Grounds maintenance contract awarded to Michael Franco Inc. for over $3.6 million by the Air Force

Contract Overview

Contract Amount: $3,643,384 ($3.6M)

Contractor: Michael Franco Inc

Awarding Agency: Department of Defense

Start Date: 2021-10-01

End Date: 2026-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $2.0K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GROUNDS MAINTENANCE

Place of Performance

Location: ALAMOGORDO, OTERO County, NEW MEXICO, 88310

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $3.6 million to MICHAEL FRANCO INC for work described as: GROUNDS MAINTENANCE Key points: 1. The contract value of $3.64 million over five years suggests a significant investment in grounds maintenance services. 2. Awarded as a purchase order, this indicates a streamlined procurement process, potentially for routine services. 3. The firm-fixed-price contract type provides cost certainty for the government, shifting performance risk to the contractor. 4. The absence of competition raises questions about potential overpricing and the best use of taxpayer funds. 5. The contractor, Michael Franco Inc., has secured this sole-source award, highlighting a lack of broader market engagement. 6. The duration of the contract (5 years) allows for consistent service delivery but also limits opportunities for re-evaluation of market options.

Value Assessment

Rating: questionable

Benchmarking the value of this $3.64 million contract is challenging without comparable sole-source grounds maintenance awards in New Mexico. However, the lack of competition suggests that the government may not have achieved the most favorable pricing. The firm-fixed-price structure is standard, but the absence of competitive bids means there's no market validation of the price's reasonableness. Further analysis would require understanding the specific scope of services and comparing them to industry standards for similar-sized contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a sole-source purchase order. This means that only one contractor, Michael Franco Inc., was solicited and awarded the work. The lack of competition limits the government's ability to explore a wider range of potential providers and potentially negotiate better terms or pricing. It suggests that either the requirement was specifically tailored to Michael Franco Inc., or there were other factors that precluded a competitive process.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the best possible price, as there was no market pressure to drive down costs. This limits the government's ability to ensure maximum value for money.

Public Impact

The primary beneficiaries are the Department of the Air Force facilities in New Mexico, which will receive consistent grounds maintenance. Services include landscaping and general grounds upkeep, contributing to the operational readiness and aesthetic appeal of military installations. The geographic impact is localized to New Mexico, where the contractor will perform the services. This contract supports jobs within the landscaping and grounds maintenance sector, likely benefiting local workers employed by Michael Franco Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing and reduced value for taxpayer money.
Sole-source award raises concerns about whether all available qualified contractors were considered.
The contract duration of five years limits opportunities to reassess market competitiveness and pricing.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Purchase order award suggests an efficient procurement process for the specified services.
Consistent service delivery over a five-year period ensures ongoing grounds maintenance for Air Force facilities.

Sector Analysis

The grounds maintenance sector, classified under NAICS code 561730 (Landscaping Services), is a significant part of the facilities management industry. Federal spending in this area supports the upkeep of government properties nationwide. While specific market size data for federal grounds maintenance is not readily available, the broader landscaping services industry is substantial. This contract represents a portion of the Department of Defense's expenditure on maintaining its vast real estate portfolio, ensuring operational readiness and environmental compliance.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses. The sole-source nature of the award further suggests that opportunities for small businesses to participate in this specific contract were likely limited. Without a competitive bidding process that includes set-aside goals, the direct impact on the small business ecosystem for this particular contract is minimal.

Oversight & Accountability

As a purchase order, oversight is typically managed through the contracting officer's representative (COR) who monitors performance and ensures compliance with the contract terms. Transparency is limited due to the sole-source nature, with fewer public details available compared to competitively awarded contracts. Accountability rests with Michael Franco Inc. to deliver services as specified and with the Air Force to manage the contract effectively. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Grounds Maintenance Contracts
Department of Defense Facilities Management
Air Force Base Operations Support
Landscaping Services Procurement
Sole-Source Service Contracts

Risk Flags

Sole-source award lacks competition.
Potential for non-optimal pricing.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.6 million to MICHAEL FRANCO INC. GROUNDS MAINTENANCE

Who is the contractor on this award?

The obligated recipient is MICHAEL FRANCO 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 $3.6 million.

What is the period of performance?

Start: 2021-10-01. End: 2026-09-30.

What is the track record of Michael Franco Inc. in performing grounds maintenance services for the federal government?

Information regarding Michael Franco Inc.'s specific track record with federal grounds maintenance contracts is not detailed in the provided data. As this was a sole-source award, it implies the Air Force had a basis for selecting this contractor, which could include prior performance, specialized capabilities, or existing relationships. To fully assess their track record, one would need to examine past performance evaluations, other federal contracts awarded to the company, and any reported issues or successes in similar service provision. Without this additional context, it's difficult to definitively gauge their reliability and quality of service beyond the Air Force's internal assessment for this specific award.

How does the annual cost of this contract compare to industry benchmarks for similar grounds maintenance services?

The annual cost for this contract averages approximately $728,677 ($3.64 million / 5 years). Benchmarking this figure against industry standards for grounds maintenance is challenging without a precise definition of the scope of services (e.g., acreage, types of landscaping, frequency of service, specific tasks like snow removal or pest control). However, for large-scale federal installations, this annual figure might be within a reasonable range, assuming comprehensive services are required. To provide a more accurate comparison, data from organizations like the Professional Landcare Network (PLANET) or government cost-estimating guides for similar facility sizes and service levels would be necessary. The lack of competition, however, prevents a direct market-based validation of this price.

What are the primary risks associated with a sole-source award for grounds maintenance services?

The primary risks associated with a sole-source award for grounds maintenance services include potential overpricing due to the absence of competitive pressure, limited innovation from the contractor as there's no incentive to outperform for future work, and a lack of market validation for the chosen service provider. Taxpayers may not be receiving the best value for their money. Furthermore, if the sole-source justification is weak or if the contractor's performance declines, the government has fewer immediate options to switch providers without initiating a new, potentially lengthy, sole-source justification process or a full competitive procurement. This can also lead to complacency on the part of the contractor.

How effective is the firm-fixed-price contract type in managing grounds maintenance services for the Air Force?

The firm-fixed-price (FFP) contract type is generally effective for managing grounds maintenance services because it shifts the risk of cost overruns to the contractor, providing budget certainty for the government. For predictable services like routine mowing, trimming, and basic landscaping, FFP is suitable. It incentivizes the contractor to manage their costs efficiently to maximize profit. However, if unforeseen circumstances arise that significantly impact the cost of performance (e.g., extreme weather events requiring extensive remediation, or unexpected pest infestations), the contractor bears the burden, which could potentially lead to disputes or a desire to cut corners if not carefully monitored. For grounds maintenance, where the scope is often well-defined, FFP is a common and often effective choice.

What is the historical spending pattern for grounds maintenance at this specific Air Force installation or within the Air Force broadly?

The provided data does not include historical spending patterns for grounds maintenance at this specific Air Force installation or for the Air Force broadly. This contract, valued at $3.64 million over five years, represents a specific instance of spending. To understand historical patterns, one would need access to broader federal procurement databases or agency budget reports that track spending on grounds maintenance services over multiple fiscal years and across different installations. Analyzing such data could reveal trends in contract values, types of services procured, and the prevalence of competitive versus sole-source awards, providing context for the current contract's scale and procurement method.

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 COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: FA480121Q0009

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 130 EL CHANATE DR STE F, CANUTILLO, TX, 79835

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,838,448

Exercised Options: $4,166,420

Current Obligation: $3,643,384

Actual Outlays: $1,449,216

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline