DoD's $7.3M Facilities Support Contract Awarded to XOTECH L.L.C. for 88th Readiness Division

Contract Overview

Contract Amount: $7,332,950 ($7.3M)

Contractor: Xotech L.L.C.

Awarding Agency: Department of Defense

Start Date: 2022-07-13

End Date: 2026-12-12

Contract Duration: 1,613 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATIONS & MAINTENANCE SERVICES TO SUPPORT 88TH READINESS DIVISION/88TH MEDICAL EQUIPMENT CONSOLIDATION SITE IN OGDEN, UT.

Place of Performance

Location: OGDEN, WEBER County, UTAH, 84404

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $7.3 million to XOTECH L.L.C. for work described as: OPERATIONS & MAINTENANCE SERVICES TO SUPPORT 88TH READINESS DIVISION/88TH MEDICAL EQUIPMENT CONSOLIDATION SITE IN OGDEN, UT. Key points: 1. Contract provides essential operations and maintenance for a key military readiness and medical equipment site. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of over 1600 days indicates a long-term need for these services. 4. The firm-fixed-price structure aims to control costs for the government. 5. The geographic focus is on Ogden, Utah, supporting regional military infrastructure. 6. The contract value is moderate within the context of large federal facilities support contracts.

Value Assessment

Rating: good

The contract value of approximately $7.3 million over its term appears reasonable for facilities support services. Benchmarking against similar contracts for operations and maintenance of military facilities is necessary for a definitive assessment. However, the firm-fixed-price structure suggests an effort to ensure predictable costs. The number of bids received (3) provides some indication of market interest, but a deeper analysis of the bid prices would be required to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. Three bids were received, suggesting a moderate level of competition for this specific requirement. While three bidders is not a large number, it does demonstrate that multiple companies were interested and capable of performing the work, which is generally positive for price discovery.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. This approach aims to secure the best possible value for the government.

Public Impact

The 88th Readiness Division and the 88th Medical Equipment Consolidation Site benefit from consistent and reliable facility operations. Military personnel and support staff at the Ogden, Utah location will have a well-maintained and functional working environment. The contract supports the broader mission of military readiness and medical equipment management within the Department of Defense. The contract likely supports local jobs in the Ogden, Utah area through XOTECH L.L.C.'s operations and potential subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite fixed-price structure.
Dependence on a single contractor for critical facility operations could pose risks if performance falters.
Limited competition (3 bidders) might indicate barriers to entry or a niche market, potentially impacting future pricing.

Positive Signals

Firm-fixed-price contract type helps mitigate cost uncertainty for the government.
Awarded under full and open competition, allowing for a broad range of potential offerors.
Long contract duration suggests a stable, ongoing need that the contractor is expected to fulfill reliably.

Sector Analysis

Facilities support services, including operations and maintenance, represent a significant segment of the federal contracting market. This contract falls under the broader category of professional, scientific, and technical services. The North American Industry Classification System (NAICS) code 561210 (Facilities Support Services) encompasses a wide range of activities, from building operation to grounds maintenance. Federal spending in this area is substantial, driven by the need to maintain a vast inventory of government-owned facilities across various agencies.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, XOTECH L.L.C., is likely not a small business, or if it is, it won through open competition. There is no explicit information regarding subcontracting plans for small businesses. Further investigation into XOTECH L.L.C.'s size status and subcontracting goals would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the Department of the Army. Performance monitoring, quality assurance checks, and invoice reviews are standard oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Facilities Maintenance Contracts
Army Readiness Division Support Services
Medical Equipment Consolidation Site Operations
Federal Facilities Support Services
Operations and Maintenance Contracts

Risk Flags

Potential for performance issues given the long duration.
Limited competition may impact long-term pricing.
Dependence on a single contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.3 million to XOTECH L.L.C.. OPERATIONS & MAINTENANCE SERVICES TO SUPPORT 88TH READINESS DIVISION/88TH MEDICAL EQUIPMENT CONSOLIDATION SITE IN OGDEN, UT.

Who is the contractor on this award?

The obligated recipient is XOTECH L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.3 million.

What is the period of performance?

Start: 2022-07-13. End: 2026-12-12.

What is the track record of XOTECH L.L.C. in performing similar federal contracts, particularly in facilities support and maintenance?

A review of federal procurement data is necessary to assess XOTECH L.L.C.'s past performance. Key indicators would include the number and value of previously awarded contracts, the agencies they have served, and the types of services rendered. Specifically, looking for contracts with similar scope (operations and maintenance), duration, and value within the Department of Defense or other federal agencies would provide relevant context. Performance ratings from past contracts, if available, would offer direct insights into their reliability and quality of service. Analyzing any past contract disputes, terminations, or performance issues is also crucial for a comprehensive understanding of their track record.

How does the awarded price compare to market rates for similar facilities support services in Ogden, Utah, or the surrounding region?

To benchmark the value, one would need to compare the contract's estimated annual cost or the per-unit costs (if applicable and calculable) against market data. This involves researching industry pricing for facilities operations and maintenance services in the specific geographic area (Ogden, Utah). Sources could include commercial cost-estimating databases, surveys of private sector service providers, or data from similar non-defense government contracts. Factors such as the specific services included (e.g., HVAC, electrical, plumbing, janitorial), the size and complexity of the facilities, and the service level agreements would need to be matched as closely as possible. A significant deviation from market rates, either higher or lower, would warrant further investigation into the reasons.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential performance deficiencies by the contractor, leading to disruptions in essential services for the 88th Readiness Division and the medical site. Cost overruns, although mitigated by the firm-fixed-price structure, could still occur due to unforeseen circumstances or scope changes. Contractor dependency is another risk; if XOTECH L.L.C. fails to perform adequately, finding and transitioning to a new provider could be challenging given the long duration. Risks also exist if the contractor experiences financial instability or key personnel departures. Mitigation strategies typically involve robust contract surveillance by the government, clear performance standards, defined remedies for non-performance, and potentially requiring performance bonds. Regular communication and performance reviews are also critical.

How effective is the firm-fixed-price (FFP) contract type in ensuring cost control for these types of facilities support services?

The firm-fixed-price (FFP) contract type is generally considered effective for controlling costs in service contracts where the scope of work is well-defined and unlikely to change significantly. It shifts the risk of cost overruns to the contractor, incentivizing them to manage their expenses efficiently. For routine operations and maintenance services, where tasks are predictable, FFP provides budget certainty for the government. However, if unforeseen issues arise that require significant deviation from the original scope, contract modifications could increase the total cost. The effectiveness also depends on the government's ability to clearly define requirements and monitor performance to prevent scope creep or contractor claims for additional costs.

What is the historical spending trend for facilities support services at the 88th Readiness Division or similar Army installations?

Analyzing historical spending requires accessing databases that track federal contract awards over time. One would look for previous contracts awarded to support the 88th Readiness Division or comparable Army installations for facilities operations and maintenance. This analysis would reveal the total amount spent annually or over multi-year periods, the types of services procured, and the contractors previously engaged. Comparing historical spending patterns can help identify trends in cost escalation, changes in service requirements, and the consistency of contractor selection. It can also highlight whether this $7.3 million award represents an increase, decrease, or stable level of investment compared to prior periods.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W81K0422Q0003

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 150 HOWELL RD STE B, TYRONE, GA, 30290

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $11,726,996

Exercised Options: $7,332,950

Current Obligation: $7,332,950

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAA21D005B

IDV Type: FSS

Timeline