USDA's $22.4M Facilities Management Contract Awarded to Potomac Services Management Inc

Contract Overview

Contract Amount: $22,455,777 ($22.5M)

Contractor: Potomac Services Management Inc

Awarding Agency: Department of Agriculture

Start Date: 2013-09-26

End Date: 2019-03-31

Contract Duration: 2,012 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF MAINTENANCE&OPERATION OF FACILITIES MANAGEMENT HQ

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $22.5 million to POTOMAC SERVICES MANAGEMENT INC for work described as: IGF::OT::IGF MAINTENANCE&OPERATION OF FACILITIES MANAGEMENT HQ Key points: 1. Contract value of $22.4 million over its period of performance. 2. Awarded under full and open competition. 3. Potential risk associated with long-term facility maintenance contracts. 4. Falls within the Facilities Support Services sector.

Value Assessment

Rating: good

The contract value of $22.4 million appears reasonable for a multi-year facilities management service contract. Benchmarking against similar contracts would provide a more definitive assessment of its pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method generally leads to competitive pricing.

Taxpayer Impact: The competitive award process likely ensured a fair price, maximizing taxpayer value for the services rendered.

Public Impact

Ensures continued operation of USDA headquarters facilities. Supports essential government functions through facility upkeep. Provides employment opportunities through the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term contract duration may lead to price creep.
Reliance on a single contractor for critical facility services.

Positive Signals

Awarded via full and open competition.
Clear contract type (Firm Fixed Price).

Sector Analysis

This contract falls under Facilities Support Services, a sector crucial for government operations. Spending in this area is generally consistent with the need to maintain federal infrastructure.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The contract was awarded by the Office of the Chief Financial Officer, suggesting internal financial oversight. However, specific oversight mechanisms for performance and cost are not detailed.

Related Government Programs

Facilities Support Services
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Potential for cost escalation over the contract's duration.
Dependency on contractor performance for essential facility operations.
Lack of detailed performance metrics in the provided data.
Limited insight into small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $22.5 million to POTOMAC SERVICES MANAGEMENT INC. IGF::OT::IGF MAINTENANCE&OPERATION OF FACILITIES MANAGEMENT HQ

Who is the contractor on this award?

The obligated recipient is POTOMAC SERVICES MANAGEMENT INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $22.5 million.

What is the period of performance?

Start: 2013-09-26. End: 2019-03-31.

What is the benchmark cost for similar facilities management contracts of this size and scope?

Benchmarking similar contracts is essential for a comprehensive value assessment. Factors like geographic location, specific services included (e.g., HVAC, janitorial, security), and contract duration significantly influence pricing. Without detailed comparative data, it's difficult to definitively state if $22.4 million is optimal, though it appears reasonable for a multi-year federal contract.

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

Understanding the KPIs and SLAs is crucial for assessing contract effectiveness and contractor performance. These metrics define the expected quality and timeliness of services, such as response times for maintenance requests or uptime for critical systems. Without them, it's challenging to evaluate if the contractor is meeting the government's needs adequately.

Are there provisions for contract modifications or scope changes, and how are they managed?

Contract modifications and scope changes are common in long-term service contracts. The process for managing these, including approval levels and pricing adjustments, is vital for controlling costs and ensuring the contract remains aligned with evolving needs. Uncontrolled modifications can lead to cost overruns and reduced value for taxpayers.

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 Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10905 FORT WASHINGTON RD #400, FORT WASHINGTON, MD, 20744

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

Financial Breakdown

Contract Ceiling: $35,187,573

Exercised Options: $22,878,742

Current Obligation: $22,455,777

Actual Outlays: $453,433

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS21F0064W

IDV Type: FSS

Timeline