Department of Defense awards $132M contract for facilities operations support, with a significant portion for Guam

Contract Overview

Contract Amount: $13,203,692 ($13.2M)

Contractor: Able Industries of the Pacific

Awarding Agency: Department of Defense

Start Date: 2002-10-01

End Date: 2008-02-29

Contract Duration: 1,977 days

Daily Burn Rate: $6.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200303!000018!5700!RC03 !36 CONS/LGC MGMT ANL & SPT FLGHT!F6413303C0002 !A!N! !N! !20021001!20030930!855022281!855022281!855022281!N!ABLE INDUSTRIES OF THE PACIFIC!310 S MARINE DRIVE !TAMUNING !GU!96913!82650!010!66!YIGO !GUAM !GUAM !+000001137817!N!N!000005701187!S216!FACILITIES OPERATIONS SUPPORT SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !722310!E! !3! ! ! ! ! !99990909!B!E!N!N!Z!B!U!J!1!001!N!5A!C!Y!Z! ! !N!D!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: SANTA RITA, GUAM County, GUAM, 96915, UNITED STATES OF AMERICA

Plain-Language Summary

Department of Defense obligated $13.2 million to ABLE INDUSTRIES OF THE PACIFIC for work described as: 200303!000018!5700!RC03 !36 CONS/LGC MGMT ANL & SPT FLGHT!F6413303C0002 !A!N! !N! !20021001!20030930!855022281!855022281!855022281!N!ABLE INDUSTRIES OF THE PACIFIC!310 S MARINE DRIVE !TAMUNING !GU!96913!82650!010!66!YIGO !GUAM … Key points: 1. Contract value of $132 million over approximately 5.5 years indicates a substantial investment in facilities management. 2. The contract was not available for competition, raising questions about potential cost efficiencies and market responsiveness. 3. A high number of modifications (66) suggests potential scope creep or evolving requirements during the contract period. 4. The contractor, Able Industries of the Pacific, has been awarded this significant sum, highlighting their role in supporting DoD operations. 5. The services provided fall under Food Service Contractors (NAICS 722310), a critical support function for military personnel. 6. The contract's duration of 1977 days (approx. 5.5 years) suggests a long-term need for these services.

Value Assessment

Rating: fair

The total award amount of $132,036,928 over nearly six years for facilities operations support services is substantial. Benchmarking this against similar contracts is challenging without more specific service details and geographic scope comparisons. However, the high number of modifications (66) could indicate potential issues with initial scope definition or ongoing changes in requirements, which may impact overall value for money. The firm fixed-price nature of the contract aims to control costs, but the extensive modifications warrant scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. This means that the agency did not solicit bids from multiple potential contractors. Reasons for sole-sourcing can include urgency, unique capabilities, or lack of market availability. The absence of competition limits the agency's ability to explore a wider range of pricing and service options, potentially leading to higher costs than if a competitive process had been used.

Taxpayer Impact: For taxpayers, sole-source contracts can mean less assurance of obtaining the best possible price and value, as the competitive pressure to offer lower bids is absent.

Public Impact

Military personnel stationed in Guam will benefit from the continuity of essential facilities operations support services. The contract ensures the maintenance and operation of critical facilities, contributing to the readiness and well-being of service members. The geographic impact is primarily focused on Guam, a key strategic location for the Department of Defense. The contract supports jobs within the facilities management and food service sectors, likely benefiting the local workforce in Guam.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced incentive for efficiency.
A high number of contract modifications (66) suggests potential issues with initial contract scope or ongoing requirement changes, which can lead to cost overruns.
The 'NOT AVAILABLE FOR COMPETITION' status requires careful justification to ensure taxpayer funds are used appropriately.
The long contract duration, while providing stability, could also lock the government into a potentially suboptimal arrangement if market conditions or needs change significantly.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government, assuming scope remains stable.
The contract ensures essential facilities operations support, contributing to the operational readiness of a key military installation.
The award to Able Industries of the Pacific provides a stable service provider for a critical function in Guam.
The duration of the contract allows for consistent service delivery and potentially builds contractor expertise.

Sector Analysis

This contract falls within the broader Facilities Operations Support Services sector, which is a critical component of government and military infrastructure management. This sector includes a wide range of services from maintenance and repair to custodial and logistical support. The market size for such services is substantial, with significant government spending allocated annually. This specific contract, focused on food services and general support, represents a segment of the larger facilities management industry, often characterized by both large prime contractors and specialized subcontractors.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. As this was a sole-source award, the typical mechanisms for ensuring small business participation through competitive bidding were bypassed. Further investigation would be needed to determine if any small business subcontracting goals were established or met by Able Industries of the Pacific.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Air Force. The high number of modifications (66) suggests that oversight mechanisms were actively engaged, though the effectiveness in controlling scope and cost requires further analysis. Transparency regarding the justification for the sole-source award and the details of each modification would be key to assessing accountability.

Related Government Programs

Base Operations Support (BOS)
Logistics and Supply Chain Management
Food Services Contracts
Facilities Maintenance and Repair
Government Contracting

Risk Flags

Sole-source award justification
High number of contract modifications
Potential for cost overruns due to modifications
Lack of competitive pricing benchmark

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.2 million to ABLE INDUSTRIES OF THE PACIFIC. 200303!000018!5700!RC03 !36 CONS/LGC MGMT ANL & SPT FLGHT!F6413303C0002 !A!N! !N! !20021001!20030930!855022281!855022281!855022281!N!ABLE INDUSTRIES OF THE PACIFIC!310 S MARINE DRIVE !TAMUNING !GU!96913!82650!010!66!YIGO !GUAM !GUAM !+000001137817!N!N!000005701187!S216!FACILITIES OPERATIONS SUPPORT SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !722310!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is ABLE INDUSTRIES OF THE PACIFIC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $13.2 million.

What is the period of performance?

Start: 2002-10-01. End: 2008-02-29.

What specific facilities operations support services were included in this contract, and how did the 66 modifications alter the original scope?

The primary service category is NAICS 722310, 'Food Service Contractors,' with a broader description of 'FACILITIES OPERATIONS SUPPORT SERVICES.' While the exact breakdown of services within the original $85.5 million base award (for the initial period) is not fully detailed, it encompasses essential support functions. The 66 modifications indicate significant changes over the contract's life. These modifications likely adjusted service levels, added or removed specific tasks, modified performance metrics, or extended the period of performance. Without access to the modification details, it's impossible to precisely quantify how the scope evolved, but such a high number suggests either a dynamic operational environment or potential challenges in initial scope definition and management. The total award value increased from the initial $85.5M to $132M, reflecting these changes.

Can the value of this contract be benchmarked against similar facilities operations support contracts in Guam or other Pacific territories?

Benchmarking this $132 million contract against similar facilities operations support contracts, particularly in Guam, is challenging without more granular data. Key factors for comparison include the specific services rendered (beyond the broad categories), the scale of facilities managed, the duration, and the prevailing market rates in the region. Guam has a unique operating environment with higher logistical costs, which can influence contract pricing. The 'NOT AVAILABLE FOR COMPETITION' status also complicates direct value comparisons, as competitive bids often drive prices down. A comprehensive benchmark would require analyzing contracts with similar NAICS codes, contract types (Firm Fixed Price), and geographic locations, while accounting for differences in service scope and contract modifications.

What is the track record of Able Industries of the Pacific in performing large-scale government contracts, particularly within the Department of Defense?

Able Industries of the Pacific was the prime contractor for this significant Department of Defense contract, valued at approximately $132 million. Their performance on this contract, spanning from October 2002 to February 2008, involved providing essential facilities operations support services, including food services, primarily in Guam. The contract saw numerous modifications (66), suggesting a dynamic relationship with the contracting agency and potentially evolving service requirements. While the data indicates successful completion and payment, a deeper dive into performance reviews, past performance questionnaires, and any documented disputes or awards would be necessary to fully assess their track record. Their ability to manage a contract of this size and duration in a remote location like Guam indicates a certain level of operational capability.

Given the sole-source nature, what assurances exist that the government received fair and reasonable pricing for these services?

For sole-source contracts, the government must still ensure fair and reasonable pricing, typically through mechanisms like cost and price analysis. This involves reviewing the contractor's proposed costs, comparing them to historical data, commercial price lists, or other available benchmarks. The contracting officer is responsible for obtaining and analyzing this information. In this case, the contract was awarded as Firm Fixed Price, which shifts some risk to the contractor. However, the absence of competition means the government couldn't leverage multiple bids to establish a competitive price baseline. The justification for the sole-source award itself would need to demonstrate why competition was not feasible or advantageous. Without access to the specific price negotiation documentation and cost analyses performed by the agency, it's difficult to definitively assess the fairness of the pricing.

How has spending on facilities operations support services by the Department of Defense, particularly in the Pacific region, trended over time?

Spending on facilities operations support services by the Department of Defense (DoD) is a significant and consistent component of its overall budget, driven by the need to maintain readiness and operational capability across numerous global installations. While this specific contract ($132M over ~5.5 years) represents a substantial investment in Guam, it's part of a larger pattern of outsourcing support services. Historically, the DoD has increasingly relied on contractors for functions ranging from base operations to food services, maintenance, and logistics. Spending in the Pacific region, given its strategic importance, is particularly noteworthy. Analyzing trends would involve looking at aggregate spending data for relevant NAICS codes (like 722310, 561210 - Facilities Support Services) across the DoD, potentially filtering for geographic regions like the Pacific. This contract's value, while large for a single award, is likely a fraction of the total regional or global spending on similar services.

Industry Classification

NAICS: Accommodation and Food Services › Special Food Services › Food Service Contractors

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 310 S MARINE DRIVE, TAMUNING, GU, 96913

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

Contract Characteristics

Cost or Pricing Data: NO

Timeline