DoD's $40.2M Facilities Support Services Contract Awarded to SOS International LLC Under Sole Source Justification

Contract Overview

Contract Amount: $40,216,559 ($40.2M)

Contractor: SOS International LLC

Awarding Agency: Department of Defense

Start Date: 2015-01-02

End Date: 2017-02-01

Contract Duration: 761 days

Daily Burn Rate: $52.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

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

Plain-Language Summary

Department of Defense obligated $40.2 million to SOS INTERNATIONAL LLC for work described as: IGF::OT::IGF BLS SERVICES (BESMAYA) Key points: 1. The contract's value of over $40 million for facilities support services raises questions about cost-effectiveness given the sole-source award. 2. Limited competition dynamics suggest potential for inflated pricing and reduced incentive for contractor efficiency. 3. The absence of a competitive bidding process presents a significant risk indicator for value for money. 4. Performance context is limited due to the sole-source nature, making direct benchmarking difficult. 5. This contract falls within the broad category of facilities support services, a common but often costly area of government spending.

Value Assessment

Rating: questionable

The contract's value of $40.2 million for facilities support services, awarded on a sole-source basis, warrants scrutiny. Without competitive bidding, it is difficult to benchmark the pricing against market rates or similar government contracts. The fixed-price nature of the award provides some cost certainty, but the lack of competition means there was no external pressure to ensure the most economical price. Further analysis would require understanding the specific services rendered and comparing them to industry standards for similar facilities management contracts.

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. The justification for this approach is not detailed in the provided data. Typically, sole-source awards occur when only one responsible source can provide the required supplies or services. This lack of competition limits the government's ability to explore a range of pricing and service options, potentially leading to higher costs than if multiple bidders had vied for the contract.

Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the best possible value, as the absence of competition can lead to higher prices and less incentive for the contractor to be efficient.

Public Impact

The primary beneficiaries of this contract are the Department of Defense and its personnel, who receive essential facilities support services. Services delivered likely include maintenance, repair, and operational support for military facilities. The geographic impact is concentrated at the facilities managed by the Department of the Army, where SOS International LLC operates. Workforce implications include employment opportunities for individuals hired by SOS International LLC to perform these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of competition reduces contractor incentive for innovation and efficiency.
Absence of performance data makes it difficult to assess value for money.
Contract duration of over two years without competition raises concerns about long-term cost implications.

Positive Signals

Fixed-price contract type provides some cost predictability.
Contract awarded to a single entity implies a specific capability or need was met.

Sector Analysis

Facilities Support Services is a broad sector encompassing a wide range of activities necessary for the operation and maintenance of physical infrastructure. This contract, valued at over $40 million, represents a significant investment within this sector for the Department of Defense. Comparable spending benchmarks in this area are highly variable, depending on the scale and complexity of the facilities managed. The market for facilities support services is competitive, but this specific award bypassed that competition.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it appear to have significant subcontracting implications for small businesses based on the available information. The sole-source nature of the award further suggests that opportunities for small business participation may have been limited or non-existent.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the contracting officer and relevant Department of the Army officials. Accountability measures would be tied to the terms and conditions of the firm-fixed-price contract. Transparency is limited due to the sole-source award and the lack of detailed public justification for this procurement approach. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Facilities Maintenance
Army Base Operations Support
Government Facilities Management Contracts
Logistics and Support Services

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.2 million to SOS INTERNATIONAL LLC. IGF::OT::IGF BLS SERVICES (BESMAYA)

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 $40.2 million.

What is the period of performance?

Start: 2015-01-02. End: 2017-02-01.

What specific facilities support services were included in this $40.2 million contract?

The provided data classifies the contract under NAICS code 561210, which corresponds to Facilities Support Services. While the specific services are not itemized, this category typically encompasses a broad range of activities such as building operations and maintenance, groundskeeping, custodial services, security, and potentially specialized support functions tailored to the needs of military installations. The firm-fixed-price nature suggests a defined scope of work was established at the time of award, aiming to cover these essential operational requirements for the duration of the contract.

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

The data indicates a 'sole-source' award, meaning it was not competed. Government regulations permit sole-source awards under specific circumstances, such as when only one responsible contractor can provide the required services, or in cases of urgent and compelling need. Without further documentation or justification from the Department of Defense, the precise reason for bypassing the competitive bidding process remains unclear. This lack of competition is a key factor in assessing the overall value and potential cost-effectiveness of the contract for taxpayers.

How does the $40.2 million contract value compare to similar facilities support services contracts awarded by the DoD?

Direct comparison of the $40.2 million contract value is challenging without more specific details on the scope of services and geographic location. Facilities support services contracts can vary significantly in price based on the size and complexity of the facilities managed, as well as the specific services required (e.g., basic maintenance versus comprehensive facility management including security and IT infrastructure). However, a $40.2 million award for a definitive contract over approximately two years (based on start and end dates) suggests a substantial scope of work. The sole-source nature, however, prevents a direct benchmark against competitively bid contracts, which would typically offer a clearer indication of market pricing.

What is the track record of SOS International LLC in performing government contracts, particularly for facilities support?

The provided data identifies SOS International LLC as the contractor for this $40.2 million facilities support services contract. To assess their track record, one would need to examine their past performance on other government contracts, looking at factors such as successful delivery, adherence to schedules and budgets, and any past performance issues or disputes. Information on their experience specifically within facilities support services, especially for large-scale government operations like those of the Department of the Army, would be crucial for a comprehensive evaluation of their capability and reliability.

What are the potential risks associated with a sole-source award of this magnitude?

A sole-source award of this magnitude carries several potential risks. Primarily, the lack of competition can lead to higher prices than might be achieved through a competitive process, meaning taxpayers may not be getting the best value for their money. It also reduces the incentive for the contractor to innovate or operate with maximum efficiency, as there is no direct market pressure from competitors. Furthermore, without a competitive evaluation, there's a risk that the selected contractor may not be the most capable or offer the most suitable solution, although agencies typically have processes to vet sole-source providers. Transparency is also reduced, making it harder for the public to scrutinize the procurement decision.

What is the duration of this contract and how does it align with typical facilities support service agreements?

The contract has a duration of 761 days, which is approximately two years and one month, based on the start date of January 2, 2015, and an end date of February 1, 2017. This duration is within the typical range for definitive contracts for services like facilities support. Longer-term contracts can offer stability for both the government and the contractor, allowing for better planning and resource allocation. However, for sole-source awards, extended durations without periodic re-evaluation or competition can exacerbate the risks associated with potentially suboptimal pricing or performance.

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: W56KGZ15R5000

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: $40,926,496

Exercised Options: $40,926,496

Current Obligation: $40,216,559

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline