DoD's $26.9M Facilities Support Services Contract Awarded to ServiceSource Inc. Amidst Limited Competition

Contract Overview

Contract Amount: $26,936,269 ($26.9M)

Contractor: Servicesource Inc

Awarding Agency: Department of Defense

Start Date: 2024-04-01

End Date: 2025-03-31

Contract Duration: 364 days

Daily Burn Rate: $74.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BUILDING OPERATIONS AND MAINTENANCE

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22350

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $26.9 million to SERVICESOURCE INC for work described as: BUILDING OPERATIONS AND MAINTENANCE Key points: 1. The contract is for building operations and maintenance, a critical function for government facilities. 2. ServiceSource Inc. is the incumbent contractor, suggesting potential for continuity but also a need to assess ongoing value. 3. The award method is 'NOT AVAILABLE FOR COMPETITION', raising questions about price discovery and potential cost efficiencies. 4. The Facilities Support Services sector is essential but can be prone to cost overruns if not managed effectively.

Value Assessment

Rating: fair

The contract value is $26.9M for a 1-year period. Without specific performance metrics or benchmarks for similar facilities support contracts, it's difficult to definitively assess value. The 'NOT AVAILABLE FOR COMPETITION' status limits direct comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under a limited competition, specifically as a delivery order. The 'NOT AVAILABLE FOR COMPETITION' designation suggests that only a select few vendors were considered, potentially limiting the government's ability to secure the most competitive pricing.

Taxpayer Impact: The limited competition may result in higher costs for taxpayers compared to a fully open and competitive process, as price discovery is constrained.

Public Impact

Ensures continued operation and maintenance of essential government buildings. Potential for service disruptions if the contractor underperforms or faces financial issues. Taxpayer funds are allocated for facility upkeep, impacting the overall federal budget. The specific facilities supported are not detailed, limiting public understanding of the direct impact.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition raises concerns about optimal pricing.
  • Lack of detailed performance metrics makes value assessment difficult.
  • Potential for vendor lock-in with limited competition.

Positive Signals

  • Ensures essential building operations are maintained.
  • Incumbent contractor may provide seamless service transition.

Sector Analysis

This contract falls within the Facilities Support Services sector, which encompasses a broad range of services for maintaining and operating buildings. Spending in this sector is substantial across the federal government, with benchmarks varying widely based on facility size, type, and location.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business set-aside opportunities were explored or if subcontracting opportunities exist.

Oversight & Accountability

The limited competition and delivery order nature of this award warrant oversight to ensure fair pricing and adequate performance. Accountability rests with the Department of Defense and Washington Headquarters Services to monitor contractor performance and adherence to contract terms.

Related Government Programs

  • Facilities Support Services
  • Department of Defense Contracting
  • Washington Headquarters Services Programs

Risk Flags

  • Limited competition may lead to higher costs.
  • Lack of transparency in the award process.
  • Potential for vendor lock-in.
  • Performance metrics are not readily available for assessment.

Tags

facilities-support-services, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.9 million to SERVICESOURCE INC. BUILDING OPERATIONS AND MAINTENANCE

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 $26.9 million.

What is the period of performance?

Start: 2024-04-01. End: 2025-03-31.

What specific services are included under 'Facilities Support Services' for this contract, and how do they align with the $26.9M value?

Facilities Support Services typically encompass a wide range of activities including maintenance, repair, janitorial, security, and groundskeeping. Without a detailed statement of work, it's challenging to precisely align the $26.9M value. However, for a 1-year duration, this value suggests a significant scope of operations, potentially covering multiple large facilities or complex maintenance requirements.

Given the 'NOT AVAILABLE FOR COMPETITION' status, what mechanisms are in place to mitigate the risk of inflated pricing and ensure cost-effectiveness?

When competition is limited, agencies often rely on mechanisms like historical pricing analysis, market research for similar services, and negotiation strategies to mitigate cost risks. Robust contract surveillance and performance monitoring are crucial to ensure the contractor delivers value and adheres to agreed-upon pricing structures, even without competitive pressure.

How will the effectiveness of ServiceSource Inc.'s performance be measured, and what are the key performance indicators (KPIs) for this contract?

Effectiveness is typically measured through Key Performance Indicators (KPIs) outlined in the contract's Performance Work Statement (PWS). These might include response times for maintenance requests, building system uptime, customer satisfaction scores, and adherence to safety and environmental standards. The agency must actively track these KPIs to ensure the contractor meets expectations.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

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: $26,936,269

Exercised Options: $26,936,269

Current Obligation: $26,936,269

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003421D0030

IDV Type: IDC

Timeline

Start Date: 2024-04-01

Current End Date: 2025-03-31

Potential End Date: 2025-03-31 00:00:00

Last Modified: 2025-01-28

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