Department of the Army awards $45M facilities maintenance contract to PRIDE INDUSTRIES in Texas

Contract Overview

Contract Amount: $44,985,077 ($45.0M)

Contractor: Pride Industries

Awarding Agency: Department of Defense

Start Date: 2020-02-01

End Date: 2020-10-31

Contract Duration: 273 days

Daily Burn Rate: $164.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FACILITIES MAINTENANCE

Place of Performance

Location: FORT BLISS, EL PASO County, TEXAS, 79916

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $45.0 million to PRIDE INDUSTRIES for work described as: FACILITIES MAINTENANCE Key points: 1. Contract awarded as a delivery order under an existing contract, suggesting potential for streamlined execution. 2. The contract's value of $45M over 273 days indicates a significant investment in facilities support services. 3. Sole-source award raises questions about competition and potential for overpayment. 4. The fixed-price contract type shifts performance risk to the contractor. 5. The contractor, PRIDE INDUSTRIES, has a substantial contract value associated with this award. 6. Services are concentrated in Texas, implying a localized impact on facilities maintenance.

Value Assessment

Rating: fair

The contract value of $45M for a 273-day period suggests a high daily burn rate, potentially indicating a need for detailed cost analysis. Without comparable contract data or specific service metrics, it is difficult to definitively benchmark value for money. The firm fixed-price nature of the contract, however, provides cost certainty for the government, assuming the scope of work is well-defined and achievable within the stated price.

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 among multiple vendors. While sole-source awards can be justified under specific circumstances (e.g., urgency, unique capabilities), they generally limit price discovery and may not result in the most competitive pricing for the government. The absence of a competitive bidding process means that taxpayers may not have benefited from the lowest possible price.

Taxpayer Impact: A sole-source award means taxpayers did not benefit from competitive bidding, potentially leading to a higher overall cost for these facilities maintenance services.

Public Impact

The primary beneficiaries of this contract are the facilities and infrastructure managed by the Department of the Army within Texas. The contract delivers essential facilities support services, ensuring the operational readiness and upkeep of military installations. The geographic impact is concentrated in Texas, where the services will be performed. While specific workforce implications are not detailed, such a large contract likely supports a significant number of jobs in the facilities maintenance sector within the local Texas economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
High contract value over a relatively short period warrants scrutiny of cost efficiency.
Lack of detailed performance metrics makes it difficult to assess the true value delivered.
Concentration of services in one geographic area may limit broader economic benefits.

Positive Signals

Firm fixed-price contract shifts performance risk to the contractor.
Award to an established contractor like PRIDE INDUSTRIES may indicate reliability and experience.
Delivery order mechanism suggests an existing, potentially vetted, contractual relationship.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of maintenance, repair, and operational services for buildings and grounds. The market for these services is substantial, with significant government spending allocated annually to ensure the upkeep of federal installations. This specific award represents a notable portion of spending within this niche for the Department of the Army in Texas, contributing to the overall market activity for facility management providers.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not provided for this contract. As a sole-source award, it is less likely to have been structured with specific small business participation goals unless mandated by other overarching agreements. The absence of this data makes it difficult to assess the impact on the small business ecosystem for facilities maintenance in Texas.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. As a delivery order under an existing contract, some oversight mechanisms may have been pre-established. However, the sole-source nature necessitates careful monitoring to ensure the contractor is meeting all performance requirements and that the pricing remains fair and reasonable throughout the contract period. Transparency is limited due to the lack of competitive bidding.

Related Government Programs

Facilities Maintenance Services
Base Operations Support
Government Property Management
Logistics and Support Services

Risk Flags

Sole-source award
High daily cost
Short contract duration for value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.0 million to PRIDE INDUSTRIES. FACILITIES MAINTENANCE

Who is the contractor on this award?

The obligated recipient is PRIDE INDUSTRIES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $45.0 million.

What is the period of performance?

Start: 2020-02-01. End: 2020-10-31.

What is the track record of PRIDE INDUSTRIES in performing similar facilities maintenance contracts for the Department of Defense?

PRIDE INDUSTRIES has a significant history of performing facilities maintenance and support services for various government agencies, including the Department of Defense. Their experience often encompasses a wide range of services such as janitorial, groundskeeping, pest control, and general building maintenance. Analyzing their past performance on similar contracts, particularly those with the Army or other branches of the DoD, would involve reviewing past performance evaluations (e.g., CPARS reports), contract modifications, and any documented instances of outstanding performance or deficiencies. A review of their financial stability and capacity to handle large-scale contracts like this one is also crucial. Without specific data on this contract's performance history, a general assessment relies on their broader portfolio and reputation within the federal contracting space.

How does the per-day cost of this contract compare to industry benchmarks for facilities maintenance in Texas?

The contract value is $45,985,076.70 over 273 days, equating to approximately $168,443 per day. Benchmarking this against industry standards for facilities maintenance in Texas requires detailed information about the specific services provided (e.g., janitorial, HVAC, landscaping, security, etc.), the square footage of facilities maintained, and the level of service required. General industry data suggests that comprehensive facilities management can range significantly, but a daily cost of this magnitude for a large installation or multiple facilities is plausible, especially if it includes specialized services or 24/7 operations. However, without a breakdown of services and scope, a precise comparison is challenging. The sole-source nature also means this rate was not tested against market competition.

What are the primary risks associated with a sole-source award for facilities maintenance services?

The primary risk associated with a sole-source award for facilities maintenance is the lack of competitive pressure, which can lead to inflated pricing and reduced incentive for the contractor to innovate or optimize service delivery. Without competing bids, the government may not secure the best possible value for its money. There's also a risk that the chosen contractor may not possess the most suitable capabilities or may become complacent due to the guaranteed business. Furthermore, sole-source awards can raise concerns about fairness and transparency in the procurement process, potentially leading to protests or scrutiny from oversight bodies. Ensuring the justification for the sole-source award is robust and that the contractor's performance is rigorously monitored becomes paramount.

What is the historical spending pattern for facilities maintenance by the Department of the Army in Texas?

Historical spending data for facilities maintenance by the Department of the Army in Texas would reveal trends in contract values, types of services procured, and the contractors utilized. Analyzing this would involve looking at previous years' obligations for similar North American Industry Classification System (NAICS) codes, such as 561210 (Facilities Support Services). This contract's value of approximately $45 million represents a significant single award. Understanding if this is an increase or decrease compared to previous years, and whether it aligns with broader trends in military base operations and infrastructure investment in the region, would provide valuable context. It would also indicate if PRIDE INDUSTRIES has been a consistent provider or if this represents a new award to them.

How does the contract duration (273 days) influence the assessment of value for money?

A contract duration of 273 days (approximately 9 months) is relatively short for a facilities maintenance contract of this magnitude ($45M). This short duration, coupled with the sole-source award, makes a comprehensive assessment of long-term value for money more challenging. While a firm fixed-price contract provides cost certainty for this period, the short term might not allow for the full realization of efficiencies that could be achieved through longer-term partnerships or performance-based incentives. It could also indicate a temporary need or a bridge contract. Evaluating value for money would require understanding why the contract is structured for this specific duration and whether it aligns with the government's strategic objectives for facilities management in the region.

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: W911RX19R0004

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10030 FOOTHILLS BLVD, ROSEVILLE, CA, 95747

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,026,229

Exercised Options: $45,026,229

Current Obligation: $44,985,077

Actual Outlays: $16,195,953

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911RX20D0002

IDV Type: IDC

Timeline