Department of Defense awards $35.8M facilities support contract to SOS INTERNATIONAL LLC

Contract Overview

Contract Amount: $35,831,727 ($35.8M)

Contractor: SOS International LLC

Awarding Agency: Department of Defense

Start Date: 2014-11-22

End Date: 2015-06-30

Contract Duration: 220 days

Daily Burn Rate: $162.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF

Plain-Language Summary

Department of Defense obligated $35.8 million to SOS INTERNATIONAL LLC for work described as: IGF::OT::IGF Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Facilities support services are critical for operational readiness. 3. Contract duration of 220 days suggests a short-term or bridging requirement. 4. Firm Fixed Price contract type shifts risk to the contractor. 5. No small business set-aside noted, potentially impacting small business participation.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bidding and limited duration. The firm fixed price structure is appropriate for defined services. However, without comparison to similar sole-source awards or market rates for facilities support in the region, assessing true value for money is difficult. The absence of competition raises concerns about whether the government secured the most economical price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach typically occurs when only one vendor is capable of meeting the requirement, or in urgent situations. The lack of competition means there was no opportunity for multiple bidders to offer proposals, which can limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process.

Public Impact

The Department of the Army benefits from essential facilities support services. Services likely include maintenance, repair, and operational support for government facilities. Geographic impact is localized to the facility or facilities managed by the contract. Workforce implications depend on whether SOS INTERNATIONAL LLC uses its own employees or local hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and value assessment.
Short contract duration may indicate a temporary need or a gap-filling measure.
Lack of small business participation noted.

Positive Signals

Firm Fixed Price contract shifts cost risk to the contractor.
SOS INTERNATIONAL LLC is the awarded contractor, implying they met the agency's specific needs.

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 infrastructure. This sector is crucial for government agencies to maintain their physical assets. Spending in this area can fluctuate based on infrastructure needs, modernization efforts, and operational demands. Comparable spending benchmarks would typically involve analyzing other facilities support contracts within the Department of Defense or across federal agencies.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific contract are limited. The overall impact on the small business ecosystem depends on whether SOS INTERNATIONAL LLC utilizes small businesses in its supply chain for other contracts or if this was a direct award without subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed price structure, requiring the contractor to deliver specified services. Transparency is limited due to the sole-source nature of the award, making public scrutiny of the procurement process more challenging. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

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

Risk Flags

Sole-source award lacks competitive pricing transparency.
Short contract duration may indicate an interim solution or require follow-on procurement.
No explicit small business set-aside or subcontracting noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.8 million to SOS INTERNATIONAL LLC. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is SOS INTERNATIONAL LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35.8 million.

What is the period of performance?

Start: 2014-11-22. End: 2015-06-30.

What specific facilities support services were included in this $35.8 million contract?

The provided data indicates the contract falls under NAICS code 561210, Facilities Support Services. While the specific services are not detailed in the abbreviated data, this category typically encompasses a broad range of activities necessary for the operation and maintenance of buildings and infrastructure. These can include, but are not limited to, general building maintenance, custodial services, grounds maintenance, pest control, security services, and minor repairs. The firm fixed price nature of the contract suggests that the scope of services was defined, and the contractor agreed to perform these services for a set price. Further details would typically be found in the contract's statement of work (SOW).

Why was this contract awarded on a sole-source basis instead of being competed?

Sole-source awards are typically justified when only one responsible source is available to meet the agency's needs. Common reasons include urgent and compelling requirements where competition is not feasible, unique capabilities possessed by a single contractor, or when a specific product or service is required that only one vendor can provide. Without additional context from the Department of the Army's justification for other than full and open competition (JOFOC), it is impossible to determine the precise reason. However, the short duration (220 days) might suggest a bridging contract to cover a gap while a longer-term, competed requirement is being established, or it could be for a highly specialized, time-sensitive need.

How does the firm fixed price (FFP) contract type benefit the government in this scenario?

A Firm Fixed Price (FFP) contract is generally advantageous for the government when the scope of work is well-defined and the risks associated with cost overruns can be reasonably estimated. In this case, the FFP structure shifts the primary financial risk to the contractor, SOS INTERNATIONAL LLC. The government knows the total cost upfront and is protected from potential cost increases unless there are changes to the contract's scope. This provides budget certainty. The contractor is incentivized to manage costs efficiently to maximize profit, as any savings achieved below the fixed price accrue to them, while any overruns are absorbed by the contractor.

What is the typical market rate or benchmark for facilities support services of this magnitude?

Establishing a precise market rate or benchmark for facilities support services without specific details of the services, location, and contract duration is difficult. NAICS code 561210 covers a wide array of services. However, federal agencies often benchmark these costs against industry standards, historical contract data for similar services, and commercial pricing. Given the $35.8 million value over approximately 7 months (220 days), this represents a significant contract. Without knowing the specific deliverables and geographic scope, direct comparison is challenging. However, agencies typically aim for competitive pricing through open solicitations to ensure they are obtaining fair market value.

What is the track record of SOS INTERNATIONAL LLC in performing federal facilities support contracts?

The provided data indicates SOS INTERNATIONAL LLC was awarded this contract. To assess their track record, one would need to examine their past performance on similar federal contracts, particularly those involving facilities support services. This would involve reviewing past performance evaluations (e.g., CPARS reports), contract history for scope and value, and any documented successes or failures. A positive track record would suggest reliability and capability, while a history of issues could raise concerns about performance on this current award. Without access to these performance records, a definitive assessment cannot be made.

How does the short duration of the contract (220 days) impact the overall value and risk?

The short duration of 220 days (approximately 7 months) suggests this contract may be intended to fulfill a short-term need, bridge a gap until a longer-term contract is in place, or address a specific, time-bound project. From a value perspective, it limits the potential for long-term cost savings or efficiencies that might be realized through a multi-year contract. It also means the government will need to re-compete or extend services relatively soon. In terms of risk, a shorter duration can sometimes reduce the risk of contractor underperformance over an extended period, but it also increases the administrative burden and cost associated with frequent procurement cycles.

Industry Classification

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

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912D115R0032

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1881 CAMPUS COMMONS DRIVE, RESTON, VA, 20191

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

Financial Breakdown

Contract Ceiling: $35,831,727

Exercised Options: $35,831,727

Current Obligation: $35,831,727

Contract Characteristics

Cost or Pricing Data: NO

Timeline