Department of the Army's $394M facilities support contract awarded to SOS International LLC via sole-source action

Contract Overview

Contract Amount: $394,113,438 ($394.1M)

Contractor: SOS International LLC

Awarding Agency: Department of Defense

Start Date: 2015-07-01

End Date: 2019-01-19

Contract Duration: 1,298 days

Daily Burn Rate: $303.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF BLS SERVICES (TAJI)

Plain-Language Summary

Department of Defense obligated $394.1 million to SOS INTERNATIONAL LLC for work described as: IGF::OT::IGF BLS SERVICES (TAJI) Key points: 1. The contract's value of over $394 million represents a significant investment in facilities support services. 2. Awarded on a sole-source basis, the contract bypassed competitive bidding, potentially impacting price discovery. 3. The duration of the contract, spanning over 1200 days, indicates a long-term need for these services. 4. The firm-fixed-price contract type suggests that cost overruns are primarily the contractor's responsibility. 5. The absence of small business set-aside provisions warrants further investigation into subcontracting opportunities. 6. The contract falls under Facilities Support Services, a broad category essential for operational readiness.

Value Assessment

Rating: questionable

Benchmarking the value of this $394 million contract is challenging without detailed service scope and performance metrics. However, the sole-source award raises concerns about whether the government secured the best possible price. Without competition, it's difficult to assess if the pricing is aligned with market rates for similar comprehensive facilities support services. The firm-fixed-price structure offers some cost control, but the overall value proposition is obscured by the lack of a competitive process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities or when urgent circumstances preclude a competitive process. The lack of competition means that the government did not benefit from the price reductions and innovation that can arise from a bidding process, potentially leading to higher costs for taxpayers.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down costs. The lack of transparency in the selection process also limits the ability to confirm that the chosen contractor offered the best value.

Public Impact

Military bases and government facilities benefit from the provision of essential maintenance and operational support. The services delivered ensure the functionality and readiness of critical infrastructure. The geographic impact is likely concentrated around the facilities managed by the Department of the Army. The contract supports a workforce involved in facilities management, maintenance, and related support functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs.
Lack of transparency in the procurement process raises concerns about fairness and value.
Absence of small business set-asides may limit opportunities for smaller firms in the supply chain.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Long contract duration suggests a stable and ongoing need for these critical services.
Award to a single contractor may indicate specialized capabilities required for the services.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad sector encompassing a wide range of services necessary for the operation and maintenance of buildings and grounds. This includes services like janitorial, security, landscaping, and general maintenance. The federal government is a significant consumer of these services, particularly for its extensive portfolio of military bases, office buildings, and other installations. The market is diverse, with many providers ranging from large corporations to small, specialized firms. This contract represents a substantial portion of spending within this specific service category for the Department of the Army.

Small Business Impact

The contract was not awarded with any specific small business set-aside provisions, nor does it appear to have been awarded to a small business. This suggests that opportunities for small businesses would primarily arise through subcontracting. The extent to which SOS International LLC engages small businesses as subcontractors is not detailed in the provided data. A lack of proactive subcontracting plans could limit the participation of the small business ecosystem in this large federal contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Base Operations Support (BOS)
Logistics and Support Services
Government Facilities Management
Contractor Logistics Support

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Lack of transparency in procurement process.
Absence of small business participation metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $394.1 million to SOS INTERNATIONAL LLC. IGF::OT::IGF BLS SERVICES (TAJI)

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 $394.1 million.

What is the period of performance?

Start: 2015-07-01. End: 2019-01-19.

What specific facilities support services were included under this $394 million contract?

The provided data indicates the contract falls under NAICS code 561210, Facilities Support Services. This broad category typically encompasses a range of services essential for the operation and maintenance of government facilities. These can include, but are not limited to, grounds maintenance, custodial services, pest control, refuse collection, security, and general building upkeep. Without the specific contract statement of work (SOW), the precise scope of services rendered under this $394 million award remains undefined. However, given the substantial value and the awarding agency (Department of the Army), it is likely that these services supported significant military installations or a portfolio of critical government properties, ensuring their operational readiness and safety.

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

Sole-source awards are typically justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or when a compelling urgency exists that precludes competition. For this $394 million Department of the Army contract, the specific justification for the sole-source award is not detailed in the provided data. Potential reasons could include the unique capabilities of SOS International LLC, a critical need for continuity of services at a specific location, or national security considerations. However, the absence of competition means that the government did not explore potential cost savings or service enhancements that a competitive bidding process might have yielded, raising questions about the overall value obtained.

How does the firm-fixed-price contract type affect risk and cost for the government?

A firm-fixed-price (FFP) contract is generally considered the least risky for the government in terms of cost. Under an FFP agreement, the contractor agrees to perform a specific scope of work for a predetermined price. This means that the contractor assumes the primary financial risk for any cost overruns incurred during performance. If the contractor's actual costs exceed the agreed-upon price, their profit margin will decrease, or they may incur a loss. Conversely, if their costs are lower than anticipated, their profit will increase. This contract type provides the government with cost certainty, as the total price is fixed, making budgeting and financial planning more predictable. However, it can sometimes lead to higher initial pricing as contractors may build in a contingency to cover potential cost increases.

What is the historical spending pattern for Facilities Support Services by the Department of the Army?

The provided data only details a single contract award of $394 million to SOS International LLC for Facilities Support Services, running from July 2015 to January 2019. To understand the historical spending pattern, one would need to analyze a broader dataset encompassing all contracts awarded by the Department of the Army for similar services over an extended period. This would involve identifying all relevant contracts, their values, durations, and awarding mechanisms (competitive vs. sole-source). Without this broader context, it's impossible to determine if this $394 million contract represents a typical expenditure, an outlier, or a significant shift in spending strategy for facilities support. Analyzing trends in contract volume, average award values, and the prevalence of sole-source versus competitive awards would be crucial for a comprehensive understanding.

What are the potential implications of this contract's duration (1298 days) on service continuity and contractor performance?

A contract duration of 1298 days (approximately 3.5 years) suggests a significant and ongoing requirement for the facilities support services provided. This extended period offers the potential for greater service continuity, as it reduces the frequency of contract transitions and associated disruptions. For the contractor, a longer duration allows for more stable planning, investment in resources, and potentially the development of specialized expertise related to the specific facilities. It can also incentivize better performance, as the contractor has a longer-term stake in maintaining a positive relationship and a good performance record. However, it also means that any performance issues or inefficiencies could persist for an extended period if not adequately addressed through contract management and oversight.

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: W56KGZ15R4008

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, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $460,586,358

Exercised Options: $460,586,358

Current Obligation: $394,113,438

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline