DoD's Defense Spectrum Organization awarded $8.5M for facilities support, including security and mailroom services

Contract Overview

Contract Amount: $8,471,953 ($8.5M)

Contractor: Dayton Group Inc

Awarding Agency: Department of Defense

Start Date: 2021-09-10

End Date: 2026-09-12

Contract Duration: 1,828 days

Daily Burn Rate: $4.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROVIDE THE DEFENSE SPECTRUM ORGANIZATION WITH FACILITIES SUPPORT SERVICES, TO INCLUDE 24/7 PHYSICAL SECURITY, TELECOMMUNICATIONS SUPPORT, PROPERTY SUPPORT, MAILROOM SERVICES, AND FACILITY MANAGEMENT.

Place of Performance

Location: ANNAPOLIS, ANNE ARUNDEL County, MARYLAND, 21402

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $8.5 million to DAYTON GROUP INC for work described as: PROVIDE THE DEFENSE SPECTRUM ORGANIZATION WITH FACILITIES SUPPORT SERVICES, TO INCLUDE 24/7 PHYSICAL SECURITY, TELECOMMUNICATIONS SUPPORT, PROPERTY SUPPORT, MAILROOM SERVICES, AND FACILITY MANAGEMENT. Key points: 1. Contract provides comprehensive facilities support, encompassing physical security, telecommunications, property management, mailroom, and facility operations. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs by establishing a set price for services. 4. The duration of the contract is approximately five years, indicating a long-term need for these services. 5. The awardee, Dayton Group Inc., will be responsible for maintaining critical infrastructure and support functions for the Defense Spectrum Organization. 6. The contract's scope includes essential services that ensure the operational readiness and security of the organization's facilities.

Value Assessment

Rating: good

The contract value of $8.5 million over approximately five years for comprehensive facilities support appears reasonable when benchmarked against similar government contracts for facility management and security services. The firm fixed-price structure provides cost certainty for the government. While specific performance metrics are not detailed here, the breadth of services suggests a significant operational requirement. Further analysis would involve comparing the per-unit cost of specific services (e.g., security personnel hours, square footage managed) against industry standards and other government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The presence of two bids suggests a moderate level of competition for this requirement. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions, but two bidders still provide a basis for price discovery and selection.

Taxpayer Impact: The competitive nature of this award, despite having two bidders, likely resulted in a fair market price for the government. It ensures that taxpayer funds are used efficiently by selecting a qualified contractor at a reasonable cost.

Public Impact

The Defense Spectrum Organization benefits from reliable and secure facilities operations, enabling its core mission. Services include 24/7 physical security, ensuring the protection of personnel and assets. Telecommunications support ensures seamless communication infrastructure for the organization. Property management and facility maintenance contribute to a safe and functional work environment. Mailroom services facilitate efficient internal and external communication flow. The contract supports the operational readiness of a key defense entity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if service requirements are not clearly defined and managed.
Dependence on a single contractor for critical facilities operations could pose a risk if performance issues arise.
Ensuring consistent quality across all service areas (security, maintenance, mailroom) requires robust oversight.

Positive Signals

Awarded through full and open competition, indicating a structured and fair procurement process.
Firm fixed-price contract type provides cost predictability for the government.
Long-term contract duration suggests a stable and ongoing need, allowing for contractor investment in service quality.
Comprehensive service scope consolidates multiple support functions under one contract, potentially improving efficiency.

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 physical infrastructure. The market for these services is substantial, driven by government agencies and private sector organizations requiring specialized support. This contract specifically serves a defense-focused entity, highlighting the critical role of reliable facilities management in national security operations. Comparable spending benchmarks would typically involve analyzing the cost per square foot managed, security personnel costs, and overall facility operating expenses for similar government installations.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, Dayton Group Inc., is responsible for fulfilling the contract requirements. Any subcontracting opportunities would be at the discretion of the prime contractor, and there is no specific requirement outlined here for small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the contracting officer's representative (COR) within the Defense Information Systems Agency. The firm fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Facilities Operations and Maintenance Services
Base Operations Support (BOS)
Security Services Contracts
Information Technology Support Services
Property Management Services

Risk Flags

Potential for contractor performance issues impacting critical operations.
Risk of inadequate competition if only two bidders participated.
Need for robust oversight to ensure service quality and prevent scope creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.5 million to DAYTON GROUP INC. PROVIDE THE DEFENSE SPECTRUM ORGANIZATION WITH FACILITIES SUPPORT SERVICES, TO INCLUDE 24/7 PHYSICAL SECURITY, TELECOMMUNICATIONS SUPPORT, PROPERTY SUPPORT, MAILROOM SERVICES, AND FACILITY MANAGEMENT.

Who is the contractor on this award?

The obligated recipient is DAYTON GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $8.5 million.

What is the period of performance?

Start: 2021-09-10. End: 2026-09-12.

What is the track record of Dayton Group Inc. in performing similar facilities support services for government agencies?

A thorough review of Dayton Group Inc.'s past performance is crucial for assessing their capability to fulfill this contract. This would involve examining their contract history within the Federal Procurement Data System (FPDS) and other relevant databases for awards related to facilities support, security, and telecommunications. Key indicators to analyze include contract values, durations, agencies served, and any reported performance issues or successes. Specifically, looking for experience with defense agencies or organizations with similar security requirements would be beneficial. Past performance evaluations, if available, provide direct feedback from previous government customers on the contractor's reliability, quality of service, and adherence to contract terms. A strong track record with positive past performance reviews would significantly de-risk this award.

How does the awarded value compare to market rates for similar facilities support services in Maryland?

Benchmarking the $8.5 million contract value against market rates for facilities support services in Maryland requires detailed analysis of specific service components. For instance, the cost of 24/7 physical security personnel, telecommunications infrastructure maintenance, and comprehensive facility management per square foot needs to be compared with industry standards and rates paid by other government agencies or large private sector entities in the region. The firm fixed-price nature of the contract suggests that the government has negotiated a set price, but understanding the underlying cost structure is important. Factors like the specific security levels required, the complexity of the facilities, and the scope of telecommunications support will influence the overall cost. Without granular data on these components, a precise comparison is difficult, but the contract's duration and comprehensive scope suggest a significant operational requirement that should align with established market pricing for similar large-scale government contracts.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this contract include potential performance deficiencies by the contractor, leading to disruptions in critical facilities support services. This could manifest as lapses in security, telecommunications outages, or inadequate facility maintenance. Another risk is contractor over-reliance, where the Defense Spectrum Organization becomes overly dependent on Dayton Group Inc., making transitions difficult. Cost overruns are less likely due to the firm fixed-price structure, but scope creep could increase the effective cost if not managed. Mitigation strategies typically involve robust contract oversight by a COR, clear performance standards and metrics outlined in the contract, regular performance reviews, and contingency planning for service disruptions. The competitive award process itself mitigates some risk by selecting a contractor deemed capable. The contract's duration also allows for building a strong working relationship, but requires proactive management.

How effective is the current contract in ensuring the operational readiness and security of the Defense Spectrum Organization's facilities?

The effectiveness of this contract in ensuring operational readiness and security hinges on the contractor's performance against the defined service level agreements (SLAs) and performance work statement (PWS). The comprehensive nature of the services—including 24/7 physical security, telecommunications, property support, mailroom, and facility management—suggests a direct link to the organization's ability to function securely and efficiently. Success would be measured by the absence of security breaches, minimal downtime in telecommunications, well-maintained facilities, and timely mail services. The contract's five-year duration implies a recognized ongoing need, suggesting that these services are fundamental to the organization's mission. Evaluating effectiveness would require ongoing monitoring of performance metrics, user feedback, and incident reports related to the contracted services.

What has been the historical spending pattern for facilities support services by the Defense Spectrum Organization or similar entities?

Analyzing historical spending patterns for facilities support services by the Defense Spectrum Organization (DSO) or comparable defense entities provides context for the current $8.5 million award. This involves examining past contracts for similar services, noting their values, durations, and the contractors involved. Trends in spending, such as increases or decreases over time, can indicate changes in operational needs, facility size, or procurement strategies. For example, if historical spending was significantly lower, it might suggest an expansion of facilities or services. Conversely, if spending has been consistently high, it indicates a stable, long-term requirement. Understanding these patterns helps assess whether the current contract represents a reasonable continuation, an expansion, or a consolidation of previous efforts, and whether the pricing aligns with historical cost trends for these essential support functions.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HC104721R4003

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5523 RESEARCH PARK DR STE 260, CATONSVILLE, MD, 21228

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $9,149,756

Exercised Options: $8,910,752

Current Obligation: $8,471,953

Actual Outlays: $3,490,499

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline