DOE's $82.8M Nevada Support Facility contract awarded to TSAY Professional Services, Inc. for facilities operations

Contract Overview

Contract Amount: $8,280,876 ($8.3M)

Contractor: Tsay Professional Services, Inc.

Awarding Agency: Department of Energy

Start Date: 2020-05-18

End Date: 2025-05-31

Contract Duration: 1,839 days

Daily Burn Rate: $4.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DOE/NNSA NEVADA SUPPORT FACILITY (NSF) OPERATIONS, MAINTENANCE AND SUPPORT SERVICES (OMSS) AT THE NEVADA FIELD OFFICE (NFO) IN LAS VEGAS, NV

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89193

State: Nevada Government Spending

Plain-Language Summary

Department of Energy obligated $8.3 million to TSAY PROFESSIONAL SERVICES, INC. for work described as: DOE/NNSA NEVADA SUPPORT FACILITY (NSF) OPERATIONS, MAINTENANCE AND SUPPORT SERVICES (OMSS) AT THE NEVADA FIELD OFFICE (NFO) IN LAS VEGAS, NV Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract duration of 1839 days suggests a long-term need for these services. 3. Awarded as 'Not Available for Competition', raising questions about market exploration. 4. Facilities Support Services (NAICS 561210) is a broad category with potential for varied service delivery. 5. The contract value of $82.8 million over approximately 5 years warrants scrutiny for value for money. 6. The absence of small business set-aside flags potential missed opportunities for smaller enterprises.

Value Assessment

Rating: fair

The contract value of $82.8 million over roughly five years averages to approximately $16.56 million annually. Benchmarking this against similar facilities support contracts is challenging without more specific service details. However, given the specialized nature of supporting a National Nuclear Security Administration facility, costs may be higher than general facilities management. The firm-fixed-price structure provides cost certainty but requires careful initial pricing by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'Not Available for Competition', indicating a sole-source procurement. This suggests that the Department of Energy identified TSAY Professional Services, Inc. as the only capable source, potentially due to specialized knowledge, existing infrastructure, or unique security requirements related to the Nevada Field Office. The lack of competition means there was no opportunity for price discovery through a bidding process, which could lead to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without competing the requirement, the government cannot be assured it received the best possible price for these essential support services.

Public Impact

The primary beneficiaries are the Department of Energy and the National Nuclear Security Administration, ensuring the continued operation and maintenance of critical facilities at the Nevada Field Office. Services delivered include operations, maintenance, and general support for the NSF, crucial for national security missions. The geographic impact is concentrated in Las Vegas, Nevada, supporting federal operations in that region. Workforce implications include employment opportunities for personnel skilled in facilities management and support services, potentially benefiting the local Las Vegas economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially increasing costs for taxpayers.
Lack of transparency in the justification for sole-source award.
Firm-fixed-price contracts can sometimes lead to contractors cutting corners on quality if not properly monitored.
The broad scope of 'facilities support services' could lead to scope creep if not tightly managed.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Long-term contract duration suggests stability and continuity of essential services.
Award to a specific company implies they possess the necessary qualifications for this specialized role.

Sector Analysis

Facilities Support Services (NAICS 561210) is a significant sector within government contracting, encompassing a wide range of services from building operations and maintenance to security and logistics. The market size is substantial, driven by the government's extensive real estate portfolio. This contract fits within the broader category of support services for critical infrastructure, particularly for agencies like the Department of Energy with unique operational needs. Comparable spending benchmarks would depend heavily on the specific services rendered and the scale of the facilities managed.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no small business participation (SB=false). This suggests that the requirement was either too specialized or too large in scope to be effectively competed among small businesses, or that the contracting agency did not prioritize a small business set-aside. This could represent a missed opportunity to foster growth within the small business ecosystem for facilities support services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Energy Facilities Operations
National Nuclear Security Administration Support Services
Nevada Field Office Operations
Government Facilities Maintenance Contracts
Professional Services Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Potential for higher costs due to lack of competition.
Limited transparency regarding the justification for sole-source procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $8.3 million to TSAY PROFESSIONAL SERVICES, INC.. DOE/NNSA NEVADA SUPPORT FACILITY (NSF) OPERATIONS, MAINTENANCE AND SUPPORT SERVICES (OMSS) AT THE NEVADA FIELD OFFICE (NFO) IN LAS VEGAS, NV

Who is the contractor on this award?

The obligated recipient is TSAY PROFESSIONAL SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.3 million.

What is the period of performance?

Start: 2020-05-18. End: 2025-05-31.

What specific services are included under 'Facilities Support Services' for the Nevada Support Facility?

While the provided data categorizes the contract under 'Facilities Support Services' (NAICS 561210), the specific deliverables are not detailed. Typically, these services encompass a broad range of activities necessary for the operation and upkeep of a facility. This can include, but is not limited to, building maintenance (HVAC, electrical, plumbing), janitorial services, groundskeeping, security, waste management, pest control, and potentially specialized support related to the unique functions of the Nevada Support Facility, such as environmental monitoring or specialized equipment maintenance. A more detailed statement of work would be required to fully understand the scope.

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

The data indicates the contract was 'Not Available for Competition', signifying a sole-source award. The specific justification is not provided in the abbreviated data. However, sole-source awards are typically justified when only one responsible source is available or capable of meeting the agency's needs. For a facility like the Nevada Support Facility, which supports the National Nuclear Security Administration, this could be due to highly specialized technical requirements, unique security clearances, proprietary knowledge, or existing infrastructure dependencies that only the incumbent contractor, TSAY Professional Services, Inc., possesses or can provide. A formal Justification for Other Than Full and Open Competition (JOFOC) would contain the detailed rationale.

How does the firm-fixed-price contract type impact risk and value for money?

A firm-fixed-price (FFP) contract shifts the majority of the cost risk to the contractor. This means TSAY Professional Services, Inc. is obligated to perform the work for the agreed-upon price, regardless of their actual costs. For the government, this provides budget certainty and protects against cost overruns. However, for an FFP contract to represent good value, the initial price must be fair and reasonable, which is harder to ascertain without competition. If the initial price is too high, the government may overpay. Conversely, if the price is too low, the contractor might be incentivized to reduce quality or scope, necessitating robust government oversight.

What is the historical spending pattern for facilities support services at the Nevada Field Office?

The provided data only includes information for this specific contract awarded in May 2020. To understand historical spending patterns, one would need to examine previous contracts for similar services at the Nevada Field Office or the Nevada Support Facility. This would involve searching federal procurement databases for prior awards to TSAY Professional Services, Inc. or other contractors performing similar functions. Analyzing past spending would reveal trends in contract values, durations, competition levels, and pricing, providing context for the current $82.8 million award and assessing whether spending has increased, decreased, or remained stable over time.

What are the potential implications of the contract's duration (1839 days) on service quality and contractor performance?

The contract duration of 1839 days, approximately five years, suggests a long-term commitment by the Department of Energy to TSAY Professional Services, Inc. for these essential support functions. A longer duration can foster stability and allow the contractor to develop deep expertise in the specific needs of the Nevada Support Facility, potentially leading to improved service quality and efficiency over time. It also allows the contractor to make investments in personnel and equipment. However, it also reduces the government's flexibility to adapt to changing needs or to re-evaluate performance through competition. Robust performance management and oversight are crucial throughout the contract's life to ensure sustained quality.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 346 EAGLE RD STE 2, OHKAY OWINGEH, NM, 87566

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, Government, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,946,574

Exercised Options: $14,946,574

Current Obligation: $8,280,876

Actual Outlays: $6,539,173

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline