DoD's $105.8M Facilities Support Contract with Pyramid Services, Inc. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $105,779,254 ($105.8M)
Contractor: Pyramid Services, Inc
Awarding Agency: Department of Defense
Start Date: 2005-11-08
End Date: 2012-01-31
Contract Duration: 2,275 days
Daily Burn Rate: $46.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Place of Performance
Location: YUMA, YUMA County, ARIZONA, 85365, UNITED STATES OF AMERICA
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $105.8 million to PYRAMID SERVICES, INC for work described as: Key points: 1. Significant contract value of over $105 million for facilities support services. 2. Competition method indicates a potentially robust price discovery process. 3. Contract duration of over 6 years suggests long-term service needs. 4. The 'Cost Plus Award Fee' structure incentivizes performance but requires careful oversight.
Value Assessment
Rating: good
The contract's Cost Plus Award Fee structure allows for performance-based incentives. While specific pricing benchmarks are not provided, the competitive award suggests a reasonable price was determined through market forces.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under 'Full and Open Competition After Exclusion of Sources,' this method suggests a competitive process was initiated, though specific details on source exclusion are not detailed. This approach aims to ensure fair pricing and access for eligible contractors.
Taxpayer Impact: The competitive nature of the award is intended to secure value for taxpayers by fostering a market-driven price for essential facilities support services.
Public Impact
Ensures continued operation and maintenance of critical facilities for the Department of the Army. Supports military readiness and personnel by providing essential infrastructure services. Potential for job creation and economic activity in Arizona, where the contractor is based.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics and award fee criteria.
- Potential for cost overruns in Cost Plus Award Fee contracts if not managed tightly.
- Limited insight into the 'Exclusion of Sources' aspect of the competition.
Positive Signals
- Awarded through full and open competition, maximizing potential contractor pool.
- Contract duration indicates a stable, long-term need for services.
- Contract structure includes award fees, potentially driving higher performance.
Sector Analysis
Facilities Support Services (NAICS 561210) is a broad category encompassing maintenance, operation, and management of buildings and grounds. Spending in this sector is crucial for government operations, with benchmarks varying widely based on scope and location.
Small Business Impact
The data indicates the contractor, Pyramid Services, Inc., is not listed as a small business (sb: false). This suggests the contract was likely awarded to a larger entity, potentially limiting direct opportunities for small businesses unless they are subcontractors.
Oversight & Accountability
The 'Cost Plus Award Fee' structure necessitates robust oversight to ensure costs are reasonable and award fees are justified. The Department of Defense's existing procurement regulations and contract management processes should provide the framework for accountability.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Award Fee structure requires strong oversight.
- Potential lack of transparency regarding 'Exclusion of Sources'.
- Contractor is not a small business, limiting direct SMB participation.
- Long contract duration could lead to vendor lock-in if not managed.
Tags
facilities-support-services, department-of-defense, az, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $105.8 million to PYRAMID SERVICES, INC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is PYRAMID SERVICES, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $105.8 million.
What is the period of performance?
Start: 2005-11-08. End: 2012-01-31.
What specific facilities and services are covered under this contract, and how do they align with the Army's operational needs?
The contract covers Facilities Support Services (NAICS 561210). This typically includes a range of services such as maintenance, repair, custodial, groundskeeping, and potentially specialized support for military installations. Alignment with Army needs would depend on the specific scope defined in the contract's Statement of Work, ensuring critical infrastructure is maintained to support readiness and personnel.
How effectively does the 'Cost Plus Award Fee' structure manage risk and incentivize performance for facilities support?
The Cost Plus Award Fee (CPAF) structure aims to incentivize contractor performance by allowing reimbursement of costs plus a fee that can be adjusted based on performance against defined criteria. This can mitigate risk by aligning contractor incentives with government objectives. However, it requires diligent government oversight to prevent cost creep and ensure award fees are objectively earned.
What was the rationale behind the 'Exclusion of Sources' in the full and open competition, and did it impact the final price?
The rationale for 'Exclusion of Sources' in a full and open competition is not immediately clear from the provided data and warrants further investigation. Typically, full and open competition aims for maximum participation. If sources were excluded, it might suggest specific technical requirements or prior performance issues, which could potentially influence the competitive landscape and, consequently, the final price achieved.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 337 W WARD ST, ASHEBORO, NC, 27203
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2005-11-08
Current End Date: 2012-01-31
Potential End Date: 2012-01-31 00:00:00
Last Modified: 2015-07-09
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