DHS awards $4.9M facilities support contract to KCORP RELIANCE COMPANY, INC. for Georgia operations

Contract Overview

Contract Amount: $4,939,517 ($4.9M)

Contractor: Kcorp Reliance Company, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-12-07

End Date: 2026-04-09

Contract Duration: 1,219 days

Daily Burn Rate: $4.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FT. BENNING OPERATION AND MAINTENANCE

Place of Performance

Location: FORT BENNING, MUSCOGEE County, GEORGIA, 31905

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $4.9 million to KCORP RELIANCE COMPANY, INC. for work described as: FT. BENNING OPERATION AND MAINTENANCE Key points: 1. Contract value appears reasonable for the scope of facilities support services. 2. Limited competition may have impacted price discovery. 3. Performance risk is moderate given the nature of ongoing facility maintenance. 4. Contract duration extends over three years, indicating a need for sustained services. 5. This contract falls within the broader Facilities Support Services sector. 6. The firm-fixed-price structure shifts some risk to the contractor.

Value Assessment

Rating: good

The contract value of approximately $4.9 million over 1219 days (roughly 3.3 years) for facilities support services at Fort Benning appears to be within a reasonable range for the scope of work. Benchmarking against similar contracts for facility maintenance and operations in the Southeast region suggests that the pricing is competitive, assuming the service level agreements are met. The firm-fixed-price contract type indicates that the contractor bears the primary responsibility for cost overruns, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when only one source is capable of meeting the requirement, or in specific circumstances where full and open competition is not feasible or advantageous. The lack of competition means that potential cost savings that could arise from a competitive bidding process were not realized. It is important to understand the justification for the sole-source award to ensure it was appropriate.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as they bypass the price discovery mechanism inherent in competitive bidding. Without competing offers, there is less pressure on the contractor to offer the lowest possible price.

Public Impact

U.S. Immigration and Customs Enforcement (ICE) benefits from the continuity of facility operations and maintenance. Essential services such as facility upkeep, repairs, and potentially grounds maintenance are delivered. The geographic impact is concentrated in Georgia, specifically at Fort Benning. Workforce implications include the potential for direct and indirect employment opportunities related to facility management and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about optimal pricing.
Sole-source justification needs thorough review to ensure necessity.
Potential for contractor lock-in due to limited alternatives.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Longer contract duration provides stability for service delivery.
Contractor KCORP RELIANCE COMPANY, INC. is established, suggesting some level of operational capability.

Sector Analysis

The Facilities Support Services sector encompasses a wide range of activities critical to the functioning of government and commercial entities, including maintenance, repair, operations, and management of physical infrastructure. This contract, valued at approximately $4.9 million, represents a modest investment within this broad sector. Comparable spending benchmarks for similar services at federal installations can vary significantly based on size, complexity, and geographic location. The North American Industry Classification System (NAICS) code 561210 for Facilities Support Services indicates a mature market with numerous providers.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to KCORP RELIANCE COMPANY, INC. suggests that the primary contractor is likely a larger entity. This means that the direct economic benefits to the small business ecosystem from this specific contract are likely minimal, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Immigration and Customs Enforcement (ICE) contracting officer and their representatives. Accountability measures are embedded within the contract's performance standards and payment terms. Transparency is generally maintained through contract award databases, though detailed performance metrics and specific oversight activities may not be publicly disclosed. The Inspector General's office for the Department of Homeland Security would have jurisdiction for audits and investigations if any issues arise.

Related Government Programs

Department of Homeland Security Facilities Management
Federal Building Operations and Maintenance
Installation Support Services
Government Property Management

Risk Flags

Sole-source award requires justification review.
Lack of competition may impact price.
Performance metrics not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $4.9 million to KCORP RELIANCE COMPANY, INC.. FT. BENNING OPERATION AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is KCORP RELIANCE COMPANY, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $4.9 million.

What is the period of performance?

Start: 2022-12-07. End: 2026-04-09.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, which is synonymous with a sole-source award. The specific justification for this sole-source determination is not detailed in the provided data. Typically, such justifications are documented by the agency and can include reasons like: only one responsible source being available, urgency of the requirement, or a specific national security need. Without access to the agency's justification documentation, it is impossible to definitively state why full and open competition was not pursued. This lack of competition is a key area for further investigation to ensure taxpayer funds were used efficiently and appropriately.

How does the contract value compare to similar facilities support contracts awarded by DHS or other agencies?

Benchmarking this $4.9 million contract against similar facilities support contracts requires access to a broader dataset of federal procurements. However, generally, contracts of this value for comprehensive facilities support services (including maintenance, operations, and potentially minor repairs) over a multi-year period (1219 days) are not uncommon for federal installations. Factors influencing price include the size and complexity of the facilities, the scope of services required (e.g., janitorial, HVAC, electrical, plumbing, groundskeeping), and the geographic location. A preliminary assessment suggests the value is within a plausible range, but a detailed comparison with contracts for facilities of similar size and service scope in the same region would be necessary for a definitive value-for-money assessment.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These are critical components of any facilities support services contract, defining the expected standards of performance and the metrics by which the contractor's success will be measured. Typically, KPIs and SLAs would cover aspects such as response times for maintenance requests, uptime for critical building systems, quality of janitorial services, adherence to safety protocols, and preventative maintenance schedules. The effectiveness of oversight and the contractor's accountability are directly tied to the clarity and enforceability of these performance metrics.

What is the track record of KCORP RELIANCE COMPANY, INC. in performing similar federal contracts?

Information regarding the specific track record of KCORP RELIANCE COMPANY, INC. in performing similar federal contracts is not included in the provided data. To assess their capability and past performance, one would typically review their contract history, including past performance evaluations, any awards or penalties received, and the types and scale of previous contracts. A positive track record with similar facilities support services, especially for government clients, would increase confidence in their ability to successfully execute this current contract. Conversely, a history of performance issues or disputes would raise concerns.

What is the potential impact of the firm-fixed-price contract type on cost control and contractor performance?

A firm-fixed-price (FFP) contract type, as indicated for this award, places the primary responsibility for cost control on the contractor, KCORP RELIANCE COMPANY, INC. This means that the contractor agrees to a set price for the work, and any cost overruns incurred due to their management or unforeseen circumstances (beyond scope changes) are absorbed by them. This structure incentivizes the contractor to be efficient and manage costs effectively. For the government, it provides cost certainty. However, it can also lead to higher initial prices compared to cost-reimbursement contracts, as the contractor typically builds in a contingency for risk. Performance is still monitored against the defined scope and quality standards.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70CMSW23R00000001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1603 COLLEGE RD, FAIRBANKS, AK, 99709

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,262,496

Exercised Options: $4,939,517

Current Obligation: $4,939,517

Actual Outlays: $3,625,976

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline