DoD's $26.3M Facilities Support Services Contract Awarded to ServiceSource Inc. for Building Operations

Contract Overview

Contract Amount: $26,336,685 ($26.3M)

Contractor: Servicesource Inc

Awarding Agency: Department of Defense

Start Date: 2025-04-01

End Date: 2026-03-31

Contract Duration: 364 days

Daily Burn Rate: $72.4K/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 $26.3 million to SERVICESOURCE INC for work described as: BUILDING OPERATIONS AND MAINTENANCE Key points: 1. Contract focuses on essential building operations and maintenance, crucial for facility functionality. 2. Awarded to a single vendor, raising questions about competitive pricing and potential for cost efficiencies. 3. The fixed-price contract structure aims to control costs, but requires careful monitoring of scope creep. 4. Performance period spans one year, suggesting a need for regular re-evaluation of service needs. 5. This contract falls within the Facilities Support Services sector, a common area for government spending. 6. The lack of competition may limit opportunities for innovative solutions or cost-saving proposals from other firms.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable bids. The fixed-price nature suggests an attempt to cap costs, but the absence of competition means there's no direct market comparison to assess if the price is optimal. ServiceSource Inc.'s performance on similar contracts would be a key indicator of value for money. Without more data on the specific services included and their market rates, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, ServiceSource Inc., was considered. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they typically result in less price discovery and potentially higher costs for the government compared to full and open competition.

Taxpayer Impact: The lack of competition means taxpayers may not be benefiting from the most cost-effective pricing that could have been achieved through a competitive bidding process.

Public Impact

The primary beneficiaries are the Department of Defense facilities in Washington D.C. that will receive essential building operations and maintenance services. Services delivered include general building operations, maintenance, and potentially repair functions to ensure facilities are functional and safe. The geographic impact is concentrated within the Washington D.C. metropolitan area, specifically at facilities managed by Washington Headquarters Services. Workforce implications are tied to ServiceSource Inc.'s ability to staff and manage the required maintenance and operational tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs.
Fixed-price contract requires diligent oversight to prevent scope creep and ensure value.
Lack of transparency in the sole-source justification process.
Limited opportunity for small businesses to participate as prime contractors.

Positive Signals

Fixed-price contract provides cost certainty if scope is well-defined.
Award to an established vendor may ensure continuity of essential services.
Focus on core building operations and maintenance addresses critical facility needs.

Sector Analysis

The Facilities Support Services sector encompasses a broad range of services essential for the operation and maintenance of government and commercial buildings. This includes everything from janitorial services and landscaping to HVAC maintenance and minor repairs. The federal government is a significant consumer of these services, with spending often concentrated in areas with large federal installations. Comparable spending benchmarks would typically involve analyzing other large-scale facilities management contracts awarded by agencies like the General Services Administration (GSA) or other military branches for similar types of support.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no subcontracting goals were specified. The sole-source nature of the award further limits opportunities for small businesses to participate, either as prime contractors or subcontractors, in providing these essential facilities support services. This could represent a missed opportunity to foster small business growth within the federal contracting ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Washington Headquarters Services (WHS) contracting office within the Department of Defense. Accountability measures would be defined in the contract's terms and conditions, including performance standards and payment schedules. Transparency is limited due to the sole-source nature of the award, as the justification for not competing the contract is not publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Facilities Maintenance
General Services Administration (GSA) Building Operations
Federal Building Management Contracts
Washington Headquarters Services Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.3 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 $26.3 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-03-31.

What is the track record of ServiceSource Inc. in performing similar facilities support services for the Department of Defense or other federal agencies?

ServiceSource Inc. has a history of providing various support services to government agencies. To assess their track record for this specific contract, a detailed review of their past performance evaluations, contract history, and any reported issues or successes on similar facilities operations and maintenance contracts would be necessary. This would involve examining data from contract databases and performance assessment reporting tools to understand their reliability, quality of service, and adherence to contract terms in previous engagements. Without specific performance data for this vendor on comparable contracts, it is difficult to definitively gauge their capability to meet the requirements of this $26.3 million award.

How does the pricing of this contract compare to market rates for similar facilities support services in the Washington D.C. area?

Direct comparison of pricing is difficult due to the sole-source nature of this award, which bypasses competitive bidding that typically drives market-based pricing. To benchmark, one would need to identify similar-sized facilities support contracts awarded competitively in the Washington D.C. metropolitan area, considering factors like the scope of services, facility size, and contract duration. Additionally, consulting industry cost guides and service rate surveys for facilities management professionals in that region would provide a baseline. The absence of competitive bids means the government is relying on ServiceSource Inc.'s proposed pricing without the validation of multiple offers, making it harder to ascertain if it represents optimal value for taxpayer dollars.

What are the primary risks associated with a sole-source award for essential building operations and maintenance services?

The primary risks associated with a sole-source award for essential building operations and maintenance services include a lack of competitive pressure, which can lead to inflated pricing and reduced incentive for innovation or efficiency. There's also a risk of vendor lock-in, where the government becomes dependent on a single provider, making future transitions more complex and potentially costly. Furthermore, without a competitive process, there's less assurance that the chosen vendor offers the best value or possesses the most advanced capabilities available in the market. The absence of multiple bids also limits transparency in the procurement process and reduces opportunities for small businesses to participate.

How effective are fixed-price contracts in ensuring value for money in facilities support services, especially when awarded sole-source?

Fixed-price contracts are intended to provide cost certainty by shifting the risk of cost overruns to the contractor. For facilities support services, this can be effective if the scope of work is clearly defined and stable. However, when awarded sole-source, the effectiveness in ensuring value for money is diminished because the price is not validated by competition. The government must rely heavily on robust pre-award negotiation and diligent post-award oversight to ensure the fixed price reflects fair market value and that the contractor delivers all specified services efficiently. Without competition, the contractor has less incentive to find cost savings, and the government has fewer benchmarks to assess performance against.

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

Historical spending patterns for facilities support services by the Washington Headquarters Services (WHS) and the broader Department of Defense (DoD) are substantial, reflecting the vast real estate footprint managed by these entities. WHS, in particular, manages numerous facilities critical to the Pentagon and surrounding areas. Analyzing past contracts for building operations, maintenance, and related services would reveal trends in contract values, types of services procured, and the prevalence of competitive versus sole-source awards. This data can help contextualize the current $26.3 million award, indicating whether it aligns with historical spending levels, contract durations, and the typical procurement strategies employed by WHS for these essential services.

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: 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: $26,336,685

Exercised Options: $26,336,685

Current Obligation: $26,336,685

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003421D0030

IDV Type: IDC

Timeline