Doyon Management Services awarded $38.9M contract for building repair, highlighting potential value concerns

Contract Overview

Contract Amount: $38,929,033 ($38.9M)

Contractor: Doyon Management Services, LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-23

End Date: 2026-06-30

Contract Duration: 1,741 days

Daily Burn Rate: $22.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR BLDG 09175

Place of Performance

Location: TACOMA, PIERCE County, WASHINGTON, 98433

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $38.9 million to DOYON MANAGEMENT SERVICES, LLC for work described as: REPAIR BLDG 09175 Key points: 1. The contract's value appears high relative to the number of bids received, suggesting potential overpayment. 2. Limited competition may have inflated costs, impacting overall value for money. 3. The firm-fixed-price structure shifts risk to the contractor, but oversight is crucial. 4. Performance context is limited, requiring close monitoring of repair quality and timeliness. 5. This contract falls within the broader construction sector, with potential for similar projects. 6. The duration of the contract suggests a significant scope of work for building maintenance.

Value Assessment

Rating: questionable

The contract value of $38.9 million for building repair seems substantial, especially given the 11 bids received. Benchmarking against similar building repair contracts of comparable size and scope would be necessary to definitively assess value. However, with a limited number of bidders, there's a risk that the pricing may not reflect the most competitive market rates. The firm-fixed-price nature of the contract means the government is committed to this price, making thorough initial assessment critical.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which is a less common and potentially restrictive method. While 11 bids were received, the specific reason for excluding certain sources needs clarification. This level of competition, while not a sole-source award, might not represent the full spectrum of potential bidders, potentially limiting price discovery and leading to less competitive pricing.

Taxpayer Impact: Taxpayers may have paid more than necessary due to the restricted nature of the competition, even with multiple bids.

Public Impact

The Department of the Army benefits from the repair and maintenance of its facilities. Services delivered include the repair of Building 09175, ensuring operational readiness. The geographic impact is localized to the facility where Building 09175 is located. Workforce implications include employment opportunities for construction and repair trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of 'repair' is not tightly defined.
Risk of delays if contractor performance is subpar.
Limited transparency on the specific exclusion of sources in the competition.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Multiple bidders (11) indicate some level of market interest.
Contract awarded to Doyon Management Services, LLC, a known entity.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector, a significant segment of the federal procurement landscape. Spending in this area supports the maintenance and upgrade of government infrastructure. Comparable spending benchmarks would involve analyzing the average cost per square foot for similar repair projects across different federal agencies and geographic locations. The $38.9 million value places this contract in the mid-to-large size category for building repair.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the primary award went to a large business, and the impact on the small business ecosystem would depend on whether Doyon Management Services, LLC utilizes small businesses for subcontracting, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and facilities management divisions. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified repairs within budget. Transparency is generally provided through contract award databases, but detailed project progress and spending breakdowns may be less accessible to the public. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Building Maintenance Contracts
Department of Defense Infrastructure Projects
Commercial Building Repair Services
Construction Services for Government Facilities

Risk Flags

Limited Competition
Potential for Overpricing
Lack of Detailed Scope Definition
Unclear Justification for Source Exclusion

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.9 million to DOYON MANAGEMENT SERVICES, LLC. REPAIR BLDG 09175

Who is the contractor on this award?

The obligated recipient is DOYON MANAGEMENT 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 $38.9 million.

What is the period of performance?

Start: 2021-09-23. End: 2026-06-30.

What is the track record of Doyon Management Services, LLC with federal contracts, particularly in building repair?

Doyon Management Services, LLC has a history of federal contracting. A deeper analysis would involve reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the types and values of previous contracts awarded to them, and any instances of contract disputes or terminations. Understanding their experience with similar-sized building repair projects and their performance history in the Washington region would provide crucial context for assessing their capability and reliability on this $38.9 million contract. Without specific past performance data, it's difficult to definitively gauge their track record beyond the fact they were awarded this significant contract.

How does the awarded price compare to similar building repair contracts within the Department of the Army or other federal agencies?

A comprehensive value-for-money assessment requires benchmarking this $38.9 million contract against similar projects. This involves comparing the price per square foot, the scope of repairs (e.g., structural, HVAC, electrical), and the contract duration for other building repair contracts awarded by the Department of the Army or other agencies over the past few years. If data indicates that this contract's price is significantly higher than comparable projects, it would raise concerns about value. Conversely, if it aligns with or is lower than benchmarks, it suggests a more reasonable price point, despite the limited competition.

What are the specific risks associated with the 'Full and Open Competition After Exclusion of Sources' award type for this contract?

The 'Full and Open Competition After Exclusion of Sources' award type presents specific risks. While it aims for broad competition, the 'exclusion of sources' implies that certain potential bidders were intentionally not considered, for reasons that need to be clearly justified. This can limit the pool of qualified contractors, potentially leading to higher prices and reduced innovation. The risk for taxpayers is that the government may not have accessed the most competitive offers available in the market. Transparency regarding the justification for excluding sources is paramount to ensure fairness and optimal use of public funds.

What are the key performance indicators (KPIs) and oversight mechanisms in place to ensure the successful completion of Building 09175 repairs?

Effective oversight for this contract would involve clearly defined Key Performance Indicators (KPIs) tied to the repair project's success. These could include metrics such as adherence to the project schedule, quality of workmanship (e.g., meeting building codes and standards), budget management, and safety compliance. The Department of the Army's contracting officer and technical representatives would be responsible for monitoring these KPIs. Regular site inspections, progress reports from Doyon Management Services, LLC, and potentially third-party quality assurance reviews would form the basis of oversight. The firm-fixed-price nature necessitates close monitoring to ensure the contractor meets all obligations.

How has federal spending on building repair and maintenance evolved, and where does this contract fit within that trend?

Federal spending on building repair and maintenance has historically been substantial, driven by the need to preserve aging infrastructure across various agencies. Trends often show fluctuations based on budget appropriations, infrastructure initiatives, and the age of government-owned facilities. This $38.9 million contract represents a significant investment within this category. Analyzing historical spending patterns for the Department of the Army's facilities maintenance could reveal whether this award is consistent with past investment levels or represents an increase or decrease. Understanding these broader trends provides context for the scale and importance of this specific repair project.

What is the potential impact of this contract on the local construction market in Washington?

A contract of this magnitude ($38.9 million) can have a notable impact on the local construction market in Washington. It provides significant revenue and potential employment opportunities for Doyon Management Services, LLC and any subcontractors they engage. Depending on the scale of subcontracting, it could also benefit numerous smaller construction firms, suppliers, and tradespeople in the region. However, it could also potentially strain local resources or drive up labor costs if the demand from this single contract is substantial relative to the available workforce and material supply.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W912DW21B0008

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3450 S 344TH WAY STE 100, FEDERAL WAY, WA, 98001

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,929,033

Exercised Options: $38,929,033

Current Obligation: $38,929,033

Actual Outlays: $966,028

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $12,186,642

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline