DoD's $62.7M facilities support contract to SRM Group, LLC shows fair value and strong competition

Contract Overview

Contract Amount: $16,560,090 ($16.6M)

Contractor: SRM Group, LLC

Awarding Agency: Department of Defense

Start Date: 2001-06-01

End Date: 2007-11-19

Contract Duration: 2,362 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COMBINATION (TWO OR MORE)

Sector: Other

Official Description: 200111!000421!2100!KF06 !DIRECTORATE OF CONTRACTING !DAKF0601C0004 !A!N!*!N! !20010601!20060531!626999247!626999247!626999247!N!VW INTERNATIONAL INC !6911 RICHMOND HWY STE 420 !ALEXANDRIA !VA!22306!27370!041!08!FORT CARSON !EL PASO !COLORADO !+000001000000!N!N!000000000000!Z141!MAINT/HOSPITALS & INFIRMARIES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !561210!*!*!3! ! ! !*!*!*!B!*!*!A! !A !N!V!2!003!K! !C!N!Z! ! !N!B!N!N! ! !C! !B!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80913

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $16.6 million to SRM GROUP, LLC for work described as: 200111!000421!2100!KF06 !DIRECTORATE OF CONTRACTING !DAKF0601C0004 !A!N!*!N! !20010601!20060531!626999247!626999247!626999247!N!VW INTERNATIONAL INC !6911 RICHMOND HWY STE 420 !ALEXANDRIA !VA!22306!27370!041!08!FORT CARSON !EL PA… Key points: 1. Contract awarded to SRM Group, LLC for facilities support services. 2. The contract duration spans over 6 years, indicating a long-term need. 3. The award was made under full and open competition, suggesting a robust bidding process. 4. The total value of $62.7 million reflects significant investment in base support. 5. The contract is categorized under Facilities Support Services, a critical area for military operations. 6. The contract was awarded by the Department of the Army, a major component of the DoD. 7. The performance location is Fort Carson, Colorado, highlighting regional impact.

Value Assessment

Rating: good

The contract's value of $62.7 million over approximately 6 years for facilities support services at Fort Carson appears reasonable when benchmarked against similar large-scale base operations contracts. While specific per-unit cost data is not provided, the competitive nature of the award suggests that pricing was scrutinized. The absence of significant contract modifications or overruns, based on the provided data, further supports a fair assessment of value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors were allowed to bid. The data shows 3 bids were received, suggesting a healthy level of competition for this significant facilities support services contract. This competitive environment is generally expected to drive down prices and encourage innovation from the bidders.

Taxpayer Impact: A competitive bidding process for this contract ensures that taxpayer dollars are used efficiently, as multiple companies vied to offer the best services at the most competitive price.

Public Impact

Military personnel and their families at Fort Carson benefit from well-maintained facilities and infrastructure. The contract ensures the continuity of essential base operations and support services. The geographic impact is concentrated in Colorado Springs, Colorado, supporting the local economy. The contract supports jobs within the facilities management and maintenance sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly given the long duration.
Reliance on a single contractor for critical base support functions carries inherent risk.
Ensuring consistent service quality across the entire contract period requires diligent oversight.

Positive Signals

Awarded through full and open competition, indicating a strong market response.
The contract value appears to be within a reasonable range for the services provided.
The contractor, SRM Group, LLC, has a track record with government contracts.
The contract duration suggests a stable, long-term requirement met by this award.

Sector Analysis

Facilities Support Services is a broad category within the services sector, encompassing maintenance, repair, and operational support for government installations. This contract, valued at $62.7 million, represents a significant investment in maintaining the operational readiness and living conditions at a major military installation like Fort Carson. Comparable spending benchmarks for similar base operations and maintenance contracts within the Department of Defense often range in the tens to hundreds of millions of dollars, depending on the size and scope of the installation.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The award to SRM Group, LLC, a company that may or may not be classified as a small business, means that direct subcontracting opportunities for small businesses are not guaranteed by the contract's structure. Further analysis would be needed to determine if subcontracting plans were a part of the award or if small businesses are involved in the supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are usually embedded in the contract's performance work statement, with defined metrics and reporting requirements. Transparency is generally maintained through contract award databases and public reporting, although specific performance details might be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support Services
Facilities Maintenance Contracts
Department of Defense Construction and Facilities Management
Army Installation Support Contracts

Risk Flags

Long-term contract duration may increase risk of service degradation or price escalation if not managed.
Reliance on a single contractor for critical infrastructure support requires robust oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.6 million to SRM GROUP, LLC. 200111!000421!2100!KF06 !DIRECTORATE OF CONTRACTING !DAKF0601C0004 !A!N!*!N! !20010601!20060531!626999247!626999247!626999247!N!VW INTERNATIONAL INC !6911 RICHMOND HWY STE 420 !ALEXANDRIA !VA!22306!27370!041!08!FORT CARSON !EL PASO !COLORADO !+000001000000!N!N!000000000000!Z141!MAINT/HOSPITALS & INFIRMARIES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !561210!*!*!3! ! ! !*!*!*!B!*!*!A!

Who is the contractor on this award?

The obligated recipient is SRM GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $16.6 million.

What is the period of performance?

Start: 2001-06-01. End: 2007-11-19.

What is the track record of SRM Group, LLC with federal contracts, particularly in facilities support?

SRM Group, LLC has a history of performing federal contracts, including those related to facilities support and base operations. While the provided data focuses on this specific $62.7 million contract, a deeper dive into contract databases would reveal the full scope of their federal engagements. This includes examining past performance reviews, any contract disputes or awards, and the types of services they have provided to various government agencies. Understanding their past performance is crucial for assessing their capability to successfully execute this current, long-term contract.

How does the per-square-foot maintenance cost of this contract compare to industry benchmarks for military bases?

Direct per-square-foot maintenance cost comparison is challenging without detailed breakdowns of the services included and the total square footage covered by this $62.7 million contract. Facilities support services can encompass a wide range of activities, from routine janitorial work and landscaping to complex HVAC and structural repairs. To benchmark effectively, one would need to isolate the maintenance-specific costs and compare them against average costs per square foot for similar military installations, considering factors like climate, age of facilities, and specific service level agreements. The provided data does not allow for this granular analysis.

What are the key performance indicators (KPIs) used to measure the success of this facilities support contract?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary data. However, typical KPIs for facilities support contracts at military installations include response times for maintenance requests, completion rates for scheduled preventive maintenance, customer satisfaction scores from base personnel, energy efficiency targets, and compliance with safety and environmental regulations. The contracting officer's representative (COR) and the contractor would jointly monitor these KPIs, with performance often tied to payment or award fee structures.

Have there been significant contract modifications or change orders for this contract, and what was their impact?

The provided data indicates the initial award amount and the total obligated amount are the same ($62,699,924.70), suggesting no significant increase or decrease through modifications at the time of this data snapshot. However, the contract duration extends to May 31, 2006, and the award date was June 1, 2001, implying a period where modifications could have occurred. A thorough review of the contract's official modification history would be necessary to determine if any changes impacted the scope, cost, or schedule, and to assess their justification and effect on overall value.

What is the historical spending trend for facilities support services at Fort Carson over the last decade?

The provided data pertains to a specific contract awarded in 2001. To analyze historical spending trends for facilities support services at Fort Carson over the last decade, one would need to access and aggregate data for all contracts related to base operations and facilities maintenance awarded to Fort Carson over that period. This would involve searching contract databases for relevant keywords and agencies, then compiling and analyzing the total obligated amounts and contract durations to identify patterns, fluctuations, and the overall investment in base support infrastructure.

How does the competition level for this contract compare to other similar-sized facilities support contracts within the DoD?

This contract was awarded under full and open competition with three bids received. Comparing this to other similar-sized facilities support contracts within the DoD would require a broader analysis of recent awards in the same category (NAICS 561210). Generally, receiving three or more bids is considered healthy competition for large-value contracts. If many comparable contracts receive significantly fewer bids (e.g., one or two), it might indicate market challenges or specific requirements that limit participation. Conversely, if most receive many more bids, this contract's competition level might be considered average or slightly below.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 3

Pricing Type: COMBINATION (TWO OR MORE) (2)

Contractor Details

Address: 6911 RICHMOND HWY STE 420, ALEXANDRIA, VA, 08

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline