DOD awards $24.2M for electrical inspection and repairs, with Versar, Inc. securing the contract

Contract Overview

Contract Amount: $24,227,342 ($24.2M)

Contractor: Versar, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-08-03

End Date: 2012-06-03

Contract Duration: 670 days

Daily Burn Rate: $36.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELECTRICAL INSPECTION & REPAIRS

Plain-Language Summary

Department of Defense obligated $24.2 million to VERSAR, INC. for work described as: ELECTRICAL INSPECTION & REPAIRS Key points: 1. The contract value of $24.2 million for facilities support services indicates a significant investment in maintaining critical infrastructure. 2. The full and open competition suggests a robust market for these services, potentially leading to competitive pricing. 3. The contract duration of 670 days (approximately 22 months) allows for sustained service delivery and performance monitoring. 4. The fixed-price contract type shifts performance risk to the contractor, Versar, Inc. 5. The North American Industry Classification System (NAICS) code 561210 categorizes this as Facilities Support Services, a broad but essential sector. 6. The award was made by the Department of the Army, highlighting the defense sector's need for specialized maintenance.

Value Assessment

Rating: good

The contract value of $24.2 million for electrical inspection and repairs over approximately two years appears reasonable for a large-scale federal facility support contract. Benchmarking against similar contracts would require detailed scope of work comparisons, but the fixed-price nature suggests the government has a clear understanding of costs. The competition level, being full and open, further supports the likelihood of a fair market price being achieved.

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 bids. The presence of 6 bids suggests a healthy level of interest and competition within the market for these specialized services. This broad competition is generally favorable for price discovery and ensures the government receives offers from a wide range of qualified contractors.

Taxpayer Impact: A competitive bidding process like this one helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Military installations and federal facilities benefit from ensured electrical system safety and operational continuity. Essential services such as inspection, maintenance, and repair of electrical systems are delivered. The geographic impact is likely concentrated around the specific facilities managed by the Department of the Army where these services are required. The contract supports a workforce skilled in electrical engineering, inspection, and maintenance, contributing to employment in the facilities management sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial inspections reveal unforeseen extensive repair needs beyond the original contract's defined scope.
Dependence on contractor performance for critical infrastructure safety and operational readiness.
Risk of price escalation in future contracts if market conditions for specialized electrical services change significantly.

Positive Signals

The fixed-price contract structure incentivizes contractor efficiency and cost control.
Full and open competition suggests a competitive market, likely resulting in a fair price.
The contract duration allows for consistent service delivery and relationship building with the contractor.

Sector Analysis

Facilities Support Services, encompassing a wide range of activities necessary for the operation and maintenance of buildings and infrastructure, is a critical sector for government operations. This contract falls within the broader construction and maintenance services market. Comparable spending benchmarks would depend on the specific types and scale of facilities being serviced, but federal spending in this area is substantial due to the vast real estate holdings of agencies like the Department of Defense.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless Versar, Inc. actively engages small businesses as subcontractors. Further analysis of subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army. Performance monitoring, quality assurance checks, and adherence to contract terms are standard accountability measures. Transparency is generally maintained through contract award databases, though specific performance details may be less publicly accessible.

Related Government Programs

Department of Defense Facilities Maintenance Contracts
Federal Electrical Services Contracts
Facilities Support Services Contracts
Army Corps of Engineers Construction and Maintenance

Risk Flags

Contract Performance Risk
Scope Definition Adequacy
Market Price Volatility

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.2 million to VERSAR, INC.. ELECTRICAL INSPECTION & REPAIRS

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 $24.2 million.

What is the period of performance?

Start: 2010-08-03. End: 2012-06-03.

What is Versar, Inc.'s track record with federal contracts, particularly in facilities support?

Versar, Inc. has a history of securing federal contracts, including those related to facilities support, engineering, and construction services. Their experience often spans various government agencies, including the Department of Defense. Analyzing their past performance ratings, any contract disputes, and the types of services they have previously delivered would provide a clearer picture of their capabilities and reliability for this specific electrical inspection and repair contract. A review of their award history would reveal the scale and complexity of projects they have managed previously.

How does the $24.2 million contract value compare to similar electrical inspection and repair contracts awarded by the Department of the Army?

The $24.2 million value for this contract, spanning approximately 22 months, represents a significant investment. To benchmark effectively, one would need to compare it against other full and open competition contracts for electrical inspection and repair services awarded by the Department of the Army or similar agencies over comparable timeframes. Factors such as the number and type of facilities, the scope of work (e.g., routine inspections vs. extensive repairs), and geographic location would influence price. Without specific comparable data, it's challenging to definitively state if this represents a high or low value, but the competitive nature of the award suggests a market-driven price.

What are the primary risks associated with this contract for the Department of the Army?

Key risks for the Department of the Army include potential performance failures by Versar, Inc., which could compromise electrical system safety and operational readiness of facilities. There's also a risk of cost overruns if the fixed-price contract doesn't adequately account for unforeseen issues discovered during inspections, although the contractor bears much of this risk. Delays in service delivery could impact facility operations. Ensuring robust oversight and clear communication channels are crucial to mitigating these risks.

How effective are fixed-price contracts in ensuring value for money in facilities support services like electrical maintenance?

Fixed-price contracts are generally effective in ensuring value for money when the scope of work is well-defined and understood. They shift the risk of cost overruns to the contractor, incentivizing efficiency and cost control. For services like electrical inspection and repair, where the scope can sometimes be variable, careful initial assessment and clear contract terms are vital. If the scope is accurately defined, the government benefits from predictable costs. However, if unforeseen issues arise, the fixed price might not cover necessary additional work without contract modifications, potentially leading to disputes or delays.

What is the historical spending trend for facilities support services within the Department of the Army?

Historical spending on facilities support services by the Department of the Army is substantial and generally consistent, reflecting the vast infrastructure portfolio managed by the agency. Spending fluctuates based on modernization needs, infrastructure condition assessments, and budget allocations. While specific year-over-year trends for electrical services alone are not detailed here, the overall category of facilities support consistently represents a significant portion of the Army's operational budget, driven by the need to maintain readiness and safety across numerous installations worldwide.

What does the 'Facilities Support Services' NAICS code (561210) encompass, and how does this contract fit within it?

The NAICS code 561210, 'Facilities Support Services,' broadly covers establishments primarily engaged in providing operating and maintaining facilities and infrastructure. This includes services like general building maintenance, cleaning, security, landscaping, and pest control. This specific contract for electrical inspection and repairs fits within this code as it directly relates to the maintenance and operational integrity of a facility's electrical systems, a critical component of overall facility support.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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: W912ER10R0026

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6850 VERSAR CTR, SPRINGFIELD, VA, 11

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,227,342

Exercised Options: $24,227,342

Current Obligation: $24,227,342

Contract Characteristics

Consolidated Contract: Yes

Cost or Pricing Data: NO

Timeline