DoD's $41.6M Facilities Support Services Contract Awarded to IAP World Services, Inc. with No Competition

Contract Overview

Contract Amount: $41,616,934 ($41.6M)

Contractor: IAP World Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-09-09

End Date: 2014-09-15

Contract Duration: 1,102 days

Daily Burn Rate: $37.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE AWARD FEE

Sector: Other

Official Description: CARETAKER SERVICES

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20889

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $41.6 million to IAP WORLD SERVICES, INC. for work described as: CARETAKER SERVICES Key points: 1. The contract's value of $41.6 million over its duration raises questions about cost-effectiveness given the lack of competitive bidding. 2. The sole-source nature of this award limits price discovery and potentially inflates costs for taxpayers. 3. A long contract duration of 1102 days suggests a need for robust oversight to ensure continued value. 4. The absence of small business set-asides or subcontracting goals may limit opportunities for smaller enterprises. 5. Performance context is limited without specific metrics on service delivery quality or efficiency. 6. This contract falls within the Facilities Support Services sector, a common area for government contracting.

Value Assessment

Rating: questionable

Benchmarking the value of this $41.6 million contract is challenging without comparable sole-source awards for similar facilities support services. The fixed-price award fee structure suggests some incentive for performance, but the lack of competition means there was no initial price pressure. Without detailed performance data or comparison to market rates for similar services, it's difficult to definitively assess if the government received good value for money. The absence of a competitive process inherently reduces the likelihood of achieving the lowest possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning IAP World Services, Inc. was the only bidder considered. This approach bypasses the standard competitive bidding process, which typically involves multiple companies submitting proposals. The lack of competition means there was no opportunity for price negotiation or comparison among different service providers, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive pressure. Without a bidding process, there's no assurance that the price reflects the most economical option available in the market.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who receive essential facilities support services. Services delivered likely include maintenance, repair, custodial, and other operational support for military facilities. The geographic impact is concentrated in Maryland (MD), where the contract was performed. Workforce implications include employment opportunities for individuals performing the facilities support services, potentially including both IAP World Services employees and any subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
Sole-source awards can indicate a lack of market research or a failure to plan for competitive procurement.
The long contract duration without clear performance benchmarks could lead to complacency and decreased service quality over time.
Absence of small business participation goals may limit opportunities for smaller, specialized firms in the facilities support sector.

Positive Signals

The contract was awarded to a single entity, IAP World Services, Inc., suggesting they possess the required capabilities.
The fixed-price award fee structure provides some incentive for the contractor to meet performance expectations.
The contract duration of over three years indicates a sustained need for these services by the Department of the Army.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad category encompassing a wide range of services essential for the operation and maintenance of buildings and grounds. This sector is characterized by numerous providers, from large integrated facility management companies to smaller specialized service firms. Government spending in this area is substantial, supporting military bases, federal buildings, and other installations. Benchmarking requires comparing contract scope, service levels, and geographic location, which is difficult for sole-source awards.

Small Business Impact

This contract does not appear to have included small business set-aside provisions, as indicated by 'sb': false. Furthermore, there is no explicit mention of subcontracting goals. This suggests that opportunities for small businesses to participate in this significant contract may have been limited, potentially excluding them from a substantial portion of the $41.6 million in federal spending. This could impact the broader small business ecosystem supporting federal facilities management.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Army's contracting officers and program managers. Accountability measures would be tied to the performance standards outlined in the contract, particularly those linked to the award fee component. Transparency is limited due to the sole-source nature and the lack of publicly available detailed performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Base Operations Support (BOS)
Logistics and Support Services
Facilities Maintenance Contracts
Government Property Management

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.6 million to IAP WORLD SERVICES, INC.. CARETAKER SERVICES

Who is the contractor on this award?

The obligated recipient is IAP WORLD SERVICES, 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 $41.6 million.

What is the period of performance?

Start: 2011-09-09. End: 2014-09-15.

What is the track record of IAP World Services, Inc. with federal contracts, particularly in facilities support?

IAP World Services, Inc. has a significant history of performing federal contracts, including extensive work in logistics, aviation support, and facilities management, often in challenging or remote locations. Their portfolio includes numerous awards from various government agencies, such as the Department of Defense, Department of State, and NASA. While specific performance details for individual contracts are not always publicly detailed, their sustained presence as a large federal contractor suggests a general capacity to meet government requirements. However, a deeper dive into past performance reviews, any contract disputes, or instances of corrective action would be necessary for a comprehensive assessment of their track record specifically for facilities support services under similar conditions.

How does the $41.6 million contract value compare to similar facilities support contracts awarded competitively?

Direct comparison of this $41.6 million sole-source contract to competitively awarded facilities support contracts is difficult without knowing the precise scope, duration, and service levels. Competitively bid contracts often result in lower per-unit costs due to market pressures. However, if this contract covers a very large or complex facility, or includes specialized services not commonly bid, its value might be more aligned with market rates. Generally, sole-source awards are expected to be higher than competitive ones. To provide a benchmark, one would need to identify comparable contracts (e.g., similar square footage, types of services, geographic region) that were competed and analyze their total value and duration relative to this award.

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

The primary risks associated with a sole-source award of this magnitude include potential overpricing due to the lack of competitive bidding, reduced incentive for innovation and efficiency from the contractor, and a lack of transparency in the procurement process. Taxpayers may not be receiving the best possible value for their money. Additionally, there's a risk that the government becomes overly reliant on a single contractor, making future transitions difficult or costly. Without competition, there's also less market pressure to maintain high service quality and adopt cost-saving technologies. Robust oversight and performance management are critical to mitigate these risks.

How effective are fixed-price award fee contracts in ensuring performance for facilities support services?

Fixed-price award fee contracts aim to balance cost certainty for the government with contractor incentives for performance. The fixed-price component establishes a baseline cost, while the award fee provides additional payment contingent upon meeting or exceeding specific performance standards. For facilities support services, this can be effective if the performance metrics are well-defined, measurable, and directly tied to critical service outcomes (e.g., response times for maintenance, cleanliness standards, energy efficiency targets). However, the effectiveness hinges on the clarity and fairness of the award fee criteria and the diligence of the government's performance evaluation. Poorly defined metrics can lead to disputes or the contractor receiving maximum award fees without truly exceptional performance.

What has been the historical spending trend for facilities support services by the Department of the Army?

Historical spending trends for facilities support services by the Department of the Army are substantial, reflecting the vast infrastructure managed by the service. The Army consistently procures a wide array of services, including maintenance, repair, operations, custodial, and groundskeeping, across numerous installations worldwide. While specific annual figures fluctuate based on budget allocations, infrastructure needs, and strategic priorities, this category represents a significant portion of the Army's operational budget. Analyzing trends would require examining multi-year spending data for NAICS codes related to facilities support services, looking for patterns in contract values, types of awards (competitive vs. sole-source), and major contract vehicles utilized.

Are there specific performance metrics or outcomes associated with this contract that indicate its effectiveness?

The provided data does not include specific performance metrics or outcomes for this contract. As a fixed-price award fee contract, effectiveness would ideally be measured against pre-defined criteria related to the quality, timeliness, and efficiency of the facilities support services provided. These could include metrics such as response times for work orders, preventative maintenance completion rates, energy consumption targets, customer satisfaction scores, and compliance with safety regulations. Without access to the contract's statement of work and performance evaluation reports, it is impossible to assess the effectiveness of the services delivered under this $41.6 million award.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W52P1J11R3025

Offers Received: 1

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Parent Company: IAP Global Services, LLC (UEI: 079492183)

Address: 7315 N ATLANTIC AVE, CAPE CANAVERAL, FL, 32920

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

Financial Breakdown

Contract Ceiling: $41,616,934

Exercised Options: $41,616,934

Current Obligation: $41,616,934

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline