Sodexo Management Inc. awarded $24.1M for facilities support services, with 5 bids received

Contract Overview

Contract Amount: $24,141,920 ($24.1M)

Contractor: Sodexo Management Inc.

Awarding Agency: Department of Defense

Start Date: 2015-09-28

End Date: 2020-09-27

Contract Duration: 1,826 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF CORRECTIVE MAINTENANCE

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92134

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $24.1 million to SODEXO MANAGEMENT INC. for work described as: IGF::OT::IGF CORRECTIVE MAINTENANCE Key points: 1. Contract value of $24.1M over 5 years indicates significant investment in facilities maintenance. 2. Full and open competition suggests a potentially competitive bidding process. 3. The contract's duration of 1826 days points to a long-term need for these services. 4. Facilities Support Services (NAICS 561210) is a broad category encompassing essential operational functions. 5. The award was a Delivery Order under a larger contract vehicle, suggesting a phased approach to procurement. 6. The fixed-price contract type aims to control costs for the government.

Value Assessment

Rating: good

The contract value of $24.1M over five years for facilities support services appears reasonable given the scope. Benchmarking against similar large-scale facilities maintenance contracts for military installations would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overrun risks for the government. Without specific details on the services rendered, a direct comparison of per-unit costs is challenging, but the overall award size suggests a substantial service requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five bids received. This level of competition is generally positive, suggesting that multiple vendors were interested and capable of performing the required services. A higher number of bidders typically leads to better price discovery and potentially more favorable pricing for the government. The fact that five entities submitted bids indicates a healthy market for these types of facilities support services.

Taxpayer Impact: The full and open competition with multiple bidders likely resulted in a more competitive price, saving taxpayer dollars compared to a sole-source or limited competition award.

Public Impact

Military personnel and their families stationed in California benefit from well-maintained facilities. Essential services such as maintenance, repair, and operational support for facilities are delivered. The geographic impact is concentrated in California, supporting military readiness in that region. The contract supports jobs within the facilities management and maintenance sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements were not clearly defined.
Dependence on a single contractor for critical facilities operations could pose a risk if performance falters.
Ensuring consistent service quality across all contracted facilities over the five-year period.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm fixed-price contract type provides cost certainty for the government.
Long-term contract duration suggests a stable and ongoing need for these essential services.
The contractor, Sodexo Management Inc., is a large, established entity with experience in government contracts.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, represents a significant segment of the government contracting market. This sector includes a wide range of services essential for the operation and maintenance of buildings and grounds. Spending in this area is often driven by the needs of federal agencies, particularly those with large physical footprints like the Department of Defense. Comparable spending benchmarks would involve analyzing other large-scale facilities management contracts awarded to major service providers across various government branches.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While Sodexo Management Inc. is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on Sodexo's own subcontracting plan and the specific requirements of the contract, which are not detailed here. Analysis of subcontracting reports would be necessary to determine the actual impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Performance standards and service level agreements are expected to be defined within the contract documents. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Base Operations Support Services
Logistics and Facilities Management
Government Property Management
Maintenance, Repair, and Operations (MRO)

Risk Flags

Potential for performance issues over the long contract duration.
Risk of cost escalation for the contractor impacting service delivery.
Need for robust oversight to ensure service quality and compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.1 million to SODEXO MANAGEMENT INC.. IGF::OT::IGF CORRECTIVE MAINTENANCE

Who is the contractor on this award?

The obligated recipient is SODEXO MANAGEMENT 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 $24.1 million.

What is the period of performance?

Start: 2015-09-28. End: 2020-09-27.

What is Sodexo Management Inc.'s track record with similar government contracts, particularly within the Department of Defense?

Sodexo Management Inc. has a substantial history of performing services for the U.S. government, including extensive work with the Department of Defense. They are a large, multinational company specializing in facility management and food services. Their track record often includes managing large-scale contracts for military bases, providing services ranging from maintenance and operations to catering and housing. While specific performance metrics for individual contracts are not always publicly available, their continued success in winning and performing significant government contracts suggests a generally positive performance history. However, like any large contractor, they may have faced performance issues or disputes on specific contracts, which would typically be documented in contract performance databases or IG reports.

How does the $24.1M contract value compare to other facilities support contracts awarded by the Department of the Army?

The $24.1M contract value for facilities support services over five years is a significant award, but falls within the typical range for large-scale base operations or facilities management contracts for military installations. The Department of the Army manages numerous facilities across the country, and contracts for their upkeep and operation can easily reach tens or hundreds of millions of dollars. For instance, contracts for comprehensive base operations support, which often include facilities maintenance as a core component, can be substantially larger. This specific award appears to be focused on facilities support services, suggesting it might be a component of a broader base support package or a standalone service contract for a specific set of facilities. Benchmarking against contracts with similar scope (e.g., maintenance of barracks, administrative buildings, or specific infrastructure) would provide a more precise comparison.

What are the primary risks associated with a five-year firm fixed-price contract for facilities support services?

A primary risk with a five-year firm fixed-price contract for facilities support services is the potential for unforeseen cost increases for the contractor that are not passed on to the government. This could lead to reduced profit margins for the contractor or, in extreme cases, performance degradation if the contractor struggles to absorb rising costs for labor, materials, or utilities. For the government, the risk lies in the contractor potentially cutting corners on service quality to maintain profitability if costs escalate unexpectedly. Additionally, if the scope of work is not precisely defined, scope creep can become an issue, leading to disputes over additional costs or services. The long duration also means the contract must remain relevant to evolving needs, and adapting to new technologies or requirements might be challenging under a fixed price.

What is the expected program effectiveness and impact of these facilities support services on military readiness?

The expected program effectiveness of these facilities support services is high, as well-maintained facilities are critical for the operational readiness and morale of military personnel. Effective facilities support ensures that infrastructure, including barracks, training areas, administrative buildings, and essential utilities, is functional, safe, and conducive to mission accomplishment. Poorly maintained facilities can lead to disruptions, safety hazards, decreased morale, and ultimately, a reduction in a unit's ability to train and deploy. By ensuring the proper upkeep and operation of these physical assets, the contract directly contributes to maintaining a high state of military readiness in the covered geographic areas.

How has federal spending on Facilities Support Services (NAICS 561210) trended over the past five years, and how does this contract fit into that trend?

Federal spending on Facilities Support Services (NAICS 561210) has generally remained robust, reflecting the government's continuous need to maintain its vast real estate portfolio. While specific year-over-year trends can fluctuate based on budget appropriations, major infrastructure projects, and agency priorities, the overall demand for these services is consistently high, particularly from agencies like the Department of Defense, General Services Administration, and Department of Homeland Security. This $24.1M contract awarded to Sodexo Management Inc. fits within this trend as a significant, but not exceptionally large, award for ongoing facilities maintenance. It represents a typical investment in ensuring the functionality and upkeep of government-owned or leased facilities, contributing to the overall federal expenditure in this essential service category.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY12R0025

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9801 WASHINGTONIAN BLVD, GAITHERSBURG, MD, 20878

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

Financial Breakdown

Contract Ceiling: $25,348,773

Exercised Options: $25,348,773

Current Obligation: $24,141,920

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY15D0037

IDV Type: IDC

Timeline