Sallyport Global Holdings Inc. awarded $343.7M for base operations support, life support, and security services

Contract Overview

Contract Amount: $343,721,671 ($343.7M)

Contractor: Sallyport Global Holdings Inc

Awarding Agency: Department of Defense

Start Date: 2021-05-01

End Date: 2022-07-30

Contract Duration: 455 days

Daily Burn Rate: $755.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BASE OPERATIONS SUPPORT BASE LIFE SUPPORT/SECURITY

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $343.7 million to SALLYPORT GLOBAL HOLDINGS INC for work described as: BASE OPERATIONS SUPPORT BASE LIFE SUPPORT/SECURITY Key points: 1. Contract value of $343.7M for base operations support and security services. 2. Services include base life support, security, and facilities management. 3. Contract awarded as 'Not Available for Competition' raises questions about market research. 4. Performance period spans from May 2021 to July 2022. 5. Contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. 6. The base contract value is substantial, indicating a significant operational requirement.

Value Assessment

Rating: questionable

The contract value of $343.7 million for base operations support and security is significant. Without comparable contract data or detailed cost breakdowns, it is difficult to definitively assess value for money. The Cost Plus Fixed Fee (CPFF) contract type, while common for services where costs are uncertain, can lead to higher overall expenditures compared to fixed-price contracts if not managed tightly. Benchmarking this price against similar base support contracts in similar geographic regions would be necessary for a more robust assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under the 'Not Available for Competition' category, indicating a sole-source procurement. This suggests that the agency determined that only one source was capable of fulfilling the requirement, or that a competitive process was not feasible or advantageous. The lack of competition means that price discovery through market forces was bypassed, potentially leading to a higher price than if multiple bidders had competed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. The agency's justification for sole-source procurement needs to be thoroughly reviewed to ensure it was appropriate and that the public interest was served.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who receive essential base support and security services. Services delivered include maintaining operational readiness and ensuring the safety and well-being of personnel at the supported base. The geographic impact is localized to the specific base where these operations are conducted. Workforce implications include employment for personnel performing base operations, security, and life support functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost Plus Fixed Fee contract type can lead to cost escalation if not managed effectively.
Lack of transparency in the 'Not Available for Competition' justification could hide potential inefficiencies.
The substantial contract value warrants close scrutiny of performance and cost controls.

Positive Signals

Ensures continuity of essential base operations and security.
Addresses critical support needs for military personnel.
Contract award indicates a recognized need for these specific services.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of government facilities. The market for base operations support is often characterized by specialized requirements and long-term contracts, sometimes leading to limited competition, especially for overseas or highly sensitive installations. The total addressable market for such services globally is substantial, with significant government spending allocated annually to ensure the smooth functioning of military bases and installations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large sole-source award, it is unlikely to involve significant subcontracting opportunities for small businesses unless explicitly mandated by the prime contractor or agency. This contract does not appear to directly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting agency (Department of the Air Force) and potentially the Department of Defense's Inspector General. Mechanisms would include contract performance reviews, financial audits, and compliance checks. Transparency is limited by the sole-source nature of the award and the lack of publicly available detailed cost justifications. The effectiveness of oversight depends on the rigor of the agency's contract management processes.

Related Government Programs

Base Operations Support Services
Facilities Maintenance and Management
Security Services
Logistics and Support Contracts
Contingency Base Support

Risk Flags

Sole-source award may indicate limited market research or justification.
Cost Plus Fixed Fee contract type carries inherent cost escalation risks.
Lack of public performance data hinders independent assessment.
Significant contract value requires robust oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $343.7 million to SALLYPORT GLOBAL HOLDINGS INC. BASE OPERATIONS SUPPORT BASE LIFE SUPPORT/SECURITY

Who is the contractor on this award?

The obligated recipient is SALLYPORT GLOBAL HOLDINGS 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 $343.7 million.

What is the period of performance?

Start: 2021-05-01. End: 2022-07-30.

What is the specific justification for awarding this contract as 'Not Available for Competition'?

The 'Not Available for Competition' designation typically implies that the agency has determined that only one source is reasonably available or capable of meeting the requirement. This could be due to unique capabilities, proprietary technology, urgent and compelling circumstances, or specific geographic requirements that only one contractor can fulfill. Without access to the agency's specific justification documentation, it is impossible to ascertain the precise reasons. However, such designations warrant careful review to ensure that competition was not foreclosed unnecessarily and that the government is receiving fair value.

How does the Cost Plus Fixed Fee (CPFF) contract structure impact overall cost and risk for the government?

A Cost Plus Fixed Fee (CPFF) contract reimburses the contractor for allowable costs incurred plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not well-defined or when there is significant uncertainty about costs. While it allows for flexibility and ensures the contractor is compensated for necessary expenses, it shifts much of the cost risk to the government. The contractor has less incentive to control costs compared to fixed-price contracts, as their profit (the fee) remains constant regardless of the final cost. Effective government oversight and cost monitoring are crucial to mitigate potential cost overruns under a CPFF arrangement.

What are the typical services included in 'Base Operations Support' and 'Base Life Support/Security' contracts of this magnitude?

Contracts of this magnitude for Base Operations Support (BOS) and Base Life Support/Security typically encompass a wide array of essential functions required to maintain a fully operational military installation. This often includes facility maintenance and repair, groundskeeping, utilities management (power, water, waste), transportation services, food services, housing and billeting management, fire and emergency services, law enforcement and physical security, environmental services, and sometimes even morale, welfare, and recreation (MWR) support. The specific services are tailored to the needs of the installation and the deployed personnel.

Are there any publicly available performance metrics or evaluations for Sallyport Global Holdings Inc. on this specific contract?

Information regarding specific performance metrics or evaluations for Sallyport Global Holdings Inc. on this particular contract is not readily available in the public domain through standard contract databases. Performance data is typically held by the contracting agency and may be subject to release under Freedom of Information Act (FOIA) requests, often with redactions for sensitive information. Contractor performance is usually assessed through Contractor Performance Assessment Reporting System (CPARS) or similar internal agency systems, which inform future source selections but are not always fully public.

What is the historical spending trend for Base Operations Support services by the Department of the Air Force?

The Department of the Air Force, like other branches of the military, consistently allocates substantial funding towards Base Operations Support (BOS) services. Historical spending trends show a significant and often increasing reliance on contracted BOS services to maintain readiness and operational efficiency across numerous installations worldwide. Factors such as evolving geopolitical landscapes, force structure changes, and the increasing complexity of military operations contribute to sustained or growing expenditures in this category. Specific annual totals fluctuate based on global deployments, base closures/openings, and strategic priorities, but BOS remains a core and significant component of the Air Force's budget.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Michael Baker International, LLC (UEI: 079171269)

Address: 10701 PARKRIDGE BLVD STE 200, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $343,721,671

Exercised Options: $343,721,671

Current Obligation: $343,721,671

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline