DoD Awards $96.6M Facilities Support Contract to IAP World Services, Inc. for Army Reserve
Contract Overview
Contract Amount: $96,596,621 ($96.6M)
Contractor: IAP World Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-10-01
End Date: 2020-03-31
Contract Duration: 5,660 days
Daily Burn Rate: $17.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: 200501!500095!2100!W911S1!ACA, ARMY RESERVE CONTRACTING CE!W911S105C0001 !A!N! !Y! ! !20041001!20050930!010816486!010816486!006092860!N!IAP WORLD SERVICES, INC !7315 N ATLANTIC AVE !CAPE CANAVERAL !FL!32920!24300!005!34!FORT DIX !BURLINGTON !NEW JERSEY!+000008244759!N!N!000041326226!M216!OPERATION/DREDGING !S1 !SERVICES !000 !* !561210!E! !3! ! ! ! ! !20200930!B! ! !A! !A!U!R!2!003!B! !Z!Y!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: FORT DIX, BURLINGTON County, NEW JERSEY, 08640
Plain-Language Summary
Department of Defense obligated $96.6 million to IAP WORLD SERVICES, INC. for work described as: 200501!500095!2100!W911S1!ACA, ARMY RESERVE CONTRACTING CE!W911S105C0001 !A!N! !Y! ! !20041001!20050930!010816486!010816486!006092860!N!IAP WORLD SERVICES, INC !7315 N ATLANTIC AVE !CAPE CANAVERAL !FL!32920!24300!005!34!FORT DIX !BURL… Key points: 1. The contract value of $96.6 million over its extended period indicates a significant investment in facilities support. 2. Competition was full and open, suggesting a potentially competitive bidding process that could drive value. 3. The extended duration of the contract (2004-2020) raises questions about long-term needs and potential for price escalation. 4. Facilities Support Services (NAICS 561210) is a broad category, and the specific services provided are key to understanding value.
Value Assessment
Rating: fair
The contract value of $96.6 million spread over approximately 16 years suggests an average annual spend of around $6 million. Benchmarking this against similar large-scale facilities support contracts would be necessary for a precise pricing assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can lead to more competitive pricing. The number of offers received (3) is a key indicator of the level of competition.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces. However, the long duration and cost-plus award fee structure warrant scrutiny for potential cost overruns.
Public Impact
Taxpayers are funding essential facilities support services for the Army Reserve, ensuring operational readiness. The long-term nature of the contract may impact budget predictability for the Army Reserve's facilities maintenance. The award to a single contractor, IAP World Services, Inc., means that a significant portion of federal facilities support spending in this area goes to one entity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Extended contract duration (2004-2020) may indicate a lack of flexibility or potential for price creep.
- Cost Plus Award Fee (CPAF) contracts can incentivize performance but also carry a risk of higher costs if not managed tightly.
- Limited number of offers (3) for a large contract could suggest barriers to entry or a concentrated market.
Positive Signals
- Awarded under full and open competition, maximizing potential for competitive pricing.
- Contract supports critical Army Reserve operations.
- Contractor has a long history with this type of service.
Sector Analysis
This contract falls within the Facilities Support Services sector, which is a significant area of government spending. Benchmarks for this sector often focus on cost per square foot or cost per service unit, depending on the specific services rendered.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The long duration of the contract and its cost-plus award fee structure necessitate robust oversight to ensure cost control and effective service delivery. The number of offers received should be reviewed to ensure competition was truly robust.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Extended contract duration
- Cost Plus Award Fee (CPAF) structure
- Limited number of offers received
- Potential for price escalation over time
Tags
facilities-support-services, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $96.6 million to IAP WORLD SERVICES, INC.. 200501!500095!2100!W911S1!ACA, ARMY RESERVE CONTRACTING CE!W911S105C0001 !A!N! !Y! ! !20041001!20050930!010816486!010816486!006092860!N!IAP WORLD SERVICES, INC !7315 N ATLANTIC AVE !CAPE CANAVERAL !FL!32920!24300!005!34!FORT DIX !BURLINGTON !NEW JERSEY!+000008244759!N!N!000041326226!M216!OPERATION/DREDGING !S1 !SERVICES !000 !* !561210!E! !3! ! ! ! ! !202
Who is the contractor on this award?
The obligated recipient is IAP WORLD SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $96.6 million.
What is the period of performance?
Start: 2004-10-01. End: 2020-03-31.
What specific facilities support services were provided under this contract, and how do their costs compare to industry benchmarks for similar services?
The contract covered 'OPERATION/DREDGING' and 'SERVICES' under NAICS code 561210 (Facilities Support Services). Without a detailed breakdown of services and performance metrics, a direct cost comparison is difficult. However, the total value of $96.6 million over nearly 16 years suggests a substantial scope. Further investigation into the specific deliverables and their unit costs against industry standards would be required to assess value.
Given the contract's duration and Cost Plus Award Fee structure, what are the primary risks to taxpayer funds, and how were they mitigated?
The primary risks include potential cost overruns due to the CPAF structure and the extended period allowing for price escalation without re-competition. Mitigation would rely on strong government oversight, clearly defined performance standards, and effective negotiation of award fees. The limited number of offers (3) also presents a risk if the competition was not as robust as intended.
How effectively did the full and open competition process ensure the best value for the government, considering the number of offers received?
While 'full and open' competition is the preferred method, receiving only three offers for a contract of this magnitude and duration warrants scrutiny. It suggests that either the market for these specific services is concentrated, or there were significant barriers to entry. The government must ensure that the evaluation process rigorously identified the best value among the submitted proposals.
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 › OPERATION OF SHIPS, SMALL CRAFTS, PONTOONS AND FLOATING DOCKS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cerberus Capital Management, L.P.
Address: 7315 N ATLANTIC AVE, CAPE CANAVERAL, FL, 32920
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-10-01
Current End Date: 2020-03-31
Potential End Date: 2020-03-31 00:00:00
Last Modified: 2025-01-31
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