DHS's $15.25M Megacenter Contract Awarded Sole-Source to Williams - Gonzales Joint Venture III

Contract Overview

Contract Amount: $15,253,789 ($15.3M)

Contractor: Williams - Gonzales Joint Venture III

Awarding Agency: Department of Homeland Security

Start Date: 2005-05-01

End Date: 2008-10-31

Contract Duration: 1,279 days

Daily Burn Rate: $11.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SUITLAND MEGACENTER CONTRACT

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $15.3 million to WILLIAMS - GONZALES JOINT VENTURE III for work described as: SUITLAND MEGACENTER CONTRACT Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price efficiencies. 2. The contract duration of 1279 days suggests a significant, long-term need for facilities support. 3. The firm-fixed-price structure aims to control costs, but the lack of competition limits benchmarking. 4. Facilities support services are critical for agency operations, impacting workforce productivity. 5. The contract's value is substantial within the facilities support sector. 6. Awarded to a joint venture, indicating a specific capability requirement or partnership.

Value Assessment

Rating: fair

Benchmarking the value of this $15.25 million contract is challenging due to its sole-source nature and the specific facilities support services provided. Without competitive bids, it's difficult to ascertain if the pricing is optimal or if it aligns with market rates for similar comprehensive support services. The duration of the contract (over three years) suggests a significant investment, and a lack of comparative data makes a definitive value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, or in specific circumstances where full and open competition is not feasible. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs for the government compared to a competitive procurement.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive pressure to drive down prices.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) personnel who rely on the Megacenter facilities. The contract delivers essential facilities support services, ensuring the operational readiness of critical infrastructure. The geographic impact is localized to Maryland, where the Megacenter is located. Workforce implications include the direct employment of individuals by the contractor to provide these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential savings.
Lack of transparency in the justification for sole-source award.
Long contract duration without competitive re-evaluation could lead to cost inefficiencies over time.

Positive Signals

Firm-fixed-price contract type helps control costs.
Award to a joint venture may indicate specialized capabilities.
Contract supports critical immigration and customs enforcement operations.

Sector Analysis

The Facilities Support Services sector encompasses a wide range of services essential for the operation and maintenance of government and commercial buildings. This includes maintenance, repair, custodial services, and security. The market is diverse, with many small and large businesses offering specialized or comprehensive solutions. This contract, valued at over $15 million, represents a significant procurement within this sector, particularly for a single, large-scale facility like a megacenter.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. The award to a joint venture might involve small business participation within the venture's structure, but this is not explicitly detailed. The absence of a small business set-aside means opportunities for smaller firms in this specific procurement were limited.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. Specific accountability measures would be defined in the contract terms and conditions. Transparency is limited by the sole-source nature of the award, with less public information available compared to competed contracts. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Facilities Management Contracts
Department of Homeland Security Operations Support
Immigration and Customs Enforcement Infrastructure

Risk Flags

Sole-source award
Lack of competition
Potential for cost inefficiency

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $15.3 million to WILLIAMS - GONZALES JOINT VENTURE III. SUITLAND MEGACENTER CONTRACT

Who is the contractor on this award?

The obligated recipient is WILLIAMS - GONZALES JOINT VENTURE III.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $15.3 million.

What is the period of performance?

Start: 2005-05-01. End: 2008-10-31.

What specific facilities support services are included under this $15.25 million contract?

The provided data indicates the contract falls under NAICS code 561210, which covers Facilities Support Services. This broad category typically includes a range of services such as building operations and maintenance, custodial services, groundskeeping, security, pest control, and potentially specialized technical support for building systems (HVAC, electrical, plumbing). The specific scope of work would be detailed in the contract's Statement of Work (SOW), which is not publicly available in this data snippet. Given the 'Megacenter' designation, it likely involves comprehensive support for a large, complex facility critical to U.S. Immigration and Customs Enforcement (ICE) operations.

Why was this contract awarded on a sole-source basis instead of being competed?

Sole-source awards are typically justified when only one responsible source is available or capable of meeting the agency's needs. For facilities support, this could arise if the contract requires highly specialized knowledge of the specific facility's unique systems, security protocols, or if the contractor possesses unique proprietary technology or expertise essential for its operation. Another possibility is if the contract is a logical follow-on to a previous contract where the original contractor developed unique knowledge or capabilities, and re-competing would be inefficient or costly. The specific justification for this sole-source award would be documented by the Department of Homeland Security at the time of procurement.

How does the firm-fixed-price (FFP) contract type impact cost control for these facilities support services?

A Firm-Fixed-Price (FFP) contract is generally considered advantageous for cost control because the price is set and not subject to adjustment based on the contractor's cost experience. This places the risk of cost overruns on the contractor. For facilities support services, an FFP contract provides budget certainty for the government. However, the effectiveness of cost control in a sole-source FFP contract depends heavily on the initial price negotiation and the contractor's efficiency. Without competition, the government relies on its negotiation leverage and oversight to ensure the fixed price represents fair value.

What is the significance of the contract being awarded to a joint venture?

Awarding a contract to a joint venture (Williams - Gonzales Joint Venture III in this case) suggests that the government perceived the combined capabilities of the participating entities as necessary or advantageous for fulfilling the contract requirements. Joint ventures are often formed to pool resources, expertise, or to meet specific socioeconomic goals (like small business participation, though not indicated here). For a large, complex contract like facilities support for a 'Megacenter,' a joint venture might offer a broader skill set, greater capacity, or a more robust management structure than a single firm could provide alone. It can also be a mechanism for prime contractors to bring in specialized partners.

What are the potential risks associated with a sole-source contract of this duration (1279 days)?

Sole-source contracts, especially those with a long duration like this 1279-day (approximately 3.5 years) award, carry inherent risks. Firstly, the lack of competition means the government may not be achieving the best possible price, as there's no market pressure to drive down costs. Secondly, without regular re-competition, there's less incentive for the contractor to innovate or improve service delivery beyond the contract minimums. Thirdly, if the agency's needs evolve significantly over the contract period, a sole-source award might make it more difficult or costly to adapt the services compared to a contract that allows for more frequent review or re-competition. Finally, there's a risk of contractor complacency or reduced performance due to the guaranteed business.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Williams Professional Services, LLC (UEI: 078341117)

Address: 633 17TH ST STE 1600, DENVER, CO, 80202

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $15,253,789

Exercised Options: $15,253,789

Current Obligation: $15,253,789

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline