Commerce Department's Patent Office Support Services contract awarded to DTSV INC. for over $39.5 million

Contract Overview

Contract Amount: $39,521,416 ($39.5M)

Contractor: Dtsv Inc.

Awarding Agency: Department of Commerce

Start Date: 2017-09-01

End Date: 2019-02-28

Contract Duration: 545 days

Daily Burn Rate: $72.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF' PATENT OFFICE SUPPORT SERVICES (POSS)

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22313

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $39.5 million to DTSV INC. for work described as: IGF::OT::IGF' PATENT OFFICE SUPPORT SERVICES (POSS) Key points: 1. The contract value of over $39.5 million for facilities support services indicates a significant investment in maintaining the operational infrastructure of the U.S. Patent and Trademark Office. 2. The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a competitive process with specific criteria for participation. 3. The duration of 545 days (approximately 1.5 years) for this delivery order suggests a focused scope of work rather than a long-term, broad-based service agreement. 4. The fixed-price contract type aims to control costs by establishing a set price for the services, transferring some risk to the contractor. 5. The absence of small business set-aside flags indicates that this contract was not specifically targeted to small businesses, potentially impacting their participation. 6. The contract's focus on facilities support services is crucial for the day-to-day functioning and physical environment of a major government agency.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of facilities support services provided. However, a contract value exceeding $39.5 million for a period of roughly 1.5 years suggests a substantial operational requirement. Comparing this to similar facilities support contracts across federal agencies would be necessary to determine if the pricing is competitive. The fixed-price nature of the contract provides some cost certainty, but the overall value for money depends heavily on the quality and efficiency of the services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was open, there were specific criteria or exclusions applied, which might limit the pool of potential bidders. The exact number of bidders is not provided, but this type of competition generally aims to ensure a fair and competitive process, potentially leading to better pricing and service offerings. The exclusion of certain sources warrants further investigation to understand its impact on the competitive landscape.

Taxpayer Impact: The competitive nature of this award, even with exclusions, suggests that taxpayers likely benefited from a process designed to solicit multiple offers and achieve a reasonable price for the required facilities support services.

Public Impact

The primary beneficiaries are the U.S. Patent and Trademark Office (USPTO) staff, who receive a functional and well-maintained working environment. The services delivered include essential facilities support, ensuring the operational continuity of the USPTO. The geographic impact is concentrated in Virginia, where the USPTO facilities are located. Workforce implications include the direct employment of personnel by DTSV INC. to perform the contracted services, as well as the indirect impact on USPTO employees who rely on these support functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' in the competition type could potentially limit competition and lead to higher costs if not justified.
Lack of specific performance metrics or quality indicators makes it difficult to assess the contractor's effectiveness and value.
The fixed-price contract might incentivize cost-cutting by the contractor, potentially impacting service quality if not closely monitored.
The contract duration is relatively short, which might lead to frequent re-competition and associated transition costs.
No explicit mention of small business subcontracting goals could mean limited opportunities for small businesses on this contract.

Positive Signals

The contract was awarded through a 'Full and Open Competition' process, indicating an effort to ensure a competitive bidding environment.
The 'Firm Fixed Price' contract type provides cost certainty for the government, protecting against cost overruns.
The award to DTSV INC. suggests they met the technical and performance requirements outlined in the solicitation.
The contract supports critical facilities operations for a key government agency, ensuring essential services are maintained.
The contract value, while substantial, reflects the scale of facilities support required for a major federal office.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing maintenance, repair, and operational support for government buildings and infrastructure. This sector is critical for ensuring the functionality and safety of federal workspaces. The market for these services is competitive, with numerous providers ranging from large corporations to specialized small businesses. The spending benchmark for such services can vary widely based on the size and complexity of the facility, as well as the specific services required. The U.S. Patent and Trademark Office, as a large agency, represents a significant client within this sector.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside, nor does it appear to have specific provisions for small business participation mentioned. This suggests that larger businesses were likely the primary bidders and awardees. Consequently, there may be limited direct subcontracting opportunities for small businesses under this specific contract, unless DTSV INC. voluntarily engages them. The overall impact on the small business ecosystem for facilities support services would depend on the extent to which small businesses compete for similar, potentially smaller, contracts or are included in the supply chain of larger prime contractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Patent and Trademark Office's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract award databases like FPDS. Accountability measures are inherent in the fixed-price contract structure, where the contractor is obligated to deliver specified services within the agreed-upon price. The Inspector General for the Department of Commerce may have jurisdiction for audits or investigations if fraud, waste, or abuse is suspected.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
Department of Defense Facilities Maintenance Contracts
National Institutes of Health (NIH) Facilities Operations
General Services Administration (GSA) Real Property Management

Risk Flags

Potential for reduced competition due to source exclusion.
Risk of service quality degradation under fixed-price if contractor prioritizes cost-cutting.
Need for diligent government oversight to ensure contract performance and value.
Lack of explicit small business participation may limit economic opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $39.5 million to DTSV INC.. IGF::OT::IGF' PATENT OFFICE SUPPORT SERVICES (POSS)

Who is the contractor on this award?

The obligated recipient is DTSV INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $39.5 million.

What is the period of performance?

Start: 2017-09-01. End: 2019-02-28.

What specific facilities support services were included in this contract, and how do they compare to industry standards for similar government facilities?

The contract specifies 'Facilities Support Services' (NAICS code 561210), which typically encompasses a range of activities such as building operations, maintenance, repair, custodial services, groundskeeping, and security systems management. Without the detailed Statement of Work (SOW), a precise comparison to industry standards is difficult. However, for a large federal agency like the USPTO, these services are critical for ensuring a safe, functional, and productive work environment. Industry benchmarks for facilities management often consider factors like cost per square foot, response times for maintenance requests, energy efficiency, and overall building condition. The $39.5 million award over approximately 1.5 years suggests a comprehensive service package tailored to the USPTO's specific needs and facility size in Virginia.

How did the 'Exclusion of Sources' in the competition process affect the number of bidders and the final contract price?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that the solicitation was initially open, but certain potential sources were excluded based on specific criteria defined in the solicitation or regulations. The exact reasons for exclusion are not detailed in the provided data. This exclusion could have limited the number of bidders compared to a purely 'full and open' competition. A reduced number of bidders might, in some market conditions, lead to less aggressive pricing. However, the extent to which this impacted the final price depends on the competitiveness of the remaining bidders and the specific nature of the excluded sources. Further analysis of the solicitation documents would be needed to understand the rationale and impact of these exclusions.

What is the track record of DTSV INC. in performing similar federal facilities support contracts?

Assessing DTSV INC.'s track record requires examining their past performance on federal contracts, particularly those involving facilities support services. Information on contract performance ratings, past issues, and successful project completions would be crucial. A review of their contract history in the Federal Procurement Data System (FPDS) or other contract databases could reveal their experience with similar scopes of work, contract values, and agencies. Positive past performance is a key indicator of a contractor's ability to meet requirements, while negative performance could signal potential risks. Without specific performance data for DTSV INC., it's difficult to definitively assess their reliability for this contract.

How does the $39.5 million contract value compare to historical spending on facilities support services at the USPTO or similar agencies?

The $39.5 million contract value for approximately 1.5 years of facilities support services represents a significant investment. To benchmark this, one would need to compare it against historical spending patterns for facilities management at the USPTO or comparable federal agencies (e.g., other large patent offices, major administrative agencies). Factors such as the size and condition of the facilities, the scope of services outsourced versus performed in-house, and inflation over time would need to be considered. If historical spending was significantly lower for a comparable period and scope, this contract might represent an increase in outsourcing or a rise in service costs. Conversely, if it aligns with or is lower than previous expenditures adjusted for inflation and scope changes, it could indicate efficient procurement.

What are the potential risks associated with a firm fixed-price contract for facilities support services, and how are they mitigated?

Firm fixed-price (FFP) contracts place the primary risk of cost overruns on the contractor. For facilities support, potential risks include unforeseen maintenance issues, increased material costs, or labor shortages that could drive up the contractor's expenses. If the contractor attempts to cut costs to maintain profitability, service quality could suffer. Mitigation strategies employed by the government typically involve robust performance monitoring, clearly defined service level agreements (SLAs), and strong contract administration. The USPTO would need to actively oversee DTSV INC.'s performance, conduct regular inspections, and ensure adherence to the SOW and quality standards. Penalties for non-performance or incentives for exceptional service can also be included.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 739 THIMBLE SHOALS BLVD STE 101, NEWPORT NEWS, VA, 23606

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,948,263

Exercised Options: $40,771,001

Current Obligation: $39,521,416

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOC50PAPT1300024

IDV Type: IDC

Timeline