DoD's $49.6M Facilities Support Contract with ServiceSource Inc. Lacked Competition
Contract Overview
Contract Amount: $49,633,898 ($49.6M)
Contractor: Servicesource Inc
Awarding Agency: Department of Defense
Start Date: 2011-08-01
End Date: 2014-06-30
Contract Duration: 1,064 days
Daily Burn Rate: $46.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 4
Pricing Type: COST NO FEE
Sector: Other
Official Description: BOS SERVICES - CY2011
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22350
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $49.6 million to SERVICESOURCE INC for work described as: BOS SERVICES - CY2011 Key points: 1. The contract awarded to ServiceSource Inc. for facilities support services totaled $49.6 million. 2. This contract was not competed, raising questions about potential overpayment and value. 3. The lack of competition limits price discovery and may lead to higher costs for taxpayers. 4. The sector is Facilities Support Services, a common area for government contracting.
Value Assessment
Rating: questionable
The contract type is 'COST NO FEE', which can make it difficult to assess value without detailed cost breakdowns. The absence of a competitive bidding process further complicates a direct pricing assessment against similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was explicitly marked as 'NOT AVAILABLE FOR COMPETITION'. This suggests a sole-source or limited competition award, which typically results in less favorable pricing compared to fully competed contracts due to reduced market pressure.
Taxpayer Impact: The lack of competition likely resulted in higher costs for taxpayers than if the contract had been openly competed, as there was no incentive for the contractor to offer the lowest possible price.
Public Impact
Taxpayers may have overpaid for facilities support services due to the absence of competitive bidding. The Department of Defense missed an opportunity to secure potentially better pricing through a competitive process. Lack of transparency in pricing due to the 'COST NO FEE' structure and limited competition. Government agencies rely on competitive contracts to ensure efficient use of public funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Limited Transparency in Pricing
- Potential for Overpayment
Positive Signals
- Contract Awarded
- Services Provided
Sector Analysis
Facilities Support Services contracts are essential for maintaining government infrastructure. Benchmarks for this sector vary widely based on scope and location, but competitive bidding is crucial for cost efficiency.
Small Business Impact
There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors. The limited competition nature of this award may have excluded potential small business participation.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' status warrants further investigation into the justification for not seeking competitive bids. Oversight should focus on ensuring such decisions are well-documented and serve the government's best interest.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Lack of Competition
- Potential for Inflated Costs
- Limited Transparency
- Questionable Value for Money
Tags
facilities-support-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.6 million to SERVICESOURCE INC. BOS SERVICES - CY2011
Who is the contractor on this award?
The obligated recipient is SERVICESOURCE INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $49.6 million.
What is the period of performance?
Start: 2011-08-01. End: 2014-06-30.
What was the specific justification for awarding this contract without competition, and was it adequately documented?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. A thorough review would require accessing the contract file to examine the justification (e.g., urgent need, unique capability). Without this, it's impossible to assess if the lack of competition was appropriate or if it was a missed opportunity for better value.
How does the 'COST NO FEE' contract structure impact the government's ability to ensure cost-effectiveness without competition?
A 'COST NO FEE' contract reimburses the contractor for allowable costs but provides no fee. While this eliminates profit, it doesn't inherently guarantee cost-effectiveness without competition. The government still bears the risk of cost overruns, and without competitive pressure, the contractor may have less incentive to control expenses diligently.
What is the typical cost range for similar facilities support services contracts in the Washington D.C. area to benchmark this $49.6M award?
Benchmarking this $49.6M contract is challenging without knowing the specific services rendered and the contract duration. Facilities support is broad, encompassing maintenance, security, and more. However, for a multi-year contract of this magnitude, a competitive process would typically yield a clearer understanding of market rates and ensure taxpayer funds are used efficiently.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 4
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 6295 EDSALL RD STE 175, ALEXANDRIA, VA, 22312
Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,633,898
Exercised Options: $49,633,898
Current Obligation: $49,633,898
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-08-01
Current End Date: 2014-06-30
Potential End Date: 2014-06-30 00:00:00
Last Modified: 2020-05-29
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