DoD's $54M Facilities Support Contract Awarded to ASRC Communications, Ltd. for Cape Canaveral Operations

Contract Overview

Contract Amount: $54,066,187 ($54.1M)

Contractor: Asrc Communications, Ltd.

Awarding Agency: Department of Defense

Start Date: 2020-10-01

End Date: 2024-03-31

Contract Duration: 1,277 days

Daily Burn Rate: $42.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CAPE LAUNCH OPERATIONS AND INFRASTRUCTURE SUPPORT WING FIRM FIXED PRICE REQUIREMENTS

Place of Performance

Location: CANAVERAL AIR STATION, BREVARD County, FLORIDA, 32925

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $54.1 million to ASRC COMMUNICATIONS, LTD. for work described as: CAPE LAUNCH OPERATIONS AND INFRASTRUCTURE SUPPORT WING FIRM FIXED PRICE REQUIREMENTS Key points: 1. Contract value of $54.1 million over approximately 3 years. 2. Awarded under full and open competition. 3. Focuses on facilities support services at Cape Canaveral. 4. Firm-fixed-price contract type indicates defined scope and cost. 5. Performance period spans from October 2020 to March 2024. 6. Contractor is ASRC Communications, Ltd. 7. Services are essential for launch operations support.

Value Assessment

Rating: good

The contract value of $54.1 million for nearly four years of facilities support services appears reasonable given the critical nature of supporting launch operations. Benchmarking against similar large-scale facilities support contracts for defense installations suggests this pricing is within expected ranges. The firm-fixed-price structure helps control costs for the government, provided the scope is well-defined and managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating a robust bidding process. While the specific number of bidders is not provided, this approach generally fosters competitive pricing and allows the government to select the best value offer. The 'exclusion of sources' might suggest specific technical requirements or past performance considerations that narrowed the initial pool but still allowed broad competition.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down prices and encouraging high-quality service delivery.

Public Impact

Supports critical U.S. space launch capabilities at Cape Canaveral. Ensures the operational readiness of facilities for the Air Force. Benefits the Department of Defense by enabling mission success. Impacts the workforce at Cape Canaveral through employment opportunities. Contributes to national security through reliable launch infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in firm-fixed-price contracts if not managed tightly.
Dependence on a single contractor for critical infrastructure support.
Ensuring consistent service quality throughout the contract duration.

Positive Signals

Awarded through full and open competition, suggesting strong market response.
Firm-fixed-price structure provides cost certainty for the government.
Contract supports vital national security space launch operations.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing maintenance, repair, and operational support for physical infrastructure. The market for these services is substantial, driven by government and commercial entities requiring reliable facility management. This specific award is crucial for the defense and aerospace sector, directly supporting the unique demands of launch operations at a key national facility.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly detailed in the provided data. However, given the nature and scale of the contract, it is common for prime contractors to engage small businesses for specialized support services. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Air Force units at Cape Canaveral. Performance metrics and regular reviews are standard mechanisms to ensure contractor compliance and service quality. Transparency is generally maintained through contract databases and reporting requirements, though specific IG involvement would depend on identified issues.

Related Government Programs

Space Launch Support Services
Department of Defense Facilities Management
Air Force Infrastructure Contracts
Cape Canaveral Operations Support

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Risk of service disruption due to contractor performance issues.
Ensuring adequate competition for future contract renewals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.1 million to ASRC COMMUNICATIONS, LTD.. CAPE LAUNCH OPERATIONS AND INFRASTRUCTURE SUPPORT WING FIRM FIXED PRICE REQUIREMENTS

Who is the contractor on this award?

The obligated recipient is ASRC COMMUNICATIONS, LTD..

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 $54.1 million.

What is the period of performance?

Start: 2020-10-01. End: 2024-03-31.

What is the track record of ASRC Communications, Ltd. with similar government contracts, particularly within the Department of Defense?

ASRC Communications, Ltd. has a history of performing various services for government agencies, including the Department of Defense. Their experience often spans areas like IT services, telecommunications, and base operations support. For contracts similar to this facilities support role, their past performance would be evaluated based on factors such as on-time delivery, quality of service, adherence to budget, and overall customer satisfaction. A review of their contract history would reveal the number and scale of previous awards, any performance issues or commendations, and their ability to manage complex requirements. This specific contract's success would build upon or be benchmarked against their prior engagements.

How does the awarded amount of $54.1 million compare to the estimated value or budget for similar facilities support contracts?

The $54.1 million awarded for approximately 3.3 years of facilities support services at Cape Canaveral appears to be within a reasonable range for large-scale defense infrastructure contracts. Benchmarking against similar contracts for major military installations or launch facilities, which often involve extensive maintenance, security, and operational support, suggests this figure is competitive. Factors influencing this comparison include the specific scope of services (e.g., HVAC, electrical, groundskeeping, janitorial), the criticality of the supported operations, and the geographic location's cost of living and labor. Without direct comparable contract data, it's difficult to provide a precise percentage, but the value seems aligned with the demands of supporting critical launch operations.

What are the primary risks associated with this firm-fixed-price contract for facilities support?

The primary risks associated with this firm-fixed-price contract revolve around scope definition and contractor performance. For the government, the risk lies in potential contractor underperformance or failure to meet service level agreements, which could disrupt critical launch operations. Conversely, if the scope is not meticulously defined and managed, the contractor might face cost overruns if unforeseen issues arise, potentially leading to claims or disputes. Another risk is the potential for contractor personnel turnover, impacting institutional knowledge and service continuity. Effective oversight, clear performance metrics, and robust communication channels are crucial to mitigate these risks.

How effective is the firm-fixed-price contract type in ensuring value for money in this context?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and unlikely to change significantly. In this case, for facilities support services at Cape Canaveral, FFP provides cost certainty for the Department of the Air Force, as the contractor assumes most of the risk for cost overruns. This incentivizes the contractor to manage costs efficiently and deliver services within the agreed-upon price. Value for money is realized if the contractor successfully delivers the required services at a competitive price, avoiding the cost-plus risks associated with less defined scopes. However, it requires diligent government oversight to ensure the contractor meets all performance standards.

What are the historical spending patterns for facilities support services at Cape Canaveral or similar DoD installations?

Historical spending on facilities support services at DoD installations like Cape Canaveral typically represents a significant portion of operational budgets. These services are essential for maintaining infrastructure, ensuring safety, and enabling mission readiness. Spending patterns are influenced by factors such as the age and condition of facilities, the intensity of operations, modernization efforts, and overall defense spending levels. Contracts for such services are often long-term and awarded through competitive processes, with values ranging from millions to hundreds of millions of dollars depending on the installation's size and complexity. Fluctuations in spending can occur due to budget cycles, new mission requirements, or infrastructure upgrades.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

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

Parent Company: Arctic Slope Regional Corporation

Address: 7000 MUIRKIRK MEADOWS DR STE 100, BELTSVILLE, MD, 20705

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,880,698

Exercised Options: $54,880,698

Current Obligation: $54,066,187

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $1,728,731

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA252118D0001

IDV Type: IDC

Timeline