State Department awards $10.25M contract for environmental controls, with a 70% prime contractor performance rating

Contract Overview

Contract Amount: $10,253,099 ($10.3M)

Contractor: THE Prospective Group, Inc.

Awarding Agency: Department of State

Start Date: 2022-09-25

End Date: 2026-09-24

Contract Duration: 1,460 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: METERNET

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $10.3 million to THE PROSPECTIVE GROUP, INC. for work described as: METERNET Key points: 1. Contract value appears reasonable given the duration and scope of environmental control systems. 2. Full and open competition suggests a healthy market for these services. 3. Prime contractor performance rating of 70% warrants closer monitoring of delivery. 4. Contract duration of 4 years provides stability for service delivery. 5. The contract aligns with the agency's need for operational efficiency and facility maintenance. 6. Fixed-price contract type shifts performance risk to the contractor.

Value Assessment

Rating: good

The contract value of approximately $10.25 million over four years for automatic environmental control systems seems within a reasonable range for a federal agency of this size. Benchmarking against similar contracts for facility management and environmental systems would provide a more precise value-for-money assessment. The firm fixed-price structure indicates that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages a wider range of solutions. The agency's choice of full and open competition suggests confidence in the market's ability to meet its requirements effectively.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a broader selection of qualified contractors, maximizing the value received for public funds.

Public Impact

The Department of State benefits from improved environmental control in its facilities, potentially leading to cost savings and better working conditions. Services delivered include the manufacturing and maintenance of automatic environmental control systems for residential, commercial, and appliance use. The geographic impact is likely concentrated within the facilities managed by the Department of State, primarily in Virginia. Workforce implications may include specialized technicians for installation and maintenance of these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Prime contractor performance rating of 70% suggests potential issues with past delivery or quality that require attention.
The contract is a delivery order, which could imply a need for flexibility but also potential for scope creep if not managed carefully.

Positive Signals

The contract was awarded under full and open competition, indicating a robust bidding process.
The firm fixed-price contract type provides cost certainty for the government.
The contract duration of 4 years allows for sustained service delivery and relationship building.

Sector Analysis

The market for automatic environmental control systems is a significant segment within the broader building automation and HVAC industries. This contract fits within the government's ongoing need to maintain and upgrade its facilities infrastructure. Comparable spending benchmarks would involve analyzing other federal contracts for similar environmental control systems across various agencies, considering factors like facility size, complexity, and geographic location.

Small Business Impact

There is no indication that this contract included a small business set-aside. The prime contractor, THE PROSPECTIVE GROUP, INC., is not identified as a small business. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data, but are a possibility depending on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, which holds the contractor responsible for delivery and performance. Transparency is facilitated by the contract's public availability, allowing for scrutiny of its terms and value.

Related Government Programs

Federal Building Operations and Maintenance Contracts
HVAC System Procurement
Facility Management Services
Department of State Infrastructure Modernization

Risk Flags

Below Average Prime Contractor Performance Rating
Potential for Scope Creep in Delivery Orders

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $10.3 million to THE PROSPECTIVE GROUP, INC.. METERNET

Who is the contractor on this award?

The obligated recipient is THE PROSPECTIVE GROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $10.3 million.

What is the period of performance?

Start: 2022-09-25. End: 2026-09-24.

What specific types of environmental control systems are being procured under this contract?

The contract specifies 'Automatic Environmental Control Manufacturing for Residential, Commercial, and Appliance Use.' This suggests a broad scope encompassing systems that regulate temperature, humidity, air quality, and potentially other environmental factors within various types of spaces. It could include thermostats, sensors, control panels, and integrated systems for managing HVAC, lighting, and ventilation. The 'manufacturing' aspect implies that the contractor may be producing or customizing these systems, not just installing off-the-shelf components. Further details on the specific technical requirements and system functionalities would be found in the contract's statement of work.

How does the prime contractor's 70% performance rating compare to industry standards for similar contracts?

A 70% performance rating is generally considered below average and could indicate potential issues with past contract execution, such as missed deadlines, quality deficiencies, or customer dissatisfaction. While industry standards can vary significantly based on contract complexity and service type, a rating below 80% often triggers closer scrutiny from contracting officers. For a federal contract, especially one involving critical facility systems, a 70% rating suggests that the Department of State should closely monitor the contractor's progress and adherence to contract terms to mitigate risks of poor performance or service disruptions. It may also influence future bidding opportunities for this contractor.

What is the potential impact of a firm fixed-price contract on cost savings for the government?

A firm fixed-price (FFP) contract is designed to provide cost certainty for the government. Under an FFP agreement, the contractor assumes the primary responsibility for all costs incurred and is only entitled to the agreed-upon price, regardless of actual expenses. This structure incentivizes the contractor to manage costs efficiently and can lead to significant savings if they can perform the work below the contracted price. However, it also means the government does not directly benefit from contractor cost savings. The risk for the government lies in potentially paying a premium if the initial price was set too high or if unforeseen circumstances force the contractor to cut corners on quality to maintain profitability.

What are the implications of this contract being a delivery order under a larger contract vehicle?

The data indicates this is a 'DELIVERY ORDER,' which means it is a task order issued under an existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar contract vehicle. This approach allows agencies to procure goods or services incrementally as needed, offering flexibility and potentially faster acquisition. For taxpayers, delivery orders can be efficient if the underlying IDIQ contract was competitively awarded and well-managed. However, it also means that the overall value and scope of the work might evolve over time. Close oversight is crucial to ensure that individual delivery orders remain aligned with the original contract's intent and that the cumulative spending does not exceed reasonable expectations for the services provided.

How does the $10.25 million contract value compare to typical spending on environmental control systems by federal agencies?

The $10.25 million contract value for automatic environmental control systems over four years is a substantial investment. To benchmark this effectively, one would need to compare it against similar contracts awarded by agencies with comparable facility portfolios and operational needs. Factors such as the number and size of facilities, the complexity of the environmental control requirements (e.g., specialized labs vs. standard offices), and the geographic region's cost of living and labor influence pricing. Without specific comparable data points, it's difficult to definitively state if this represents high or low spending. However, given the duration and the nature of the systems, the amount appears to be in line with significant facility modernization or maintenance efforts.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Automatic Environmental Control Manufacturing for Residential, Commercial, and Appliance Use

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8280 WILLOW OAKS CORPORATE DR STE 600, FAIRFAX, VA, 22031

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $10,377,364

Exercised Options: $10,377,364

Current Obligation: $10,253,099

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM22D0100

IDV Type: IDC

Timeline