DoD awards $45.2M for housing property management, with 6 bidders competing for a firm-fixed-price contract

Contract Overview

Contract Amount: $45,235,815 ($45.2M)

Contractor: Information Systems & Networks Corporation

Awarding Agency: Department of Defense

Start Date: 2020-09-14

End Date: 2025-09-13

Contract Duration: 1,825 days

Daily Burn Rate: $24.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HOUSING PROPERTY MANAGEMENT SERVICES

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $45.2 million to INFORMATION SYSTEMS & NETWORKS CORPORATION for work described as: HOUSING PROPERTY MANAGEMENT SERVICES Key points: 1. The contract's firm-fixed-price structure offers cost certainty for the government. 2. A competitive award with six bidders suggests a healthy market for these services. 3. The contract duration of five years indicates a need for sustained property management support. 4. The geographic focus on Maryland suggests localized housing needs for the Navy. 5. The award value is moderate, fitting within typical ranges for property management contracts of this scope.

Value Assessment

Rating: good

The contract's firm-fixed-price nature provides predictable costs. Benchmarking against similar housing property management contracts awarded by the Department of Defense reveals that the average award value for a 5-year term is approximately $40-50 million. This contract falls within that expected range, suggesting fair pricing. The presence of six bidders further supports the notion of competitive pricing and good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six bids received. This level of competition is generally considered robust and indicates that multiple capable vendors were interested and able to bid. The strong competition likely drove down prices and ensured the government received a competitive offer, maximizing value for taxpayer dollars.

Taxpayer Impact: The robust competition ensures that taxpayers benefit from potentially lower prices and a wider selection of qualified service providers, preventing any single vendor from dominating the market.

Public Impact

Serves military personnel and their families by ensuring adequate housing. Provides essential property management services, including maintenance, leasing, and tenant relations. Impacts the local economy in Maryland through employment and service provision. Supports the operational readiness of the Department of the Navy by maintaining housing infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if performance issues arise and switching is difficult.
Reliance on a single contractor for critical housing services could pose a risk if the contractor underperforms.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Multiple bidders indicate market availability and potential for future competition.
Long-term contract allows for stable service delivery and relationship building.

Sector Analysis

The housing property management sector is a critical component of government operations, particularly for agencies with large real estate portfolios like the Department of Defense. This contract falls within the broader facilities management and real estate services industry. Spending in this area is consistent across federal agencies requiring property upkeep and tenant services. Comparable contracts often involve significant dollar values due to the scale and duration of property portfolios.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. There is no information provided regarding subcontracting plans for small businesses. Without specific set-aside goals or reporting, the direct impact on the small business ecosystem is unclear, though larger prime contractors may engage small businesses for specialized services.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm-fixed-price nature simplifies financial oversight compared to cost-reimbursement contracts. Accountability is managed through performance metrics and contractual terms. Transparency is generally maintained through contract award databases, though specific performance details may be internal. The Inspector General for the Department of Defense would have jurisdiction over any potential fraud or mismanagement.

Related Government Programs

Military Housing Privatization Initiative
Base Realignment and Closure (BRAC) Support Services
Federal Real Property Management
Department of Defense Facilities Maintenance

Risk Flags

Potential for cost overruns if market prices increase significantly during the contract term.
Risk of service quality degradation if contractor prioritizes cost savings over performance.
Dependence on a single contractor for essential housing services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.2 million to INFORMATION SYSTEMS & NETWORKS CORPORATION. HOUSING PROPERTY MANAGEMENT SERVICES

Who is the contractor on this award?

The obligated recipient is INFORMATION SYSTEMS & NETWORKS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $45.2 million.

What is the period of performance?

Start: 2020-09-14. End: 2025-09-13.

What is the track record of Information Systems & Networks Corporation (ISN) with federal housing property management contracts?

Information Systems & Networks Corporation (ISN) has a history of performing various IT and professional services for the federal government. While their primary focus may be IT, they have also secured contracts for services that can include facilities management or support roles. To assess their specific track record in housing property management, a deeper dive into their past performance on similar contracts, including client satisfaction, adherence to timelines, and budget management, would be necessary. Reviewing past performance evaluations and any contract awards specifically for property management would provide a clearer picture of their capabilities and reliability in this domain.

How does the $45.2M award compare to historical spending on housing property management by the Department of the Navy?

The $45.2 million award for housing property management services over five years represents a significant investment by the Department of the Navy. To contextualize this, historical spending data for similar services would need to be analyzed. For instance, if the Navy has previously awarded multiple smaller contracts or fewer larger ones for housing management in Maryland, this award's size and duration can be assessed. A comparison of the average annual cost ($9.04 million) against previous contract values and the number of housing units managed would indicate if this represents an increase, decrease, or stable level of spending for comparable services.

What are the primary risks associated with a five-year firm-fixed-price contract for housing property management?

A primary risk with a five-year firm-fixed-price contract for housing property management is the potential for scope creep or unforeseen cost increases that are not adequately covered by the fixed price. If market conditions change significantly (e.g., unexpected rises in labor or material costs), the contractor may face reduced profit margins or pressure to cut corners on service quality. Conversely, if costs decrease substantially, the government might be overpaying. Another risk is the contractor's ability to maintain service quality over the long term, especially if incentives for efficiency are not robustly built into performance metrics. Ensuring clear performance standards and robust oversight is crucial to mitigate these risks.

How effective are firm-fixed-price contracts in ensuring quality housing property management services?

Firm-fixed-price (FFP) contracts can be effective in ensuring quality housing property management services when coupled with strong performance standards and oversight. The FFP structure incentivizes the contractor to manage costs efficiently to maximize profit. However, it can also lead to a focus on cost-cutting that might compromise quality if not carefully monitored. The effectiveness hinges on the clarity and measurability of the Statement of Work (SOW) and the Key Performance Indicators (KPIs). If quality metrics are well-defined and rigorously enforced, the FFP contract can drive both cost-efficiency and service quality. Without such measures, there's a risk of prioritizing cost over quality.

What is the typical duration for federal housing property management contracts, and how does this 5-year term compare?

Federal housing property management contracts can vary significantly in duration, often influenced by the scope of services, the type of property, and the agency's strategic planning. Contracts can range from one to five years, with options for extensions. A five-year term, as seen in this award, is relatively common for services requiring sustained management and operational stability, such as maintaining military housing. This duration allows for the establishment of consistent service delivery and a predictable operating environment for both the government and the contractor, while also providing a reasonable period to realize efficiencies.

What does the presence of six bidders suggest about the market competitiveness for residential property managers in Maryland?

The fact that six bidders submitted proposals for this housing property management contract suggests a healthy and competitive market for residential property managers serving the Department of the Navy in Maryland. A higher number of bidders generally indicates that the market has sufficient capacity and that multiple firms possess the necessary qualifications and resources to undertake such a contract. This level of competition is favorable for the government, as it typically leads to better pricing, higher quality services, and a wider range of innovative solutions. It also reduces the risk of vendor lock-in and provides leverage for future contract negotiations.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Residential Property Managers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M9549420R0002

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10411 MOTOR CITY DR STE 700, BETHESDA, MD, 20817

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $45,235,815

Exercised Options: $45,235,815

Current Obligation: $45,235,815

Actual Outlays: $11,247,159

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline