DoD Spends $11.7M on Landscaping Services with VTC Enterprises, Lacking Competition
Contract Overview
Contract Amount: $11,741,377 ($11.7M)
Contractor: VTC Enterprises
Awarding Agency: Department of Defense
Start Date: 2020-03-07
End Date: 2025-09-06
Contract Duration: 2,009 days
Daily Burn Rate: $5.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: GROUNDS MAINTENANCE
Place of Performance
Location: LOMPOC, SANTA BARBARA County, CALIFORNIA, 93437
Plain-Language Summary
Department of Defense obligated $11.7 million to VTC ENTERPRISES for work described as: GROUNDS MAINTENANCE Key points: 1. Significant contract value of $11.7 million for grounds maintenance. 2. Sole-source award to VTC Enterprises raises competition concerns. 3. Long contract duration (2025) may limit future cost savings. 4. Landscaping services sector is generally competitive, making this award unusual.
Value Assessment
Rating: questionable
The contract value of $11.7 million for landscaping services is substantial. Without available benchmark data or competitive pricing, it is difficult to assess if this price is reasonable compared to similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of full and open competition. This method limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a service like landscaping likely results in a higher price than could be achieved through a competitive bidding process, impacting taxpayer funds.
Public Impact
Taxpayers may be overpaying for grounds maintenance due to the lack of competitive bidding. The long-term nature of the contract limits opportunities for other businesses to compete for this work. Reliance on a single vendor for essential grounds maintenance could pose a risk if the vendor's performance declines.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Firm fixed price contract type
Sector Analysis
The landscaping services sector (NAICS 561730) typically involves numerous small and medium-sized businesses capable of providing these services. Spending benchmarks for grounds maintenance vary widely by location and scope, but competitive procurement is standard.
Small Business Impact
The contract was not awarded to a small business, and the sole-source nature prevents small businesses from having an opportunity to compete for this significant contract. This misses an opportunity to support small business participation.
Oversight & Accountability
The sole-source award warrants further investigation to ensure the justification for not competing the contract was sound and that the pricing is fair and reasonable. Oversight should focus on vendor performance and contract modifications.
Related Government Programs
- Landscaping Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for overpayment
- Limited small business participation
- Long contract duration may reduce flexibility
Tags
landscaping-services, department-of-defense, ca, purchase-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.7 million to VTC ENTERPRISES. GROUNDS MAINTENANCE
Who is the contractor on this award?
The obligated recipient is VTC ENTERPRISES.
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 $11.7 million.
What is the period of performance?
Start: 2020-03-07. End: 2025-09-06.
What was the justification for awarding this contract on a sole-source basis, given the competitive nature of the landscaping services market?
The justification for a sole-source award typically involves circumstances where only one responsible source is available or capable of meeting the agency's needs. This could be due to unique capabilities, proprietary technology, or urgent requirements. However, for standard landscaping services, such justifications are often scrutinized, as a competitive process is generally expected to yield better value and encourage market participation.
What is the potential financial risk to taxpayers due to the lack of competition for this $11.7 million contract?
The primary financial risk is paying a premium price. Without competitive bids, the contractor may not be incentivized to offer the lowest possible price. Studies consistently show that competitive procurements result in lower prices compared to sole-source awards. The magnitude of this premium is unknown without a benchmark, but for an $11.7 million contract, it could be substantial.
How effective is this contract in ensuring high-quality grounds maintenance for the Department of the Air Force over its duration?
The effectiveness in terms of quality is primarily dependent on the vendor's performance and the agency's contract management and oversight. While a firm fixed price contract provides cost certainty, it doesn't inherently guarantee quality. The lack of competition might reduce the vendor's incentive to proactively improve services beyond the contract's minimum requirements, relying instead on the existing relationship.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Landscaping Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2445 A ST, SANTA MARIA, CA, 93455
Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,292,912
Exercised Options: $11,745,255
Current Obligation: $11,741,377
Actual Outlays: $5,327,117
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2020-03-07
Current End Date: 2025-09-06
Potential End Date: 2025-09-06 00:00:00
Last Modified: 2025-10-07
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