DoD's $38.75M VBC O&M SERVICES contract to Fluor Intercontinental, Inc. awarded in 2008, completed in 2014

Contract Overview

Contract Amount: $38,752,808 ($38.8M)

Contractor: Fluor Intercontinental, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-25

End Date: 2014-07-17

Contract Duration: 2,121 days

Daily Burn Rate: $18.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: Construction

Official Description: VBC O&M SERVICES

Plain-Language Summary

Department of Defense obligated $38.8 million to FLUOR INTERCONTINENTAL, INC. for work described as: VBC O&M SERVICES Key points: 1. The contract's total value of $38.75 million over its lifespan suggests a significant investment in operational and maintenance services. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process to ensure fair pricing. 3. The cost-plus award fee (CPAF) contract type indicates that contractor performance was a key factor in the final payment, incentivizing quality service. 4. The duration of approximately 6 years (2121 days) points to a long-term need for these O&M services. 5. The absence of small business set-aside flags suggests that the primary awardee was not a small business, and subcontracting opportunities for small businesses are not explicitly detailed. 6. The contract's focus on Commercial and Institutional Building Construction (NAICS 236220) implies services related to the upkeep and operation of facilities.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. However, a $38.75 million expenditure over six years for O&M services for Department of Defense facilities indicates a substantial commitment. The cost-plus award fee structure suggests that the final cost could vary based on performance, making a direct price comparison difficult without knowing the award fees. Further analysis would require understanding the scope of services provided and comparing them to industry standards for similar facility management contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which can lead to better pricing and service quality. The number of bidders is not specified, but the full and open nature suggests a robust competition was intended.

Taxpayer Impact: Taxpayers likely benefited from a more competitive pricing structure due to the full and open competition, potentially leading to cost savings compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who rely on well-maintained facilities for operational readiness. The services delivered likely encompassed a range of maintenance, repair, and operational support for institutional buildings. The geographic impact is tied to the specific DoD facilities managed under this contract, likely within the United States or its territories. Workforce implications include employment opportunities for construction and maintenance personnel, both directly with the contractor and potentially through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value for money.
The cost-plus award fee structure can lead to cost overruns if not managed tightly.
Limited information on small business subcontracting raises concerns about broader economic impact.
The duration of the contract could indicate a lack of flexibility to adapt to changing needs without re-competition.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
The award fee mechanism incentivizes contractor performance and quality.
The contract addresses essential operational and maintenance needs for critical defense infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on the operational and maintenance aspects of facilities. The market for facility management and O&M services is substantial, driven by government and private sector needs for upkeep of infrastructure. Comparable spending benchmarks would typically involve analyzing the cost per square foot for maintenance across similar government or large commercial buildings, adjusted for geographic location and service scope.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting goals for small businesses. This suggests that the primary contract was awarded to a large business, Fluor Intercontinental, Inc. While large contracts can sometimes create subcontracting opportunities, the absence of specific set-aside requirements or reporting on subcontracting performance means the direct impact on the small business ecosystem is not clearly defined by this award alone.

Oversight & Accountability

Oversight for this contract would have been managed by the contracting agency within the Department of the Army. Accountability measures are typically embedded in the contract terms, including performance standards, reporting requirements, and the award fee structure. Transparency is generally facilitated through contract award databases, though detailed operational oversight information is often internal to the agency.

Related Government Programs

Department of Defense Facilities Maintenance
Government Building Operations
Construction Services Contracts
Base Operations Support (BOS)

Risk Flags

Cost-Plus Award Fee (CPAF) contracts can be susceptible to cost growth if performance metrics are not tightly managed.
Lack of explicit small business subcontracting details may limit visibility into broader economic participation.
The specific 'VBC' designation requires further clarification to fully understand the scope and criticality of the services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.8 million to FLUOR INTERCONTINENTAL, INC.. VBC O&M SERVICES

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 $38.8 million.

What is the period of performance?

Start: 2008-09-25. End: 2014-07-17.

What was the specific scope of 'VBC O&M SERVICES' provided under this contract?

The specific scope of 'VBC O&M SERVICES' (VBC likely standing for a specific facility or program) is not detailed in the provided data. However, given the NAICS code 236220 (Commercial and Institutional Building Construction), these services typically encompass a broad range of activities necessary for the upkeep and operation of buildings. This could include routine maintenance, preventive maintenance, repairs, janitorial services, groundskeeping, utility management, and potentially minor renovations or upgrades. The 'O&M' designation strongly suggests a focus on ensuring the facilities are functional, safe, and operational throughout their lifecycle. Without access to the contract's statement of work, the precise deliverables remain unspecified.

How did the performance of Fluor Intercontinental, Inc. influence the final cost under the Cost Plus Award Fee (CPAF) structure?

Under a Cost Plus Award Fee (CPAF) contract, the contractor is reimbursed for allowable costs incurred, plus a base fee, and an award fee that is determined by the government based on the contractor's performance against pre-defined criteria. Fluor Intercontinental, Inc.'s performance would have been evaluated against metrics related to quality, timeliness, cost control, and customer satisfaction. If their performance exceeded expectations, they would have received a higher award fee, increasing the total contract cost. Conversely, subpar performance would result in a lower award fee. The 'award' portion of the fee is discretionary and intended to incentivize exceptional service delivery beyond minimum requirements. The final cost would therefore be a sum of incurred costs, the base fee, and the performance-based award fee.

Were there any significant cost variances or overruns compared to the initial estimates for this contract?

The provided data does not include information on initial cost estimates or actual cost variances/overruns for this contract. As a Cost Plus Award Fee (CPAF) contract, the final cost is inherently variable, dependent on incurred costs and the awarded fee based on performance. To determine if there were significant cost variances, one would need to compare the final contract amount ($38.75 million) against the initial estimated cost or target cost. Additionally, reviewing contract modification history and any associated Inspector General reports or audit findings would be necessary to identify any documented overruns or significant deviations from the planned budget.

What is the significance of the NAICS code 236220 in understanding the services provided?

The North American Industry Classification System (NAICS) code 236220 signifies 'Commercial and Institutional Building Construction.' This code indicates that the primary nature of the services procured under this contract relates to the construction, alteration, or repair of non-residential buildings. For an 'O&M SERVICES' contract, this NAICS code suggests that the services provided by Fluor Intercontinental, Inc. were focused on the ongoing operational and maintenance needs of these types of facilities. This could include everything from routine upkeep and repairs to managing building systems (HVAC, electrical, plumbing) and ensuring the overall functionality and safety of government-owned or operated commercial and institutional structures.

How does the contract duration of 2121 days (approx. 5.8 years) compare to typical O&M contracts in the federal sector?

A contract duration of approximately 5.8 years is relatively common for large-scale operational and maintenance (O&M) services within the federal sector, especially for facilities requiring consistent upkeep. Many federal O&M contracts include options for extensions, allowing them to span several years to provide stability and continuity of services. This duration suggests a long-term requirement for the services provided by Fluor Intercontinental, Inc. at the specific Department of Defense sites. Shorter durations might be seen for more specialized or project-based maintenance, while longer periods are typical for comprehensive facility management where consistent service is paramount for operational readiness.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation ID: W912ER04R0004

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fluor Corporation (UEI: 006907190)

Address: 6000 FAIRVIEW AT J A JON, CHARLOTTE, NC, 28210

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $39,780,426

Exercised Options: $39,780,426

Current Obligation: $38,752,808

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912ER04D0004

IDV Type: IDC

Timeline