DHS's $20.8M facility operations contract with Sobran, Inc. awarded in 2010 for 5 years

Contract Overview

Contract Amount: $20,860,430 ($20.9M)

Contractor: Sobran, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-09-29

End Date: 2015-09-28

Contract Duration: 1,825 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FACILITY OPERATIONS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20223

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.9 million to SOBRAN, INC. for work described as: FACILITY OPERATIONS Key points: 1. The contract value represents a significant investment in facility support services for the U.S. Secret Service. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and duration. 4. Performance context is provided by comparing to similar facility operations contracts. 5. The contract falls within the broader facilities support services sector. 6. The firm fixed-price structure aims to control costs for the government.

Value Assessment

Rating: fair

The contract's total value of approximately $20.8 million over five years averages to about $4.16 million annually. Benchmarking this against similar facility operations contracts is crucial. Without specific comparable data, it's difficult to definitively assess value for money. However, the firm fixed-price (FFP) contract type suggests an attempt to lock in costs, which can be beneficial if the scope was well-defined. The duration of five years is standard for such services, but could also introduce risks if market conditions or service needs change significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to drive down prices and encourage innovation. The number of bidders is not specified, but the 'full and open' designation implies a robust competition.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically leads to more competitive pricing and better value for the government's investment.

Public Impact

The U.S. Secret Service benefits from consistent and reliable facility operations and maintenance. Essential services such as building operations, maintenance, and potentially security support are delivered. The primary geographic impact is within the District of Columbia, where the services are rendered. The contract supports jobs within the facilities management and support services industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (5 years) could lead to price escalation if not managed proactively.
Firm Fixed Price contracts can be risky for the contractor if costs exceed estimates, potentially impacting service quality if the contractor seeks to cut corners.

Positive Signals

Full and open competition suggests a competitive bidding process, likely resulting in a fair market price.
Firm Fixed Price contract type provides cost certainty for the government.
The contract is for essential facility operations, indicating a stable and ongoing need.

Sector Analysis

This contract falls under the Facilities Support Services sector, a broad category encompassing a wide range of services related to the operation and maintenance of buildings and grounds. This sector is characterized by numerous small and large businesses competing for government and commercial contracts. Spending in this area is consistent across federal agencies requiring physical infrastructure. Comparable spending benchmarks would involve analyzing other large-scale facility management contracts awarded by agencies like GSA, DoD, or other departments with significant real estate holdings.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. Therefore, it does not directly contribute to the small business contracting goals. The award to a single entity, Sobran, Inc., suggests a focus on a prime contractor capable of handling the full scope of services, rather than a strategy to distribute work among smaller firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Secret Service contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of accountability by defining the total cost upfront. Transparency is generally maintained through contract award databases like FPDS. Inspector General oversight may be involved if specific concerns or allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

General Services Administration (GSA) Facility Management Contracts
Department of Defense (DoD) Base Operations Support
Federal Buildings Fund
Government-wide Acquisition Contracts (GWACs) for Facilities Services

Risk Flags

Long-term contract duration may lead to price misalignment.
Firm Fixed Price contracts can pose risks if cost assumptions change.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.9 million to SOBRAN, INC.. FACILITY OPERATIONS

Who is the contractor on this award?

The obligated recipient is SOBRAN, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Secret Service).

What is the total obligated amount?

The obligated amount is $20.9 million.

What is the period of performance?

Start: 2010-09-29. End: 2015-09-28.

What was the specific scope of services included in this facility operations contract?

The contract, NAICS code 561210 (Facilities Support Services), likely encompassed a comprehensive range of services necessary for the operation and maintenance of U.S. Secret Service facilities. This typically includes, but is not limited to, building maintenance and repair (HVAC, plumbing, electrical), janitorial services, groundskeeping, waste management, pest control, and potentially security system monitoring and access control. The firm fixed-price nature suggests that these services were defined with specific performance standards and deliverables, with the contractor responsible for providing them at the agreed-upon cost over the contract's duration.

How does the awarded price of $20.8 million compare to market rates for similar facility operations contracts?

Directly comparing the $20.8 million total award to market rates without more specific data is challenging. However, we can infer some aspects. The contract duration was five years, meaning an average annual value of approximately $4.16 million. Facility operations costs are highly dependent on the size, complexity, and location of the facilities. For a federal agency like the U.S. Secret Service, which operates critical infrastructure, costs might be higher than standard commercial buildings due to enhanced security requirements and operational demands. A firm fixed-price contract awarded through full and open competition suggests the government aimed for competitive pricing, but the ultimate value depends on the detailed scope and performance metrics.

What are the primary risk indicators associated with this contract?

The primary risk indicator for this contract is its five-year duration. While long-term contracts can offer stability, they also increase the risk of price misalignment with future market conditions or evolving operational needs. If the firm fixed-price (FFP) was set based on outdated cost assumptions, either the contractor could face losses or the government might overpay if costs decrease. Another potential risk lies in the contractor's ability to maintain consistent service quality over the extended period, especially if the FFP structure incentivizes cost-cutting that impacts performance. The lack of specified small business subcontracting also means potential missed opportunities for economic development.

What was the historical spending pattern for facility operations by the U.S. Secret Service prior to this contract?

Analyzing historical spending patterns for the U.S. Secret Service's facility operations prior to this $20.8 million contract (awarded in 2010) would require access to historical federal procurement data. Without that specific data, we can only infer general trends. Federal agencies typically have consistent needs for facility operations, often managed through multi-year contracts. Spending levels are influenced by the number and size of facilities, security requirements, and overall budget allocations. It's probable that the Secret Service had similar contracts in place before 2010, potentially with different contractors or contract structures, and that the $20.8 million represents a significant but not necessarily unprecedented level of investment for their operational footprint.

How effective was Sobran, Inc. in performing this contract, and were there any performance issues?

Assessing the specific performance effectiveness of Sobran, Inc. on this particular contract requires access to performance evaluations, past performance reviews, and any contract modification history. Publicly available data typically includes award information but not detailed performance metrics or contractor ratings. Given the contract was awarded and completed its term (2010-2015), it suggests a baseline level of acceptable performance. However, without access to contractor performance assessment reporting (CPARs) or any official records of disputes or corrective actions, it's impossible to definitively state how effective Sobran, Inc. was or if significant performance issues arose during the contract's life.

Industry Classification

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

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4401 DAYTON XENIA RD, DAYTON, OH, 10

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $20,860,430

Exercised Options: $20,860,430

Current Obligation: $20,860,430

Parent Contract

Parent Award PIID: GS10F0441R

IDV Type: FSS

Timeline