CFTC awards $4.47M for facility operations to Prime Response, Inc. under a sole-source contract

Contract Overview

Contract Amount: $4,474,403 ($4.5M)

Contractor: Prime Response, Inc.

Awarding Agency: Commodity Futures Trading Commission

Start Date: 2023-05-01

End Date: 2026-06-30

Contract Duration: 1,156 days

Daily Burn Rate: $3.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TO PROVIDE FACILITY AND OPERATIONAL SERVICES FOR ALL OFFICES AT CFTC.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20581

State: District of Columbia Government Spending

Plain-Language Summary

Commodity Futures Trading Commission obligated $4.5 million to PRIME RESPONSE, INC. for work described as: TO PROVIDE FACILITY AND OPERATIONAL SERVICES FOR ALL OFFICES AT CFTC. Key points: 1. Contract focuses on essential facility and operational services for CFTC offices. 2. Sole-source award raises questions about competition and potential for cost savings. 3. Fixed-price contract type aims to control costs, but scope creep is a potential risk. 4. Contract duration of over three years suggests a need for stable, long-term support. 5. Geographic concentration in Washington D.C. may limit broader market engagement. 6. Lack of small business participation noted, potentially missing opportunities for smaller firms.

Value Assessment

Rating: fair

The contract value of $4.47 million over approximately three years for facility and operational services appears to be within a reasonable range for a sole-source award of this nature. However, without competitive bidding, it is difficult to benchmark the pricing against market rates or identify potential cost efficiencies. The fixed-price nature of the contract provides some cost certainty, but the absence of competition means the government may not be achieving the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The justification for a sole-source award is not provided in the data, which is a significant concern. This lack of competition limits the government's ability to explore different service providers, potentially leading to higher costs and less innovation. It is unclear if any market research was conducted to determine if other capable vendors could have provided these services.

Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a premium for these services, as there was no competitive pressure to drive down prices. This also represents a missed opportunity to foster competition and potentially discover more cost-effective solutions.

Public Impact

The Commodity Futures Trading Commission (CFTC) offices will benefit from continuous facility and operational support. Services include maintaining a functional and safe working environment for CFTC personnel. The primary geographic impact is within Washington D.C., where CFTC offices are located. The contract supports the operational readiness of a key federal financial regulatory agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential value for money.
Lack of transparency regarding the justification for sole-source procurement.
No indication of small business participation or subcontracting opportunities.
Contract duration of over three years without competitive re-evaluation.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
Award to a single, presumably capable, vendor for essential services.
Contract aims to ensure continuity of facility operations for CFTC.

Sector Analysis

Facility support services represent a significant segment of the government contracting market, encompassing a wide range of activities from maintenance and repair to operational management. This contract falls within the broader professional, scientific, and technical services sector. Comparable spending benchmarks for similar facility operations contracts within federal agencies can vary widely based on the size and complexity of the facilities, but typically range from hundreds of thousands to millions of dollars annually.

Small Business Impact

The data indicates that this contract was not awarded to a small business, nor does it appear to have a small business set-aside component (ss: false, sb: false). This suggests that opportunities for small businesses to participate in providing these facility and operational services may have been overlooked or were not pursued. Without specific subcontracting plans, it's unclear if small businesses will benefit indirectly.

Oversight & Accountability

Oversight for this contract would typically fall under the Commodity Futures Trading Commission's contracting and program management offices. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited by the sole-source nature of the award and the lack of publicly available justification. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
Department of Defense Facility Support Contracts
Other Agency Facility Operations and Maintenance Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for non-optimal pricing due to lack of competition.
Limited transparency on contract specifics and performance metrics.
No apparent small business participation or subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Commodity Futures Trading Commission awarded $4.5 million to PRIME RESPONSE, INC.. TO PROVIDE FACILITY AND OPERATIONAL SERVICES FOR ALL OFFICES AT CFTC.

Who is the contractor on this award?

The obligated recipient is PRIME RESPONSE, INC..

Which agency awarded this contract?

Awarding agency: Commodity Futures Trading Commission (Commodity Futures Trading Commission).

What is the total obligated amount?

The obligated amount is $4.5 million.

What is the period of performance?

Start: 2023-05-01. End: 2026-06-30.

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

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of meeting the government's needs. This could be due to unique capabilities, proprietary technology, or urgent and compelling circumstances. Without this justification, it is impossible to assess whether the sole-source determination was appropriate and if the government adequately explored competitive options. Further investigation into the contract file or agency procurement records would be necessary to obtain this critical information.

How does the awarded price compare to similar facility support contracts for agencies of similar size?

Benchmarking this contract's price against similar facility support contracts is challenging without more detailed information on the scope of services and the specific facilities managed. The total award of $4.47 million over approximately 3.3 years (May 2023 to June 2026) equates to roughly $1.35 million per year. This figure needs to be contextualized by the square footage of the facilities, the types of services provided (e.g., HVAC, janitorial, security, space management), and the geographic location. Agencies like the CFTC, which are regulatory bodies, may have specific security and operational requirements that differ from other federal entities. A comprehensive comparison would require access to a database of similar contracts with detailed service breakdowns and pricing.

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. However, for facility and operational services, typical KPIs and SLAs would likely include response times for maintenance requests, uptime for critical building systems (e.g., HVAC, power), cleanliness standards, security incident response, and overall facility availability. The contract's effectiveness would be measured against these metrics, and Prime Response, Inc. would be expected to meet or exceed them to ensure satisfactory performance. The absence of this information in the summary data limits a thorough assessment of performance expectations and accountability.

What is Prime Response, Inc.'s track record with federal contracts, particularly in facility support?

Information regarding Prime Response, Inc.'s specific track record with federal contracts, especially in facility support, is not detailed in the provided data. To assess their capability and past performance, one would need to review their contract history, including past performance evaluations, any awards or penalties received, and the types and values of previous contracts they have held. A positive track record with similar services would increase confidence in their ability to meet the CFTC's needs. Conversely, a history of performance issues or contract disputes would raise concerns about the current award's risk.

Are there any provisions for contract modifications or scope changes, and what is the potential impact on cost?

While the data specifies a 'FIRM FIXED PRICE' contract type, most definitive contracts allow for modifications under certain circumstances, such as equitable adjustments due to changes in scope directed by the government or unforeseen conditions. The potential impact on cost depends heavily on the contract's clauses regarding modifications. A firm fixed-price contract generally aims to limit cost increases, but significant scope changes or unforeseen issues could lead to contract modifications that increase the total value. The absence of specific details on modification clauses means the potential for cost overruns due to changes remains an unknown risk factor.

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) › MANAGEMENT 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

Address: 17200 WILL CT, ACCOKEEK, MD, 20607

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, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,500,000

Exercised Options: $4,500,000

Current Obligation: $4,474,403

Actual Outlays: $3,685,122

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline