DoD Awards $53.7M Facilities Support Services Task Order to Fluor Intercontinental, Inc
Contract Overview
Contract Amount: $53,661,054 ($53.7M)
Contractor: Fluor Intercontinental, Inc
Awarding Agency: Department of Defense
Start Date: 2012-03-20
End Date: 2019-04-01
Contract Duration: 2,568 days
Daily Burn Rate: $20.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: CONTINENTAL AFRICA TASK ORDER AWARD.
Plain-Language Summary
Department of Defense obligated $53.7 million to FLUOR INTERCONTINENTAL, INC for work described as: CONTINENTAL AFRICA TASK ORDER AWARD. Key points: 1. Significant contract value of $53.7 million for facilities support. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Long duration of 2568 days (approx. 7 years) suggests a substantial, ongoing need. 4. The sector is Facilities Support Services, a critical component of operational readiness.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar long-term facilities support contracts is necessary to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee structure requires diligent oversight to ensure cost efficiency.
Taxpayer Impact: Taxpayer funds are utilized for essential facilities support services, with the potential for cost savings through competitive bidding, though the fee structure warrants monitoring.
Public Impact
Ensures operational continuity for Department of Defense facilities. Supports military readiness through essential infrastructure maintenance and services. Potential for job creation within the facilities management sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure may incentivize cost overruns.
- Long contract duration increases risk of scope creep or changing requirements.
- Limited information on specific performance metrics and quality assurance.
Positive Signals
- Awarded through full and open competition.
- Addresses a critical need for facilities support.
- Experienced contractor likely involved.
Sector Analysis
Facilities Support Services are crucial for maintaining government infrastructure and operational capabilities. Spending in this sector is generally stable, driven by the need for ongoing maintenance and management of physical assets.
Small Business Impact
This award does not indicate any specific set-aside for small businesses. Larger prime contractors often utilize small business subcontractors, but direct analysis of SMB participation is not possible from this data.
Oversight & Accountability
The long duration and Cost Plus Fixed Fee structure necessitate strong government oversight to manage costs, ensure performance, and prevent contractor overreach. Regular performance reviews and audits are essential.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee structure.
- Long contract duration (approx. 7 years).
- Potential for cost overruns.
- Lack of specific performance metrics in provided data.
Tags
facilities-support-services, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.7 million to FLUOR INTERCONTINENTAL, INC. CONTINENTAL AFRICA TASK ORDER AWARD.
Who is the contractor on this award?
The obligated recipient is FLUOR INTERCONTINENTAL, 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 $53.7 million.
What is the period of performance?
Start: 2012-03-20. End: 2019-04-01.
What is the typical profit margin for Cost Plus Fixed Fee contracts in facilities support services, and how does Fluor's fixed fee compare?
Profit margins for Cost Plus Fixed Fee contracts can vary significantly based on industry, contract complexity, and risk. For facilities support, typical fixed fees might range from 5-15% of the estimated cost. A detailed review of Fluor's fixed fee against industry benchmarks and the contract's estimated cost would be needed to determine if it represents fair value and aligns with typical profit expectations for this service.
Given the 7-year duration, what mechanisms are in place to manage potential cost increases due to inflation or unforeseen operational challenges?
The Cost Plus Fixed Fee structure inherently allows for the pass-through of allowable costs, which would include inflation and unforeseen operational challenges, provided they are documented and approved. However, the 'fixed fee' component remains constant. Robust contract clauses, clear definitions of allowable costs, and stringent change order processes are critical to controlling overall expenditure and ensuring the government is not unduly burdened by escalating costs.
How will the effectiveness of Fluor's facilities support services be measured and evaluated throughout the contract's lifecycle?
Effectiveness is typically measured through Key Performance Indicators (KPIs) outlined in the contract's Performance Work Statement (PWS). These might include response times for maintenance requests, facility uptime, safety incident rates, and customer satisfaction surveys. Regular performance reviews, quality assurance surveillance plans (QASP), and potential award-term incentives or penalties tied to performance would be crucial for ensuring and evaluating effectiveness.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W52P1J12R0001
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fluor Corporation (UEI: 006907190)
Address: 100 FLUOR DANIEL DR, GREENVILLE, SC, 29607
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $53,661,054
Exercised Options: $53,661,054
Current Obligation: $53,661,054
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J07D0008
IDV Type: IDC
Timeline
Start Date: 2012-03-20
Current End Date: 2019-04-01
Potential End Date: 2019-04-01 12:04:00
Last Modified: 2021-02-17
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