DoD's $137M Facilities Support Contract Awarded to Shaw Infrastructure Under Full and Open Competition
Contract Overview
Contract Amount: $137,063,620 ($137.1M)
Contractor: Shaw Infrastructure, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-05-06
End Date: 2012-05-01
Contract Duration: 3,283 days
Daily Burn Rate: $41.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Place of Performance
Location: FORT RICHARDSON, ANCHORAGE County, ALASKA, 99505
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $137.1 million to SHAW INFRASTRUCTURE, INC. for work described as: Key points: 1. Significant contract value of $137 million over its life. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Long contract duration of 3283 days (approx. 9 years) indicates a substantial, long-term need. 4. Facilities Support Services (NAICS 561210) is a broad category with potential for varied service delivery.
Value Assessment
Rating: fair
The contract value of $137 million over approximately 9 years averages to about $15.2 million annually. Without specific details on the scope of services, it's difficult to benchmark against similar contracts. However, the duration and value suggest a significant undertaking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for a wide range of potential contractors to bid. This method is generally expected to yield fair market prices.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it aims to secure the best possible price through market forces.
Public Impact
Ensures continued operation and maintenance of critical facilities for the Department of the Army. Supports military readiness and personnel by providing essential support services. Potential for local economic impact in Alaska through contract execution and associated employment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or quality data.
- Potential for scope creep over a long contract duration.
- Limited information on the specific services provided under 'Facilities Support Services'.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides stability for service provider and agency.
- Fixed-price contract type can help control costs if scope is well-defined.
Sector Analysis
Facilities Support Services (NAICS 561210) encompasses a wide range of services including building operation and maintenance, groundskeeping, and other support functions. Annual spending in this sector can vary significantly based on agency size and facility portfolio. This contract represents a substantial investment within this service category.
Small Business Impact
The data indicates this contract was not awarded to a small business (sb: false). Therefore, there is no direct small business participation evident from this award alone, though subcontractors could potentially be involved.
Oversight & Accountability
The contract's long duration and significant value necessitate robust oversight to ensure performance, cost control, and adherence to contract terms. The Department of Defense's contracting oversight mechanisms would be crucial here.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration increases risk of cost escalation or service obsolescence.
- Lack of detailed service scope makes value assessment difficult.
- No indication of small business participation.
- Potential for contractor performance issues over an extended period.
Tags
facilities-support-services, department-of-defense, ak, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $137.1 million to SHAW INFRASTRUCTURE, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is SHAW INFRASTRUCTURE, 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 $137.1 million.
What is the period of performance?
Start: 2003-05-06. End: 2012-05-01.
What specific services are included under 'Facilities Support Services' for this contract, and how do they align with the Army's operational needs in Alaska?
The specific services are not detailed in the provided data. Facilities Support Services can range from janitorial and maintenance to security and logistics. Understanding the precise scope is crucial to assess if the $137 million award represents good value and effectively meets the Army's unique operational requirements in Alaska's challenging environment.
Given the 9-year duration, what mechanisms are in place to manage potential cost increases or service degradation over time?
As a Firm Fixed Price contract, the price is set. However, mechanisms like contract modifications for scope changes, annual reviews, and performance-based incentives (if included) are vital. The agency's oversight team must actively monitor service quality and contractor performance to mitigate risks of degradation and ensure value is maintained throughout the contract's life.
How does the $15.2 million average annual cost compare to similar facilities support contracts for military installations of comparable size and complexity?
Benchmarking this $15.2 million average annual cost requires detailed comparison data for similar facilities support contracts, considering factors like geographic location (Alaska's higher costs), facility types, and service scope. Without such comparative data, it's challenging to definitively assess if this represents optimal value or if there are opportunities for cost savings through renegotiation or alternative service models.
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: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Shaw Group Inc., the (UEI: 180038382)
Address: 1230 COLUMBIA ST STE 1200, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2003-05-06
Current End Date: 2012-05-01
Potential End Date: 2012-05-01 00:00:00
Last Modified: 2012-05-01
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