Facilities support services contract awarded to CALIDAD INDUSTRIES, INC. for over $12.7 million

Contract Overview

Contract Amount: $12,787,618 ($12.8M)

Contractor: Calidad Industries, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-04-15

End Date: 2008-12-31

Contract Duration: 2,087 days

Daily Burn Rate: $6.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Place of Performance

Location: DUBLIN, ALAMEDA County, CALIFORNIA, 94568

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $12.8 million to CALIDAD INDUSTRIES, INC. for work described as: Key points: 1. The contract's cost-plus award fee structure allows for performance-based incentives. 2. The duration of the contract is substantial, spanning over 2000 days. 3. The award was made on a non-competitive basis, raising questions about price discovery. 4. The services provided fall under facilities support, a broad category with potential for efficiency gains. 5. The contract was awarded by the Department of the Army, a major defense spender. 6. The small business status of the contractor is not specified, impacting set-aside analysis.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more detailed service descriptions and performance metrics. The cost-plus award fee structure can lead to cost overruns if not managed tightly. Comparing it to similar facilities support contracts would require granular data on scope, duration, and geographic location. The lack of competition further complicates a direct value assessment, as market forces may not have been fully leveraged.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating a sole-source procurement. This means only one vendor was solicited and awarded the contract. While sole-source awards can be justified for unique capabilities or urgent needs, they typically result in less competitive pricing and potentially higher costs for the government compared to full and open competition.

Taxpayer Impact: The lack of competition means taxpayers may not have received the best possible price for these services, as there was no pressure from competing bids to drive down costs.

Public Impact

The Department of the Army benefits from the provision of essential facilities support services. The contract ensures the maintenance and operation of government facilities. The geographic impact is concentrated in California, where the contractor is based. Workforce implications include employment opportunities for personnel involved in facilities management and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits price discovery and potentially increases costs for taxpayers.
Cost-plus award fee structure requires robust oversight to prevent cost overruns.
Long contract duration may not adapt well to changing facility needs or technological advancements.
Lack of transparency in the justification for sole-source award.
Limited information on contractor's past performance and specific capabilities for this niche.

Positive Signals

Award to a single contractor can ensure continuity of essential services.
Potential for performance incentives through the award fee structure.
Services are critical for the operational readiness of Army facilities.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad sector encompassing a wide range of services for the operation and maintenance of buildings and other facilities. This contract fits within the government's significant spending on base operations and infrastructure support. Comparable spending benchmarks would depend on the specific services rendered, such as janitorial, maintenance, security, and groundskeeping, across various federal agencies.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available for this contract. As a sole-source award, it is less likely to have been specifically targeted for small business participation unless the sole source itself is a small business. Further investigation would be needed to determine if any small business subcontracting opportunities were mandated or voluntarily pursued.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. The cost-plus award fee structure necessitates diligent monitoring of costs and performance to ensure value for money. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Base Operations Support
Facilities Maintenance Contracts
Government Property Management
Logistics and Support Services

Risk Flags

Sole-source award without clear justification.
Potential for cost overruns in cost-plus contracts.
Lack of detailed service scope for value assessment.
Long contract duration may lead to obsolescence or inflexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to CALIDAD INDUSTRIES, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is CALIDAD INDUSTRIES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.8 million.

What is the period of performance?

Start: 2003-04-15. End: 2008-12-31.

What specific facilities support services are included under this contract?

The provided data indicates the contract falls under NAICS code 561210, Facilities Support Services. However, the specific services are not detailed. This broad category can encompass a wide array of activities, including but not limited to, building operations and maintenance, groundskeeping, custodial services, pest control, refuse collection, and security services. Without a more granular description of the Statement of Work (SOW), it is impossible to ascertain the precise nature and scope of the facilities support being provided by CALIDAD INDUSTRIES, INC. This lack of specificity makes it difficult to benchmark costs or assess performance effectively.

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

The data explicitly states the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which signifies a sole-source procurement. The specific justification for this determination is not provided in the abbreviated data. Typically, sole-source awards are justified under circumstances such as the existence of only one responsible source capable of providing the required services, urgent and compelling needs that preclude full and open competition, or when the contract is a follow-on to a previously competed contract where only the original contractor can provide the services due to specialized knowledge or proprietary technology. A thorough review of the contract file and justification documents would be necessary to understand the official rationale.

How does the cost-plus award fee (CPAF) structure typically function, and what are its implications for this contract?

A Cost-Plus Award Fee (CPAF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs incurred, plus a fee that consists of a fixed base amount and an award amount. The award amount is determined based on the achievement of pre-defined performance objectives and criteria, assessed by the government. For this contract, it means CALIDAD INDUSTRIES, INC. is paid for its costs and can earn an additional fee based on its performance in delivering facilities support services. The implication is that the government aims to incentivize high performance. However, CPAF contracts require robust government oversight to ensure costs are controlled and that the award fee criteria are objective and fairly applied to achieve genuine value for money.

What is the historical spending pattern for facilities support services by the Department of the Army in California?

The provided data only includes details for this single contract awarded to CALIDAD INDUSTRIES, INC. It does not offer any historical spending context for facilities support services by the Department of the Army, either generally or specifically within California. To analyze historical spending patterns, one would need access to broader contract databases or agency budget reports that track expenditures over multiple fiscal years and across various contracts and contractors for similar services. Such an analysis would help determine if this $12.7 million contract represents a significant increase or decrease in spending for these types of services in the region.

What are the potential risks associated with a long-duration contract like this (2087 days)?

A contract duration of 2087 days (approximately 5.7 years) carries several potential risks. Firstly, the government's needs or the operational environment may change significantly over such a long period, making the contracted services less relevant or requiring modifications that could be costly. Secondly, long-term contracts can reduce flexibility in adopting new technologies or more efficient service delivery methods that emerge during the contract term. Thirdly, there's a risk of contractor complacency or a decline in service quality over time if performance monitoring is not consistently rigorous. Finally, locking in prices for an extended period might mean missing out on potential cost savings if market rates decrease.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Parent Company: Goodwill Industries of the Greater East BAY, Inc. (UEI: 003985140)

Address: 1301 30TH AVE, OAKLAND, CA, 12

Business Categories: AbilityOne Program Participant, Category Business, Not Designated a Small Business, Special Designations

Contract Characteristics

Cost or Pricing Data: NO

Timeline