Department of Defense awards $21.3M facilities support contract to SOC Nevada LLC

Contract Overview

Contract Amount: $21,274,671 ($21.3M)

Contractor: SOC Nevada LLC

Awarding Agency: Department of Defense

Start Date: 2015-01-30

End Date: 2017-11-30

Contract Duration: 1,035 days

Daily Burn Rate: $20.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF

Place of Performance

Location: HAWTHORNE, MINERAL County, NEVADA, 89415

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $21.3 million to SOC NEVADA LLC for work described as: IGF::OT::IGF Key points: 1. Contract value represents a significant investment in base operations support. 2. Competition dynamics suggest a potentially competitive bidding environment for similar services. 3. Contract duration of over 3 years indicates a need for sustained service delivery. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Geographic concentration in Nevada may reflect specific base requirements.

Value Assessment

Rating: good

The contract value of approximately $21.3 million over 1035 days (roughly $20,555 per day) appears reasonable for comprehensive facilities support services. Benchmarking against similar contracts for base operations and maintenance in similar geographic regions would provide a more precise value-for-money assessment. The firm fixed-price structure suggests the government secured predictable costs, assuming the contractor can manage their expenses effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally favorable for price discovery and ensuring the government receives competitive offers. The number of bidders, if available, would further clarify the intensity of the competition and its potential impact on the final price.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

Supports military personnel and their families by ensuring functional and safe base facilities. Provides essential services including maintenance, repair, and potentially custodial services for government installations. Impacts the local economy in Nevada through job creation and contractor spending. Ensures operational readiness of military bases by maintaining critical infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if contractor's fixed-price bid underestimated actual service delivery costs.
Risk of service quality degradation if contractor prioritizes cost-saving over performance standards.
Dependence on a single contractor for critical base support functions.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a robust selection process.
Contract duration indicates a stable, long-term need for these services.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad category encompassing a wide range of services necessary for the operation and maintenance of buildings and other facilities. This sector is crucial for government operations, ensuring that infrastructure is functional and safe. Spending in this sector is often tied to military bases, federal buildings, and other government installations, with significant annual outlays across various agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, SOC Nevada LLC, is likely a larger entity. There is no explicit information on subcontracting plans, but large prime contracts often involve subcontracting opportunities for small businesses, which would need to be tracked to assess their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant Department of Defense contracting command. Performance reviews, site inspections, and adherence to contract terms would be key oversight mechanisms. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

Base Operations Support Contracts
Facilities Maintenance and Repair Services
Logistics and Support Services
Government Contracting

Risk Flags

Potential for cost overruns impacting contractor profitability and service quality.
Dependence on contractor performance for critical base operations.
Need for robust oversight to ensure service standards are met under FFP.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.3 million to SOC NEVADA LLC. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is SOC NEVADA LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.3 million.

What is the period of performance?

Start: 2015-01-30. End: 2017-11-30.

What is the historical spending trend for facilities support services by the Department of the Army in Nevada?

Analyzing historical spending data for facilities support services by the Department of the Army specifically within Nevada would provide crucial context for this $21.3 million award. Without access to a comprehensive historical database, it's difficult to ascertain if this contract represents an increase, decrease, or stable level of spending compared to previous years or similar installations. Understanding past spending patterns can help identify trends, potential budget fluctuations, and whether this award aligns with established investment levels in base infrastructure and operational support within the state.

How does the per-day cost of this contract compare to similar facilities support contracts awarded by the DoD in other states?

The daily cost of this contract is approximately $20,555 ($21,274,670.63 / 1035 days). To benchmark this effectively, we would need to compare it against similar facilities support contracts awarded by the Department of Defense in other states, considering factors like contract scope, service level agreements, and geographic cost-of-living differences. If comparable contracts in similar regions have significantly lower daily rates, it might indicate that this contract is priced at a premium. Conversely, if the rates are in line or lower, it suggests competitive pricing. A detailed analysis would require access to a broader dataset of DoD contracts.

What specific types of facilities support services are included under this contract?

The contract falls under NAICS code 561210, which covers Facilities Support Services. This broad category typically includes a range of services essential for the operation and maintenance of government facilities. While the specific details are not provided in the summary data, common services under such contracts can encompass building operations, maintenance and repair (HVAC, electrical, plumbing), custodial services, groundskeeping, pest control, refuse collection, and potentially security services. The exact scope would be detailed in the contract's statement of work, defining the precise deliverables and performance standards.

What is SOC Nevada LLC's track record with government contracts, particularly within the Department of Defense?

SOC Nevada LLC's track record with government contracts, especially within the Department of Defense, is a key indicator of their capability and reliability. While the provided data confirms they were awarded this $21.3 million contract, a deeper dive into their past performance is necessary. This would involve reviewing their history of contract awards, completion records, any past performance evaluations (e.g., CPARS reports), and any instances of contract disputes or terminations. A strong history suggests a lower risk of performance issues, while a history of problems could indicate potential challenges in service delivery for this current contract.

What are the potential risks associated with a firm fixed-price contract for facilities support services?

Firm fixed-price (FFP) contracts, while beneficial for budget certainty, carry specific risks for facilities support services. The primary risk is that the contractor, SOC Nevada LLC, may underestimate the actual costs of delivering the required services. If their costs exceed their fixed bid price, they could face financial losses, potentially leading to attempts to cut corners on service quality, reduce staffing, or delay necessary maintenance to maintain profitability. Conversely, if their costs are significantly lower than anticipated, the government might be overpaying relative to the actual value received. Effective oversight is crucial to mitigate these risks and ensure service standards are met.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: DAY & Zimmermann Group Inc., the (UEI: 007913486)

Address: 2 S MAINE AVE, HAWTHORNE, NV, 89415

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

Financial Breakdown

Contract Ceiling: $21,274,671

Exercised Options: $21,274,671

Current Obligation: $21,274,671

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J11D0002

IDV Type: IDC

Timeline