DoD Awards $12.4M Contract for NAVSEA Facilities Management Support Services to American Operations Corporation
Contract Overview
Contract Amount: $12,407,415 ($12.4M)
Contractor: American Operations Corporation
Awarding Agency: Department of Defense
Start Date: 2022-04-06
End Date: 2026-04-06
Contract Duration: 1,461 days
Daily Burn Rate: $8.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: NAVSEA HQ FACILITIES MANAGEMENT DIVISION (SEA 10F) SUPPORT SERVICES.
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $12.4 million to AMERICAN OPERATIONS CORPORATION for work described as: NAVSEA HQ FACILITIES MANAGEMENT DIVISION (SEA 10F) SUPPORT SERVICES. Key points: 1. Contract awarded to American Operations Corporation for facilities management support. 2. The contract is a Delivery Order under a larger contract. 3. The award was made under full and open competition. 4. The contract type is Cost Plus Fixed Fee. 5. The period of performance is approximately 4 years.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. Benchmarking against similar facilities management contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, as a delivery order, the pricing is likely influenced by the terms of the parent contract.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, but the Cost Plus Fixed Fee structure warrants close monitoring to ensure cost efficiency.
Public Impact
Ensures continued operation and maintenance of critical NAVSEA facilities. Supports the Department of the Navy's infrastructure needs. Provides essential engineering services for facility management. Impacts personnel working within NAVSEA facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Lack of detailed cost breakdown makes independent price validation challenging.
Positive Signals
- Awarded under full and open competition.
- Supports critical Navy infrastructure.
Sector Analysis
This contract falls under Engineering Services, a broad category often associated with government facilities management. Spending benchmarks for such services vary widely based on scope and location, but this award appears moderate for a multi-year support contract.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
As a delivery order under a larger contract, oversight may be integrated into the parent contract's management structure. The Department of the Navy's contracting office is responsible for oversight.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee structure.
- Potential for cost overruns.
- Limited transparency on profit margin.
- No indication of small business subcontracting.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.4 million to AMERICAN OPERATIONS CORPORATION. NAVSEA HQ FACILITIES MANAGEMENT DIVISION (SEA 10F) SUPPORT SERVICES.
Who is the contractor on this award?
The obligated recipient is AMERICAN OPERATIONS 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 $12.4 million.
What is the period of performance?
Start: 2022-04-06. End: 2026-04-06.
What is the estimated profit margin for American Operations Corporation under this Cost Plus Fixed Fee contract?
The Cost Plus Fixed Fee (CPFF) contract structure means the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. Without the specific fee percentage or target cost, the exact profit margin cannot be determined. However, CPFF contracts are intended to provide a reasonable profit while incentivizing efficient performance, though they can also lead to cost increases if not closely managed.
What are the key performance indicators (KPIs) used to measure the effectiveness of these facilities management support services?
Key performance indicators for facilities management contracts typically include response times for service requests, resolution rates, facility uptime, adherence to safety standards, and customer satisfaction. Specific KPIs for this NAVSEA contract would be detailed in the Performance Work Statement (PWS) and are crucial for ensuring the contractor meets the government's requirements effectively and efficiently.
How does the pricing of this delivery order compare to similar facilities management contracts awarded by other federal agencies?
Direct comparison is challenging without detailed cost breakdowns and scope of work for similar contracts. However, the "fair" rating suggests the pricing is within an acceptable range, but not exceptionally low. Factors like geographic location, specific services required (e.g., specialized engineering vs. general maintenance), and contract type influence pricing, making a precise benchmark difficult.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002420R3002
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 14030 THUNDERBOLT PL STE 700, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $18,447,849
Exercised Options: $14,639,042
Current Obligation: $12,407,415
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D7129
IDV Type: IDC
Timeline
Start Date: 2022-04-06
Current End Date: 2026-04-06
Potential End Date: 2027-04-05 00:00:00
Last Modified: 2025-09-25
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