Department of the Navy awards $11.6M for Facilities Support Services to TOYO KOGYO K.K

Contract Overview

Contract Amount: $11,623,090 ($11.6M)

Contractor: Toyo Kogyo K.K.

Awarding Agency: Department of Defense

Start Date: 2006-10-01

End Date: 2009-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE

Sector: Other

Official Description: FB00

Plain-Language Summary

Department of Defense obligated $11.6 million to TOYO KOGYO K.K. for work described as: FB00 Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. Fixed-price contract type indicates a defined scope and potential for cost savings if managed efficiently. 3. The contract duration of 1095 days (3 years) provides a stable period for service delivery. 4. Services fall under Facilities Support, a broad category with significant government spending. 5. The awardee, TOYO KOGYO K.K., is noted, but their specific track record in this service area requires further investigation. 6. The North American Industry Classification System (NAICS) code 561210 points to a standard service offering.

Value Assessment

Rating: fair

Benchmarking the value of this $11.6 million contract for facilities support services is challenging without more specific details on the scope of work and performance metrics. However, the fixed-price nature suggests an attempt to control costs. Comparing this to similar contracts for facilities support across the Department of Defense or other agencies would provide better context on whether the pricing is competitive for the services rendered. The number of bids received (2) is on the lower side for a full and open competition, which could indicate less aggressive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that only two bids were received suggests that the market for this specific set of facilities support services might be limited, or that other potential bidders chose not to participate. A lower number of bidders can sometimes lead to less competitive pricing, although the fixed-price contract type aims to mitigate this risk.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in full and open competition. However, with only two bids, the savings realized may be less than if a larger pool of bidders had participated.

Public Impact

The primary beneficiaries are likely the personnel and operations at the Department of the Navy facilities where these support services are provided. Services delivered include a range of facilities support, which could encompass maintenance, repair, custodial, groundskeeping, and other essential operational functions. The geographic impact is localized to the specific Navy installations managed under this contract. Workforce implications include the potential for direct employment by the contractor or its subcontractors, contributing to the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have resulted in a higher price than a more robustly competed contract.
Lack of detailed performance data makes it difficult to assess the true value for money and contractor efficiency.
The specific scope of 'Facilities Support Services' is broad and could encompass a wide range of activities, making direct comparisons difficult.

Positive Signals

Awarded through full and open competition, adhering to principles of fair opportunity.
Fixed-price contract type provides cost certainty for the government.
Contract duration of three years offers stability and continuity of essential services.

Sector Analysis

Facilities Support Services represent a significant segment of the government contracting market, encompassing a wide array of maintenance, repair, and operational support for federal buildings and infrastructure. This contract fits within the broader 'Professional, Scientific, and Technical Services' sector. Comparable spending benchmarks would require analyzing contracts with similar NAICS codes (e.g., 561210) across various federal agencies, looking at contract values, durations, and competition levels to gauge market rates and efficiency.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). There is no information provided on subcontracting plans or actual performance. Therefore, the direct impact on the small business ecosystem is not evident from this data alone, and it's unclear if small businesses will be involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to successful service delivery. Transparency is generally facilitated through contract databases like FPDS, where basic award information is made public. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
Department of Defense Facilities Maintenance and Repair
Base Operations Support (BOS) Contracts

Risk Flags

Limited competition may impact price competitiveness.
Scope of 'Facilities Support Services' is broad and requires detailed definition.
Contractor's specific performance history in this service area is not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.6 million to TOYO KOGYO K.K.. FB00

Who is the contractor on this award?

The obligated recipient is TOYO KOGYO K.K..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.6 million.

What is the period of performance?

Start: 2006-10-01. End: 2009-09-30.

What is the specific scope of 'Facilities Support Services' covered under this contract?

The provided data identifies the contract under NAICS code 561210, which corresponds to Facilities Support Services. This is a broad category that can include a wide range of activities such as building maintenance, operation of physical plants, groundskeeping, custodial services, pest control, and security services. Without access to the detailed Statement of Work (SOW) or Performance Work Statement (PWS) for this specific contract, the precise services rendered remain undefined. Understanding the granular details of the services is crucial for accurately assessing value, comparing pricing, and evaluating contractor performance against expectations.

How does the $11.6 million award compare to similar facilities support contracts within the Department of the Navy?

To benchmark this $11.6 million award, one would need to analyze other facilities support contracts awarded by the Department of the Navy (or the broader Department of Defense) with similar scopes of work and durations. Key comparison points would include the per-square-foot cost for maintenance, the number of facilities supported, the types of services included (e.g., janitorial, HVAC, landscaping), and the contract type (fixed-price vs. cost-reimbursable). Given the limited competition (2 bidders), it's possible this price point is higher than it might be in a more competitive scenario. A detailed analysis of historical data in FPDS or other contract databases would be necessary to establish a reliable comparison.

What is the track record of TOYO KOGYO K.K. in providing facilities support services to the federal government?

The provided data lists TOYO KOGYO K.K. as the awardee. However, it does not offer insight into their specific performance history or experience in delivering facilities support services. To assess their track record, one would need to examine past federal contract awards to this entity, focusing on contracts within the 561210 NAICS code or similar service categories. Performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) from previous contracts would be invaluable in understanding their reliability, quality of service, and adherence to schedules and budgets. Without this information, it's difficult to gauge their suitability and past success in this domain.

What are the potential risks associated with a fixed-price contract for facilities support services?

Fixed-price contracts, while offering cost certainty to the government, carry inherent risks, particularly for service-based contracts like facilities support. If the scope of work is not precisely defined or if unforeseen issues arise (e.g., unexpected repair needs, changes in facility usage), the contractor may incur costs exceeding the fixed price. This could lead to pressure on the contractor to cut corners on service quality to maintain profitability, potentially impacting the effectiveness of the support. Conversely, if the contractor significantly underbids or manages costs exceptionally well, the government might be paying a premium if the contractor achieves unexpectedly high profit margins. Careful contract administration and clear performance standards are essential to mitigate these risks.

How does the duration of the contract (1095 days) impact service continuity and potential price fluctuations?

A contract duration of 1095 days, equivalent to three years, provides significant service continuity for the Department of the Navy, ensuring that essential facilities support functions are maintained without frequent re-competition. This stability can lead to more efficient operations for both the government and the contractor. From a pricing perspective, a longer duration on a fixed-price contract locks in the price for the entire period. This can be advantageous for the government if market rates for labor and materials increase significantly during the contract term. However, if market rates were to decrease, the government would be locked into the higher initial price. The contractor benefits from predictable revenue over the term.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Offers Received: 2

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: TOYO GROUP HONSHA BLDG., YOKOHAMA

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,634,934

Exercised Options: $11,645,033

Current Obligation: $11,623,090

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008406D8703

IDV Type: IDC

Timeline