Commerce Department awards $70.9M for facilities support, extending services through November 2021

Contract Overview

Contract Amount: $70,943,638 ($70.9M)

Contractor: Dtsv Inc.

Awarding Agency: Department of Commerce

Start Date: 2019-02-27

End Date: 2021-11-30

Contract Duration: 1,007 days

Daily Burn Rate: $70.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: LABOR HOURS

Sector: Other

Official Description: POSS NEW TASK ORDER FOR 12-18 MONTH EXTENSION UNDER DOC50PAPT1300024, BASE PERIOD FEBRUARY 28, 2019 - FEBRUARY 27, 2020. OPTIONAL 6 MONTH PERIOD 28 FEBRUARY 2020 THRU AUGUST 28, 2020.

Place of Performance

Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23606

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $70.9 million to DTSV INC. for work described as: POSS NEW TASK ORDER FOR 12-18 MONTH EXTENSION UNDER DOC50PAPT1300024, BASE PERIOD FEBRUARY 28, 2019 - FEBRUARY 27, 2020. OPTIONAL 6 MONTH PERIOD 28 FEBRUARY 2020 THRU AUGUST 28, 2020. Key points: 1. Contract provides essential facilities support services, ensuring operational continuity for the U.S. Patent and Trademark Office. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Performance period spans over two years, indicating a need for sustained service delivery. 4. The value of the award is substantial, reflecting the scope of facilities management required. 5. Services are concentrated in Virginia, impacting the local economy and workforce. 6. The contract type is labor hours, which can offer flexibility but requires careful monitoring of effort.

Value Assessment

Rating: good

The total award amount of $70.9 million over approximately 33 months (February 2019 - November 2021) suggests a significant investment in facilities support. Benchmarking against similar large-scale facilities management contracts for federal agencies is necessary for a precise value-for-money assessment. However, the duration and scope indicate a comprehensive service requirement. The labor hours contract type allows for flexibility in resource allocation, but it necessitates diligent oversight to ensure efficient use of taxpayer funds and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the initial award might have had specific exclusions, the subsequent task order or extension was competed broadly. The details suggest a competitive process was utilized for this specific award, aiming to leverage market competition to achieve fair pricing and optimal service. The number of bidders is not specified, but the designation indicates a commitment to competitive sourcing.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services. This approach ensures that multiple vendors have the opportunity to bid, driving efficiency and innovation.

Public Impact

The U.S. Patent and Trademark Office (USPTO) benefits from uninterrupted facilities support, enabling its core mission. Employees and visitors at USPTO facilities in Virginia will experience maintained operational environments. The contract supports the local economy in Virginia through employment and business opportunities for the contractor and potential subcontractors. Essential services such as maintenance, repair, and operational support for federal buildings are delivered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hours contract type requires robust monitoring to ensure cost efficiency and prevent scope creep.
The extended performance period necessitates ongoing evaluation of service quality and contractor performance.
Reliance on a single contractor for critical facilities support could pose a risk if performance degrades.

Positive Signals

Awarded under full and open competition, indicating a competitive process for service acquisition.
The contract duration suggests a stable and reliable provider for essential services.
The substantial award amount reflects the comprehensive nature of the facilities support required.

Sector Analysis

Facilities Support Services (NAICS code 561210) represent a significant segment of the government contracting market, encompassing a wide range of services from building operations and maintenance to security and groundskeeping. Federal agencies, particularly those with large physical footprints like the USPTO, rely heavily on these services to maintain secure and functional workspaces. Spending in this sector is driven by the need to preserve government assets and ensure the well-being of federal employees and the public. Comparable contracts often involve multi-year durations and significant dollar values, reflecting the critical nature and scale of these operations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract likely awarded to a prime contractor, there may be opportunities for small businesses to participate as subcontractors. However, without specific subcontracting plans or goals detailed in the award, the direct impact on the small business ecosystem is unclear. Further analysis would be needed to determine if small business participation was mandated or encouraged.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Commerce's contracting officers and program managers. The U.S. Patent and Trademark Office would be responsible for monitoring contractor performance against the terms and conditions of the contract, including service level agreements and delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Building Operations and Maintenance
Government Facilities Management
USPTO Administrative Support Contracts
Department of Commerce Service Contracts

Risk Flags

Potential for cost overruns due to labor hours contract type.
Need for robust performance monitoring to ensure service quality.
Reliance on contractor for critical infrastructure support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $70.9 million to DTSV INC.. POSS NEW TASK ORDER FOR 12-18 MONTH EXTENSION UNDER DOC50PAPT1300024, BASE PERIOD FEBRUARY 28, 2019 - FEBRUARY 27, 2020. OPTIONAL 6 MONTH PERIOD 28 FEBRUARY 2020 THRU AUGUST 28, 2020.

Who is the contractor on this award?

The obligated recipient is DTSV INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $70.9 million.

What is the period of performance?

Start: 2019-02-27. End: 2021-11-30.

What is the historical spending trend for facilities support services at the U.S. Patent and Trademark Office?

Analyzing historical spending for facilities support at the USPTO is crucial for understanding the long-term investment in these services. While this specific award covers February 2019 to November 2021, it's important to examine spending patterns in preceding years. This includes identifying whether previous contracts were also competed broadly, the average duration and value of past awards, and any significant fluctuations in spending. Understanding these trends can help assess if the current contract's value is consistent with historical needs and market conditions, or if it represents a significant increase or decrease. It also helps in identifying potential cost efficiencies or areas where spending may have escalated over time, providing context for the current $70.9 million award.

How does the per-unit cost of services under this labor hours contract compare to industry benchmarks?

Determining the per-unit cost for a labor hours contract requires detailed analysis of the specific labor categories, rates, and estimated hours utilized. Since the provided data does not include these granular details, a direct per-unit cost comparison to industry benchmarks is not feasible. However, a qualitative assessment can be made. Labor hours contracts are inherently flexible, allowing agencies to adjust staffing based on evolving needs. The value-for-money assessment would involve comparing the blended hourly rates across different labor skill levels against prevailing market rates for similar facilities support services in the Virginia region. Additionally, tracking the total hours worked against the initially estimated hours and the overall cost would be a key performance indicator for efficiency.

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

Key Performance Indicators (KPIs) for a facilities support contract of this nature typically focus on service delivery, operational efficiency, and compliance. Common KPIs include response times for service requests (e.g., maintenance, repairs), preventative maintenance completion rates, energy efficiency targets, building system uptime (e.g., HVAC, electrical), safety incident rates, and customer satisfaction scores from USPTO staff. The contract's success is measured by the contractor's ability to consistently meet or exceed these predefined metrics. Regular performance reviews, often conducted quarterly or semi-annually, would assess the contractor's adherence to these KPIs, providing a basis for performance evaluations and potential award modifications or renewals.

What is the track record of DTSV INC. in performing similar federal facilities support contracts?

DTSV INC.'s track record in performing similar federal facilities support contracts is a critical factor in assessing the risk and potential success of this award. Information regarding their past performance, including contract history, client feedback, and any past performance evaluations (e.g., from CPARS - Contractor Performance Assessment Reporting System), would provide valuable insights. A history of successful contract completion, adherence to schedules and budgets, and positive client relationships would indicate a lower risk. Conversely, any documented performance issues, disputes, or contract terminations would raise concerns and warrant closer scrutiny of their capabilities and management approach for this current contract.

What are the potential risks associated with a labor hours contract for facilities support services?

Labor hours contracts, while offering flexibility, carry inherent risks, primarily related to cost control and scope management. Without fixed pricing for specific tasks, there's a risk of cost overruns if the contractor's hours exceed estimates or if labor rates are higher than anticipated. Scope creep is another significant risk, where the scope of work may expand beyond the original intent without adequate adjustments to cost and schedule. Effective oversight is paramount to mitigate these risks. This includes rigorous monitoring of labor hours, detailed justification for all work performed, and clear communication channels to manage any changes in requirements. The government must ensure that the work performed is necessary, efficient, and aligned with the contract's objectives.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 739 THIMBLE SHOALS BLVD STE 101, NEWPORT NEWS, VA, 23606

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $75,631,090

Exercised Options: $75,631,090

Current Obligation: $70,943,638

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOC50PAPT1300024

IDV Type: IDC

Timeline