DoD's $30.9M Facilities Support Services Contract Awarded to SMI International Shows Mixed Value and Competition

Contract Overview

Contract Amount: $30,920,725 ($30.9M)

Contractor: SMI International, LLC

Awarding Agency: Department of Defense

Start Date: 2000-11-20

End Date: 2006-09-29

Contract Duration: 2,139 days

Daily Burn Rate: $14.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE INCENTIVE

Sector: Other

Official Description: 200103!000144!5700!CA03 !21 CONS/LGC !F0560400C9001 !A!N!*!Y!P00004 !20001120!20000331!782847107!782847107!020256798!N!SMI INTERNATIONAL !5520 TECH CENTER DRIVE !COLORADO SPRIN !CO!80919!16000!041!08!COLORADO SPRINGS !EL PASO !COLORADO !+000000407588!N!N!000000000000!R799!OTHER MANAGEMENT SUPPORT SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !561210!*!*!3! ! !C!*!*!*!B!*!*!A! !A !N!L!2!002!B! !C!Y!F! ! !N!C!N! ! ! !A!A!A!A!000!A!D!N! ! ! !Y! ! !0001!

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80919

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $30.9 million to SMI INTERNATIONAL, LLC for work described as: 200103!000144!5700!CA03 !21 CONS/LGC !F0560400C9001 !A!N!*!Y!P00004 !20001120!20000331!782847107!782847107!020256798!N!SMI INTERNATIONAL !5520 TECH CENTER DRIVE !COLORADO SPRIN !CO!80919!16000!041!08!COLORADO SPRINGS !EL PA… Key points: 1. Contract value of $30.9M over its life, with a significant portion awarded in the early years. 2. The contract was awarded under full and open competition, suggesting a potentially competitive bidding process. 3. While competition was present, the number of bids received (2) is on the lower side, which could impact price discovery. 4. The fixed-price incentive contract type introduces performance risk for both the government and the contractor. 5. SMI International, the sole awardee, has a track record with this specific contract, indicating familiarity but also potential for limited future competition. 6. The contract falls under Facilities Support Services, a broad category with many potential providers. 7. The contract's duration of over 6 years suggests a long-term need for these services within the Department of Defense.

Value Assessment

Rating: fair

The total award value of $30.9 million over approximately 6 years for facilities support services appears moderate. Benchmarking against similar contracts is challenging without more specific service details and geographic scope. The fixed-price incentive (FPI) contract type suggests that cost savings were intended to be shared, but the final price realization depends heavily on performance against targets. The contract was awarded in 2000, making direct price comparisons to current market rates difficult due to inflation and market evolution. The relatively low number of bids (2) could indicate that the price achieved may not be as competitive as it could have been under a more robust bidding environment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. However, only two bids were received. While 'full and open' is the most competitive category, the low number of bidders suggests that the market may not have been as responsive as anticipated, or that other factors limited participation. This level of competition might not have driven the most aggressive pricing, as the contractor faced less pressure from a larger pool of rivals.

Taxpayer Impact: A low number of bidders, even in a full and open competition, can mean taxpayers may not have received the lowest possible price. It suggests that the government might have paid more than if there had been a larger field of competing companies.

Public Impact

Military personnel and civilian employees at facilities managed by the Department of Defense benefit from the provision of essential support services. The contract delivers facilities support services, which likely encompass a range of maintenance, operations, and management functions critical to military readiness and operations. The geographic impact is centered around facilities managed by the Defense Contract Management Agency, likely within Colorado Springs, Colorado, given the contractor's address. The contract supports the workforce employed by SMI International, LLC, and potentially subcontractors, contributing to local employment in the Colorado Springs area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have resulted in a higher price for taxpayers.
The fixed-price incentive contract type carries inherent risk if performance targets are not met efficiently.
The long contract duration could lead to vendor lock-in and reduced flexibility for the agency over time.
The specific details of the 'facilities support services' are broad, making it difficult to assess the true value and efficiency without further breakdown.

Positive Signals

Awarded under full and open competition, adhering to principles of broad market access.
SMI International, LLC has a history with this contract, suggesting a level of established performance and understanding of requirements.
The contract is for essential facilities support, indicating a critical need being met for the Department of Defense.
The fixed-price incentive structure, if managed well, can incentivize cost control and performance.

Sector Analysis

Facilities support services represent a significant segment of the government contracting market, encompassing a wide array of maintenance, repair, operations, and management functions for government-owned or leased properties. This sector is characterized by a mix of large, diversified service providers and smaller, specialized firms. Spending in this area is driven by the need to maintain operational readiness and infrastructure across various government agencies, particularly within the Department of Defense. Comparable spending benchmarks are difficult to establish without granular data on the specific services rendered, but the overall market for facilities management services is substantial, with government contracts forming a key component.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data indicates the awardee, SMI INTERNATIONAL, LLC, is likely not a small business given the contract value and duration. There is no explicit information regarding subcontracting plans for small businesses within this data. Therefore, the direct impact on the small business ecosystem from this specific award appears minimal, though the prime contractor's own supply chain practices would determine any indirect effects.

Oversight & Accountability

The contract data indicates the awarding agency was the Department of Defense, with oversight likely provided by the Defense Contract Management Agency (DCMA). The contract type (Fixed Price Incentive) suggests performance metrics and financial incentives were in place, requiring monitoring. However, specific details on oversight mechanisms, accountability measures, or transparency initiatives beyond the standard contract clauses are not provided in this dataset. Inspector General jurisdiction would typically apply to DoD contracts, allowing for audits and investigations into waste, fraud, and abuse.

Related Government Programs

Base Operations Support (BOS)
Logistics and Supply Chain Management
Facilities Maintenance and Repair
Information Technology Support Services (if applicable to facilities management)
Construction and Engineering Services (for related infrastructure projects)

Risk Flags

Limited competition may have inflated costs.
Contract duration is lengthy, potentially reducing flexibility.
Fixed-price incentive contracts require careful performance monitoring.
Specific service details are not provided, hindering in-depth value analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.9 million to SMI INTERNATIONAL, LLC. 200103!000144!5700!CA03 !21 CONS/LGC !F0560400C9001 !A!N!*!Y!P00004 !20001120!20000331!782847107!782847107!020256798!N!SMI INTERNATIONAL !5520 TECH CENTER DRIVE !COLORADO SPRIN !CO!80919!16000!041!08!COLORADO SPRINGS !EL PASO !COLORADO !+000000407588!N!N!000000000000!R799!OTHER MANAGEMENT SUPPORT SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !561210!*!*!3! ! !C!*!*!*!B!*!*!A!

Who is the contractor on this award?

The obligated recipient is SMI INTERNATIONAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $30.9 million.

What is the period of performance?

Start: 2000-11-20. End: 2006-09-29.

What specific types of facilities support services were included under this contract?

The provided data categorizes the contract under NAICS code 561210, which corresponds to Facilities Support Services. This broad category typically includes services such as building operation and maintenance, groundskeeping, janitorial services, pest control, and potentially security services related to facility management. However, the specific deliverables, service level agreements, and performance metrics are not detailed in the summary data. Understanding the precise scope is crucial for a thorough value assessment, as the complexity and criticality of services can vary significantly within this classification. Without a detailed statement of work, it's difficult to ascertain if the $30.9 million represents a fair price for the exact services rendered.

How does the pricing of this contract compare to similar facilities support contracts awarded around the same period (2000-2006)?

Direct price comparison is challenging without knowing the exact scope, location, and duration of comparable contracts. However, the total value of $30.9 million over approximately 6.7 years averages to about $4.6 million per year. This figure needs to be contextualized by the size and type of facilities supported. Given that it was awarded under full and open competition but only received two bids, the pricing might be slightly higher than if more bidders had competed. Historical contract databases and government spending reports from that era would be necessary to identify specific benchmarks for similar services provided to the Department of Defense or other agencies during that timeframe.

What were the key performance indicators (KPIs) and incentive structures within the Fixed Price Incentive (FPI) contract?

The data indicates the contract type was Fixed Price Incentive (FPI). FPI contracts are designed to share cost savings or overruns between the government and the contractor based on achieving target costs and performance objectives. Key performance indicators would have been defined in the contract's Statement of Work (SOW) and likely related to the efficiency, timeliness, and quality of the facilities support services provided. Examples could include response times for maintenance requests, uptime of critical systems, energy efficiency targets, or customer satisfaction ratings. The incentive structure would detail how deviations from target costs would impact the final price paid, aiming to motivate the contractor to control costs while meeting performance standards.

What is SMI International, LLC's track record with this specific contract and similar government contracts?

SMI International, LLC was the sole awardee for this specific contract, which ran from November 20, 2000, to September 29, 2006. This indicates they successfully performed the required facilities support services for the Department of Defense over an extended period. Their ability to win and execute this contract suggests they possessed the necessary capabilities and experience at the time. Further investigation into their contract history before and after this period, particularly with the Department of Defense or for similar service categories, would provide a more comprehensive understanding of their overall track record and reliability as a government contractor.

What was the total spending on facilities support services by the Department of Defense during the contract period (2000-2006)?

The provided data focuses solely on this specific contract awarded to SMI International, LLC. It does not contain information on the Department of Defense's overall spending on facilities support services during the contract period (2000-2006). To determine this, one would need to consult comprehensive government spending databases, such as those maintained by the Federal Procurement Data System (FPDS) or the USASpending.gov website (though its historical data depth may vary). Analyzing broader spending trends would provide context on whether this $30.9 million contract represented a significant portion of DoD's facilities support budget or was one among many similar awards.

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

Solicitation Procedures: SEALED BID

Offers Received: 2

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Aleut Corporation (UEI: 020256798)

Address: 5540 TECH CENTER DRIVE, STE 100, COLORADO SPRINGS, CO, 05

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline