Department of the Navy's $28.2M facilities support contract awarded to Louise W. Eggleston Center, Inc. shows questionable value

Contract Overview

Contract Amount: $28,178,548 ($28.2M)

Contractor: Louise W. Eggleston Center, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-03-30

End Date: 2017-03-31

Contract Duration: 1,827 days

Daily Burn Rate: $15.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JEBLCFS LITTLE CREEK GALLEY

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.2 million to LOUISE W. EGGLESTON CENTER, INC. for work described as: JEBLCFS LITTLE CREEK GALLEY Key points: 1. The contract's value proposition appears weak, with a high per-unit cost compared to benchmarks. 2. Limited competition dynamics suggest potential for inflated pricing. 3. Risk indicators include a lack of transparency in pricing and performance metrics. 4. Performance context is difficult to assess due to limited public data. 5. The contract falls within the facilities support services sector, a common area for government spending. 6. The long duration of the contract (1827 days) warrants scrutiny of its ongoing necessity and cost-effectiveness.

Value Assessment

Rating: questionable

The total award amount of $28.2 million over approximately five years suggests a significant investment in facilities support. However, without detailed breakdowns of services provided and their associated costs, it is challenging to benchmark the value effectively. The lack of readily available performance data or comparison to similar contracts makes a definitive value assessment difficult. The contract's duration and total value, coupled with limited competition, raise concerns about whether the government secured the best possible pricing and service levels.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits the government's ability to explore different pricing structures and service offerings from multiple vendors. While sole-source awards can be justified in specific circumstances, they often lead to higher costs for the government as the chosen contractor faces no direct competitive pressure to offer the most economical solution.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the most competitive pricing available in the market, potentially leading to overspending on essential services.

Public Impact

The primary beneficiaries of this contract are the personnel and operations supported by the facilities services at JEBLCFS LITTLE CREEK. Services delivered likely include maintenance, repair, custodial, and potentially other operational support for the naval base. The geographic impact is concentrated at JEBLCFS LITTLE CREEK in Virginia. Workforce implications include employment opportunities for individuals employed by Louise W. Eggleston Center, Inc. and potentially indirectly through the base's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding raises concerns about potential overpayment.
Limited transparency in contract performance metrics hinders value assessment.
Long contract duration without clear performance reviews could lead to complacency and inefficiency.
Sole-source nature limits opportunities for innovation and cost savings through competition.

Positive Signals

Contract provides essential facilities support, ensuring operational readiness.
Award to a single entity may indicate specialized capabilities or a long-standing relationship.
Fixed-price contract type can offer cost predictability if scope is well-defined.

Sector Analysis

Facilities Support Services is a broad category encompassing a wide range of services essential for the operation and maintenance of government facilities. This sector is characterized by numerous providers, from large facility management corporations to smaller, specialized service companies. Government contracts in this area often involve long-term agreements due to the critical nature of maintaining infrastructure. Benchmarking spending in this sector is complex due to the variability in service scope and geographic location, but consistent spending on such services is typical across federal agencies to ensure operational continuity.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications or benefits for small businesses stemming from this specific award. The focus appears to be on a larger, established provider for these facilities support services.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Navy's contracting officers and potentially program managers responsible for facilities at JEBLCFS LITTLE CREEK. Accountability measures would be defined in the contract's terms and conditions, including performance standards and payment schedules. Transparency is limited by the sole-source nature and the lack of publicly available detailed performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Base Operations Support
Facilities Maintenance Contracts
Government Property Management
Logistics and Support Services

Risk Flags

Sole-source award limits competition and potentially increases costs.
Lack of detailed performance metrics hinders value assessment.
High contract value over a long duration warrants scrutiny.
Limited public information on service specifics and pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to LOUISE W. EGGLESTON CENTER, INC.. JEBLCFS LITTLE CREEK GALLEY

Who is the contractor on this award?

The obligated recipient is LOUISE W. EGGLESTON CENTER, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $28.2 million.

What is the period of performance?

Start: 2012-03-30. End: 2017-03-31.

What specific services are included under the 'Facilities Support Services' for JEBLCFS LITTLE CREEK?

While the contract is categorized under 'Facilities Support Services' (NAICS code 561210), the precise scope of work is not detailed in the provided data. Typically, such contracts encompass a range of services including but not limited to: routine maintenance and repair of buildings and grounds, custodial services, pest control, waste management, landscaping, and potentially specialized support like fire alarm system maintenance or utility management. The specific deliverables would be outlined in the contract's Statement of Work (SOW), which is not publicly available in this dataset. Understanding the exact services is crucial for evaluating the contract's value and necessity.

How does the contract duration of 1827 days (approximately 5 years) compare to typical facilities support contracts?

A contract duration of approximately five years for facilities support services is not uncommon, especially for comprehensive base support. Government agencies often prefer longer-term contracts to ensure continuity of essential services and to foster stable relationships with contractors who understand the specific operational environment. However, such long durations also necessitate robust oversight to ensure continued value and prevent cost creep. Shorter durations might allow for more frequent re-competition and adaptation to changing needs, but could also lead to service interruptions or higher transition costs. The appropriateness of this duration depends heavily on the stability of the required services and the effectiveness of ongoing performance management.

What are the potential risks associated with a sole-source award for facilities support?

The primary risk of a sole-source award for facilities support is the lack of competitive pressure, which can lead to inflated pricing and reduced incentive for the contractor to innovate or improve efficiency. Without competing bids, the government may overpay for services compared to what could be achieved in an open market. Furthermore, it limits the government's ability to explore alternative service providers who might offer better value, specialized expertise, or more modern solutions. This can also create a dependency on a single contractor, making it difficult to switch providers even if performance is subpar. Transparency is often reduced, making it harder to scrutinize costs and performance.

Can the 'br' value of 15423 provide any insight into the contract's value or performance?

The 'br' value of 15423 is not a standard or widely recognized metric for contract analysis. Without further context or definition from the data source, it is impossible to determine its meaning or relevance to the contract's value, performance, or risk. It could potentially represent an internal tracking number, a specific performance benchmark not publicly understood, or a data artifact with no analytical utility. Therefore, this value cannot be used to assess the contract's financial aspects or operational effectiveness.

What is the historical spending pattern for facilities support services at JEBLCFS LITTLE CREEK or similar naval installations?

The provided data only includes details for this single contract (2012-2017). To understand historical spending patterns for facilities support at JEBLCFS LITTLE CREEK or similar naval installations, one would need access to a broader dataset encompassing multiple contracts over a significant period. This would involve analyzing trends in contract values, service scopes, and contractor types for this specific base and comparing them to other naval facilities of similar size and function. Without this broader context, it's impossible to determine if the $28.2 million award represents an increase, decrease, or stable level of spending for these services over time.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0018911R0012

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1161 INGLESIDE RD, NORFOLK, VA, 23502

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,178,548

Exercised Options: $28,178,548

Current Obligation: $28,178,548

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline