar comprehensive facilities management.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist at the discretion of WESTECH INTERNATIONAL, INC., but there are no explicit requirements stated in the provided data. The impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and technical teams responsible for Schofield Barracks. Accountability measures will be tied to the performance standards outlined in the contract and the Cost Plus Fixed Fee structure. Transparency will depend on the Army's reporting practices regarding delivery orders and contractor performance. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support (BOS)
Installation and Facilities Management Services
Department of Defense Maintenance Contracts
Army Facilities Engineering Services

Risk Flags

Cost Plus Fixed Fee contract type requires stringent cost monitoring.
Limited competition after exclusion of sources may impact price competitiveness.
Contract performance needs to be closely managed to ensure service quality and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.5 million to WESTECH INTERNATIONAL, INC.. EAGLE SCHOFIELD BARRACKS, HAWAII RE-COMPETE.

Who is the contractor on this award?

The obligated recipient is WESTECH INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $29.5 million.

What is the period of performance?

Start: 2024-01-05. End: 2026-12-05.

What is the historical performance record of WESTECH INTERNATIONAL, INC. with the Department of Defense, particularly on similar facilities support contracts?

Assessing WESTECH INTERNATIONAL, INC.'s historical performance requires accessing contract databases and performance review systems (e.g., Contractor Performance Assessment Reporting System - CPARS). A review would look at past contract awards, delivery orders, and any reported issues related to cost, schedule, quality, or customer satisfaction. For facilities support contracts, key performance indicators often include response times for maintenance requests, preventative maintenance completion rates, and overall facility condition assessments. A positive track record with the DoD on similar CPFF contracts would indicate a lower risk for this award, while a history of cost overruns or performance deficiencies would raise concerns about value and execution.

How does the estimated cost per square foot or per facility managed compare to industry benchmarks for similar military installations in Hawaii?

To benchmark the cost-effectiveness, one would need to compare the contract's estimated total cost (including the fixed fee and anticipated costs) against industry standards for facilities support services at military installations of comparable size and complexity in Hawaii. This would involve calculating a cost per square foot or cost per building metric. Factors such as the age and condition of the facilities, the scope of services (e.g., including landscaping, pest control, energy management), and prevailing labor rates in Hawaii would need to be considered. If the contract's cost metrics are significantly higher than benchmarks, it could indicate potential overpricing or inefficiencies.

What are the specific risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this facilities support requirement?

The primary risk with a CPFF contract is that the contractor is reimbursed for all allowable costs plus a negotiated fixed fee. While the fixed fee incentivizes the contractor to control costs to maximize their profit margin, there's a risk that costs could escalate beyond initial estimates if not managed diligently by the government. The government bears the risk of cost overruns, and the contractor has less incentive to find the absolute lowest-cost solutions compared to a fixed-price contract. Effective oversight, detailed cost tracking, and robust auditing are crucial to mitigate these risks and ensure fair pricing.

What is the total spending trend for Facilities Support Services (NAICS 561210) by the Department of the Army over the past five fiscal years?

Analyzing the spending trend for Facilities Support Services (NAICS 561210) by the Department of the Army over the past five fiscal years would reveal the overall investment in this sector. This data can be obtained from federal procurement databases like USAspending.gov. A rising trend might indicate increasing reliance on contracted services or expansion of facilities, while a declining trend could suggest insourcing, consolidation, or reduced infrastructure needs. Understanding this trend provides context for the current award, indicating whether it aligns with broader spending patterns or represents a deviation.

How many bidders typically respond to 'Full and Open Competition After Exclusion of Sources' solicitations for similar services within the Department of Defense?

The number of bidders responding to 'Full and Open Competition After Exclusion of Sources' (FACA) solicitations can vary significantly. This procurement method is used when the agency believes that full and open competition might not be practical or advantageous, often due to specific technical requirements or past performance considerations, but still aims for a broad competitive field. Typically, for large-scale facilities support contracts, one might expect anywhere from 3 to 10 or more bidders if the requirements are well-defined and the market is robust. A lower number of bidders (e.g., 2-3) could suggest market limitations or that the exclusion of sources narrowed the field considerably, potentially impacting price competition.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W519TC23R0018

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2900 LOUISIANA BLVD NE STE J-8, ALBUQUERQUE, NM, 87110

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $120,713,918

Exercised Options: $29,542,684

Current Obligation: $29,542,684

Actual Outlays: $7,955,143

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J17G0104

IDV Type: BOA

Timeline