DOT awards $1.1M for landscaping, but competition was limited, raising value concerns

Contract Overview

Contract Amount: $109,678 ($109.7K)

Contractor: Veterans Property Management LLC

Awarding Agency: Department of Transportation

Start Date: 2025-06-01

End Date: 2027-04-30

Contract Duration: 698 days

Daily Burn Rate: $157/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LANDSCAPING SERVICES

Place of Performance

Location: BEDFORD, MIDDLESEX County, MASSACHUSETTS, 01730

State: Massachusetts Government Spending

Plain-Language Summary

Department of Transportation obligated $109,678.15 to VETERANS PROPERTY MANAGEMENT LLC for work described as: LANDSCAPING SERVICES Key points: 1. The contract's firm-fixed-price structure offers cost certainty but may limit flexibility. 2. Limited competition for this service could lead to suboptimal pricing. 3. The duration of the contract (nearly two years) suggests a need for consistent service delivery. 4. The award to Veterans Property Management LLC highlights potential support for veteran-owned businesses. 5. The service falls under general landscaping, a common requirement across federal agencies. 6. The contract's value is modest in the context of overall federal spending.

Value Assessment

Rating: fair

Benchmarking landscaping services is challenging due to variability in scope and location. However, the lack of competition for this $1.1 million contract raises questions about whether the government secured the best possible value. Without multiple bids, it's difficult to definitively assess if the pricing is competitive with market rates for similar services in Massachusetts. Further analysis would require comparing specific service deliverables and pricing against publicly available landscaping contracts in the region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This significantly limits the opportunity for price discovery and potentially leads to higher costs for the government. The rationale for a sole-source award, such as specialized capabilities or urgent need, is not provided in the available data. This approach bypasses the standard competitive bidding process, which typically yields better pricing and a wider range of solutions.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the most cost-effective solution available, as competitive pressures are absent.

Public Impact

The primary beneficiaries are the facilities managed by the Federal Aviation Administration in Massachusetts, which will receive grounds maintenance. The service delivered is routine landscaping and groundskeeping, ensuring a maintained and presentable environment. The geographic impact is localized to Massachusetts, where the FAA facilities are located. There are potential workforce implications for Veterans Property Management LLC, which will likely need to staff these groundskeeping duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated pricing for taxpayers.
Sole-source awards reduce transparency and accountability in the procurement process.
Absence of competitive bidding limits the government's ability to explore innovative landscaping solutions.

Positive Signals

Contract awarded to a company potentially serving veteran needs.
Firm-fixed-price contract provides budget certainty for the agency.
The contract duration suggests a stable, ongoing need for these services.

Sector Analysis

The landscaping services sector is characterized by numerous small and medium-sized businesses, often with regional focuses. Federal contracts for landscaping are common across various agencies to maintain government properties. While the overall federal spending on landscaping is substantial, individual contracts like this one are typically modest. The market is generally competitive, making the sole-source nature of this award unusual and warranting scrutiny.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for them based on the limited information. The awardee, Veterans Property Management LLC, may be a small business itself, but the lack of a specific set-aside or subcontracting plan suggests limited direct impact on the broader small business ecosystem for this particular procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Aviation Administration's contracting officers and program managers. As a definitive contract, it is subject to standard federal procurement regulations. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Grounds Maintenance Contracts
Veterans Affairs Contracting
Department of Transportation Procurement
Federal Aviation Administration Operations

Risk Flags

Limited Competition
Sole-Source Award
Potential for Overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $109,678.15 to VETERANS PROPERTY MANAGEMENT LLC. LANDSCAPING SERVICES

Who is the contractor on this award?

The obligated recipient is VETERANS PROPERTY MANAGEMENT LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $109,678.15.

What is the period of performance?

Start: 2025-06-01. End: 2027-04-30.

What is the track record of Veterans Property Management LLC in performing federal contracts?

Information regarding the specific track record of Veterans Property Management LLC in performing federal contracts is not detailed in the provided data. To assess their performance history, one would need to consult federal procurement databases like SAM.gov or FPDS-NG for past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. A positive performance history would indicate reliability, while a negative one might suggest higher risk for this current contract.

How does the pricing of this contract compare to similar landscaping services awarded by the FAA or other agencies?

Direct comparison of pricing is difficult without detailed service scopes and location-specific market data. However, the absence of competition for this $1.1 million contract suggests potential for above-market pricing. A thorough analysis would involve identifying comparable landscaping contracts awarded by the FAA or other agencies in Massachusetts or similar regions, focusing on contracts with similar service requirements (e.g., mowing, trimming, seasonal cleanup) and contract types (firm-fixed-price). Benchmarking the per-unit costs or overall contract value against these comparables would reveal potential value-for-money concerns.

What are the specific risks associated with awarding a sole-source landscaping contract?

The primary risk of a sole-source award for landscaping services is the lack of competitive pressure, which can lead to inflated prices and reduced incentive for the contractor to provide high-quality service efficiently. Taxpayers may end up paying more than necessary. Additionally, the government misses out on potential innovations or cost-saving approaches that might have been proposed by other qualified vendors. Without competition, there's also less transparency in the procurement process, making it harder to justify the expenditure.

How effective is the firm-fixed-price contract type for ensuring consistent landscaping services?

The firm-fixed-price (FFP) contract type is generally effective for ensuring consistent delivery of well-defined services like landscaping, as it provides cost certainty for the government. The contractor assumes the risk of cost overruns, incentivizing them to manage resources efficiently to maintain profitability. For routine services like grounds maintenance, where the scope is predictable, FFP helps prevent scope creep and budget fluctuations. However, if unforeseen circumstances arise that genuinely alter the scope of work, modifying an FFP contract can be more complex than with other contract types.

What is the historical spending trend for landscaping services by the Federal Aviation Administration?

Analyzing historical spending trends for landscaping services by the Federal Aviation Administration (FAA) would require accessing comprehensive federal procurement data over several fiscal years. This would involve querying databases like FPDS-NG for contracts categorized under NAICS code 561730 (Landscaping Services) awarded by the FAA. Observing trends would reveal whether spending on such services is increasing, decreasing, or remaining stable, and whether the agency typically utilizes competitive or sole-source procurements for these needs. This context helps evaluate if the current award aligns with past practices or represents a deviation.

Does the award to Veterans Property Management LLC align with federal goals for supporting veteran-owned small businesses?

While the contractor's name suggests a connection to veterans, the provided data does not specify if Veterans Property Management LLC is classified as a small business or if this contract was awarded under a specific veteran-owned small business (VOSB) set-aside program. Federal policy encourages awarding contracts to VOSBs. If this contract was awarded competitively among VOSBs, it would align well with those goals. If it was a sole-source award to a larger entity with a veteran focus, the alignment with small business goals is less direct, though still potentially supportive of veteran employment.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Landscaping Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 697DCK-25-R-00174

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7 NORMANDY WAY, NASHUA, NH, 03063

Business Categories: Category Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $191,763

Exercised Options: $117,128

Current Obligation: $109,678

Actual Outlays: $20,968

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline