Department of Energy's $2.38M Facilities Support Services Contract Awarded to Salmon Group Inc

Contract Overview

Contract Amount: $2,377,129 ($2.4M)

Contractor: Salmon Group Inc

Awarding Agency: Department of Energy

Start Date: 2018-10-01

End Date: 2021-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $2.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGT SECRETARIAL SUPPORT SERVICES CONTRACT-SBA REFERENCE #0353/18/1285

Place of Performance

Location: RICHLAND, BENTON County, WASHINGTON, 99352

State: Washington Government Spending

Plain-Language Summary

Department of Energy obligated $2.4 million to SALMON GROUP INC for work described as: IGF::OT::IGT SECRETARIAL SUPPORT SERVICES CONTRACT-SBA REFERENCE #0353/18/1285 Key points: 1. The contract was awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The duration of the contract was 1095 days, suggesting a need for sustained support services. 3. The contract was not competed, raising questions about potential cost savings through competitive bidding. 4. The services provided fall under Facilities Support Services, a broad category essential for operational continuity. 5. The award was made to a single contractor, Salmon Group Inc., without a competitive process. 6. The contract value of approximately $2.38 million over three years represents a moderate investment in facility management.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the lack of competitive data. The firm-fixed-price structure offers cost certainty, but the absence of competition means potential savings from a bidding process were not realized. Without comparable contract data for similar facilities support services within the Department of Energy or other agencies, it's difficult to definitively assess if the pricing represents optimal value for money. The total award amount of $2.38 million over three years suggests a steady, but not exceptionally large, expenditure for the scope of services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not open to competition from multiple bidders. This approach is typically reserved for situations where only one contractor can provide the required services, often due to unique capabilities, existing infrastructure, or specific security requirements. The lack of competition limits the government's ability to leverage market forces to drive down prices and ensure the most cost-effective solution.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive pressure. Without a bidding process, there is less assurance that the negotiated price reflects the best possible market rate.

Public Impact

The Department of Energy benefits from the continuity of essential facilities support services, ensuring operational readiness. Employees and visitors within the covered facilities benefit from a safe and well-maintained environment. The contract supports the operational infrastructure necessary for the Department of Energy's mission-critical functions. The geographic impact is localized to the facilities managed by the Department of Energy in Washington.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits opportunities for new or smaller businesses to enter the market.
Absence of performance metrics makes it difficult to assess contractor efficiency and effectiveness.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Contract duration suggests a stable, ongoing need for services.
Award to an established entity may indicate a level of trust in their capabilities.

Sector Analysis

Facilities Support Services is a broad category within the professional, scientific, and technical services sector. This sector is characterized by a wide range of service providers, from large corporations to specialized small businesses. Contracts in this area often involve maintenance, repair, operations, and management of physical infrastructure. The market size for facilities support services is substantial, driven by the ongoing need for operational efficiency and asset preservation across government and commercial entities. This specific contract fits within the government's broader spending on maintaining its physical assets and ensuring the functionality of its operational sites.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information indicating subcontracting opportunities for small businesses. The sole-source nature of the award further limits the potential for small business participation. This contract does not contribute to the government's small business contracting goals and may represent a missed opportunity to engage smaller, specialized firms in providing these essential services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Energy's contracting officers and program managers. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency regarding the specific services rendered and performance metrics would be crucial for effective accountability. The Inspector General's office for the Department of Energy would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
Department of Defense Facilities Maintenance Contracts
National Science Foundation Facilities Operations
Department of Interior Land Management Services

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited transparency on specific service scope and performance metrics.
Potential for higher costs to taxpayers due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $2.4 million to SALMON GROUP INC. IGF::OT::IGT SECRETARIAL SUPPORT SERVICES CONTRACT-SBA REFERENCE #0353/18/1285

Who is the contractor on this award?

The obligated recipient is SALMON GROUP INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2018-10-01. End: 2021-09-30.

What specific facilities support services were included in this contract?

The provided data indicates the contract falls under NAICS code 561210, Facilities Support Services. This broad category typically encompasses a range of services necessary for the operation and maintenance of buildings and grounds. These can include, but are not limited to, janitorial services, security, landscaping, pest control, waste management, and general building maintenance and repair. Without the full contract details, the precise scope of services for Salmon Group Inc. remains unspecified, but it is understood to be critical for the day-to-day functioning of the Department of Energy facilities it supports.

Why was this contract awarded on a sole-source basis?

The contract was designated as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this designation is not provided in the abbreviated data. Typically, sole-source awards are made when only one responsible source is available to satisfy the agency's needs. This could be due to proprietary technology, unique capabilities, urgent and compelling circumstances, or if the agency has already invested significantly in a particular contractor's system and transitioning would be prohibitively expensive or disruptive. Further investigation into the contract file would be required to ascertain the precise rationale.

What is the track record of Salmon Group Inc. with federal contracts?

Salmon Group Inc. has been awarded this definitive contract by the Department of Energy for facilities support services. The abbreviated data does not provide a comprehensive history of their federal contracting activities, such as the number of previous awards, their total value, or performance ratings. To assess their track record thoroughly, one would need to consult federal procurement databases like SAM.gov or FPDS-NG to review past contracts, identify any performance issues or accolades, and understand their experience across different agencies and service types. This single award provides limited insight into their overall performance history.

How does the $2.38 million contract value compare to similar facilities support contracts?

Comparing the $2.38 million contract value for facilities support services is difficult without more specific details on the scope of services and the size/complexity of the facilities managed. Facilities support contracts can vary significantly in price based on geographic location, the specific services required (e.g., basic maintenance vs. complex infrastructure management), and the size of the facilities. Generally, $2.38 million over three years ($~793,000 annually) represents a moderate-sized contract for facilities support. Larger, more comprehensive contracts can run into tens or hundreds of millions of dollars, while smaller, specialized contracts might be significantly less. Benchmarking would require access to comparable contract data for similar-sized facilities within the federal government.

What are the potential risks associated with a sole-source contract for facilities support?

The primary risk associated with a sole-source contract for facilities support is the potential for inflated costs due to the lack of competitive bidding. Without market pressure, the contractor may not be incentivized to offer the most competitive pricing. Another risk is complacency; the contractor might deliver a lower quality of service knowing that the government has limited alternatives. Furthermore, sole-source awards can stifle innovation and prevent the government from benefiting from new technologies or more efficient service delivery models that might be offered by other potential providers. This can also limit opportunities for small businesses to enter the federal contracting space.

What is the historical spending pattern for facilities support services at the Department of Energy?

The provided data only pertains to a single contract awarded in 2018. To understand historical spending patterns for facilities support services at the Department of Energy (DOE), a broader analysis of procurement data over several fiscal years would be necessary. This would involve identifying all contracts categorized under NAICS code 561210 (Facilities Support Services) awarded by the DOE, their values, durations, and award types. Analyzing this data would reveal trends in spending, identify major contractors, and highlight any shifts in procurement strategies, such as an increase or decrease in sole-source awards or a greater emphasis on competitive bidding over time.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: WPP PLC

Address: 555 11TH ST NW # 402, WASHINGTON, DC, 20004

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,377,129

Exercised Options: $2,377,129

Current Obligation: $2,377,129

Actual Outlays: $835,926

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline