Defense contract for facilities support services awarded to Professional Contract Services, Inc. for nearly $30 million

Contract Overview

Contract Amount: $29,942,250 ($29.9M)

Contractor: Professional Contract Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-04-01

End Date: 2021-03-31

Contract Duration: 364 days

Daily Burn Rate: $82.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE PERIOD FUNDING TASK ORDER

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23708

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.9 million to PROFESSIONAL CONTRACT SERVICES, INC. for work described as: BASE PERIOD FUNDING TASK ORDER Key points: 1. The contract value of $29.9 million for a one-year period suggests a significant investment in facilities support. 2. The award to Professional Contract Services, Inc. indicates a specific capability or relationship with the Department of the Navy. 3. The 'NOT AVAILABLE FOR COMPETITION' status raises questions about the justification for limited competition and potential impact on pricing. 4. Facilities Support Services (NAICS 561210) is a broad category, and the specific services rendered will determine the true value. 5. The firm fixed-price contract type provides cost certainty for the government but shifts risk to the contractor. 6. The contract duration of 364 days is typical for a base period, with potential for follow-on work.

Value Assessment

Rating: fair

The base period funding of $29,942,249.58 for a one-year duration represents a substantial expenditure for facilities support services. Without comparable contract data or detailed service breakdowns, it is difficult to definitively benchmark the value for money. The per-unit cost of $8,225,900 (calculated by dividing total funding by the number of units, assuming 'units' refers to the entire contract scope) is high, but its meaning is unclear without knowing what constitutes a 'unit'. Further analysis would require understanding the specific services provided and comparing them to industry standards and other government contracts for similar scopes of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' basis, indicating a sole-source or limited competition procurement. The specific justification for this approach is not provided, but it typically means that only one responsible source was available or that the circumstances necessitated a non-competitive award. The lack of broader competition limits the government's ability to leverage market forces to achieve the best possible pricing and terms.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the potential for competitive bidding, which drives down prices, is absent. This necessitates strong justification and oversight to ensure fair pricing.

Public Impact

The Department of the Navy benefits from the provision of essential facilities support services, ensuring operational readiness and maintenance of its infrastructure. The services delivered likely encompass a range of facility management tasks, potentially including maintenance, repair, janitorial services, and groundskeeping. The geographic impact is concentrated within the areas where the Department of the Navy facilities are located, primarily in Virginia (SN: VIRGINIA). The contract supports the workforce employed by Professional Contract Services, Inc., contributing to employment in the facilities management sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing for the government.
The broad nature of 'Facilities Support Services' could mask inefficiencies or scope creep if not tightly managed.
Reliance on a single contractor for critical support functions can create dependency and reduce flexibility.

Positive Signals

The firm fixed-price contract type offers budget predictability for the government.
The contractor, Professional Contract Services, Inc., has secured a significant contract, indicating a level of trust or established capability.
The award is to a company operating within the United States (Virginia), potentially supporting domestic employment.

Sector Analysis

The Facilities Support Services sector (NAICS 561210) is a significant component of the broader commercial and government services market. This contract falls within the government's extensive spending on maintaining its physical infrastructure and operational bases. Comparable spending benchmarks would typically involve analyzing other large-scale facilities management contracts awarded by various federal agencies, particularly within the Department of Defense, to assess cost-effectiveness and pricing trends for similar service scopes.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SB: false) and the contractor is not a small business (SS: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. However, the prime contractor, Professional Contract Services, Inc., may choose to subcontract portions of the work, and there could be opportunities for small businesses to participate indirectly, depending on the contractor's subcontracting plan.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed price. Transparency is facilitated through contract award databases, though detailed performance metrics and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Facilities Maintenance
Naval Base Operations Support
Government Facilities Management Contracts
Professional Services Contracts
Base Operations Support Services

Risk Flags

Limited Competition Justification
Potential for Overpricing
Contractor Performance History Unknown

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.9 million to PROFESSIONAL CONTRACT SERVICES, INC.. BASE PERIOD FUNDING TASK ORDER

Who is the contractor on this award?

The obligated recipient is PROFESSIONAL CONTRACT SERVICES, 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 $29.9 million.

What is the period of performance?

Start: 2020-04-01. End: 2021-03-31.

What specific services are included under 'Facilities Support Services' for this contract?

The provided data identifies the North American Industry Classification System (NAICS) code as 561210, which broadly covers Facilities Support Services. This typically includes a wide range of activities such as building operation and maintenance, cleaning services, groundskeeping, pest control, and security services for facilities. However, the precise scope for this specific contract with Professional Contract Services, Inc. for the Department of the Navy is not detailed in the provided data. A comprehensive understanding would require reviewing the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which would itemize the exact deliverables, service levels, and performance standards expected from the contractor.

What is the justification for awarding this contract on a 'NOT AVAILABLE FOR COMPETITION' basis?

The designation 'NOT AVAILABLE FOR COMPETITION' signifies that the contract was awarded without full and open competition. Common justifications for such awards include that only one responsible source is capable of providing the required services, or that there is a compelling urgency that prevents the use of competitive procedures. Other reasons can include specific national security requirements or if the contract is a follow-on to a previous competitive award where the original contractor is the only viable option. Without the specific justification document (e.g., a Justification and Approval - J&A), it is impossible to determine the exact rationale for this sole-source award to Professional Contract Services, Inc. This lack of competition warrants scrutiny to ensure fair pricing and value.

How does the contract value of nearly $30 million compare to similar facilities support contracts?

Comparing the contract value of $29.9 million requires context regarding the scope and duration of services. Facilities support contracts can vary significantly in cost based on the size and complexity of the facilities managed, the geographic location, and the specific services included (e.g., basic maintenance vs. comprehensive facility management with specialized technical support). For a one-year base period, this value is substantial and suggests a large-scale operation or a high level of service intensity. To benchmark effectively, one would need to identify similar contracts awarded by the Department of the Navy or other DoD components for facilities support at comparable installations or for similar types of assets. Analyzing the cost per square foot or cost per service unit across these contracts would provide a more accurate value assessment.

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

Sole-source awards for critical services like facilities support carry several potential risks. Firstly, the absence of competition can lead to inflated pricing, as the contractor faces less pressure to offer competitive rates. Secondly, there's a risk of complacency or reduced service quality over time, as the contractor may feel less urgency to innovate or improve performance without the threat of losing the contract to a competitor. Thirdly, the government may become overly reliant on the incumbent contractor, making it difficult and potentially more expensive to transition to a new provider in the future. Finally, the lack of a competitive process can obscure potential inefficiencies or opportunities for cost savings that might have been identified through a broader market solicitation.

What is the track record of Professional Contract Services, Inc. in performing government contracts?

The provided data indicates that Professional Contract Services, Inc. (PCS) is the awardee of this significant facilities support contract. To assess their track record, one would need to examine their past performance on federal contracts, particularly those with the Department of Defense or other agencies requiring similar services. Key indicators include past performance ratings, any history of contract disputes, timely delivery of services, and adherence to quality standards. A review of contract databases and performance assessment reporting tools (like the Contractor Performance Assessment Reporting System - CPARS) would be necessary to gain a comprehensive understanding of PCS's reliability and effectiveness as a government contractor.

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: N4008520R0028

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 718 W FM 1626, AUSTIN, TX, 78748

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: $29,942,250

Exercised Options: $29,942,250

Current Obligation: $29,942,250

Actual Outlays: $461,630

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008520D0040

IDV Type: IDC

Timeline