NIH spent $22.4M on facilities support services, with AAA Complete Building Services Inc. winning a 5-year contract

Contract Overview

Contract Amount: $22,454,410 ($22.5M)

Contractor: AAA Complete Building Services Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2011-09-23

End Date: 2017-07-31

Contract Duration: 2,138 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAINT-REP-ALT/OTHER ADMIN BLDGS

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $22.5 million to AAA COMPLETE BUILDING SERVICES INC. for work described as: MAINT-REP-ALT/OTHER ADMIN BLDGS Key points: 1. The contract value of $22.4 million over five years suggests a moderate annual spend for facilities maintenance. 2. Full and open competition was utilized, indicating a potentially competitive bidding process. 3. The firm fixed-price contract type generally transfers risk to the contractor, which can be beneficial for the government. 4. The contract was awarded as a delivery order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The services provided fall under facilities support, a common and essential function for government agencies. 6. The contractor, AAA Complete Building Services Inc., has secured a significant contract, indicating some level of established capability.

Value Assessment

Rating: fair

The total award of $22.4 million over approximately five years averages to about $4.5 million annually. Benchmarking this against similar facilities support contracts requires more granular data on the scope of services and location. However, for a large federal agency like NIH, this annual spend appears to be within a reasonable range for comprehensive building maintenance and operations. The firm fixed-price nature of the contract suggests that the government sought predictable costs, though it relies on the contractor's efficiency to manage expenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is the preferred method for maximizing competition and achieving best value. With three bidders identified, this suggests a reasonable level of interest, though the specific details of the bidding process and the number of proposals received are not provided. A higher number of bidders typically leads to more competitive pricing and a wider range of solutions.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through a robust bidding process. This approach ensures that multiple companies have the opportunity to compete, fostering a market where efficiency and cost-effectiveness are rewarded.

Public Impact

Federal employees and visitors at NIH facilities in Maryland benefit from well-maintained and operational buildings. Essential services such as maintenance, repair, and general administrative support for buildings are delivered. The geographic impact is primarily focused on Maryland, where the NIH facilities are located. The contract supports jobs within the facilities management and maintenance sector, likely benefiting the local workforce in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not accurately reflect the true cost of services.
Risk of contractor performance issues impacting facility operations if not adequately monitored.
Dependence on a single contractor for critical building support services.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a potentially competitive pricing environment.
Longer contract duration provides stability for service delivery.

Sector Analysis

Facilities Support Services is a broad category within the commercial services sector, encompassing a wide range of activities from janitorial services to complex building system maintenance and repair. This contract fits within the broader government spending on infrastructure and operational support. Comparable spending benchmarks would depend on the specific services rendered, but federal agencies consistently allocate significant budgets to maintaining their physical assets.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the scale of the award, it is possible that larger businesses were the primary bidders. Further analysis would be needed to determine if small businesses were involved as subcontractors or if there were opportunities missed for small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and program managers within the National Institutes of Health. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases, but detailed performance reviews and audit reports are often internal or subject to specific disclosure rules.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
Department of Defense Facilities Maintenance Contracts
National Science Foundation Facilities Management
National Aeronautics and Space Administration (NASA) Facilities Support

Risk Flags

Potential for performance degradation under fixed-price terms.
Limited insight into specific service quality metrics.
Competition level (3 bidders) may not represent maximum market engagement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22.5 million to AAA COMPLETE BUILDING SERVICES INC.. MAINT-REP-ALT/OTHER ADMIN BLDGS

Who is the contractor on this award?

The obligated recipient is AAA COMPLETE BUILDING SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $22.5 million.

What is the period of performance?

Start: 2011-09-23. End: 2017-07-31.

What was the specific scope of services included in this facilities support contract?

The provided data indicates the contract was for 'MAINT-REP-ALT/OTHER ADMIN BLDGS' (Maintenance, Repair, Alteration/Other Administrative Buildings) under Facilities Support Services. However, the precise details of the scope are not elaborated. This would typically include a range of services such as routine maintenance, preventative maintenance, emergency repairs, minor alterations, janitorial services, groundskeeping, and potentially specialized systems management (HVAC, electrical, plumbing) for administrative buildings within the NIH campus or related facilities. A comprehensive understanding of the scope is crucial for accurately benchmarking the contract's value and performance against industry standards.

How did the winning bid from AAA Complete Building Services Inc. compare to other proposals in terms of price and technical merit?

The available data confirms that the contract was awarded under 'FULL AND OPEN COMPETITION' and that there were '3' bidders. However, it does not provide specific details on the pricing or technical evaluations of each proposal. To assess the value for money, one would need to compare AAA Complete Building Services Inc.'s bid against the other two proposals. Key factors would include the proposed price, the technical approach, the qualifications of the personnel proposed, and any past performance information. Without this comparative data, it's difficult to definitively state if the government received the best possible offer.

What is the typical annual spending for facilities support services at an agency of NIH's size?

The National Institutes of Health (NIH) is a massive biomedical research complex with extensive infrastructure. Annual spending on facilities support services can vary significantly based on the size and age of the facilities, the scope of services required (e.g., basic janitorial vs. complex engineering support), and the specific location. For an organization of NIH's scale, an annual spend in the range of $4-10 million for comprehensive facilities support, as suggested by this $22.4 million contract over five years, is plausible. However, without a detailed breakdown of NIH's total facilities footprint and service requirements, this remains an estimate. Larger agencies might spend tens or even hundreds of millions annually on facilities management.

What are the potential risks associated with a firm fixed-price contract for facilities maintenance?

A firm fixed-price (FFP) contract, while beneficial for budget certainty, carries inherent risks for both the government and the contractor. For the government, the primary risk is that the contractor may cut corners on quality or service to maximize profit, especially if the initial price was set too low or if unforeseen issues arise. This could lead to subpar maintenance, increased future repair costs, or decreased facility lifespan. Conversely, the contractor bears the risk of cost overruns if their initial estimate was inaccurate or if unexpected operational challenges occur. Effective government oversight is crucial in an FFP contract to ensure that the contractor meets all performance standards and quality requirements.

How does the 'Delivery Order' award type impact the overall contract structure and competition?

The 'DELIVERY ORDER' award type typically signifies that this contract is a task order issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract, often referred to as a 'prime contract' or 'blanket purchase agreement.' This means that the competition for the underlying IDIQ vehicle likely occurred previously, and this specific delivery order represents a call for a defined set of services within the scope of that larger IDIQ. While this specific order was competed (as indicated by 'FULL AND OPEN COMPETITION'), the initial competition for the IDIQ itself is a critical factor. Delivery orders allow agencies to procure services flexibly as needed, but they can sometimes limit the scope of competition for individual task orders if the IDIQ is not structured for broad competition.

What is the significance of the North American Industry Classification System (NAICS) code 561210 for Facilities Support Services?

The NAICS code 561210 specifically designates 'Facilities Support Services.' This classification is important because it helps categorize the type of work being performed and allows for industry-specific analysis, benchmarking, and comparison. Companies operating under this code typically provide a comprehensive range of services to support the operation of buildings and other facilities. This includes activities like general maintenance, repair, janitorial services, security systems operation, and potentially landscaping. For federal procurement, using this NAICS code ensures that contracts are awarded to businesses with the appropriate expertise and that spending data can be aggregated and analyzed effectively within this sector.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Donohoe Companies, Inc., the (UEI: 003251220)

Address: 5151 WISCONSIN AVE NW STE 400, WASHINGTON, DC, 20016

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $22,454,410

Exercised Options: $22,454,410

Current Obligation: $22,454,410

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS06F0029P

IDV Type: FSS

Timeline