Department of Labor's $11.3M facilities support contract awarded to Dynamic Educational Systems Inc. for 1976 days

Contract Overview

Contract Amount: $11,349,619 ($11.3M)

Contractor: Dynamic Educational Systems Inc

Awarding Agency: Department of Labor

Start Date: 2000-11-01

End Date: 2006-03-31

Contract Duration: 1,976 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: Other

Official Description: OUTREACH AND ADMISSION GA,SC,TN

Place of Performance

Location: AVONDALE ESTATES, DEKALB County, GEORGIA, 30002

State: Georgia Government Spending

Plain-Language Summary

Department of Labor obligated $11.3 million to DYNAMIC EDUCATIONAL SYSTEMS INC for work described as: OUTREACH AND ADMISSION GA,SC,TN Key points: 1. The contract value of $11.3 million over approximately 5.4 years suggests a moderate annual spend. 2. Awarded under full and open competition, indicating a potentially competitive bidding process. 3. The contract duration of 1976 days (over 5 years) allows for long-term planning and service continuity. 4. Facilities Support Services (NAICS 561210) is a broad category, making direct performance comparisons challenging without more detail. 5. The contract was awarded as a Definitive Contract, typically used for requirements that are not clearly defined in advance. 6. No small business set-aside was utilized, suggesting the primary competition was open to all eligible large businesses.

Value Assessment

Rating: fair

The total award of $11.3 million over nearly 2000 days averages to approximately $5,744 per day. Without specific service details or benchmarks for facilities support in Georgia, it's difficult to definitively assess value for money. However, the daily rate appears moderate for comprehensive facilities management. Further analysis would require comparing this to similar contracts for comparable services and geographic locations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' suggesting that all responsible sources were permitted to submit a bid. The data indicates two bids were received. While two bidders participated, the level of competition might be considered limited depending on the number of potential qualified contractors in the market for these specific services. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: A competitive process, even with two bidders, aims to secure the best value for taxpayers. However, a limited number of bids could mean that taxpayers did not benefit from the full potential of market competition.

Public Impact

The primary beneficiaries are likely the Department of Labor's Employment and Training Administration, which receives essential facilities support services. Services provided include facilities support, crucial for the operational continuity of the agency's presence in Georgia, South Carolina, and Tennessee. The geographic impact is concentrated in the Southeastern United States, specifically Georgia (ST), South Carolina (SC), and Tennessee (TN). Workforce implications may include the creation or maintenance of jobs related to facilities management and support staff employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in due to long contract duration.
Risk of scope creep if services are not clearly defined in the definitive contract.
Dependence on a single contractor for essential facilities operations.

Positive Signals

Awarded through full and open competition, suggesting a structured procurement process.
Long contract duration provides stability and predictability for service delivery.
Contractor has a defined period to establish and deliver services.

Sector Analysis

Facilities Support Services (NAICS 561210) is a significant sector within the broader commercial and government services industry. This contract represents a portion of the government's spending on maintaining its physical infrastructure and operational environments. The market for these services is competitive, with numerous providers ranging from small specialized firms to large diversified companies. Benchmarking this contract's value would typically involve comparing its daily rate or total value against similar government contracts for facilities management in the same region or for similar types of facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means the competition was open to all eligible offerors, including large businesses. Consequently, there are no direct subcontracting requirements mandated for small businesses within this specific award. The absence of a small business set-aside suggests that the primary focus was on securing the best overall offer, rather than specifically promoting small business participation through this particular contract vehicle.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's contracting officers and program managers. Accountability measures are usually embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to service delivery. Transparency is generally facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract arise.

Related Government Programs

Federal Buildings and Facilities Maintenance
Government Property Management
General Services Administration (GSA) Contracts
Department of Defense Facilities Management
Public Building Service Contracts

Risk Flags

Limited competition may have impacted price.
Definitive contract type requires clear scope definition.
Long duration could pose risks if needs change.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $11.3 million to DYNAMIC EDUCATIONAL SYSTEMS INC. OUTREACH AND ADMISSION GA,SC,TN

Who is the contractor on this award?

The obligated recipient is DYNAMIC EDUCATIONAL SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Employment and Training Administration).

What is the total obligated amount?

The obligated amount is $11.3 million.

What is the period of performance?

Start: 2000-11-01. End: 2006-03-31.

What specific facilities support services were included in this contract?

The provided data identifies the contract 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. Common services include building operations, maintenance, repair, custodial services, groundskeeping, security, and potentially space management. However, the specific scope of services for this particular $11.3 million contract awarded to Dynamic Educational Systems Inc. by the Department of Labor is not detailed in the provided summary. A definitive contract, especially one awarded over a long period, might have had evolving service requirements. Further investigation into the contract's statement of work would be necessary to ascertain the precise services rendered.

How does the daily rate of approximately $5,744 compare to industry benchmarks for facilities support services?

The average daily rate for this contract is approximately $5,744 ($11.3M / 1976 days). Benchmarking this figure accurately requires detailed knowledge of the specific services provided, the geographic location (Georgia, South Carolina, Tennessee), and the scale of operations. Facilities support services can range widely in cost depending on whether they include basic maintenance, janitorial services, HVAC, electrical, plumbing, landscaping, or comprehensive building management. For large-scale, multi-service contracts in major metropolitan areas, this daily rate might be considered moderate. However, without a precise breakdown of services and comparison to similar government or commercial contracts in the specified region, it is challenging to definitively state whether this represents excellent, fair, or questionable value. Industry reports and government cost analysis data for similar contracts would be needed for a robust comparison.

What is the significance of awarding a 'Definitive Contract' for facilities support?

A Definitive Contract is a type of contract that is considered fixed-price or cost-reimbursable, with the price and terms clearly stated. In the context of facilities support, awarding a definitive contract, especially over a long duration like 1976 days, suggests that the government had a relatively clear understanding of its needs and expected services. Unlike requirements contracts or indefinite-delivery indefinite-quantity (IDIQ) contracts, definitive contracts are typically used when the government knows its needs well in advance and can specify the terms. For facilities support, this implies that the scope of work, performance standards, and pricing were established upfront, providing a stable framework for service delivery throughout the contract period.

What does the limited number of bidders (2) suggest about the competition for this contract?

The award to Dynamic Educational Systems Inc. resulted from a solicitation that received two bids. While 'Full and Open Competition' was advertised, the fact that only two bids were submitted could indicate several factors. It might suggest that the market for this specific type of facilities support in the specified region is relatively small, or that the contract requirements were highly specialized, deterring some potential bidders. Alternatively, it could mean that only two firms were sufficiently qualified or interested. A lower number of bidders generally implies less competitive pressure, which could potentially lead to higher prices than if there had been a larger pool of competitors vying for the contract. This could represent a missed opportunity for greater cost savings for the government.

What is the historical spending pattern for facilities support services by the Department of Labor?

The provided data pertains to a single contract awarded in 2000. To understand the historical spending pattern for facilities support services by the Department of Labor, a broader analysis of contract awards over multiple years would be necessary. This would involve examining spending across various administrations within the DOL and across different contract types (e.g., fixed-price, cost-reimbursement, IDIQ). Analyzing trends in spending, average contract values, and the number of awarded contracts for facilities support would reveal whether this $11.3 million contract was typical, large, or small in the context of the DOL's overall procurement history for such services. Without this broader dataset, it's impossible to establish a historical spending pattern.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation ID: GA,SC,TN OA

Offers Received: 2

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Contractor Details

Parent Company: Exodyne Inc. (UEI: 073512048)

Address: 8433 N BLACK CANYON HWY #, PHOENIX

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,978,057

Exercised Options: $12,195,139

Current Obligation: $11,349,619

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline