Servicesource Inc. awarded $1.98M for facility operations and maintenance, a contract type with limited competition

Contract Overview

Contract Amount: $19,800,000 ($19.8M)

Contractor: Servicesource Inc

Awarding Agency: Department of Defense

Start Date: 2014-09-05

End Date: 2015-06-30

Contract Duration: 298 days

Daily Burn Rate: $66.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF FACILITY (BASE) OPERATIONS, MAINT.+ SUSTAINMENT

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22312, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $19.8 million to SERVICESOURCE INC for work described as: IGF::CT::IGF FACILITY (BASE) OPERATIONS, MAINT.+ SUSTAINMENT Key points: 1. The contract was awarded on a 'not available for competition' basis, raising questions about potential cost savings through competitive bidding. 2. The firm fixed-price contract type suggests that the contractor bears the risk of cost overruns, which can incentivize efficiency. 3. The duration of 298 days indicates a relatively short-term engagement for facility operations and maintenance. 4. The contract falls under Facilities Support Services, a broad category that can encompass various operational needs. 5. The award to Servicesource Inc. represents a single vendor engagement for these specific services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service descriptions and comparable contract data. The raw dollar amount of $1.98 million for a facility operations and maintenance contract of approximately 10 months is moderate. However, the lack of competition means there's no direct market price discovery to assess if this represents optimal value for money. Further analysis would require understanding the scope of services provided and comparing them to industry standards and other government contracts for similar facilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'not available for competition' justification, indicating that a competitive process was not utilized. This typically occurs when only one source is capable of meeting the requirement, or in specific circumstances like follow-on work to a previous contract where competition was previously established. The lack of open competition limits the ability to assess if the pricing is the most competitive available in the market.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of achieving the lowest possible price that could have been secured through a competitive bidding process.

Public Impact

The primary beneficiaries are the personnel and operations within the Washington Headquarters Services, which receive essential facility support. Services delivered include base operations, maintenance, and sustainment, ensuring the functionality and upkeep of facilities. The geographic impact is localized to the facilities managed by Washington Headquarters Services, likely within the Washington D.C. metropolitan area. Workforce implications are direct for the contractor, Servicesource Inc., who will be responsible for providing the necessary personnel to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may lead to higher costs for taxpayers.
Limited transparency into the justification for sole-source award.
Potential for vendor lock-in if services are highly specialized.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Focus on essential facility operations and maintenance ensures critical functions are met.
Award to an established entity (Servicesource Inc.) may imply prior performance familiarity.

Sector Analysis

Facility support services represent a significant segment of the government contracting market, encompassing a wide range of activities from janitorial services to complex building management and maintenance. This contract, focused on base operations, maintenance, and sustainment, fits within the broader Facilities Support Services sector (NAICS 561210). The market for these services is generally competitive, with many providers ranging from large corporations to smaller specialized firms. However, specific government facility needs, especially in secure or unique locations, can sometimes lead to limited competition.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. The award to Servicesource Inc., a larger entity, suggests that small businesses were not the primary focus for this particular procurement. Further analysis would be needed to determine if subcontracting opportunities were mandated or voluntarily pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense and specifically the Washington Headquarters Services. As a firm fixed-price contract, performance monitoring would focus on the delivery of specified services. Accountability measures would be tied to the contract's terms and conditions, with potential recourse for non-performance. Transparency is limited due to the sole-source nature of the award, but contract award data is publicly available.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
Department of Defense Facilities Maintenance Contracts
Base Operations Support (BOS) Contracts

Risk Flags

Sole-source award limits price competition.
Short contract duration may not allow for long-term efficiency gains.
Lack of detailed service scope hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.8 million to SERVICESOURCE INC. IGF::CT::IGF FACILITY (BASE) OPERATIONS, MAINT.+ SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is SERVICESOURCE INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $19.8 million.

What is the period of performance?

Start: 2014-09-05. End: 2015-06-30.

What specific services are included under 'IGF FACILITY (BASE) OPERATIONS, MAINT.+ SUSTAINMENT'?

The description 'IGF FACILITY (BASE) OPERATIONS, MAINT.+ SUSTAINMENT' suggests a comprehensive set of services related to the upkeep and operational readiness of a government facility. This typically includes routine maintenance (e.g., HVAC, plumbing, electrical), janitorial services, groundskeeping, minor repairs, security support, and potentially energy management. Sustainment implies ensuring the long-term functionality and integrity of the facility's infrastructure and systems. Without the full contract statement of work, the precise scope remains general, but it covers the essential day-to-day and preventative measures needed to keep a facility operational and safe.

Why was this contract 'not available for competition'?

The 'not available for competition' status indicates that the contracting agency, Washington Headquarters Services within the Department of Defense, determined that a competitive bidding process was not feasible or appropriate for this specific requirement. Common justifications include: 1) Only one responsible source is available to meet the agency's needs (e.g., unique capabilities, proprietary technology). 2) An urgent need exists that cannot be met by other sources. 3) The contract is a follow-on to a previously competed contract where the original contractor possesses unique knowledge or capabilities. Without the specific justification document, the exact reason remains unknown, but it implies a deviation from standard competitive procurement procedures.

How does the firm fixed-price (FFP) contract type impact risk and cost?

A Firm Fixed-Price (FFP) contract is characterized by a set price that is not subject to adjustment based on the contractor's cost experience. This contract type places the primary risk of cost overruns on the contractor, Servicesource Inc. Consequently, it incentivizes the contractor to manage costs efficiently and perform the work within the agreed-upon budget. For the government, FFP provides cost certainty, as the total price is known upfront. However, if the contractor significantly underestimates costs, they may incur losses, potentially impacting performance or leading to future price increases if the contract is re-competed or extended.

What is the typical market rate for similar facility support services?

Determining a precise 'market rate' for facility support services is complex due to the wide variation in service scope, geographic location, facility size, and specific requirements. However, for contracts of this nature (base operations, maintenance, sustainment), annual costs can range significantly. Larger, more comprehensive contracts can run into tens or hundreds of millions of dollars. For a contract valued at approximately $1.98 million over roughly 10 months, it suggests a medium-sized scope of services or a focus on a specific set of critical functions within a facility. Benchmarking would require comparing the specific tasks, labor rates, and overhead included against other government or commercial contracts for similar facilities in the same region.

What is Servicesource Inc.'s track record with government contracts?

Servicesource Inc. has a history of engaging in government contracting, often providing services related to IT, facilities management, and procurement. Their track record can be assessed by reviewing past contract awards, performance evaluations (if publicly available), and any reported issues or successes. As a provider in the facilities support sector, their experience would likely encompass managing complex operational requirements. A deeper dive into their contract history, including any past performance ratings or disputes, would provide a more comprehensive understanding of their reliability and effectiveness as a government contractor.

What are the potential implications of a short contract duration (298 days)?

A contract duration of 298 days (approximately 10 months) for facility operations and maintenance suggests a short-term need or a bridge contract. This duration may be insufficient for implementing long-term strategic improvements or achieving economies of scale in operations. It could also indicate that the services are part of a larger project with phased requirements or that the agency is testing the contractor's capabilities before committing to a longer-term agreement. For the contractor, it means a limited window to perform and potentially requires mobilizing resources quickly. It also necessitates frequent re-competition or contract extensions if the need persists.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6295 EDSALL RD STE 175, ALEXANDRIA, VA, 22312

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

Financial Breakdown

Contract Ceiling: $19,800,000

Exercised Options: $19,800,000

Current Obligation: $19,800,000

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003414D0018

IDV Type: IDC

Timeline