Air Force awards $2.3M grounds maintenance contract to HD INC. for landscaping services

Contract Overview

Contract Amount: $2,303,151 ($2.3M)

Contractor: HD Inc.

Awarding Agency: Department of Defense

Start Date: 2023-10-01

End Date: 2026-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $2.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GROUNDS MAINTENANCE SERVICE

Place of Performance

Location: MOODY AFB, LOWNDES County, GEORGIA, 31699

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $2.3 million to HD INC. for work described as: GROUNDS MAINTENANCE SERVICE Key points: 1. Contract awarded at a firm fixed price, indicating predictable costs for the government. 2. Competition was conducted under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller procurements. 3. The contract duration of 1095 days (3 years) provides long-term service stability. 4. The North American Industry Classification System (NAICS) code 561730 identifies the specific industry sector. 5. The contract is a definitive contract, implying a clear agreement on terms and conditions. 6. The award was made to a single contractor, HD INC.

Value Assessment

Rating: fair

Benchmarking the value of this $2.3 million contract for grounds maintenance is challenging without specific performance metrics or detailed service scope. However, the firm fixed-price structure suggests cost predictability. Comparing this to similar landscaping contracts across the Department of Defense would require access to a broader dataset of comparable awards, including the specific services rendered and geographic locations. The absence of detailed pricing breakdowns makes a granular assessment of value for money difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involve a limited number of bidders compared to full and open competition. While the exact number of bids received is not explicitly stated, SAP is designed for procurements below a certain threshold, often resulting in less extensive competition. This approach aims for efficiency in smaller acquisitions but may not always yield the lowest possible price.

Taxpayer Impact: Limited competition under SAP can mean that taxpayers may not benefit from the most aggressive pricing that could be achieved through a broader bidding process. However, it also allows for quicker contract awards for essential services.

Public Impact

The Department of the Air Force benefits from consistent and reliable grounds maintenance services. Personnel at the specified Air Force installation will experience improved aesthetic and functional grounds. The contract supports the operational readiness and environmental upkeep of a federal facility. Local workforce may see employment opportunities through the contractor's operations in Georgia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the contractor's track record on this specific award.
Limited competition under SAP might not have secured the absolute best price for taxpayers.
The firm fixed-price nature could lead to contractor profit if costs are managed very efficiently, but also risk for the contractor if costs escalate unexpectedly.

Positive Signals

The firm fixed-price contract provides cost certainty for the government.
A 3-year duration offers stability and reduces the frequency of re-competition.
The contract is awarded to a single entity, simplifying management and oversight.

Sector Analysis

The landscaping services sector, classified under NAICS code 561730, encompasses a wide range of businesses providing grounds maintenance. Federal spending in this area supports the upkeep of military bases, government buildings, and public lands. Comparable spending benchmarks would typically involve analyzing the average cost per acre or per square foot for similar services across different federal agencies and geographic regions. This contract represents a modest investment within the broader federal procurement landscape for facility maintenance.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside or if the prime contractor has specific subcontracting plans for small businesses. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, the use of Simplified Acquisition Procedures (SAP) can sometimes favor smaller businesses as bidders, depending on the specific solicitation requirements.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and their administrative team within the Department of the Air Force. Accountability measures are inherent in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract databases like SAM.gov, where award details are published. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Grounds Maintenance Contracts
Department of Defense Facility Support Services
Air Force Installation and Mission Support
Landscaping and Horticultural Services Procurement
Simplified Acquisition Procedures Contracts

Risk Flags

Potential for cost overruns for the contractor under FFP.
Risk of service quality degradation if contractor seeks to protect profit margins.
Limited competition may not yield the lowest possible price.
Dependence on contractor's internal cost management and efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.3 million to HD INC.. GROUNDS MAINTENANCE SERVICE

Who is the contractor on this award?

The obligated recipient is HD 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 $2.3 million.

What is the period of performance?

Start: 2023-10-01. End: 2026-09-30.

What is the historical spending pattern for grounds maintenance services by the Department of the Air Force?

Analyzing historical spending for grounds maintenance by the Department of the Air Force requires accessing extensive procurement data over multiple fiscal years. Generally, federal agencies like the Air Force allocate significant budgets towards facility maintenance, including landscaping, to ensure operational readiness and maintain infrastructure. Spending can fluctuate based on base closures/openings, infrastructure projects, and changes in operational requirements. Historically, these services are often procured through a mix of contract types and competition levels, with larger contracts potentially going through full and open competition and smaller, routine maintenance tasks utilizing simplified acquisition procedures. Without specific data queries, it's difficult to provide exact figures, but it is a consistent area of expenditure.

How does the awarded price compare to industry benchmarks for similar landscaping services in Georgia?

Determining if the $2.3 million award for grounds maintenance is competitive requires detailed service scope and comparison against local Georgia market rates. Factors such as the size of the area maintained, specific services (mowing, trimming, pest control, irrigation), frequency, and specialized requirements (e.g., security protocols on a military base) heavily influence pricing. Industry benchmarks for landscaping services vary widely based on these factors. A firm fixed-price contract provides cost certainty but doesn't inherently guarantee the lowest market price without robust competition. A detailed analysis would involve comparing the contract's unit costs (if available) against quotes from private landscaping firms operating in the same geographic region and performing comparable services.

What are the potential risks associated with a firm fixed-price contract for grounds maintenance?

A firm fixed-price (FFP) contract for grounds maintenance offers cost predictability for the government but carries inherent risks. For the contractor, the primary risk is cost overrun; if unforeseen issues arise (e.g., extreme weather requiring more frequent service, unexpected pest outbreaks, increased fuel costs), HD INC. must absorb these additional expenses, potentially impacting profitability. For the government, the risk lies in potentially paying a premium if the contractor inflates their price to cover potential risks, or if the contractor cuts corners on service quality to protect their profit margin, especially if oversight is insufficient. Effective performance monitoring is crucial to mitigate the risk of substandard service delivery under an FFP agreement.

What is the track record of HD INC. in performing federal grounds maintenance contracts?

Assessing the track record of HD INC. requires examining their past performance on similar federal contracts. Publicly available data, such as contract award histories and performance evaluations (if accessible), would provide insights into their reliability, quality of service, and adherence to contract terms. Without specific performance data for HD INC. on prior grounds maintenance contracts, it's difficult to definitively state their track record. Federal agencies typically maintain past performance information, which contracting officers consider during source selection. A review of their award history might reveal previous contracts of similar scope and value, offering clues to their capabilities.

How does the competition level (limited under SAP) impact the value received by the government?

Competition under Simplified Acquisition Procedures (SAP) is typically limited, meaning fewer potential bidders participate compared to full and open competition. This can impact the value received by the government in several ways. On one hand, SAP is designed for efficiency and speed, which can be valuable for acquiring services like grounds maintenance promptly. On the other hand, reduced competition may lead to less aggressive pricing, potentially resulting in a higher cost than could be achieved through a broader bidding process. The government relies on the contracting officer's expertise to ensure fair and reasonable pricing even within a limited competition environment. The number of bids received and the resulting price are key indicators of the value achieved.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6391 AVIATION CIRCLE, LOVELAND, CO, 80538

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $5,444,128

Exercised Options: $3,249,067

Current Obligation: $2,303,151

Actual Outlays: $473,230

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline