DoD awards $49.2M contract for facility maintenance and minor construction to Valiant Government Services LLC

Contract Overview

Contract Amount: $49,241,211 ($49.2M)

Contractor: Valiant Government Services LLC

Awarding Agency: Department of Defense

Start Date: 2024-07-22

End Date: 2026-07-21

Contract Duration: 729 days

Daily Burn Rate: $67.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: O&M WITH REPAIR AND MINOR CONSTRUCTION AT MRDC, VARIOUS LOCATIONS

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $49.2 million to VALIANT GOVERNMENT SERVICES LLC for work described as: O&M WITH REPAIR AND MINOR CONSTRUCTION AT MRDC, VARIOUS LOCATIONS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a definitive contract with a firm fixed price, providing cost certainty. 3. The duration of 729 days indicates a medium-term commitment for facility operations. 4. The award value of $49.2 million is spread across various locations, implying a broad operational scope. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction services. 6. The contract is managed by the Department of the Army, a major component of the DoD. 7. The contract is being performed in Maryland (MD).

Value Assessment

Rating: good

The contract value of $49.2 million for facility operations and minor construction appears reasonable given the scope and duration. Benchmarking against similar contracts for O&M services at military installations would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overruns for the government. However, without specific details on the scope of work and the number of locations, a definitive value assessment is challenging.

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 presence of 3 bidders suggests a moderate level of competition for this requirement. A higher number of bidders typically leads to more competitive pricing and a wider range of solutions, but three bidders still provide a basis for price discovery and selection of the best value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality, ensuring the government receives the best possible value for its investment.

Public Impact

The Department of Defense benefits from the maintenance and minor construction services, ensuring operational readiness of its facilities. Military personnel and civilian employees will have access to well-maintained and functional facilities. The contract supports the operational infrastructure required for national defense. The geographic impact is spread across various unspecified locations within the Department of the Army's purview. The contract likely supports a workforce involved in construction, maintenance, and facility management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'minor construction' is not clearly defined, leading to cost increases.
Dependence on a single contractor for a significant period could reduce flexibility in adapting to changing facility needs.
Geographic dispersion of services may complicate oversight and quality control.

Positive Signals

Firm fixed-price contract provides cost predictability for the government.
Award through full and open competition suggests a robust selection process.
Definitive contract structure allows for task orders within the contract's scope.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically related to operations and maintenance (O&M) services for government facilities. The market for facility maintenance and repair is substantial, with significant government spending allocated annually to ensure the upkeep of its vast real estate portfolio. This contract represents a portion of the Department of the Army's broader spending on infrastructure management and sustainment.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem may be limited unless Valiant Government Services LLC voluntarily engages small businesses for subcontracting opportunities. Further analysis of subcontracting plans would be needed to assess the full impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through contract award announcements and reporting mechanisms, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Facilities Maintenance Contracts
Army Corps of Engineers Construction Contracts
General Services Administration (GSA) Building Operations and Maintenance
Operations and Maintenance Services for Federal Buildings

Risk Flags

Potential for scope creep if 'minor construction' is not clearly defined.
Geographic dispersion may complicate oversight and quality control.
Contractor's past performance history needs thorough review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.2 million to VALIANT GOVERNMENT SERVICES LLC. O&M WITH REPAIR AND MINOR CONSTRUCTION AT MRDC, VARIOUS LOCATIONS

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 $49.2 million.

What is the period of performance?

Start: 2024-07-22. End: 2026-07-21.

What is the historical spending pattern for facility maintenance and minor construction by the Department of the Army, and how does this contract compare?

The Department of the Army, as one of the largest real property holders in the federal government, consistently allocates significant funds towards facility maintenance and minor construction. Annual spending can range in the billions of dollars, covering a wide array of services from routine upkeep to small-scale renovations and repairs across numerous installations. This $49.2 million contract, while substantial, represents a fraction of the Army's total O&M budget. To compare effectively, one would need to analyze historical contract awards for similar scope (e.g., O&M for institutional buildings) and duration within the Army or DoD, looking at average award values, number of bidders, and pricing trends over the past 3-5 fiscal years. This context would reveal if the current award is within historical norms or deviates significantly, potentially indicating unique market conditions or specific project requirements.

What specific types of 'minor construction' are included under this contract, and what are the potential risks associated with this ambiguity?

The term 'minor construction' within a facility maintenance contract can encompass a range of activities, typically involving alterations, additions, or repairs that do not constitute major construction projects. This might include interior renovations, upgrades to building systems (e.g., HVAC, electrical), minor structural repairs, or improvements to support facilities. The primary risk associated with ambiguity in 'minor construction' is scope creep, where the definition is interpreted broadly by the contractor, leading to additional work beyond the initially intended scope and potentially exceeding the contract's budget or timeline. To mitigate this, the contract should ideally contain a detailed Work Breakdown Structure (WBS) or a clear definition of what constitutes 'minor construction,' including cost thresholds and approval processes for any work classified as such. Without this clarity, the government may face unexpected cost increases or disputes over the scope of work.

How does the firm fixed-price (FFP) contract type influence risk allocation and potential cost savings for the government in this scenario?

A Firm Fixed-Price (FFP) contract is designed to provide the government with cost certainty by obligating the contractor to complete the work for a predetermined, fixed price, regardless of the contractor's actual costs. This shifts the majority of the cost risk to the contractor. For the government, this means predictable budgeting and protection against cost overruns, assuming the initial scope is well-defined. In the context of facility maintenance and minor construction, where some unforeseen issues might arise, the FFP structure incentivizes the contractor to manage their costs efficiently and perform work diligently to maintain profitability. Potential cost savings for the government are realized if the contractor can perform the work below their estimated costs. However, if the scope is poorly defined or underestimated by the contractor, they may incur losses, potentially impacting their ability or willingness to perform future work or leading to disputes.

What is Valiant Government Services LLC's track record with similar Department of the Army or DoD contracts, particularly in facility maintenance?

Assessing Valiant Government Services LLC's track record with similar contracts is crucial for understanding their capability and past performance. A review of their contract history with the Department of the Army and the broader DoD would reveal their experience in managing facility maintenance and minor construction projects of comparable size and complexity. Key performance indicators to examine include on-time delivery, adherence to budget, quality of work, and any history of contract disputes, terminations, or performance issues. Information from sources like the Federal Procurement Data System (FPDS) or Contractor Performance Assessment Reporting System (CPARS) can provide insights into their past performance ratings. A strong track record suggests a lower risk of performance issues and a higher likelihood of successful contract execution, while a history of subpar performance would warrant closer scrutiny and potentially more stringent oversight.

Given the 'various locations' mentioned, what is the estimated geographic distribution of this contract's performance, and what are the implications for oversight?

The phrase 'various locations' indicates that the services provided under this $49.2 million contract are not confined to a single installation or region but are distributed across multiple sites managed by the Department of the Army. The specific geographic distribution is not detailed in the provided data, but it could range from several bases within a single state to installations spread across different military regions or even nationally. This broad distribution has significant implications for contract oversight. The Department of the Army will need to establish a robust system for monitoring performance at each location, potentially requiring a network of Contracting Officer's Representatives (CORs) or site inspectors. Managing logistics, ensuring consistent service quality across diverse sites, and verifying work completion in remote areas can become more complex and resource-intensive, increasing the administrative burden and potential for oversight gaps if not adequately planned for.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9127823R0055

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Valiant Integrated Services LLC

Address: 225 RAY AVE STE 300, FAYETTEVILLE, NC, 28301

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: $83,209,999

Exercised Options: $49,241,211

Current Obligation: $49,241,211

Actual Outlays: $1,712,993

Subaward Activity

Number of Subawards: 37

Total Subaward Amount: $3,806,593

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline