DoD Awards $19.6M for Facility Maintenance, Raising Questions on Competition and Value
Contract Overview
Contract Amount: $19,559,672 ($19.6M)
Contractor: Upstate Construction Services, Inc
Awarding Agency: Department of Defense
Start Date: 2011-09-01
End Date: 2013-10-02
Contract Duration: 762 days
Daily Burn Rate: $25.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: COMPANY OPERATING FACILITY AND TACTICAL EQUIPMENT MAINTENANCE FACILITY (COF&TEMF)
Place of Performance
Location: FORT DRUM, JEFFERSON County, NEW YORK, 13602
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $19.6 million to UPSTATE CONSTRUCTION SERVICES, INC for work described as: COMPANY OPERATING FACILITY AND TACTICAL EQUIPMENT MAINTENANCE FACILITY (COF&TEMF) Key points: 1. The contract awarded to Upstate Construction Services, Inc. for facility maintenance represents a significant investment. 2. The procurement method, 'Full and Open Competition After Exclusion of Sources,' warrants scrutiny regarding its competitive fairness. 3. A substantial portion of the award value (25.67M) suggests potential for cost savings through better price discovery. 4. The sector is Industrial Building Construction, a critical area for military readiness.
Value Assessment
Rating: questionable
The award of $19.6M for facility maintenance appears high relative to the benchmark of $25.67M, suggesting potential overpricing or scope differences.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The 'Full and Open Competition After Exclusion of Sources' method significantly limits the competitive pool, potentially leading to higher prices and reduced innovation.
Taxpayer Impact: The limited competition may result in taxpayers paying more than necessary for these essential facility maintenance services.
Public Impact
Taxpayers may be overpaying due to restricted competition in this significant facility maintenance contract. The Department of the Army's procurement process for critical infrastructure maintenance needs closer examination. Ensuring fair and robust competition is vital for maximizing the value of defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about price fairness.
- Potential for cost overruns due to non-optimal price discovery.
- Lack of transparency in the exclusion of sources.
Positive Signals
- Contract addresses critical facility maintenance needs.
- Awarded to a single entity, potentially streamlining execution.
Sector Analysis
Industrial Building Construction is a vital sector for maintaining operational readiness. Benchmarks for similar facility maintenance contracts are essential for evaluating cost-effectiveness.
Small Business Impact
The data indicates this contract was not awarded to a small business, representing a missed opportunity for small business participation in federal contracting.
Oversight & Accountability
The procurement method used warrants further oversight to ensure it aligns with principles of fair and open competition and maximizes taxpayer value.
Related Government Programs
- Industrial Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may lead to inflated costs.
- Lack of transparency in source exclusion.
- Potential for suboptimal value for taxpayer dollars.
- Need for robust performance monitoring.
Tags
industrial-building-construction, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.6 million to UPSTATE CONSTRUCTION SERVICES, INC. COMPANY OPERATING FACILITY AND TACTICAL EQUIPMENT MAINTENANCE FACILITY (COF&TEMF)
Who is the contractor on this award?
The obligated recipient is UPSTATE CONSTRUCTION SERVICES, 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 $19.6 million.
What is the period of performance?
Start: 2011-09-01. End: 2013-10-02.
What specific criteria were used to exclude other potential sources from this 'Full and Open Competition'?
The exclusion of sources in a 'Full and Open Competition' scenario typically requires a documented justification, such as specific technical requirements, national security concerns, or unique capabilities. Without this justification, it raises questions about whether the competition was truly as open as possible, potentially impacting the final price and the range of solutions considered.
How does the awarded price compare to industry benchmarks for similar facility maintenance projects of this scale?
A detailed comparison against industry benchmarks is crucial. If the $19.6 million award is significantly higher than comparable projects, it suggests potential overpricing or inefficiencies. Conversely, if it aligns with or is below benchmarks, it could indicate effective price negotiation despite the limited competition.
What mechanisms are in place to ensure the quality and effectiveness of the facility maintenance services provided by Upstate Construction Services, Inc. under this contract?
Effective oversight mechanisms, including performance metrics, regular inspections, and clear communication channels, are vital. The Department of the Army should have robust quality assurance procedures to monitor the contractor's performance, ensuring that the services meet the required standards and deliver value for the investment made.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W912DS09R0012
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 800 STARBUCK AVE STE A14, WATERTOWN, NY, 13601
Business Categories: Category Business, Emerging Small Business, HUBZone Firm, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,559,672
Exercised Options: $19,559,672
Current Obligation: $19,559,672
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DS09D0005
IDV Type: IDC
Timeline
Start Date: 2011-09-01
Current End Date: 2013-10-02
Potential End Date: 2013-10-02 00:00:00
Last Modified: 2021-04-29
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