Defense Facilities Support Contract Awarded to ServiceSource Inc. for Over $32 Million

Contract Overview

Contract Amount: $32,369,538 ($32.4M)

Contractor: Servicesource Inc

Awarding Agency: Department of Defense

Start Date: 2020-06-01

End Date: 2021-09-30

Contract Duration: 486 days

Daily Burn Rate: $66.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MARK CENTER BASE OPS - OY4

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.4 million to SERVICESOURCE INC for work described as: MARK CENTER BASE OPS - OY4 Key points: 1. Contract value of $32.37 million for facilities support services. 2. Awarded as a delivery order under an existing contract. 3. ServiceSource Inc. is the sole contractor for this order. 4. Contract duration spans over 16 months. 5. Services provided are categorized under Facilities Support Services. 6. The contract type is Firm Fixed Price, indicating predictable costs. 7. No small business set-aside was utilized for this specific award.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the original contract's competitive history and pricing structure. However, the firm fixed-price nature suggests cost certainty for the government. Comparing the per-day cost of approximately $66,604 ($32.37M / 486 days) to similar large-scale facilities management contracts would provide a clearer picture of value for money. Without broader market data or comparison to other similar contracts, a definitive value assessment remains difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a delivery order under an unspecified existing contract, and the data indicates it was 'NOT AVAILABLE FOR COMPETITION'. This suggests it was likely a sole-source award or a modification to an existing sole-source agreement. The lack of open competition means there was no opportunity for multiple bidders to offer proposals, potentially limiting price discovery and the government's ability to secure the most competitive pricing.

Taxpayer Impact: The absence of competition for this significant contract value means taxpayers may not have benefited from the cost savings that could arise from a competitive bidding process.

Public Impact

The Department of Defense benefits from essential facilities support services. Ensures the operational readiness and maintenance of defense facilities. Services are likely concentrated in the Washington D.C. metropolitan area, given the agency and state. Supports the infrastructure necessary for military and civilian personnel. Potential indirect impact on the local workforce through contractor employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing.
Limited transparency into the justification for sole-source award.
Performance history of ServiceSource Inc. on similar contracts needs review.
Potential for vendor lock-in if this is part of a larger sole-source strategy.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Awarded to an established entity, potentially indicating familiarity with requirements.
Focus on essential facilities support ensures critical infrastructure is maintained.

Sector Analysis

Facilities Support Services represent a significant segment within the broader professional, scientific, and technical services sector. This contract falls under NAICS code 561210. The market for facilities management is diverse, encompassing maintenance, repair, operations, and administrative support for government and commercial properties. Spending in this area is often driven by the need to maintain aging infrastructure and ensure the smooth operation of critical government functions. Benchmarking against similar large-scale facilities support contracts within the federal government would be necessary for a comprehensive value analysis.

Small Business Impact

This specific delivery order was not awarded as a small business set-aside, nor does it indicate any subcontracting requirements for small businesses. The contractor, ServiceSource Inc., is not explicitly identified as a small business. Therefore, this award does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contracting and program management offices. As a delivery order under an existing contract, the original contract's oversight mechanisms would likely apply. Transparency regarding the justification for the sole-source award and performance monitoring would be key accountability measures. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Defense Facilities Maintenance Contracts
General Services Administration (GSA) Facilities Management Schedules
Other Agency Facilities Support Services Contracts
Base Operations Support Contracts

Risk Flags

Sole-source award without clear justification.
Potential for inflated pricing due to lack of competition.
Limited public information on the original contract vehicle.
Need for detailed performance review of ServiceSource Inc.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.4 million to SERVICESOURCE INC. MARK CENTER BASE OPS - OY4

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 $32.4 million.

What is the period of performance?

Start: 2020-06-01. End: 2021-09-30.

What is the track record of ServiceSource Inc. in performing similar facilities support services for the federal government?

ServiceSource Inc. has a history of providing various support services to government agencies. To assess their track record for this specific type of facilities support, a detailed review of their past performance evaluations, contract awards, and any reported issues on similar contracts would be necessary. This would include examining their ability to meet performance metrics, manage costs effectively, and adhere to contract terms on previous facilities management or operational support contracts. Information from sources like the Federal Procurement Data System (FPDS) and contractor performance databases would be crucial for this analysis. Understanding their experience with the specific types of facilities and operational demands of the Washington Headquarters Services would also be important.

How does the daily cost of this contract compare to industry benchmarks for similar facilities support services?

The daily cost for this contract is approximately $66,604 ($32,369,538.06 / 486 days). Benchmarking this against industry standards requires detailed analysis of the specific services included (e.g., maintenance, security, janitorial, groundskeeping) and the geographic location. Large-scale facilities management contracts for government installations can vary widely. Generally, firm-fixed-price contracts aim for efficiency, but without a direct comparison to competitively bid contracts for similar scope and scale, it's difficult to definitively state if this represents excellent or fair value. A comparison to contracts awarded through GSA schedules or other competitive vehicles for similar square footage and service levels would be informative.

What are the specific risks associated with awarding this contract on a sole-source basis?

The primary risk of a sole-source award is the potential for reduced competition, which can lead to higher prices than might be achieved in a competitive environment. Taxpayers may not receive the best possible value for their money. Additionally, sole-source awards can sometimes indicate a lack of market research or planning, or potentially a situation where only one vendor possesses the unique capabilities required. This can also lead to vendor lock-in, making it difficult to switch providers in the future. Transparency regarding the justification for the sole-source nature of this award is crucial to assess whether it was truly necessary or a missed opportunity for competition.

What is the historical spending pattern for facilities support services by Washington Headquarters Services or the Department of Defense?

Historical spending data for facilities support services by Washington Headquarters Services (WHS) and the broader Department of Defense (DoD) would reveal trends in contract values, types of services procured, and primary contractors. Analyzing this data over several fiscal years would help determine if this $32.37 million award is consistent with past spending, higher, or lower. It could also highlight shifts in procurement strategies, such as increased reliance on sole-source awards versus competitive bidding for these services. Understanding this context is vital for assessing whether current spending aligns with historical patterns and budget allocations for essential facility operations.

What performance metrics are in place to ensure ServiceSource Inc. meets the requirements of this contract?

As a firm-fixed-price contract, the primary performance metric is the successful delivery of the contracted facilities support services as specified in the statement of work. While the data doesn't detail specific metrics, government contracts typically include clauses for performance standards, quality assurance surveillance plans (QASPs), and remedies for non-performance. The contracting officer and designated government representatives are responsible for monitoring performance. Failure to meet requirements could result in contractually defined penalties or termination. Detailed performance data and quality assurance reports would be necessary to fully assess adherence to requirements.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HQ003416R0203

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10467 WHITE GRANITE DRIVE, OAKTON, VA, 22124

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: $32,392,620

Exercised Options: $32,392,620

Current Obligation: $32,369,538

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003417D0007

IDV Type: IDC

Timeline