DoD's $17.5M Facilities Support Services contract to Diversified Service Contracting, Inc. awarded for FY25

Contract Overview

Contract Amount: $17,516,306 ($17.5M)

Contractor: Diversified Service Contracting, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-04-01

End Date: 2026-03-31

Contract Duration: 364 days

Daily Burn Rate: $48.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FSS EXERCISE OPTION YEAR 4 FUNDING TASK ORDER

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $17.5 million to DIVERSIFIED SERVICE CONTRACTING, INC. for work described as: FSS EXERCISE OPTION YEAR 4 FUNDING TASK ORDER Key points: 1. The contract value represents a significant investment in maintaining naval facilities. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. The firm-fixed-price contract type shifts performance risk to the contractor. 4. This task order falls within the broader category of facilities support services. 5. The duration of the task order is one year, aligning with annual budget cycles. 6. The contractor, Diversified Service Contracting, Inc., has been awarded this option year. 7. The contract is managed by the Department of the Navy, a major DoD component.

Value Assessment

Rating: good

The contract's value of $17.5 million for a one-year period for facilities support services appears reasonable within the context of large-scale government contracts. Benchmarking against similar facilities support contracts awarded by the Department of Defense or other federal agencies would provide a more precise assessment of value for money. The firm-fixed-price structure generally indicates a commitment to a defined scope at a set price, which can be advantageous for budget predictability. However, without detailed cost breakdowns or comparisons to industry standards for specific services rendered (e.g., janitorial, maintenance, groundskeeping), a definitive value-for-money judgment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the initial solicitation was broad, specific exclusions were applied, potentially due to prior performance or specific requirements. The number of bidders is not explicitly stated in the provided data, but the 'full and open' designation suggests a competitive process was intended. This approach aims to ensure a wide range of qualified contractors can participate, fostering price discovery and potentially leading to more competitive pricing.

Taxpayer Impact: This level of competition, even with exclusions, is generally favorable for taxpayers as it encourages multiple companies to bid, driving down costs and improving the quality of services offered.

Public Impact

Naval facilities across the specified region will benefit from enhanced maintenance and operational support. The contract ensures the continued provision of essential facilities support services, contributing to the operational readiness of naval installations. The geographic impact is likely concentrated in Maryland, where the contract is noted as being performed. The contract supports jobs within the facilities management and maintenance sectors, contributing to the local and regional economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, given the nature of facilities support.
Reliance on a single contractor for option year renewals could reduce future competitive pressure.
Ensuring consistent service quality across all facilities covered by the contract.
Managing the transition if future contracts are awarded to different entities.

Positive Signals

Firm-fixed-price contract type transfers cost overrun risk to the contractor.
Award to an established contractor suggests a track record of performance.
Option year exercise indicates satisfaction with current service delivery.
Full and open competition, even with exclusions, aims for competitive pricing.
Clear performance period (one year) allows for focused oversight.

Sector Analysis

Facilities Support Services (NAICS 561210) is a significant sector within the broader professional, scientific, and technical services industry. This contract represents a portion of the federal government's substantial spending on maintaining its vast real estate and infrastructure. The market for these services is competitive, with numerous providers ranging from small businesses to large corporations. The Department of Defense is a major consumer of these services due to its extensive global footprint. Comparable spending benchmarks would involve analyzing other large-scale facilities management contracts within DoD and other federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, if Diversified Service Contracting, Inc. chooses to engage small businesses for specialized services. Without specific subcontracting plans or goals mandated in the contract, the direct benefit to small businesses is uncertain and depends on the prime contractor's procurement practices.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Navy. Performance monitoring, quality assurance surveillance plans (QASPs), and regular progress reviews are standard mechanisms to ensure contractor compliance and service delivery. Transparency is generally maintained through contract databases like SAM.gov, where award details are published. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Facilities Maintenance
Naval Base Operations Support
Government Facilities Management Contracts
Professional, Scientific, and Technical Services Spending
Base Operations Support Services

Risk Flags

Option Year Exercise
Firm Fixed Price Contract
Full and Open Competition (with exclusions)
Facilities Support Services
Department of Defense Contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.5 million to DIVERSIFIED SERVICE CONTRACTING, INC.. FSS EXERCISE OPTION YEAR 4 FUNDING TASK ORDER

Who is the contractor on this award?

The obligated recipient is DIVERSIFIED SERVICE CONTRACTING, 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 $17.5 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-03-31.

What is the historical spending trend for facilities support services by the Department of the Navy over the past five years?

Analyzing the historical spending trend for facilities support services by the Department of the Navy over the past five years would provide crucial context for evaluating the current $17.5 million award. This analysis would involve aggregating spending data for NAICS code 561210 and similar service categories across various Navy commands and installations. A rising trend might indicate increasing needs or inflation, while a stable or declining trend could suggest efficiency gains or shifting priorities. Understanding this pattern helps determine if the current contract value is an anomaly, a continuation of established spending levels, or part of a larger strategic shift in facilities management investment. Without access to specific historical Navy spending data, it's difficult to provide precise figures, but federal procurement databases often show consistent, substantial investment in facilities support across all military branches due to the extensive infrastructure they manage.

How does the per-unit cost of services under this contract compare to industry benchmarks for similar facilities support contracts?

A direct comparison of per-unit costs for services under this $17.5 million contract to industry benchmarks is challenging without a detailed breakdown of the services provided and their associated unit rates (e.g., cost per square foot for janitorial services, cost per hour for maintenance labor). Facilities support contracts are often comprehensive, bundling diverse services, making direct unit cost comparisons difficult. However, general industry benchmarks for facilities management suggest that costs are influenced by geographic location, labor rates, scope of services, and the specific type of facility being supported. If this contract includes standard services like HVAC maintenance, groundskeeping, and custodial work, comparing its overall cost against the average cost per square foot for similar government or commercial facilities in Maryland could offer a rough estimate of value. The firm-fixed-price nature implies the contractor has factored in their expected costs and a profit margin, and the 'full and open' competition aims to ensure these factored costs are competitive.

What is Diversified Service Contracting, Inc.'s track record with the Department of the Navy and other federal agencies for similar contracts?

Diversified Service Contracting, Inc.'s track record with the Department of the Navy and other federal agencies is a key indicator of their reliability and performance. As this is an option year exercise, it strongly suggests a satisfactory performance history on the preceding years of the contract. Federal procurement data, accessible through systems like SAM.gov or FPDS, would detail their past awards, contract values, performance ratings (if available), and any history of contract disputes or terminations. A review of their portfolio would reveal their experience in delivering facilities support services, their ability to manage large-scale contracts, and their compliance with federal acquisition regulations. Positive past performance is a critical factor in contract awards and option year decisions, indicating the contractor has met or exceeded expectations in terms of quality, timeliness, and cost control.

What are the primary risks associated with this facilities support services contract, and how are they being mitigated?

Primary risks associated with this facilities support services contract include potential service quality deficiencies, cost overruns (though mitigated by the firm-fixed-price structure), contractor performance failures, and unforeseen facility issues. Mitigation strategies typically involve robust performance monitoring by the government, clear performance standards and metrics outlined in the contract, regular progress meetings, and the potential for contract remedies if performance is substandard. The firm-fixed-price (FFP) contract type itself is a risk mitigation tool, placing the financial risk of cost overruns on the contractor. Furthermore, the exercise of an option year suggests that the contractor's performance has met or exceeded expectations thus far, indicating that initial risks have been effectively managed. The Department of the Navy's oversight mechanisms, including quality assurance personnel, play a crucial role in identifying and addressing risks proactively.

How does the geographic location (Maryland) influence the cost and scope of facilities support services required?

The geographic location in Maryland can significantly influence the cost and scope of facilities support services. Maryland, particularly the areas surrounding major naval installations, often has higher labor costs compared to less urbanized regions due to a higher cost of living and strong demand for skilled labor. This impacts wages for maintenance staff, technicians, and administrative personnel. Additionally, the specific types of facilities and their environmental conditions in Maryland might dictate specialized maintenance needs (e.g., dealing with specific weather patterns, coastal proximity). The density of federal facilities in the region also means there's a competitive market for these services, which can influence pricing. The contract's performance period (April 1, 2025, to March 31, 2026) aligns with seasonal maintenance requirements that might be more pronounced in this climate.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008020R0001

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 115 S RAILROAD AVE, DUNN, NC, 28334

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,540,031

Exercised Options: $17,540,031

Current Obligation: $17,516,306

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008021D0006

IDV Type: IDC

Timeline