Oregon State University awarded $3.9M for Newport facility support, a sole-source contract

Contract Overview

Contract Amount: $3,938,272 ($3.9M)

Contractor: Oregon State University

Awarding Agency: Department of Commerce

Start Date: 2023-03-01

End Date: 2026-08-31

Contract Duration: 1,279 days

Daily Burn Rate: $3.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AWARDING CONTRACT TO OREGON STATE UNIVERSITY FOR NEWPORT FACILITY SUPPORT SERVICES.

Place of Performance

Location: CORVALLIS, BENTON County, OREGON, 97331

State: Oregon Government Spending

Plain-Language Summary

Department of Commerce obligated $3.9 million to OREGON STATE UNIVERSITY for work described as: AWARDING CONTRACT TO OREGON STATE UNIVERSITY FOR NEWPORT FACILITY SUPPORT SERVICES. Key points: 1. Value for money is difficult to assess due to the sole-source nature of the award. 2. Competition dynamics are absent, as the contract was not competed. 3. Risk indicators are moderate, given the reliance on a single provider without competitive benchmarking. 4. Performance context is limited to the specific facility support services required. 5. Sector positioning is within government facilities management and support services.

Value Assessment

Rating: fair

Benchmarking against similar facility support contracts is challenging due to the sole-source award. The firm fixed-price structure provides some cost certainty, but without competitive bids, it's difficult to ascertain if the $3.9 million represents optimal value. The price appears reasonable for a multi-year facility support contract of this scope, but a competitive process could have potentially yielded better pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. Oregon State University was likely selected due to unique capabilities, existing infrastructure, or a specific relationship with the agency. The lack of competition limits price discovery and may result in a higher cost than if multiple vendors had bid.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of a competitive bidding process.

Public Impact

The primary beneficiary is the National Oceanic and Atmospheric Administration (NOAA), which receives essential facility support services. Services include maintenance, operations, and support for facilities in Newport, Oregon. The geographic impact is localized to Newport, Oregon, supporting federal operations in that region. Workforce implications include potential employment opportunities at Oregon State University for facility management and support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition could lead to inflated costs.
Sole-source awards can limit innovation by not engaging a broader market.
Dependence on a single contractor may pose continuity risks if performance issues arise.

Positive Signals

Oregon State University is a known entity, potentially offering stability.
Firm fixed-price contract provides budget predictability.
Long-term contract duration allows for consistent service delivery.

Sector Analysis

This contract falls within the broader government services sector, specifically focusing on facilities support and management. The market for such services is substantial, with numerous private and public entities offering these capabilities. This award represents a specific instance of federal agencies outsourcing non-core functions to academic institutions or specialized service providers, a common practice to leverage existing expertise and infrastructure.

Small Business Impact

This contract does not appear to have a small business set-aside component, as Oregon State University is not typically classified as a small business for federal contracting purposes. There is no explicit information regarding subcontracting plans for small businesses. The absence of a set-aside means that opportunities for small businesses to participate in this specific contract are likely limited.

Oversight & Accountability

Oversight will likely be managed by the National Oceanic and Atmospheric Administration (NOAA) contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified services. Transparency is moderate, as contract details are publicly available, but the rationale for the sole-source award may not be fully detailed.

Related Government Programs

NOAA Facility Operations and Maintenance
Federal Building Support Services
University Research Facility Management
Government Property Management Contracts

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for unbenchmarked pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $3.9 million to OREGON STATE UNIVERSITY. AWARDING CONTRACT TO OREGON STATE UNIVERSITY FOR NEWPORT FACILITY SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is OREGON STATE UNIVERSITY.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $3.9 million.

What is the period of performance?

Start: 2023-03-01. End: 2026-08-31.

What is the track record of Oregon State University in providing similar facility support services to federal agencies?

Oregon State University (OSU) has a history of managing and supporting facilities, particularly those associated with its research and academic endeavors. While specific federal contracts for facility support services might be less common than their research grants, OSU's experience in operating and maintaining its own extensive campus infrastructure, including laboratories, administrative buildings, and specialized research facilities, demonstrates a capacity for managing complex operational needs. Their engagement with federal agencies often centers on research and development, but the underlying operational expertise in managing physical assets and ensuring their functionality is transferable to facility support roles. Further investigation into their specific federal contracting history, beyond this award, would be needed to fully assess their track record in this precise domain.

How does the awarded price compare to market rates for similar facility support services?

Directly comparing the $3.9 million award to market rates for similar facility support services is challenging due to the sole-source nature of this contract and the specific, potentially unique, requirements of the Newport facility. Typically, a competitive bidding process allows for robust price discovery against multiple market participants. Without such a process, it's difficult to definitively state if this price is optimal. However, considering the duration (over three years) and the scope of comprehensive facility support (likely encompassing maintenance, utilities, security, and operational management), the annual cost of approximately $1.3 million is not inherently unreasonable for a federal facility of significant size or complexity. Benchmarking against publicly available data for similar-sized federal facilities or large institutional campuses could provide a rough estimate, but precise comparisons remain elusive without competitive data.

What are the primary risks associated with this sole-source contract?

The primary risks associated with this sole-source contract stem from the lack of competition. Firstly, there's a risk of paying a premium price, as Oregon State University did not have to compete against other vendors to win the contract, potentially leading to less favorable pricing for the government. Secondly, there's a risk of reduced innovation; without the pressure of competitive bids, the contractor may have less incentive to proactively seek out cost-saving efficiencies or introduce novel service delivery methods. Thirdly, there's a potential for vendor lock-in and continuity risk. If OSU encounters performance issues or decides to discontinue services, finding and transitioning to a new provider for specialized facility support could be complex and disruptive, especially if OSU possesses unique institutional knowledge or infrastructure integration.

What is the expected effectiveness of these facility support services for NOAA's operations?

The expected effectiveness of these facility support services is crucial for NOAA's operations in Newport, Oregon. Reliable facility support ensures that critical infrastructure, laboratories, and administrative spaces are maintained, functional, and safe. This directly impacts NOAA's ability to conduct its scientific research, data collection, and operational activities without interruption. By outsourcing these functions to Oregon State University, NOAA likely aims to leverage OSU's expertise in managing complex facilities, ensuring that essential services like HVAC, utilities, maintenance, and potentially security are handled efficiently. The effectiveness will hinge on the quality of service delivery, adherence to NOAA's specific operational requirements, and the responsiveness of OSU to any emergent needs, ultimately contributing to the seamless execution of NOAA's mission in the region.

How does this contract's spending compare to historical federal spending on facility support services in Oregon?

Comparing this specific $3.9 million contract to historical federal spending on facility support services in Oregon requires a broader dataset. Federal agencies collectively spend billions annually on facility operations and maintenance across the United States. This $3.9 million award to Oregon State University represents a modest portion of that overall spending. To provide a meaningful comparison, one would need to analyze historical contract awards for similar services (NAICS code 561210) issued by various federal agencies within Oregon over several fiscal years. This would involve aggregating data on contract values, durations, and types of services rendered. Without such a comprehensive analysis, it's difficult to contextualize this single award within the larger historical spending patterns for facility support in the state.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 1305M323QNFFP0013

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1500 SW JEFFERSON ST, CORVALLIS, OR, 97331

Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government, School of Forestry, Veterinary College

Financial Breakdown

Contract Ceiling: $5,720,036

Exercised Options: $3,938,272

Current Obligation: $3,938,272

Actual Outlays: $2,674,970

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline