DoD's $338M Facilities Support Contract Awarded to VT Griffin Services Inc. for 8 Years

Contract Overview

Contract Amount: $337,976,464 ($338.0M)

Contractor: VT Griffin Services Inc.

Awarding Agency: Department of Defense

Start Date: 2005-09-30

End Date: 2013-09-30

Contract Duration: 2,922 days

Daily Burn Rate: $115.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 201

Pricing Type: FIXED PRICE AWARD FEE

Sector: Other

Official Description: 200612!700002!1700!N69272!NAVFAC ENG FIELD ACT SOUTHEAST J!N6927200D3170 !A!N! !Y!FB00 !13 !20051101!20050930!042732560!217313865!295489165!N!VT GRIFFIN SERVICES, INC !5755 DUPREE DR NW STE 220 !ATLANTA !GA!30327!43580!039!13!KINGS BAY !CAMDEN !GEORGIA !+000042710156!N!N!000000000000!S216!FACILITIES OPERATIONS SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !561210!E! !5!C!S!D! !D!20050930!B! ! !A! !A!U!M!2!003!B! !C!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! !1700!N42237!0001! !

Place of Performance

Location: KINGS BAY, CAMDEN County, GEORGIA, 31547

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $338.0 million to VT GRIFFIN SERVICES INC. for work described as: 200612!700002!1700!N69272!NAVFAC ENG FIELD ACT SOUTHEAST J!N6927200D3170 !A!N! !Y!FB00 !13 !20051101!20050930!042732560!217313865!295489165!N!VT GRIFFIN SERVICES, INC !5755 DUPREE DR NW STE 220 !ATLANTA !GA!30327!43580!039!13!KINGS BAY !CAMD… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract's duration of 8 years indicates a long-term need for facilities support services. 3. The fixed-price award fee structure implies performance incentives for the contractor. 4. The primary service category is Facilities Support Services, a broad operational area. 5. The contract was awarded to a single entity, VT Griffin Services, Inc. 6. The contract value of $338 million over 8 years averages approximately $42.25 million annually. 7. The contract was awarded by the Department of the Navy, a major component of the DoD. 8. The contract is located in Georgia, with specific sites in Camden County.

Value Assessment

Rating: fair

The total award value of $337,976,463.97 over approximately 8 years (2922 days) suggests an average annual value of roughly $42.25 million. Benchmarking this against similar large-scale facilities support contracts within the Department of Defense is challenging without more specific service details. However, the duration and scale indicate a significant investment. The fixed-price award fee structure means the base price is fixed, but the contractor can earn additional fees based on performance, which can lead to cost efficiencies if managed well, but also potential for cost overruns if performance targets are not met or are poorly defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding process where multiple companies likely vied for the contract. The number of bids received is not explicitly stated in the provided data, but the designation implies a competitive environment that should theoretically drive down prices and improve service quality through market forces.

Taxpayer Impact: A full and open competition generally benefits taxpayers by ensuring that the government receives the best possible value through a competitive bidding process, potentially leading to lower costs and higher quality services compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel, who receive essential facilities operations support. Services delivered include a wide range of facilities operations and support, crucial for maintaining military readiness and infrastructure. The geographic impact is concentrated in Georgia, specifically at facilities within Camden County, such as Kings Bay. Workforce implications include employment opportunities for personnel employed by VT Griffin Services, Inc. and potentially its subcontractors in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The fixed-price award fee structure can sometimes lead to disputes over performance metrics and fee determination.
Long-term contracts of this nature may face challenges in adapting to evolving technological needs or changing operational requirements without costly modifications.
Reliance on a single contractor for critical facilities support over an extended period could pose risks if the contractor experiences financial instability or performance degradation.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive pricing environment.
The fixed-price award fee structure incentivizes contractor performance, aiming for value delivery.
The long contract duration suggests a stable, long-term partnership for essential services.
The contractor, VT Griffin Services, Inc., has secured a significant contract, implying a level of established capability and trust.

Sector Analysis

Facilities Support Services fall under the broader Professional, Scientific, and Technical Services sector, specifically within the Facilities Support Services industry (NAICS code 561210). This industry encompasses establishments that provide a variety of support services to other businesses and government agencies, such as building operation and maintenance, cleaning services, and grounds maintenance. The market for these services is substantial, driven by the ongoing need for operational efficiency and infrastructure upkeep across government and commercial sectors. This contract represents a significant portion of spending within this niche, highlighting the importance of reliable facilities management for large government installations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct small business set-aside benefits associated with this specific award. However, as a large prime contract, there may be opportunities for small businesses to participate as subcontractors to VT Griffin Services, Inc., depending on the subcontracting plan requirements and the contractor's strategy for fulfilling them. The extent of small business subcontracting would need further investigation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. The fixed-price award fee structure implies performance monitoring to determine earned fees. Inspector General (IG) jurisdiction would apply for investigations into fraud, waste, or abuse. Transparency is generally facilitated through contract award databases like FPDS, though detailed performance reports and specific oversight activities may not always be publicly accessible.

Related Government Programs

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

Risk Flags

Long-term contract duration may limit flexibility for future needs.
Fixed-price award fee structure requires careful performance monitoring.
Potential for contractor complacency over extended period.
Reliance on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $338.0 million to VT GRIFFIN SERVICES INC.. 200612!700002!1700!N69272!NAVFAC ENG FIELD ACT SOUTHEAST J!N6927200D3170 !A!N! !Y!FB00 !13 !20051101!20050930!042732560!217313865!295489165!N!VT GRIFFIN SERVICES, INC !5755 DUPREE DR NW STE 220 !ATLANTA !GA!30327!43580!039!13!KINGS BAY !CAMDEN !GEORGIA !+000042710156!N!N!000000000000!S216!FACILITIES OPERATIONS SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !561210!E! !5!C!S!D! !D!200

Who is the contractor on this award?

The obligated recipient is VT GRIFFIN SERVICES 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 $338.0 million.

What is the period of performance?

Start: 2005-09-30. End: 2013-09-30.

What is the historical spending pattern for Facilities Support Services by the Department of the Navy in Georgia?

Analyzing historical spending for Facilities Support Services by the Department of the Navy in Georgia requires access to comprehensive federal procurement data over multiple fiscal years. While this specific contract (N6927200D3170) awarded in 2005 for $338M represents a significant investment, understanding the broader pattern involves examining other contracts within the same service category (NAICS 561210) and geographic region. Factors such as base realignments, new construction projects, and changes in operational needs can influence spending fluctuations. Without a broader dataset, it's difficult to establish a definitive trend, but this single large award suggests a substantial and sustained requirement for these services in the region.

How does the per-unit cost of services under this contract compare to industry benchmarks for facilities support?

Determining a precise per-unit cost for comparison is challenging without detailed breakdowns of the services provided and their associated quantities (e.g., cost per square foot maintained, cost per maintenance task). The contract is a fixed-price award fee type, meaning the base price is fixed, but the award fee component varies with performance. Benchmarking would require comparing specific service line items against industry standards or other government contracts for similar scopes of work. Given the broad nature of 'Facilities Operations Support Services,' a direct per-unit comparison is difficult, but the overall annual value of approximately $42.25 million for a 2922-day contract suggests a significant operational footprint requiring substantial resources.

What is VT Griffin Services, Inc.'s track record with similar large-scale government contracts?

VT Griffin Services, Inc. has a history of performing government contracts, as evidenced by this substantial award. To assess their track record comprehensively, one would need to examine their past performance on similar contracts, including their size, duration, scope of services, and client agencies. Key indicators include past performance ratings, any history of contract disputes or terminations, and their experience with fixed-price award fee structures. Securing an 8-year, $338 million contract suggests a demonstrated capability to manage complex operations and meet the requirements of a major federal agency like the Department of the Navy. Further due diligence would involve reviewing contract performance reports and any publicly available information on their project execution.

What are the potential risks associated with a single contractor holding this large facilities support contract for an extended period?

A significant risk associated with a single contractor holding a large, long-term contract is the potential for complacency or a decline in service quality over time, especially if competition is limited in subsequent re-procurements. There's also the risk of vendor lock-in, where the government becomes heavily reliant on the incumbent contractor's systems and processes, making transitions difficult and costly. Financial instability of the contractor could pose a major disruption. Furthermore, if the contract's scope is not adequately defined or managed, there's a risk of scope creep or cost overruns, particularly with the award fee component. Robust oversight and performance management are crucial to mitigate these risks.

How has the Department of the Navy's spending on facilities support services evolved since this contract was awarded?

The Department of the Navy's spending on facilities support services has likely evolved significantly since this contract's award in 2005, reflecting changes in defense budgets, operational requirements, and procurement strategies. Post-2005, the DoD has seen shifts in its global posture and technological investments, which could impact the demand for and nature of facilities support. Trends such as increased emphasis on energy efficiency, cybersecurity for facility systems, and potentially more agile contracting approaches might have influenced subsequent procurements. Analyzing trends would require comparing spending data across different fiscal years and contract types, looking at shifts towards performance-based contracts, service level agreements, and potentially more specialized support services.

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

Offers Received: 201

Pricing Type: FIXED PRICE AWARD FEE (M)

Contractor Details

Parent Company: THE Jordan Company L P (UEI: 050381243)

Address: 10745 WESTSIDE WAY STE 300, ALPHARETTA, GA, 07

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6927200D3170

IDV Type: IDC

Timeline