Transportation contract for facilities support services awarded to Southwest Facility Support, LLC for over $13.4 million

Contract Overview

Contract Amount: $13,449,399 ($13.4M)

Contractor: Southwest Facility Support, LLC

Awarding Agency: Department of Transportation

Start Date: 2008-12-22

End Date: 2009-12-31

Contract Duration: 374 days

Daily Burn Rate: $36.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPTION II SERVICES FOR O&M SERVICES FOR THE MMAC. (PERIOD OF PERFORMANCE: JAN 1, 2009 THROUGH DEC 31, 2009)

Place of Performance

Location: LAWTON, COMANCHE County, OKLAHOMA, 73501

State: Oklahoma Government Spending

Plain-Language Summary

Department of Transportation obligated $13.4 million to SOUTHWEST FACILITY SUPPORT, LLC for work described as: OPTION II SERVICES FOR O&M SERVICES FOR THE MMAC. (PERIOD OF PERFORMANCE: JAN 1, 2009 THROUGH DEC 31, 2009) Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The duration of the contract was approximately one year, indicating a short-term need for services. 3. The contract type was Firm Fixed Price, which shifts cost risk to the contractor. 4. The award was made by the Federal Aviation Administration, a division of the Department of Transportation. 5. The North American Industry Classification System (NAICS) code 561210 points to facilities support services. 6. The contract was not set aside for small businesses, nor did it involve small business subcontracting.

Value Assessment

Rating: fair

The total award amount was over $13.4 million for a one-year period of performance. Without comparable contract data for similar facilities support services at the MMAC (Military Medical Command Center) or other FAA facilities, a precise value-for-money assessment is challenging. The firm fixed price structure is generally favorable for the government in managing cost certainty, but the actual value depends on the scope and quality of services delivered. Benchmarking against industry standards for facilities maintenance and operations would be necessary for a more definitive evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit a bid. The data shows 3 bids were received, which suggests a moderate level of competition for this contract. While three bidders provide some price discovery, a higher number of bids often leads to more competitive pricing and potentially better value for the government.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple companies to vie for the contract, driving down prices and improving service offerings.

Public Impact

The primary beneficiary of this contract is the Federal Aviation Administration, which receives essential facilities support services. The services provided likely include maintenance, repair, and operational support for facilities at the MMAC. The geographic impact is localized to the facility managed by the FAA, likely in Oklahoma. The contract supports jobs within the facilities management and maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only 3 bids received could mean less aggressive pricing.
Lack of small business involvement may limit opportunities for smaller enterprises in this sector.
The firm fixed price contract places the burden of cost overruns entirely on the contractor, which could lead to quality compromises if not managed closely.

Positive Signals

Awarded through full and open competition, maximizing potential bidder pool.
Firm fixed price contract provides cost certainty for the government.
The contractor, Southwest Facility Support, LLC, was selected, implying they met the government's requirements.

Sector Analysis

Facilities Support Services fall under the broader commercial and institutional building maintenance industry. This sector includes a wide range of services such as HVAC maintenance, janitorial services, groundskeeping, and general repairs. Government contracts for facilities support are significant, with agencies like the FAA requiring extensive maintenance for their operational sites. The market size for such services is substantial, driven by the need to maintain critical infrastructure across various government departments. This contract represents a portion of the government's spending on maintaining its physical assets.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of small business subcontracting requirements. This means that opportunities for small businesses to participate in this specific contract were limited to potentially bidding as a prime contractor if they met the qualifications, or not participating at all. The absence of small business set-asides or subcontracting goals means this contract does not directly contribute to the government's small business contracting goals.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Federal Aviation Administration. They are responsible for ensuring the contractor meets the terms of the contract, including performance standards and delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Aviation Administration Operations and Maintenance
Department of Transportation Facilities Management
Government Facilities Support Services
General Services Administration (GSA) Schedules for Facilities Maintenance

Risk Flags

Limited competition
Potential for quality compromise under FFP
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $13.4 million to SOUTHWEST FACILITY SUPPORT, LLC. OPTION II SERVICES FOR O&M SERVICES FOR THE MMAC. (PERIOD OF PERFORMANCE: JAN 1, 2009 THROUGH DEC 31, 2009)

Who is the contractor on this award?

The obligated recipient is SOUTHWEST FACILITY SUPPORT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $13.4 million.

What is the period of performance?

Start: 2008-12-22. End: 2009-12-31.

What is the track record of Southwest Facility Support, LLC with federal contracts?

Southwest Facility Support, LLC has been awarded federal contracts, including this one from the FAA. To fully assess their track record, a deeper dive into their contract history would be necessary. This would involve examining past performance reviews, any contract modifications, disputes, or terminations, and the types and values of other federal contracts they have held. Understanding their performance on previous similar contracts, especially those involving facilities support for aviation-related infrastructure, would provide crucial context for evaluating their reliability and capability in fulfilling this current contract.

How does the $13.4 million award compare to similar facilities support contracts?

A direct comparison of the $13.4 million award for a one-year period is difficult without specific data on the scope of services and the size/complexity of the facilities supported. However, for large-scale federal facilities, annual spending in the tens of millions for comprehensive operations and maintenance is not uncommon. To benchmark this contract effectively, one would need to compare it against contracts for similar facilities (e.g., airports, large administrative buildings) managed by agencies like the FAA or GSA, considering factors like square footage, types of systems maintained (HVAC, electrical, plumbing), and security requirements. The firm fixed price nature suggests a defined scope, but the actual value proposition hinges on the efficiency and quality of the services delivered relative to market rates for comparable services.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential performance deficiencies by the contractor, leading to disruptions in facility operations. Given the firm fixed price structure, there's a risk that the contractor might cut corners on quality or maintenance to maintain profitability, especially if unforeseen issues arise. Another risk is the limited competition (3 bids), which could mean the government did not secure the most competitive pricing possible. Furthermore, the one-year duration might indicate a need for ongoing services, potentially leading to future contract renewals with less competitive pricing if not re-competed effectively.

How effective is the firm fixed price contract type for facilities support?

The firm fixed price (FFP) contract type is generally effective for facilities support services when the scope of work is well-defined and unlikely to change significantly. It provides the government with cost certainty, as the contractor assumes the risk of cost overruns. This can incentivize the contractor to be efficient and manage costs effectively. However, for complex or evolving facilities support needs, an FFP contract might be less suitable if it leads to the contractor resisting necessary changes or performing only the minimum required work. In such cases, other contract types like cost-plus or time-and-materials might be considered, though they shift more cost risk to the government.

What is the historical spending trend for facilities support services by the FAA?

Analyzing historical spending trends for facilities support services by the FAA would require access to detailed budget and contract award data over multiple fiscal years. Generally, agencies like the FAA have consistent needs for facilities maintenance and operations across their numerous installations. Spending in this category is often driven by the number and size of facilities, infrastructure age, and modernization efforts. Without specific historical data, it's presumed that the FAA allocates a significant portion of its budget to ensure the operational readiness and safety of its facilities, with spending likely fluctuating based on major repair needs, new construction, or changes in operational requirements.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 605 SW B AVE, LAWTON, OK, 04

Business Categories: Category Business, Minority Owned Business, Other Minority Owned Business, Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $73,446,750

Exercised Options: $40,757,583

Current Obligation: $13,449,399

Parent Contract

Parent Award PIID: DTFAAC07D00040

IDV Type: IDC

Timeline