FEMA awarded $10M for building maintenance services to Steve Jones Homes, Inc. under a sole-source contract

Contract Overview

Contract Amount: $10,044,013 ($10.0M)

Contractor: Steve Jones Homes, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2005-01-07

End Date: 2005-09-30

Contract Duration: 266 days

Daily Burn Rate: $37.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAINTENANCE

Place of Performance

Location: GOLDSBORO, WAYNE County, NORTH CAROLINA, 27530

State: North Carolina Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.0 million to STEVE JONES HOMES, INC for work described as: MAINTENANCE Key points: 1. The contract value of $10,044,013.28 appears substantial for building maintenance services. 2. A sole-source award limits competitive pressure, potentially impacting cost-effectiveness. 3. The contract duration of 266 days (approximately 9 months) suggests a focused scope of work. 4. The award was made to a single entity, raising questions about market availability and alternatives. 5. The fixed-price contract type shifts risk to the contractor for cost overruns. 6. The absence of small business participation is noted, with no set-aside or subcontracting reported.

Value Assessment

Rating: questionable

Benchmarking this contract's value is challenging without specific service details. However, a $10 million award for building maintenance over less than a year suggests a high per-unit cost or extensive scope. Given the sole-source nature, it's difficult to assess if the pricing reflects competitive market rates. Without comparison to similar sole-source or competed contracts for comparable services and scale, the value proposition remains unclear.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach bypasses the standard competitive bidding process. The lack of competition means there were no other offers to compare against, potentially leading to higher prices than if multiple bids had been received. The justification for a sole-source award would typically involve unique capabilities or urgent needs not met by other sources.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. The government did not benefit from the price discovery mechanism inherent in a competitive procurement process.

Public Impact

The primary beneficiaries are likely the facilities managed by the Federal Emergency Management Agency (FEMA) in North Carolina, receiving maintenance services. The services delivered include general maintenance and repair for buildings. The geographic impact is concentrated in North Carolina, where the contract was awarded. Workforce implications include employment opportunities for maintenance staff employed by Steve Jones Homes, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potential cost savings.
Lack of transparency in the justification for sole-sourcing.
No indication of small business involvement or subcontracting opportunities.
Contract value appears high for the stated service category and duration without further detail.

Positive Signals

Firm fixed-price contract shifts cost overrun risk to the contractor.
Contract awarded to a specific entity, implying some level of established capability.

Sector Analysis

The building maintenance sector encompasses a wide range of services, from janitorial to complex structural repairs. Federal spending in this area is significant, supporting the upkeep of government facilities nationwide. This contract falls under the 'Other Services to Buildings and Dwellings' NAICS code (561790). Benchmarking requires comparing this award to similar-sized maintenance contracts for government buildings, considering factors like location, building type, and service scope.

Small Business Impact

This contract does not appear to have a small business set-aside, nor is there any indication of subcontracting plans. The award was made directly to Steve Jones Homes, Inc., a firm. This means that opportunities for small businesses to participate in this specific contract, either as prime contractors or subcontractors, were likely limited or non-existent. The absence of small business participation in contracts of this size can impact the broader small business ecosystem that relies on government contracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Emergency Management Agency (FEMA) contracting officers and program managers. Accountability measures would be tied to the performance standards outlined in the contract. Transparency is limited due to the sole-source nature and the lack of publicly available detailed justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Building Maintenance Contracts
Department of Defense Facilities Maintenance
Public Building Service (PBS) Contracts

Risk Flags

Sole-source award lacks competitive justification.
High contract value for maintenance services without detailed scope.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.0 million to STEVE JONES HOMES, INC. MAINTENANCE

Who is the contractor on this award?

The obligated recipient is STEVE JONES HOMES, INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $10.0 million.

What is the period of performance?

Start: 2005-01-07. End: 2005-09-30.

What specific services were included under this $10M building maintenance contract?

The provided data indicates the contract falls under NAICS code 561790, 'Other Services to Buildings and Dwellings,' and the description is 'MAINTENANCE.' However, specific details regarding the scope of work, such as routine upkeep, repairs, specialized systems maintenance (HVAC, electrical, plumbing), or janitorial services, are not available in the abbreviated data. The substantial value of $10,044,013.28 for a duration of 266 days suggests a comprehensive or intensive maintenance program, potentially covering multiple facilities or complex building systems within FEMA's purview in North Carolina.

What was the justification for awarding this contract on a sole-source basis?

The provided data explicitly states the contract type as 'NOT COMPETED,' which aligns with a sole-source award. However, the specific justification for this sole-source determination is not included in the abbreviated data. Typically, sole-source awards are justified under circumstances such as the availability of only one responsible source, urgent and compelling needs that preclude competitive solicitation, or when a follow-on contract is awarded to the original source under specific conditions. Without the official justification document, it is impossible to ascertain the precise reasons FEMA chose this procurement path.

How does the contract value compare to typical building maintenance contracts of similar scope and duration?

Direct comparison is difficult without knowing the exact services rendered and the number/type of buildings maintained. However, a $10 million contract for approximately 9 months of maintenance is exceptionally high. Standard building maintenance contracts, even for large facilities, often have lower annual values unless they encompass major renovations or specialized, high-cost system overhauls. The sole-source nature and lack of detailed service information make it challenging to benchmark against industry standards or other government contracts. It is possible this contract covered extensive emergency repairs or maintenance for a very large portfolio of facilities.

What is the track record of Steve Jones Homes, Inc. in performing federal contracts, particularly for building maintenance?

The provided data indicates Steve Jones Homes, Inc. was awarded this contract. However, it does not offer details on their past performance, client satisfaction, or history with federal agencies. To assess their track record, one would need to examine their contract history, including past performance evaluations (if available in federal databases like the Contractor Performance Assessment Reporting System - CPARS), any past disputes or terminations, and the types and values of previous contracts they have held. Without this additional information, their suitability and reliability for this $10M contract remain unverified.

What are the potential risks associated with a sole-source award for building maintenance services?

The primary risk of a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not achieve the best possible price. Other risks include a reduced incentive for the contractor to innovate or provide exceptional service, as there is no direct competition to outperform. Furthermore, it raises questions about whether alternative, potentially more cost-effective or capable, vendors were overlooked. The justification for sole-sourcing must be robust to mitigate these risks.

Were there any performance metrics or oversight mechanisms specified in this contract?

The abbreviated data indicates the contract type is 'FIRM FIXED PRICE' (FFP) and the award was a 'PO' (Purchase Order). While FFP contracts generally define deliverables and acceptance criteria, the specific performance metrics, Key Performance Indicators (KPIs), or detailed oversight mechanisms are not provided. Standard government contracts include clauses for inspection, acceptance, and remedies for non-performance. Oversight would typically be managed by a Contracting Officer's Representative (COR) responsible for monitoring contractor performance against the contract requirements.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Other Services to Buildings and Dwellings

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4407 US HIGHWAY 70 EAST, GOLDBORO, NC

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $12,436,706

Exercised Options: $12,436,706

Current Obligation: $10,044,013

Timeline