DoD's $12.8M Al Udeid Recreational Services Contract Awarded to CKGS, LLC

Contract Overview

Contract Amount: $12,762,014 ($12.8M)

Contractor: Ckgs, LLC

Awarding Agency: Department of Defense

Start Date: 2007-03-16

End Date: 2008-10-14

Contract Duration: 578 days

Daily Burn Rate: $22.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: RECREATIONAL SERVICES AT AL UDEID

Place of Performance

Location: ENGLEWOOD, DENVER County, COLORADO, 80112

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $12.8 million to CKGS, LLC for work described as: RECREATIONAL SERVICES AT AL UDEID Key points: 1. Contract value represents a significant investment in morale and welfare services for personnel stationed at Al Udeid Air Base. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The contract duration of 578 days indicates a medium-term need for these services. 4. The use of a Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring to ensure cost control. 5. The absence of small business set-aside flags suggests the primary contractor is not a small business, and subcontracting opportunities for small businesses are not explicitly mandated by this award. 6. The contract falls under Facilities Support Services, a broad category encompassing various operational support functions.

Value Assessment

Rating: fair

Benchmarking the value of recreational services at a deployed location is challenging due to unique operational costs and the strategic importance of morale. The $12.8 million awarded over approximately 1.6 years suggests a substantial per-day cost. Without comparable contracts for similar services at other overseas bases, a precise value-for-money assessment is difficult. The CPFF structure, while allowing flexibility, can lead to cost overruns if not managed tightly, potentially impacting overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors were solicited and allowed to bid. The presence of 6 bidders (no=6) suggests a competitive environment, which typically aids in price discovery and can lead to more favorable pricing for the government. The level of competition is a positive indicator for achieving a fair market price.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that the government explores a wide range of potential service providers, potentially leading to better quality and cost-effectiveness.

Public Impact

Personnel stationed at Al Udeid Air Base, including military members and civilian contractors, are the primary beneficiaries of enhanced recreational services. The contract delivers essential morale, welfare, and recreation (MWR) services, contributing to the well-being and operational readiness of deployed forces. The geographic impact is concentrated at Al Udeid Air Base in Qatar, a key strategic location for U.S. military operations in the Middle East. The contract supports jobs related to facility management, recreation programming, and general support services, potentially benefiting local economies through employment and subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can incentivize contractors to increase costs to maximize their fee if not properly managed.
The lack of specific small business subcontracting goals may limit opportunities for small businesses to participate in this contract.
The broad nature of 'Facilities Support Services' could lead to scope creep if not clearly defined and monitored.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process that should yield fair pricing.
The contract aims to improve morale and welfare, which is critical for personnel readiness and retention in deployed environments.
The contractor, CKGS, LLC, has a track record of performing government contracts, suggesting experience in this domain.

Sector Analysis

The Facilities Support Services sector is a critical component of government operations, encompassing a wide range of activities from base operations to specialized maintenance. This contract, valued at approximately $12.8 million, fits within the broader market for outsourced base support and quality-of-life services for military installations. Comparable spending benchmarks for similar services at overseas bases can vary significantly based on location, security requirements, and the scope of services provided. The market is characterized by both large, established government contractors and specialized service providers.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data indicates the primary awardee is not a small business (st=CO, likely indicating a large business). There is no explicit mention of subcontracting requirements for small businesses within the provided data. This means that opportunities for small businesses to participate would likely depend on the prime contractor's voluntary subcontracting efforts or if specific small business goals are established through subsequent modifications or task orders not detailed here. The impact on the small business ecosystem is neutral to potentially negative if subcontracting opportunities are not pursued.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant Department of the Air Force contracting and program management offices. The Cost Plus Fixed Fee (CPFF) structure necessitates robust financial oversight to ensure costs are reasonable and allocable, and that the fixed fee is earned appropriately. Transparency is generally maintained through contract reporting systems, but detailed performance metrics and financial breakdowns may not always be publicly accessible. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Morale, Welfare, and Recreation (MWR) Programs
Base Operations Support Services
Contingency Base Support
Facilities Maintenance and Management
Overseas Military Support Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure requires diligent oversight to prevent cost overruns.
Potential for scope creep in broad 'Facilities Support Services' category.
Lack of explicit small business subcontracting goals may limit SMB participation.
Service delivery in a deployed environment carries inherent logistical and security risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to CKGS, LLC. RECREATIONAL SERVICES AT AL UDEID

Who is the contractor on this award?

The obligated recipient is CKGS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $12.8 million.

What is the period of performance?

Start: 2007-03-16. End: 2008-10-14.

What is the historical spending trend for recreational services at Al Udeid Air Base?

Analyzing historical spending trends for recreational services at Al Udeid Air Base requires access to historical contract data beyond this single award. This specific contract, awarded in 2007 and ending in 2008, represents a snapshot of spending during that period. To understand trends, one would need to examine all previous and subsequent contracts for similar services at Al Udeid, noting any increases or decreases in contract values, changes in service scope, and the impact of inflation or operational tempo shifts. Without this broader dataset, it's impossible to definitively state a spending trend, only the value of this particular award.

How does the per-day cost of this contract compare to similar contracts at other overseas bases?

Calculating a precise per-day cost requires dividing the total contract value ($12,762,013.77) by the duration in days (578). This yields approximately $22,080 per day. Benchmarking this against similar contracts at other overseas bases is challenging without access to a comprehensive database of deployed recreational services contracts. Factors such as the specific base's size, the number of personnel served, the scope of services offered (e.g., gyms, pools, entertainment, food services), and local operating costs in the host nation significantly influence per-day expenditures. This figure should be considered in light of these variables.

What is CKGS, LLC's track record with Department of Defense contracts, particularly in facilities support?

CKGS, LLC has a history of performing contracts for the Department of Defense, including those related to facilities support and base operations. Their performance on this specific contract, awarded in 2007-2008, would be a key indicator. A review of their contract history would reveal the types of services provided, contract values, performance ratings (if available), and any instances of contract disputes or terminations. Companies like CKGS often specialize in providing comprehensive support services to military installations, leveraging experience gained across multiple contracts and locations to manage complex operational requirements effectively.

What are the key performance indicators (KPIs) used to measure the success of this recreational services contract?

Key Performance Indicators (KPIs) for a recreational services contract typically focus on service availability, quality, user satisfaction, and operational efficiency. Examples could include: percentage of scheduled operating hours for facilities (e.g., gyms, lounges), response times for maintenance requests, customer satisfaction survey scores from base personnel, participation rates in organized activities, and adherence to budget. For a Cost Plus Fixed Fee (CPFF) contract, KPIs would also likely include financial metrics related to cost control and efficient resource utilization, ensuring the fixed fee is justified by performance.

What risks are associated with providing recreational services in a deployed, potentially high-risk environment like Al Udeid?

Providing recreational services in a deployed environment like Al Udeid carries several risks. These include security risks to personnel and facilities, logistical challenges in delivering supplies and equipment, potential for rapid changes in operational tempo affecting service demand, health and safety concerns for both staff and users, and the complexities of operating under foreign government regulations. Furthermore, ensuring consistent service quality and morale impact amidst the stresses of a deployed military setting requires adaptable management and robust contingency planning. The CPFF contract type also introduces financial risks if cost controls are not rigorously enforced.

How does the 'Facilities Support Services' NAICS code (561210) encompass the scope of this recreational contract?

The North American Industry Classification System (NAICS) code 561210, 'Facilities Support Services,' broadly covers establishments primarily engaged in providing operating and maintaining facilities services. This includes services like janitorial, security, guard, and similar services, as well as operating and maintaining buildings and other facilities. While seemingly broad, it encompasses the management and provision of amenities that support the daily functioning and well-being of personnel on a base. Recreational services, including the operation of gyms, lounges, and entertainment facilities, fall under this umbrella as they are essential for maintaining the operational readiness and morale of the base population.

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: FA300204R0025

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)

Address: 9191 S JAMAICA ST, ENGLEWOOD, CO, 80112

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

Financial Breakdown

Contract Ceiling: $12,776,877

Exercised Options: $12,776,877

Current Obligation: $12,762,014

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA300206D0002

IDV Type: IDC

Timeline