DoD's $70.6M Laughlin Base Operations Support contract awarded to Choctaw Defense Services Inc. shows fair value

Contract Overview

Contract Amount: $70,593,421 ($70.6M)

Contractor: Choctaw Defense Services Inc

Awarding Agency: Department of Defense

Start Date: 2017-09-22

End Date: 2023-05-31

Contract Duration: 2,077 days

Daily Burn Rate: $34.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF LAUGHLIN BASE OPERATION SUPPORT SERVICES

Place of Performance

Location: LAUGHLIN AFB, VAL VERDE County, TEXAS, 78843

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $70.6 million to CHOCTAW DEFENSE SERVICES INC for work described as: IGF::CT::IGF LAUGHLIN BASE OPERATION SUPPORT SERVICES Key points: 1. The contract's value appears reasonable when benchmarked against similar facilities support services. 2. Competition was robust, with 8 bidders, suggesting effective price discovery. 3. The firm-fixed-price structure mitigates cost overrun risks for the government. 4. Performance duration of nearly 7 years provides stability for essential base operations. 5. This contract aligns with the Air Force's need for comprehensive base support services. 6. The exclusion of sources in the competition phase warrants further scrutiny for potential impact on overall value.

Value Assessment

Rating: fair

The total contract value of $70.6 million over approximately 6.8 years averages to about $10.4 million annually. Benchmarking against similar facilities support contracts for military bases of comparable size and scope suggests this pricing is within a reasonable range. The firm-fixed-price (FFP) award type indicates that the contractor bears the risk of cost overruns, which is generally favorable for the government. However, without detailed breakdowns of the services provided and specific performance metrics, a definitive assessment of 'excellent' value is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' with 8 bidders participating. While this indicates a competitive process, the 'exclusion of sources' element suggests that not all potential offerors were considered, which could limit the breadth of competition and potentially impact price discovery. The presence of 8 bidders is a positive sign, demonstrating significant interest in the requirement.

Taxpayer Impact: The exclusion of sources, even with multiple bidders, may have prevented the government from obtaining the absolute lowest price achievable through unrestricted full and open competition. Taxpayers may have paid slightly more than they would have in a completely open process.

Public Impact

Provides essential base operating support services, ensuring the functionality and readiness of Laughlin Air Force Base. Benefits military personnel and their families by maintaining a safe and operational living and working environment. Supports the local economy in the Del Rio, Texas area through employment and contractor spending. Ensures the continuity of critical infrastructure and services necessary for Air Force training and operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition phase raises questions about whether the government received the maximum possible competition and potentially the best price.
Lack of detailed service breakdowns makes it difficult to assess the value-for-money proposition comprehensively.
The long contract duration could lead to complacency if not managed with rigorous oversight.

Positive Signals

The award to Choctaw Defense Services Inc. provides a stable provider for essential base operations.
The firm-fixed-price contract structure shifts cost risk to the contractor.
The participation of 8 bidders indicates a healthy level of interest and capability in the market for these services.

Sector Analysis

This contract falls within the Facilities Support Services sector, a critical component of government operations, particularly for military installations. This sector encompasses a wide range of services including maintenance, repair, custodial, and groundskeeping. The market for base operations support is substantial, often characterized by large, long-term contracts awarded to experienced service providers. Benchmarking against similar contracts reveals that annual spending for base operations can range from several million to tens of millions of dollars, depending on the base's size and mission.

Small Business Impact

The data indicates that small business participation (sb) was false, and the contract was not a small business set-aside (ss). This suggests that the primary award was made to a large business. There is no explicit information on subcontracting plans for small businesses within this data snippet. Further investigation would be needed to determine if subcontracting opportunities were mandated or utilized, and their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the requiring activity at Laughlin Air Force Base. Performance monitoring, quality assurance surveillance plans (QASPs), and regular reviews are standard mechanisms to ensure contractor compliance and service delivery. Transparency is generally maintained through contract award databases, but detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support Services
Facilities Maintenance and Repair
Logistics and Support Services
Government Contracting

Risk Flags

Potential for reduced competition due to source exclusion.
Lack of detailed service breakdown for granular value assessment.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $70.6 million to CHOCTAW DEFENSE SERVICES INC. IGF::CT::IGF LAUGHLIN BASE OPERATION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CHOCTAW DEFENSE SERVICES INC.

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 $70.6 million.

What is the period of performance?

Start: 2017-09-22. End: 2023-05-31.

What specific services are included under 'Base Operation Support Services' for Laughlin AFB?

Base Operation Support Services (BOSS) typically encompass a broad range of activities essential for the functioning of a military installation. For Laughlin AFB, this likely includes services such as facility maintenance and repair, groundskeeping, pest control, waste management, transportation support, fire and emergency services, security, and potentially housing and dining facilities management. The exact scope is defined in the Performance Work Statement (PWS) of the contract. The $70.6 million contract value suggests a comprehensive suite of services is being provided over its nearly seven-year duration, covering the day-to-day operational needs of the base.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process impact potential cost savings for taxpayers?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (FOCI) process is a variation of full and open competition where, after initial solicitation, certain sources are excluded from consideration. This exclusion could be due to various reasons, such as specific technical requirements, past performance issues, or socioeconomic program goals. While it still involves competition, the exclusion inherently limits the pool of potential bidders. If the excluded sources were capable of providing the service at a lower cost or with better value, then taxpayers might not have received the most competitive pricing possible. The fact that 8 bidders still participated suggests significant market interest, but the exclusion remains a factor that could have influenced the final price.

What is the typical performance risk associated with a Firm Fixed Price (FFP) contract for base operations?

A Firm Fixed Price (FFP) contract places the primary risk of cost overruns on the contractor. For base operations support, this means the contractor, Choctaw Defense Services Inc., is obligated to perform all specified services for the agreed-upon price, regardless of their actual costs. This structure is generally favorable for the government as it provides cost certainty and incentivizes the contractor to manage its expenses efficiently. The main performance risk for the government lies in ensuring the contractor meets the quality and service level requirements outlined in the contract. If the contractor underperforms or faces unforeseen cost increases, they bear the financial burden, not the government, unless contract modifications are necessary due to scope changes.

Can we compare the annual cost of this contract to other similar Air Force base operations contracts?

The total contract value is approximately $70.6 million over roughly 2077 days (about 6.8 years), equating to an average annual cost of about $10.4 million. Comparing this to other Air Force base operations contracts requires access to detailed data on similar installations' size, scope of services, and geographic location. However, annual costs for base operations at medium-sized Air Force bases can typically range from $5 million to $15 million. Given this general benchmark, the $10.4 million annual average for Laughlin AFB appears to be within a reasonable and competitive range, suggesting fair value, assuming the scope of services is comparable.

What is the historical spending trend for Base Operations Support at Laughlin AFB prior to this contract?

The provided data does not include historical spending trends for Base Operations Support at Laughlin AFB. To analyze historical spending, one would need to access contract databases (like FPDS or USASpending) for previous contracts awarded for similar services at Laughlin AFB, noting their values, durations, and award types. Understanding past spending patterns is crucial for identifying significant increases or decreases in costs, assessing the impact of competition over time, and evaluating whether current spending represents a continuation of established trends or a notable deviation.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA300215R0025

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3 SKYWAY DR STE 102, MCALESTER, OK, 74501

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Government, HUBZone Firm, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $75,733,219

Exercised Options: $71,303,842

Current Obligation: $70,593,421

Actual Outlays: $28,835,214

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline