DoD awards $11.5M for facility maintenance, raising questions on competition and value

Contract Overview

Contract Amount: $11,541,732 ($11.5M)

Contractor: Valiant Government Services LLC

Awarding Agency: Department of Defense

Start Date: 2024-02-22

End Date: 2024-07-22

Contract Duration: 151 days

Daily Burn Rate: $76.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PERFORM O&M AND MINOR CONSTRUCTION AT MRDC.

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to VALIANT GOVERNMENT SERVICES LLC for work described as: PERFORM O&M AND MINOR CONSTRUCTION AT MRDC. Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract duration of 151 days suggests a focus on immediate operational needs. 3. No small business set-aside was utilized, potentially excluding smaller specialized firms. 4. The firm-fixed-price structure aims to control costs, but the lack of competition is a concern. 5. The contract falls under commercial and institutional building construction, a broad category. 6. The award to Valiant Government Services LLC warrants a review of their past performance in similar roles.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bidding. The price of $11.5 million for 151 days of O&M and minor construction at the MRDC needs closer scrutiny. Without comparable bids, it's difficult to ascertain if this represents a fair market price. The absence of competition suggests that the government may not have secured the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Valiant Government Services LLC, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means there was no direct comparison of pricing or service offerings, potentially leading to a higher cost for the government.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to drive down prices, potentially resulting in taxpayer funds being spent at a higher rate than if the contract had been competed.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel at the MRDC, who will receive maintained facilities. Services include Operations & Maintenance (O&M) and minor construction, ensuring the operational readiness of the facility. The geographic impact is localized to the MRDC facility in Maryland. The contract supports the maintenance workforce required for facility upkeep and minor construction tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding raises concerns about cost-effectiveness and potential overpayment.
Sole-source award limits transparency and opportunities for small businesses.
Short contract duration may indicate a reactive approach rather than strategic long-term planning.
Absence of small business participation could mean missed opportunities for economic development.

Positive Signals

Firm-fixed-price contract type helps to cap costs for the government.
The contract is for essential facility maintenance, ensuring operational continuity.
Award to a single vendor may expedite service delivery in urgent situations.

Sector Analysis

This contract falls within the broad construction sector, specifically focusing on commercial and institutional building maintenance and minor repairs. The market for facility maintenance and operations services is substantial, with numerous private sector firms capable of performing such work. The government often contracts for these services to ensure its facilities are operational and secure. Benchmarks for similar contracts are difficult to establish without competitive data, but the scale of this award suggests a significant facility or set of facilities requiring comprehensive upkeep.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for them based on the available data. The sole-source nature of the award further limits the potential for small business participation. This approach may overlook specialized small businesses that could offer competitive pricing or unique capabilities, potentially impacting the broader small business ecosystem that relies on government contracts for growth.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specified services within the agreed price. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Facility Maintenance Contracts
Army Corps of Engineers Construction Contracts
General Services Administration (GSA) Building Operations and Maintenance

Risk Flags

Sole-source award lacks competition
Potential for non-competitive pricing
Limited transparency in procurement process
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to VALIANT GOVERNMENT SERVICES LLC. PERFORM O&M AND MINOR CONSTRUCTION AT MRDC.

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 $11.5 million.

What is the period of performance?

Start: 2024-02-22. End: 2024-07-22.

What is Valiant Government Services LLC's track record with similar Department of Defense facility maintenance contracts?

A review of Valiant Government Services LLC's contract history reveals multiple awards for facility maintenance and construction services across various federal agencies, including the Department of Defense. While the company has experience, the specific scale and nature of this $11.5 million contract require a deeper dive into past performance metrics. Analyzing past performance reports, any documented issues, and the successful completion of similar scope contracts would provide a clearer picture of their capability and reliability for this specific requirement. Without access to detailed performance evaluations, it's difficult to definitively assess their suitability beyond their general experience.

How does the $11.5 million price for 151 days of service compare to market rates for similar facility maintenance and minor construction?

Directly comparing the $11.5 million price for 151 days of service to precise market rates is challenging due to the sole-source nature of this award and the broad scope encompassing both Operations & Maintenance (O&M) and minor construction. However, this equates to approximately $76,170 per day. Industry benchmarks for comprehensive facility management, including maintenance, repairs, and minor construction, can vary significantly based on facility size, complexity, and location. Given the lack of competitive bids, there is a heightened risk that this daily rate may exceed what could have been achieved through a competitive process, suggesting a potential lack of optimal value for taxpayer dollars.

What are the primary risks associated with awarding this contract on a sole-source basis?

The primary risks associated with awarding this contract on a sole-source basis are threefold: increased cost, reduced innovation, and diminished accountability. Without competition, Valiant Government Services LLC faced no pressure to offer the lowest possible price, potentially leading to overpayment by the government. The lack of multiple bidders also stifles innovation, as there was no incentive for vendors to propose unique or more efficient solutions. Furthermore, sole-source awards can sometimes lead to complacency in contractor performance, as the contractor may feel less pressure to consistently meet or exceed expectations when their position is guaranteed without a competitive challenge.

How effective is the firm-fixed-price contract type in managing costs for this specific O&M and minor construction requirement?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for well-defined requirements where the scope of work is clear and unlikely to change significantly. For Operations & Maintenance (O&M) and minor construction, where tasks can be reasonably anticipated, FFP provides cost certainty for the government by establishing a ceiling price. However, the effectiveness is somewhat diminished in this case by the sole-source award. While the FFP structure prevents cost overruns beyond the agreed price, it does not guarantee that the initial price itself represents the best value achievable through competition. The contractor bears the risk of cost overruns, but the government bears the risk of paying a non-competitive price.

What historical spending patterns exist for facility maintenance and minor construction at the MRDC or similar DoD facilities?

Analyzing historical spending patterns for facility maintenance and minor construction at the MRDC or similar Department of Defense (DoD) facilities is crucial for context. Without specific historical data for this particular MRDC contract, we can infer general trends. DoD facilities often require continuous maintenance due to heavy usage and environmental factors. Spending in this category can fluctuate based on infrastructure age, deferred maintenance backlogs, and specific modernization projects. Contracts for such services can range from small, localized repairs to large, multi-year comprehensive facility management agreements. Understanding the historical spending on similar scope contracts, especially those that were competed, would provide a valuable benchmark against which this $11.5 million sole-source award could be assessed.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9127824R0031

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Valiant Integrated Services LLC

Address: 2008 LITHO PL, FAYETTEVILLE, NC, 28304

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: $11,633,032

Exercised Options: $11,541,732

Current Obligation: $11,541,732

Actual Outlays: $5,135,976

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $261,834

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline