Navy awards $13.2M for facilities operations, with Elcon Enterprises Inc. securing the contract

Contract Overview

Contract Amount: $13,223,581 ($13.2M)

Contractor: Elcon Enterprises Inc

Awarding Agency: Department of Defense

Start Date: 2004-10-01

End Date: 2010-12-31

Contract Duration: 2,282 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200612!601889!1700!N40080!NAV FAC ENGINEERING CMD WASHINGT!N4008005D0404 !A!N! !Y!FB00 !02 !20060530!20100630!097776330!097776330!097776330!N!ELCON ENTERPRISES, INC !8231 PENN RANDALL PL !UPPER MARLBORO !MD!20772!07125!031!24!BETHESDA !MONTGOMERY !MARYLAND !-000000212348!N!N!000000000000!S216!FACILITIES OPERATIONS SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !238290!E! !5!B!S!H! !C!20100630!B! ! !A! !A!U!J!2!002!B! !C!N!Z! ! !N!C!N! ! ! !A!C!A!A!000!A!D!N! ! ! ! !1710!N00171!0001!Y!

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20032

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $13.2 million to ELCON ENTERPRISES INC for work described as: 200612!601889!1700!N40080!NAV FAC ENGINEERING CMD WASHINGT!N4008005D0404 !A!N! !Y!FB00 !02 !20060530!20100630!097776330!097776330!097776330!N!ELCON ENTERPRISES, INC !8231 PENN RANDALL PL !UPPER MARLBORO !MD!20772!07125!031!24!BETHESDA !MONT… Key points: 1. Contract value of $13.2M over its period of performance. 2. Awarded by the Department of the Navy, indicating a focus on naval infrastructure. 3. The contract was competed on a full and open basis, suggesting a competitive process. 4. The period of performance spans over 7 years, from October 2004 to December 2010. 5. The North American Industry Classification System (NAICS) code 238290 points to a specialization in facilities operations. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: fair

The contract value of $13.2 million over approximately 7 years averages to about $1.89 million per year. Benchmarking this against similar facilities operations contracts is difficult without more specific service details. However, the duration and scope suggest a significant investment in maintaining naval facilities. The firm fixed price nature of the contract implies that the contractor bears the risk of cost overruns, which can be a positive for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The data indicates there were 2 bids received. A competitive process with multiple bidders generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Taxpayers benefit from a competitive award process as it is designed to ensure the government receives the best value by encouraging multiple companies to offer their services at the most competitive prices.

Public Impact

Naval facilities in the Washington D.C. area likely benefited from enhanced operations and maintenance. The contract supported services related to facilities operations, crucial for the functioning of naval bases. The geographic impact is centered around the Washington D.C. region, where the Naval Facilities Engineering Command is located. The contract supported jobs within the facilities operations and maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The specific details of the services provided are not fully discernible from the data, making a precise value assessment challenging.
The contract duration of over 7 years might have limited opportunities for newer or smaller businesses to compete if they lacked the capacity for such a long-term commitment.

Positive Signals

The contract was awarded through full and open competition, indicating a fair and accessible process.
The firm fixed price contract structure provides cost certainty for the government.
The contract was awarded to a single entity, Elcon Enterprises, Inc., suggesting they met the requirements for this specific service.

Sector Analysis

This contract falls within the broader construction and facilities support services sector. The North American Industry Classification System (NAICS) code 238290, 'Other Building Equipment Contractors,' suggests specialized services beyond general maintenance. The Department of Defense, particularly the Navy, is a significant consumer of such services to maintain its extensive infrastructure. Annual spending in this sector can range from billions to tens of billions of dollars nationally, depending on the specific services included.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and the 'sb' field is marked as false. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is not detailed, but it suggests larger firms were likely the primary participants in the competition.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Naval Facilities Engineering Command (NAVFAC) and potentially the Department of Defense's Inspector General. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS, where basic award information is publicly available.

Related Government Programs

Naval Facilities Engineering Command Contracts
Base Operations Support Services
Department of Defense Facilities Maintenance
Government Building Operations

Risk Flags

Lack of detailed service scope
Limited competition (2 bidders)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.2 million to ELCON ENTERPRISES INC. 200612!601889!1700!N40080!NAV FAC ENGINEERING CMD WASHINGT!N4008005D0404 !A!N! !Y!FB00 !02 !20060530!20100630!097776330!097776330!097776330!N!ELCON ENTERPRISES, INC !8231 PENN RANDALL PL !UPPER MARLBORO !MD!20772!07125!031!24!BETHESDA !MONTGOMERY !MARYLAND !-000000212348!N!N!000000000000!S216!FACILITIES OPERATIONS SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !238290!E! !5!B!S!H! !C!201

Who is the contractor on this award?

The obligated recipient is ELCON ENTERPRISES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $13.2 million.

What is the period of performance?

Start: 2004-10-01. End: 2010-12-31.

What specific facilities operations support services were included in this contract?

The provided data indicates the contract was for 'FACILITIES OPERATIONS SUPPORT SERVICES' under NAICS code 238290, which covers 'Other Building Equipment Contractors.' However, the granular details of the specific services rendered (e.g., HVAC maintenance, electrical systems, plumbing, groundskeeping, security systems maintenance) are not explicitly detailed in the abbreviated data. These services are critical for the day-to-day functioning and upkeep of naval installations, ensuring operational readiness and a safe environment for personnel. Without a more detailed statement of work, it's challenging to ascertain the full scope beyond general facilities operations.

How does the $13.2 million contract value compare to similar facilities operations contracts awarded by the Navy?

Comparing the $13.2 million contract value requires context regarding the duration and scope of services. This contract spanned approximately 7 years (October 2004 to December 2010), making its annual value around $1.89 million. The Navy manages a vast portfolio of real estate and infrastructure, and contract values for facilities operations can vary significantly based on the size and complexity of the installation, geographic location, and the specific services required. Larger naval bases or those with extensive and specialized equipment might see annual contracts in the tens of millions. Therefore, $1.89 million annually for facilities operations suggests this contract was likely for a medium-sized facility or a specific set of specialized services rather than comprehensive base operations for a major installation.

What were the key performance indicators (KPIs) or metrics used to evaluate Elcon Enterprises, Inc.'s performance?

The provided data does not contain specific details about the Key Performance Indicators (KPIs) or metrics used to evaluate Elcon Enterprises, Inc.'s performance under this contract. Typically, government contracts, especially those for services, include a Performance Work Statement (PWS) or Statement of Work (SOW) that outlines specific deliverables, standards, and metrics. These might include response times for service calls, uptime percentages for critical systems, quality of maintenance, adherence to safety protocols, and customer satisfaction surveys. Performance evaluations are crucial for ensuring the contractor meets the government's needs and for making decisions regarding future contract awards or extensions.

What is the significance of the contract being awarded as 'FIRM FIXED PRICE'?

The 'FIRM FIXED PRICE' (FFP) contract type signifies that the price is set and not subject to adjustment based on the contractor's cost experience during performance. This contract structure places the primary risk of cost overruns on the contractor, Elcon Enterprises, Inc. For the government, FFP contracts offer the highest degree of cost certainty, making budgeting more predictable. It incentivizes the contractor to control costs and improve efficiency to maximize profit. However, FFP contracts are generally best suited for requirements with well-defined scopes and specifications, where the risk of unforeseen issues is relatively low. If the scope changes significantly, contract modifications would be necessary.

Were there any notable issues or challenges reported during the performance of this contract?

The abbreviated data provided does not include information on any specific issues, challenges, or disputes that may have arisen during the performance of this contract by Elcon Enterprises, Inc. Government contract performance is subject to oversight, and issues can range from minor quality control problems to significant delays or cost disputes. Information regarding such events might be found in contract performance reports, agency inspection records, or legal filings, none of which are included in the provided dataset. Without access to these detailed records, it is not possible to assess if there were any notable performance problems.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Other Building Equipment Contractors

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8231 PENN RANDALL PL, UPPER MARLBORO, MD, 05

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008005D0404

IDV Type: IDC

Timeline