Department of the Navy awards $17.4M contract for facilities support services to Professional Contract Services, Inc

Contract Overview

Contract Amount: $17,448,144 ($17.4M)

Contractor: Professional Contract Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-10-01

End Date: 2011-09-30

Contract Duration: 364 days

Daily Burn Rate: $47.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIRM FIXED PRICE - 1ST OPTION - INCORPORATE FUNDING

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23708

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.4 million to PROFESSIONAL CONTRACT SERVICES, INC. for work described as: FIRM FIXED PRICE - 1ST OPTION - INCORPORATE FUNDING Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. This award represents a single delivery order under a larger contract vehicle. 4. The duration of this specific order is approximately one year. 5. The base contract value appears to be significantly higher than this single option award. 6. The North American Industry Classification System (NAICS) code 561210 points to facilities support services.

Value Assessment

Rating: fair

Benchmarking the value of this specific $17.4 million delivery order is challenging without knowing the scope of services and the overall contract ceiling. However, the base contract value of $4.79 million suggests this option is a substantial portion of the original award. Comparing the per-unit cost, if available, against similar facilities support contracts would provide a clearer picture of value for money. The firm fixed-price nature of the contract indicates that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if managed effectively.

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 typically leads to a more robust selection process and potentially better pricing due to market forces. The number of bidders is not specified, but the 'full and open' designation implies a competitive environment was sought.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price discovery and encouraging contractors to offer their best value to win the bid, potentially leading to cost savings.

Public Impact

The Department of the Navy benefits from essential facilities support services, ensuring operational readiness. This contract supports the maintenance and operation of government facilities. The services are likely concentrated in Virginia, where the contractor is located. The contract may have implications for the local workforce in Virginia, providing employment opportunities in facilities management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'facilities support services' is not clearly delineated.
Performance monitoring is crucial to ensure the contractor meets all service level agreements under the firm fixed-price structure.
Reliance on a single contractor for critical facilities support could pose a risk if performance degrades.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Awarded through full and open competition, suggesting a competitive market was leveraged.
The contractor, Professional Contract Services, Inc., has experience in this service area.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, is a broad sector encompassing a wide range of services necessary for the operation and maintenance of buildings and other physical structures. This includes services like janitorial, security, landscaping, and maintenance. Government spending in this area is substantial, as agencies rely on these services to maintain their infrastructure. Comparable spending benchmarks would require detailed service scope and geographic data, but the overall market for facilities management services is significant, with numerous private sector providers.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside for this particular award. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement for this contract. However, the prime contractor may engage small businesses as subcontractors if it aligns with their operational strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Navy. Performance would be monitored against the terms and conditions of the firm fixed-price contract, including service level agreements. Transparency is generally maintained through contract databases, though specific performance metrics are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Facilities Maintenance Contracts
Base Operations Support Services
Government Property Management
Professional, Scientific, and Technical Services

Risk Flags

Potential for performance issues if service levels are not met.
Risk of cost overruns for the contractor under firm fixed-price terms.
Need for diligent oversight to prevent scope creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.4 million to PROFESSIONAL CONTRACT SERVICES, INC.. FIRM FIXED PRICE - 1ST OPTION - INCORPORATE FUNDING

Who is the contractor on this award?

The obligated recipient is PROFESSIONAL CONTRACT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2010-10-01. End: 2011-09-30.

What is the historical spending pattern for facilities support services by the Department of the Navy, and how does this award compare?

Analyzing historical spending for facilities support services by the Department of the Navy requires access to comprehensive contract databases and budget reports. Generally, the Navy, as a major component of the Department of Defense, expends significant resources on maintaining its vast infrastructure, including bases, training facilities, and administrative buildings. Spending can fluctuate based on infrastructure needs, modernization projects, and budget allocations. This $17.4 million award for a single delivery order represents a specific expenditure within that broader context. To compare it effectively, one would need to examine the Navy's total outlays for similar services over several fiscal years, looking for trends in contract values, competition levels, and the types of services procured. Without broader historical data, this single award's significance is limited to its immediate scope and value.

What is the track record of Professional Contract Services, Inc. in performing similar government contracts?

Professional Contract Services, Inc. (PCS) has a history of performing government contracts, particularly within the facilities support and maintenance domain. Their track record can be assessed by examining past awards, contract performance evaluations (if publicly available), and any reported issues or successes. A review of federal procurement data would reveal the types of services they have provided, the agencies they have served, and the contract values. Positive indicators would include consistent performance, positive past performance reviews, and a history of successful contract completions. Conversely, any history of contract disputes, performance failures, or significant overruns would raise concerns. Understanding PCS's specific experience with firm fixed-price contracts and their ability to manage costs effectively under such terms is crucial for evaluating their suitability for this award.

How does the pricing of this contract compare to market rates for similar facilities support services?

Assessing the pricing of this $17.4 million delivery order against market rates requires a detailed breakdown of the services provided and their associated costs. Facilities support services encompass a wide array of activities, from routine maintenance and janitorial work to specialized technical support. Benchmarking would involve comparing the proposed labor rates, material costs, and overhead applied by Professional Contract Services, Inc. to industry standards and rates paid by other government agencies or private sector entities for comparable services in the same geographic region. Factors such as the contract's duration, the level of service required, and the specific geographic location (Virginia, in this case) influence market rates. Without a detailed service-level agreement and cost breakdown, a precise comparison is difficult, but the 'full and open competition' suggests that market forces were intended to drive competitive pricing.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks for this contract include performance deficiencies, cost overruns (though mitigated by the firm fixed-price structure), contractor default, and scope creep. Performance risks involve the contractor failing to meet the required service levels for facilities support, potentially impacting the operational readiness of Navy facilities. Contractor default, while less likely for established firms, could disrupt essential services. Scope creep, where the scope of work expands beyond the original agreement without a corresponding adjustment in price or schedule, is a common risk. Mitigation strategies typically involve robust contract oversight, clear performance metrics and service level agreements (SLAs), regular performance reviews, and a well-defined process for managing any contract modifications. The firm fixed-price nature itself is a risk mitigation tool, placing the financial burden of cost increases on the contractor.

What is the overall effectiveness of the competition strategy used for this contract award?

The effectiveness of the 'full and open competition' strategy for this contract award can be evaluated by several factors. Primarily, it aims to maximize competition, thereby encouraging a wider range of potential bidders and fostering a more competitive pricing environment. This approach is generally considered effective in achieving fair market prices and ensuring that the government receives the best value. The success of this strategy is further indicated if multiple qualified bidders submitted proposals, leading to a thorough evaluation process. However, the true effectiveness is best measured by the quality of services delivered, the final price paid relative to the anticipated value, and the overall satisfaction of the end-user (the Department of the Navy). Without knowing the number of bids received and the specific evaluation criteria, a definitive assessment of effectiveness is limited.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 718 W FM 1626, AUSTIN, TX, 78748

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: $17,448,144

Exercised Options: $17,448,144

Current Obligation: $17,448,144

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008510D3017

IDV Type: IDC

Timeline