Department of the Army's $111.8M Facilities Support Services contract awarded to T&H SERVICES, LLC shows potential value concerns

Contract Overview

Contract Amount: $111,817,062 ($111.8M)

Contractor: T&H Services, LLC

Awarding Agency: Department of Defense

Start Date: 2017-04-01

End Date: 2020-10-31

Contract Duration: 1,309 days

Daily Burn Rate: $85.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BASE OPERATIONS SERVICES IGF::CL,CT::IGF

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80913

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $111.8 million to T&H SERVICES, LLC for work described as: BASE OPERATIONS SERVICES IGF::CL,CT::IGF Key points: 1. The contract's cost-plus-fixed-fee structure may incentivize cost overruns. 2. Limited competition raises questions about price discovery and potential overpayment. 3. The contract duration of 1309 days suggests a long-term commitment with potential for evolving needs. 4. Performance context is limited due to 'NOT AVAILABLE FOR COMPETITION' status. 5. The contract falls within the Facilities Support Services sector, a critical but often complex area for government operations. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the 'NOT AVAILABLE FOR COMPETITION' designation and the absence of detailed performance metrics. The cost-plus-fixed-fee (CPFF) pricing structure, while offering flexibility, can sometimes lead to higher costs compared to fixed-price contracts if not rigorously managed. Without comparable contracts or detailed cost breakdowns, it's difficult to definitively assess if the $111.8 million represents a fair price for the services rendered over its 1309-day duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' basis, indicating a sole-source procurement. This significantly limits the opportunity for competitive bidding, which is crucial for ensuring the government receives the best possible pricing and value. The lack of multiple bidders means there was no direct price comparison or incentive for vendors to offer their most competitive rates.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government lacks the leverage that competition provides to negotiate favorable terms and pricing.

Public Impact

The primary beneficiaries are the Department of the Army, receiving essential base operations and facilities support services. Services delivered include facilities maintenance, repair, and potentially other base operational functions critical for military readiness. The geographic impact is concentrated in Colorado, where the contract was performed. Workforce implications include the employment of personnel by T&H SERVICES, LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Cost-plus-fixed-fee structure could incentivize higher spending.
Limited transparency due to 'NOT AVAILABLE FOR COMPETITION' status.
Absence of small business participation noted.

Positive Signals

Contract awarded to a single entity suggests specialized capability or a specific need.
The contract was successfully completed, indicating service delivery.
Long contract duration implies a stable, ongoing requirement.

Sector Analysis

This contract falls within the Facilities Support Services sector (NAICS code 561210), a broad category encompassing a wide range of services necessary for the operation and maintenance of buildings and other facilities. This sector is critical for government operations, ensuring that military bases and other installations are functional and well-maintained. Comparable spending in this sector can vary widely based on the scope and scale of services required, but large-scale base operations contracts often represent significant investments.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). This means that opportunities for small businesses to directly compete for or subcontract on this significant contract may have been limited. Without specific subcontracting plans detailed in the award data, it's difficult to assess the extent of small business involvement, but the lack of a set-aside suggests a primary focus on larger, potentially incumbent, service providers.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting and program management offices. Accountability measures would be tied to the terms and conditions of the Cost Plus Fixed Fee contract, including performance standards and reporting requirements. Transparency is limited by the sole-source nature of the award and the 'NOT AVAILABLE FOR COMPETITION' designation. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Base Operations Support Services
Facilities Maintenance Contracts
Government Contracting
Department of Defense Procurement

Risk Flags

Sole-source award raises concerns about competition and price.
Cost-plus-fixed-fee structure may lead to cost overruns.
Lack of detailed performance metrics hinders value assessment.
No small business set-aside noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $111.8 million to T&H SERVICES, LLC. BASE OPERATIONS SERVICES IGF::CL,CT::IGF

Who is the contractor on this award?

The obligated recipient is T&H SERVICES, 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 $111.8 million.

What is the period of performance?

Start: 2017-04-01. End: 2020-10-31.

What specific services were included under this 'Base Operations Services IGF' contract?

The provided data indicates the contract falls under 'BASE OPERATIONS SERVICES IGF' and has a North American Industry Classification System (NAICS) code of 561210, which corresponds to 'Facilities Support Services'. While the specific deliverables are not detailed, this typically encompasses a broad range of services essential for the functioning of a military installation. These can include, but are not limited to, maintenance and repair of buildings and grounds, custodial services, pest control, refuse collection, transportation services, and potentially security or fire protection. The 'IGF' designation might refer to a specific type of installation or operational support within the Army's framework. The 'CL,CT' might denote contract line item or contract type specifics not fully elaborated in the summary data.

Why was this contract awarded on a 'NOT AVAILABLE FOR COMPETITION' basis?

The 'NOT AVAILABLE FOR COMPETITION' (often referred to as sole-source) status indicates that the Department of the Army determined that only one responsible source was capable of providing the required services. This could be due to various reasons, such as the existence of a patent or proprietary data, a critical need for standardization with existing equipment or services, or a national emergency. Without further details from the contract award justification, the precise reason remains unspecified. However, such designations bypass the standard competitive bidding process, raising concerns about potential impacts on price and value.

How does the Cost Plus Fixed Fee (CPFF) contract type potentially impact the final cost compared to other contract types?

A Cost Plus Fixed Fee (CPFF) contract type, like the one used here, reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or involves a high degree of uncertainty. While it allows for flexibility, it places the risk of cost overruns primarily on the government. If the contractor's costs exceed estimates, the government still pays the actual costs plus the fixed fee. This contrasts with fixed-price contracts, where the contractor bears the risk of cost overruns, potentially leading to more cost-conscious performance. Rigorous oversight is crucial with CPFF contracts to manage costs effectively.

What is the significance of the contract's duration (1309 days)?

A duration of 1309 days, approximately 3.5 years, signifies a substantial and long-term commitment by the Department of the Army for these base operations and facilities support services. Such extended periods suggest that the services are critical and ongoing for the operational readiness of the installation. It also implies a stable requirement that the contractor, T&H SERVICES, LLC, was expected to fulfill consistently. For the contractor, it represents a significant revenue stream and opportunity to establish a strong presence. For the government, it necessitates careful planning and performance monitoring over the contract's life.

Are there any indicators of contractor performance or past issues with T&H SERVICES, LLC based on this award data?

The provided award data does not contain specific information regarding the past performance or track record of T&H SERVICES, LLC. It only lists the contractor's name and the contract details. To assess performance, one would need to consult other sources such as the Federal Awardee Performance and Integrity Information System (FAPIIS), past performance reviews within the agency, or contract close-out reports. The absence of performance data in this summary means we cannot evaluate their reliability or efficiency based solely on this information.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W911RZ17R0006

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tlingit Haida Tribal Business Corporation

Address: 9097 GLACIER HIGHWAY, JUNEAU, AK, 99801

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, Government, HUBZone Firm, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $112,733,856

Exercised Options: $112,733,856

Current Obligation: $111,817,062

Actual Outlays: $1,272,234

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline