DoD's $78.6M MRMC O&M contract awarded to Valiant Government Services LLC shows strong competition

Contract Overview

Contract Amount: $78,573,637 ($78.6M)

Contractor: Valiant Government Services LLC

Awarding Agency: Department of Defense

Start Date: 2020-02-07

End Date: 2024-02-06

Contract Duration: 1,460 days

Daily Burn Rate: $53.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MRMC O&M

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $78.6 million to VALIANT GOVERNMENT SERVICES LLC for work described as: MRMC O&M Key points: 1. The contract value of $78.6 million over four years suggests a significant investment in facility operations and maintenance. 2. Awarded under full and open competition, this contract likely benefited from a robust bidding process. 3. The firm fixed-price structure indicates a clear understanding of costs and risks between the government and contractor. 4. The contract duration of 1460 days (4 years) provides stability for both the agency and the contractor. 5. The presence of 6 bidders points to a healthy competitive landscape for this type of service. 6. The contract's focus on Maintenance, Repair, and Modernization of Construction (MRMC) is crucial for maintaining critical infrastructure.

Value Assessment

Rating: good

The contract's total value of $78.6 million over four years averages to approximately $19.65 million annually. Benchmarking this against similar large-scale facility maintenance contracts is challenging without more specific service details. However, the firm fixed-price nature suggests that the pricing was determined through competitive bidding, which typically drives value. The award amount of $5,381,800 (likely a base or initial task order value) compared to the total potential value indicates significant room for growth or additional task orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The fact that six bidders participated suggests a competitive market for these services. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government, as contractors vie to win the award.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely resulted in a more favorable price than if it had been awarded through a less competitive process. This ensures that government funds are used efficiently.

Public Impact

The Department of the Army benefits from the reliable maintenance and operation of its facilities, ensuring readiness and functionality. Services delivered include essential maintenance, repair, and modernization of buildings and infrastructure. The geographic impact is primarily within the areas where the Department of the Army operates facilities requiring O&M services. Workforce implications include employment opportunities for skilled trades and facility management professionals, both directly by the contractor and indirectly through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the fixed-price contract.
Dependence on contractor performance for critical facility operations, where any lapse could impact mission readiness.
Ensuring consistent quality of maintenance and repair services across potentially diverse facility types and locations.

Positive Signals

Awarded under full and open competition with multiple bidders, indicating a competitive market and likely fair pricing.
Firm fixed-price contract type provides cost certainty for the government.
Contract duration of four years offers stability and allows for long-term planning of maintenance activities.

Sector Analysis

This contract falls within the broader construction and facilities management sector, specifically focusing on operations and maintenance (O&M) for institutional buildings. The federal government is a significant consumer of these services, with substantial annual spending on maintaining its vast real estate portfolio. Comparable spending benchmarks would typically involve analyzing other large O&M contracts awarded by agencies like the GSA, DoD, or other departments for similar types of facilities.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Valiant Government Services LLC is the prime contractor, there is no explicit information on subcontracting plans for small businesses within this data. The impact on the small business ecosystem would depend on whether the prime contractor actively seeks out small business subcontractors for specialized services or supplies.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army, ensuring compliance with contract terms and performance standards. Accountability measures are embedded in the firm fixed-price structure, incentivizing the contractor to perform efficiently. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Facilities Maintenance
Army Operations and Maintenance
Commercial and Institutional Building Construction Services
Federal Building Operations Contracts
Government Facility Management

Risk Flags

Potential for scope creep if maintenance needs exceed initial estimates.
Contractor performance risk impacting facility readiness.
Ensuring consistent quality across diverse facility types.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $78.6 million to VALIANT GOVERNMENT SERVICES LLC. MRMC O&M

Who is the contractor on this award?

The obligated recipient is VALIANT GOVERNMENT 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 $78.6 million.

What is the period of performance?

Start: 2020-02-07. End: 2024-02-06.

What is the historical spending pattern for MRMC O&M contracts awarded by the Department of the Army?

Analyzing historical spending for MRMC O&M contracts by the Department of the Army requires access to comprehensive federal procurement data. Generally, the Army, as a major component of the DoD, consistently allocates significant funds towards maintaining its vast infrastructure, which includes barracks, training facilities, administrative buildings, and specialized research centers. Spending patterns are influenced by factors such as infrastructure age, modernization initiatives, operational tempo, and budget allocations. Contracts for O&M can range from small, localized service agreements to large, multi-year, multi-million dollar Indefinite Delivery/Indefinite Quantity (IDIQ) contracts or delivery orders like this one. Fluctuations in spending can also be tied to broader defense spending trends and specific congressional appropriations. Without specific historical data for this exact contract vehicle or category, it's difficult to provide precise figures, but the overall trend is one of sustained, substantial investment in facility upkeep.

How does the per-unit cost of services under this contract compare to industry benchmarks?

Determining a precise per-unit cost comparison is challenging without detailed breakdowns of the services provided and their associated quantities (e.g., cost per square foot maintained, cost per repair hour). The provided data indicates a total contract value of $78.6 million over 1460 days. This averages to approximately $53,818 per day. However, this daily average encompasses a wide range of potential services, from routine cleaning and landscaping to complex HVAC repairs and structural upgrades. Industry benchmarks for facility operations and maintenance vary significantly based on building type, age, location, and the specific services included. For commercial office buildings, O&M costs can range from $15 to $50+ per square foot annually. For specialized government facilities, these costs can be higher due to security requirements, unique equipment, and regulatory compliance. The firm fixed-price nature suggests the contractor has factored in their expected costs and a profit margin, and the competitive bidding process should have driven this towards a reasonable market rate.

What is Valiant Government Services LLC's track record with similar federal contracts?

Valiant Government Services LLC has a history of performing federal contracts, primarily within the defense and civilian agency sectors. Their contract portfolio often includes services related to facilities maintenance, logistics, IT support, and professional services. A review of publicly available contract data indicates they have been awarded numerous contracts, including task orders under larger IDIQ vehicles and prime contracts for specific requirements. Their performance history can be assessed through contract performance reports (CPARs), which are often available in federal procurement databases. These reports provide ratings on factors such as technical performance, management, cost control, and schedule adherence. A general assessment suggests they are an established contractor capable of handling significant federal requirements, though specific performance on contracts of this scale and type would require a deeper dive into their CPARS data.

What are the potential risks associated with a firm fixed-price contract for O&M services?

Firm Fixed-Price (FFP) contracts offer cost certainty to the government, but they also carry inherent risks, particularly for complex or long-duration service contracts like facility operations and maintenance. One primary risk is that the contractor may cut corners on quality or service delivery to protect their profit margin if unforeseen costs arise or if their initial cost estimates were too low. Conversely, if the contractor's initial estimates were too high and competition was weak, the government might overpay. For O&M, unexpected major repairs (e.g., HVAC failure, roof leaks) could become a significant financial burden for the contractor if not adequately scoped or priced, potentially leading to disputes or requests for equitable adjustments. The government also bears the risk if the scope of work changes significantly, requiring contract modifications. Effective oversight is crucial to mitigate these risks by ensuring the contractor meets quality standards and adheres to the defined scope.

How does the number of bidders (6) impact the value for taxpayers on this contract?

A total of six bidders participating in the competition for this contract is generally considered a healthy number, suggesting a reasonably competitive market for these services. When multiple companies vie for a contract, they are incentivized to offer their best pricing and most competitive terms to win the award. This competitive pressure typically drives down prices compared to a situation with only one or two bidders. For taxpayers, this means that the government is more likely to secure these essential O&M services at a fair market value, avoiding potential overpayment that could occur in a less competitive environment. The presence of six bidders indicates that the requirement was well-defined enough to attract interest and that the market has sufficient capacity to meet the government's needs.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9127816R0030

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Valiant Integrated Services LLC

Address: 101 WALTON WAY, HOPKINSVILLE, KY, 42240

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

Financial Breakdown

Contract Ceiling: $78,573,637

Exercised Options: $78,573,637

Current Obligation: $78,573,637

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $951,320

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127818D0100

IDV Type: IDC

Timeline