DoD's $114.6M Facilities Support Services Contract Awarded to APTIM Federal Services Shows Long-Term Engagement

Contract Overview

Contract Amount: $114,640,740 ($114.6M)

Contractor: Aptim Federal Services, LLC

Awarding Agency: Department of Defense

Start Date: 2008-06-20

End Date: 2020-07-31

Contract Duration: 4,424 days

Daily Burn Rate: $25.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: DIRECTORATE OF LOGISTICS&DIRECTORATE OF PUBLIC WORKS SUPPORT SERVICES.

Place of Performance

Location: FORT RUCKER, DALE County, ALABAMA, 36362

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $114.6 million to APTIM FEDERAL SERVICES, LLC for work described as: DIRECTORATE OF LOGISTICS&DIRECTORATE OF PUBLIC WORKS SUPPORT SERVICES. Key points: 1. The contract's duration of over 12 years suggests a need for sustained facilities support, potentially indicating stable operational requirements. 2. Awarded under full and open competition, the contract likely benefited from a competitive bidding process to secure favorable pricing. 3. The Cost Plus Award Fee (CPAF) contract type allows for performance-based incentives, potentially driving higher quality service delivery. 4. The significant contract value points to a substantial scope of work, encompassing a wide range of facilities support services. 5. The absence of small business set-aside flags suggests the primary contractor may not have significant subcontracting obligations to small businesses. 6. The contract's performance period spans a significant portion of the last decade, offering a substantial dataset for performance analysis.

Value Assessment

Rating: good

The contract's total value of $114.6 million over more than 12 years averages approximately $9.55 million annually. Benchmarking this against similar large-scale facilities support contracts for federal agencies is challenging without more specific service details. However, the CPAF structure suggests that the government aims to achieve good value by incentivizing performance, potentially leading to cost savings or improved service quality compared to fixed-price contracts if managed effectively. The number of bids (7) indicates a healthy level of interest, which typically correlates with competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. Seven bids were received, indicating a robust competitive environment for these facilities support services. This level of competition is generally favorable for price discovery and ensures that the government receives offers from multiple qualified contractors, increasing the likelihood of obtaining a fair market price.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down prices through the bidding process, ensuring that government funds are used efficiently. A competitive landscape reduces the risk of overpayment and encourages contractors to offer their best value propositions.

Public Impact

The primary beneficiaries are the Department of Defense and the Department of the Army, receiving comprehensive facilities support services. Services likely include maintenance, repair, operations, and potentially other facility management functions essential for military installations. The contract's performance in Alabama suggests a geographic focus on facilities within that state, supporting military personnel and operations there. The contract supports a workforce involved in facilities management, maintenance, and related trades, contributing to employment in the sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The long duration of the contract could lead to contractor complacency if not actively managed and overseen.
Cost Plus Award Fee contracts can sometimes lead to cost overruns if the award fee criteria are not tightly defined or if scope creep occurs.
The lack of explicit small business subcontracting information raises questions about opportunities for smaller businesses in this large contract.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The Cost Plus Award Fee structure incentivizes contractor performance and quality.
The contract's long performance period indicates a stable and potentially successful relationship, suggesting consistent service delivery.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of physical infrastructure. This sector is critical for government agencies, particularly defense organizations, to ensure the readiness and functionality of their installations. The market for these services is substantial, with numerous private sector firms specializing in facility management, maintenance, and operations. This specific contract represents a significant portion of spending within this niche for the Department of the Army in Alabama.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary contract was awarded to a large business, APTIM FEDERAL SERVICES, LLC. While there is no explicit mention of subcontracting goals, large federal contracts often include provisions for small business participation. Further investigation would be needed to determine if APTIM has subcontracting plans or if opportunities exist for small businesses to participate in delivering these facilities support services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program/project managers within the Department of the Army. The Cost Plus Award Fee structure implies performance monitoring against defined criteria to determine award fees. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Department of Defense Facilities Maintenance
Army Base Operations Support
Federal Facilities Management Contracts
Logistics and Public Works Support Services
Cost Plus Award Fee Contracts

Risk Flags

Long contract duration may lead to complacency.
CPAF structure requires careful oversight to control costs.
Potential for vendor lock-in due to long-term relationship.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $114.6 million to APTIM FEDERAL SERVICES, LLC. DIRECTORATE OF LOGISTICS&DIRECTORATE OF PUBLIC WORKS SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is APTIM FEDERAL 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 $114.6 million.

What is the period of performance?

Start: 2008-06-20. End: 2020-07-31.

What is the historical spending trend for facilities support services by the Department of the Army in Alabama over the last decade?

Analyzing historical spending for facilities support services by the Department of the Army in Alabama over the last decade reveals a significant and consistent investment in maintaining operational readiness. This $114.6 million contract with APTIM FEDERAL SERVICES, LLC, spanning from 2008 to 2020, represents a substantial portion of that investment. While this specific award is a large single contract, the Army likely engages in numerous smaller contracts and task orders for similar services across various installations within the state. Trends would likely show fluctuations based on budget allocations, infrastructure needs, and strategic priorities. Understanding the broader spending landscape requires examining aggregated data across multiple contract vehicles and fiscal years to identify patterns in service types, contractor awards, and overall expenditure levels.

How does the per-unit cost or scope of services for this contract compare to similar facilities support contracts awarded by other branches of the military?

Directly comparing the per-unit cost or scope of services for this $114.6 million contract to similar facilities support contracts across other military branches is complex due to variations in service definitions, geographic locations, labor costs, and contract structures. This contract, awarded under a Cost Plus Award Fee (CPAF) structure, focuses on facilities support services for the Department of the Army in Alabama. Benchmarking would require identifying contracts with comparable service scopes (e.g., maintenance, repair, operations, janitorial, groundskeeping) and similar contract types. Differences in base operating costs, security requirements, and the specific types of facilities managed (e.g., barracks, administrative buildings, training grounds) can significantly impact pricing. A comprehensive comparison would necessitate a detailed analysis of contract line item numbers (CLINs) and performance metrics across multiple awards.

What are the key performance indicators (KPIs) used to determine the award fee for APTIM FEDERAL SERVICES, LLC under this contract?

The specific Key Performance Indicators (KPIs) used to determine the award fee for APTIM FEDERAL SERVICES, LLC under this Cost Plus Award Fee (CPAF) contract are not publicly detailed in the provided data. However, for facilities support services contracts, typical KPIs often revolve around service availability, response times for maintenance requests, quality of repairs, adherence to safety standards, energy efficiency targets, and customer satisfaction. The CPAF structure incentivizes the contractor to exceed baseline performance expectations. The contracting officer and technical representatives would monitor performance against these predefined metrics, and the resulting scores would influence the 'award fee' portion of the payment, rewarding exceptional service delivery and potentially penalizing subpar performance.

What is the track record of APTIM FEDERAL SERVICES, LLC in performing large-scale facilities support contracts for the federal government?

APTIM FEDERAL SERVICES, LLC has a significant track record in performing large-scale facilities support and environmental services contracts for the federal government. As a prime contractor, they have been involved in numerous complex projects across various agencies, including the Department of Defense, Department of Energy, and others. Their portfolio often includes operations and maintenance, base operations support, environmental remediation, and construction services. The longevity and value of contracts like this one with the Department of the Army suggest a demonstrated capability to manage extensive operations, meet performance requirements, and navigate the complexities of federal contracting. Reviews of their past performance, often available through government contract databases and past performance questionnaires, would provide further insight into their reliability and effectiveness.

Given the contract's duration and value, what are the potential risks associated with long-term reliance on a single contractor for facilities support?

Long-term reliance on a single contractor for critical facilities support services, as seen with this $114.6 million contract spanning over 12 years, presents several potential risks. Firstly, there's the risk of complacency, where the contractor may reduce efforts or innovation over time, assuming continued contract renewal. Secondly, a lack of ongoing competition can lead to price escalation in subsequent contract periods if not carefully managed. Thirdly, institutional knowledge can become concentrated within the contractor's organization, making it difficult for the government to transition to a new provider or bring services in-house. Finally, unforeseen changes in technology or operational needs might not be adequately addressed if the contractor's business model or capabilities become rigid. Robust contract management, regular performance reviews, and market analysis are crucial to mitigate these risks.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911SE07R0018

Offers Received: 7

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Aptim Holdings LLC (UEI: 080821711)

Address: 1725 DUKE ST, STE 400, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $135,307,089

Exercised Options: $134,220,119

Current Obligation: $114,640,740

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline