Department of Defense awards $968M facilities support contract to INDYNE, INC. over 11 years
Contract Overview
Contract Amount: $968,403,210 ($968.4M)
Contractor: Indyne, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-06-15
End Date: 2016-09-30
Contract Duration: 4,125 days
Daily Burn Rate: $234.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Place of Performance
Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $968.4 million to INDYNE, INC. for work described as: Key points: 1. Contract value suggests significant long-term reliance on contractor for essential services. 2. Long duration may indicate stable performance requirements but also potential for price creep. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Competition level is a key factor in assessing value for money. 5. Geographic concentration in Florida warrants attention for potential single-point-of-failure risks. 6. Contractor's extensive performance period implies a history of meeting DoD needs.
Value Assessment
Rating: good
The total award amount of $968.4 million over approximately 11 years represents a significant investment in facilities support. Benchmarking this against similar large-scale, long-duration facilities support contracts is crucial. Given the firm fixed-price nature, the value is largely determined by the initial negotiation and the contractor's ability to manage costs effectively throughout the period. Without specific per-unit cost data or detailed service breakdowns, a precise value-for-money assessment is challenging, but the long-term commitment suggests perceived value by the agency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. With 3 bidders, the competition level appears moderate. This suggests that while the agency sought competitive proposals, the market for such comprehensive facilities support services might be concentrated among a few capable providers. Moderate competition generally supports reasonable price discovery.
Taxpayer Impact: Full and open competition is favorable for taxpayers as it encourages multiple vendors to offer their best pricing and service terms, leading to potentially lower costs and better quality.
Public Impact
The primary beneficiaries are the Department of Defense and its personnel, ensuring operational readiness through well-maintained facilities. Services delivered likely encompass a broad range of facility operations, maintenance, and management. The contract's geographic impact is concentrated in Florida, supporting federal installations within the state. Workforce implications include direct employment by INDYNE, INC. and potential indirect employment in supporting industries within Florida.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (11 years) could lead to potential cost inefficiencies if market rates decrease significantly over time.
- Concentration of services in Florida might pose risks if unforeseen events disrupt operations in that specific region.
- Reliance on a single contractor for critical facilities support could create dependency and limit future flexibility.
Positive Signals
- Firm fixed-price contract structure effectively transfers cost overrun risk to the contractor.
- Full and open competition suggests a competitive bidding process, likely resulting in a fair market price.
- The extensive performance period indicates a successful, long-term relationship and consistent service delivery.
Sector Analysis
Facilities Support Services fall under the broader professional, scientific, and technical services sector. This sector is characterized by a mix of large, established firms and smaller specialized companies. The market size for government facilities support is substantial, driven by the extensive real estate holdings of federal agencies. This contract represents a significant portion of spending within this niche, likely encompassing maintenance, repair, operations, and potentially specialized technical services for military installations.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large, comprehensive facilities support contract, it is unlikely that small businesses would be primary awardees unless through subcontracting. The prime contractor, INDYNE, INC., would need to comply with any applicable subcontracting goals for small businesses, which is a standard requirement for federal contracts of this magnitude. The impact on the small business ecosystem would primarily be through potential subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and their representatives (CORs) within the Department of the Air Force. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Base Operations Support (BOS)
- Logistics and Supply Chain Management
- Facilities Engineering and Maintenance
- Information Technology Support Services (if bundled)
- Security Services
Risk Flags
- Long contract duration
- Potential for vendor lock-in
- Geographic concentration risk
Tags
defense, department-of-defense, department-of-the-air-force, facilities-support-services, definitive-contract, firm-fixed-price, full-and-open-competition, large-contract, florida, indyne-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $968.4 million to INDYNE, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is INDYNE, 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 $968.4 million.
What is the period of performance?
Start: 2005-06-15. End: 2016-09-30.
What specific types of facilities support services are included under this contract?
The provided data classifies the contract under NAICS code 561210, which is Facilities Support Services. This broad category typically encompasses a wide array of services essential for the operation and maintenance of physical facilities. These can include, but are not limited to, building operations and maintenance (HVAC, electrical, plumbing), janitorial services, grounds maintenance, pest control, waste management, security systems maintenance, and potentially specialized technical support for facility-related equipment. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not provided here. Given the significant award value and duration, it's likely a comprehensive suite of services is covered to support Department of Defense installations.
How does the $968.4 million award compare to other similar facilities support contracts awarded by the DoD?
The $968.4 million award over approximately 11 years is a substantial sum, placing it among the larger facilities support contracts. To benchmark effectively, one would compare it to other indefinite-delivery/indefinite-quantity (IDIQ) or large definitive contracts for similar services awarded by the DoD or other federal agencies. Factors like contract type (firm-fixed-price), duration, and the specific services included are critical for a meaningful comparison. Contracts with similar scope and duration could range from hundreds of millions to over a billion dollars. The average annual value of this contract is roughly $88 million ($968.4M / 11 years), which is a significant but not unprecedented figure for large-scale federal facilities management.
What is the historical spending pattern for facilities support services by the Department of the Air Force?
Historical spending patterns for facilities support services by the Department of the Air Force (DAF) are extensive, reflecting the vast infrastructure managed by the service branch. The DAF consistently awards billions of dollars annually across numerous contracts for base operations, maintenance, repair, and management of its facilities worldwide. Spending fluctuates based on modernization efforts, infrastructure needs, and budget allocations. Contracts like this one represent a significant portion of that annual spend, often consolidated to achieve economies of scale. Analyzing past DAF spending on NAICS 561210 and related categories would reveal trends in contract values, durations, and competition levels, highlighting the DAF's ongoing commitment to maintaining its operational readiness through robust facilities support.
What are the potential risks associated with a single contractor holding such a large facilities support contract for an extended period?
Several risks are associated with a single contractor holding a large facilities support contract for an extended period (11 years). Firstly, there's the risk of complacency or reduced innovation over time, as the contractor may feel less pressure to improve services once established. Secondly, price escalation beyond initial projections, despite the firm-fixed-price structure, can occur through change orders or scope creep if not managed tightly. Thirdly, a significant disruption affecting the contractor (e.g., financial instability, major labor disputes, or loss of key personnel) could severely impact DoD operations. Lastly, the government might miss out on potentially better pricing or more innovative solutions available in the market if competition is stifled due to the long-term commitment to one provider.
How does the firm-fixed-price (FFP) contract type impact the value and risk for the government and the contractor?
The firm-fixed-price (FFP) contract type is generally favored by the government for services where the scope of work is well-defined and stable, as it shifts the majority of the cost risk to the contractor. For the government, this means the total price is fixed, providing budget certainty and protecting against cost overruns unless significant changes to the scope occur. For the contractor (INDYNE, INC. in this case), it means they bear the responsibility for managing costs effectively to ensure profitability. If their costs exceed the fixed price, their profit margin shrinks or they incur a loss. Conversely, if they manage costs efficiently, their profit increases. This structure incentivizes the contractor to be highly efficient and control expenses throughout the contract's duration.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6862 ELM ST STE 700, MC LEAN, VA, 22101
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $1,039,880,591
Exercised Options: $1,029,791,709
Current Obligation: $968,403,210
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2005-06-15
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2019-03-25
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