Department of the Army awards $15.3M contract for facility technical services to Versar, Inc

Contract Overview

Contract Amount: $15,297,982 ($15.3M)

Contractor: Versar, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-12-10

End Date: 2027-07-05

Contract Duration: 937 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE OBJECTIVE OF THIS SERVICE CONTRACT IS FOR THE CONTRACTOR TO PROVIDE TECHNICAL SERVICES INCLUDING, BUT NOT LIMITED TO INSPECTIONS, ASSESSMENTS, REPAIRS, TESTING, REPORTS, AND TRAINING FOR FACILITIES, AND OPERATIONS-RELATED PROJECTS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $15.3 million to VERSAR, INC. for work described as: THE OBJECTIVE OF THIS SERVICE CONTRACT IS FOR THE CONTRACTOR TO PROVIDE TECHNICAL SERVICES INCLUDING, BUT NOT LIMITED TO INSPECTIONS, ASSESSMENTS, REPAIRS, TESTING, REPORTS, AND TRAINING FOR FACILITIES, AND OPERATIONS-RELATED PROJECTS. Key points: 1. Contract focuses on comprehensive technical services for facilities and operations. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Definitive contract type indicates a single award with a defined scope. 4. Firm-fixed-price structure shifts cost risk to the contractor. 5. Contract duration of over three years suggests a need for sustained support. 6. The North American Industry Classification System (NAICS) code 238210 points to electrical contractors, though the description is broader. 7. The contract is managed by the Department of the Army, a major defense spender. 8. The contract is geographically focused on the District of Columbia.

Value Assessment

Rating: fair

The total contract value is $15.3 million over a period of approximately 3.5 years. Without specific performance metrics or detailed cost breakdowns, it is difficult to benchmark the value for money definitively. However, the firm-fixed-price nature of the contract implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the price is competitive. Further analysis would require comparing the scope of services and pricing against similar contracts awarded by the Department of Defense or other federal agencies for facility maintenance and technical support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bidders suggests a moderate level of competition for this contract. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions. The fact that it was competed openly is a positive sign for price discovery and ensuring the government receives a fair market price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The Department of the Army benefits from sustained technical services for its facilities. Services include inspections, assessments, repairs, testing, reports, and training. The contract's geographic focus is the District of Columbia, impacting local operations. Potential workforce implications for skilled technicians and support staff in the DC area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The NAICS code 238210 (Electrical Contractors and Other Wiring Installation Contractors) may not fully encompass the breadth of 'facilities, and operations-related projects' described, potentially leading to scope creep or misaligned expectations.
The duration of the contract (over 3 years) requires careful monitoring to ensure continued alignment with evolving facility needs and technological advancements.
While firm-fixed-price, the extensive list of services could still present challenges in precise cost estimation and management if not clearly defined.
The contract is awarded to a single entity (Versar, Inc.), meaning the government relies heavily on this one contractor's performance and capacity.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type shifts cost risk to the contractor, potentially leading to better cost control for the government.
The contract duration suggests a stable, long-term need for these critical facility services.
The contractor, Versar, Inc., has experience in government contracting, which can imply familiarity with compliance and reporting requirements.
The contract is for essential facility maintenance and technical support, crucial for operational readiness.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically related to facility operations and maintenance. The market for such services is substantial, driven by government and commercial entities requiring specialized expertise for their physical infrastructure. Comparable spending benchmarks would typically involve analyzing the average cost per square foot for facility maintenance and technical support across similar government installations or large commercial properties, adjusted for geographic location and service complexity. The NAICS code 238210, while specific to electrical contractors, suggests a potential overlap or focus on the electrical and technical systems within facilities.

Small Business Impact

This contract was not set aside for small businesses and there is no indication of specific small business subcontracting requirements in the provided data. The award to Versar, Inc., a company that may or may not be classified as a small business itself, means that opportunities for small businesses would primarily arise if Versar engages in subcontracting. Without explicit set-aside provisions or mandated subcontracting goals, the direct impact on the small business ecosystem for this specific contract is likely limited unless Versar proactively includes small businesses in its supply chain.

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, where the contractor is responsible for delivering the specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

Department of Defense Facility Maintenance Contracts
Army Corps of Engineers Support Services
General Services Administration (GSA) Professional Services Schedules
Base Operations Support (BOS) Contracts
Technical Services Contracts

Risk Flags

Potential for scope creep due to broad service description.
Reliance on a single contractor for critical facility services.
NAICS code may not fully align with the described services.
Moderate competition level could impact price optimization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.3 million to VERSAR, INC.. THE OBJECTIVE OF THIS SERVICE CONTRACT IS FOR THE CONTRACTOR TO PROVIDE TECHNICAL SERVICES INCLUDING, BUT NOT LIMITED TO INSPECTIONS, ASSESSMENTS, REPAIRS, TESTING, REPORTS, AND TRAINING FOR FACILITIES, AND OPERATIONS-RELATED PROJECTS.

Who is the contractor on this award?

The obligated recipient is VERSAR, 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 $15.3 million.

What is the period of performance?

Start: 2024-12-10. End: 2027-07-05.

What is Versar, Inc.'s track record with similar federal contracts, particularly regarding performance and past issues?

Versar, Inc. has a history of performing various service contracts for federal agencies, including the Department of Defense. Analysis of their past performance would involve reviewing contract databases for on-time delivery, quality of work, and any documented disputes or contract terminations. Specific issues might include performance deficiencies, cost overruns on cost-reimbursable contracts, or compliance problems. Without access to detailed past performance reviews (often considered sensitive or proprietary), a comprehensive assessment is challenging. However, agencies typically consider past performance as a key factor in award decisions, suggesting that Versar's selection implies an acceptable or favorable performance history for this specific contract.

How does the pricing of this $15.3 million contract compare to similar facility technical service contracts awarded by the Department of the Army or other DoD components?

Benchmarking the $15.3 million contract value requires comparing it against contracts with similar scopes of work, durations, and geographic locations. Factors such as the specific types of facilities, the complexity of technical services (e.g., specialized equipment maintenance vs. general repairs), and the prevailing labor rates in the District of Columbia would influence pricing. A preliminary comparison might involve looking at average contract values for base operations support or facility management services within the DoD. If this contract covers a large number of facilities or highly specialized technical requirements, the $15.3 million figure might be reasonable. Conversely, if it covers a limited scope or standard services, it could indicate higher-than-average costs. Detailed cost analysis would necessitate examining the contractor's proposed labor rates, overhead, and profit margins against industry standards.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential scope creep, where the definition of 'facilities, and operations-related projects' expands beyond initial expectations, leading to cost increases or performance issues. Another risk is contractor underperformance, where Versar, Inc. may fail to meet quality standards or deadlines. Given the firm-fixed-price nature, the primary risk to the government is receiving substandard services if the contractor cuts corners to maintain profitability. Mitigation strategies likely include robust contract management by the COR, clear performance work statements, regular progress reviews, and potentially performance-based payment schedules. The moderate competition (4 bidders) also suggests some level of market risk, as fewer bidders might imply less pressure on pricing and innovation.

How effective is the firm-fixed-price (FFP) contract type in ensuring value for money for these facility technical services?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and the government's requirements are stable. In this case, FFP shifts the primary cost risk to the contractor, Versar, Inc. This incentivizes the contractor to manage costs efficiently and perform the work within the agreed-upon budget. For the government, it provides cost certainty, making budgeting more predictable. However, the effectiveness hinges on the clarity and completeness of the Performance Work Statement (PWS). If the PWS is ambiguous, the contractor might deliver minimal acceptable services, or disputes could arise over what is included, potentially negating some of the value-for-money benefits. Regular oversight is still crucial to ensure quality is not sacrificed for cost savings.

What is the historical spending trend for similar facility technical services by the Department of the Army, and how does this award fit in?

The Department of the Army, as a major component of the DoD, consistently spends significant amounts on facility maintenance, operations, and technical support across its numerous installations. Historical spending trends for these types of services are typically substantial and can fluctuate based on infrastructure needs, modernization efforts, and budget allocations. This $15.3 million award represents a specific instance of this ongoing spending. To understand its place in the trend, one would need to analyze the Army's total obligations for similar services over several fiscal years. This contract's value appears moderate within the context of large-scale base operations or major facility upgrades, but significant for a specific set of technical services within the District of Columbia.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Electrical Contractors and Other Wiring Installation Contractors

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › INSPECTION SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DY24R0043

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1025 VERMONT AVE NW STE 500, WASHINGTON, DC, 20005

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

Financial Breakdown

Contract Ceiling: $31,769,572

Exercised Options: $19,234,657

Current Obligation: $15,297,982

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline