Defense contract for facilities support services awarded to Professional Contract Services, Inc. for over $34.6 million

Contract Overview

Contract Amount: $34,648,929 ($34.6M)

Contractor: Professional Contract Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-04-01

End Date: 2024-03-31

Contract Duration: 365 days

Daily Burn Rate: $94.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPTION III FUNDING

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23708

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $34.6 million to PROFESSIONAL CONTRACT SERVICES, INC. for work described as: OPTION III FUNDING Key points: 1. Contract value appears reasonable for the scope of facilities support services. 2. Limited competition raises concerns about potential overpricing and reduced value for money. 3. The firm fixed-price contract type mitigates some cost overrun risks. 4. Performance context is essential to fully assess value, given the lack of competition. 5. This contract falls within the broader facilities support services sector for the Navy. 6. The duration of one year suggests a need for ongoing services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service descriptions and comparison to similar facilities support contracts. The firm fixed-price structure provides some cost certainty. However, the lack of competition prevents a robust assessment of whether the pricing reflects market rates or if taxpayers are receiving optimal value. Further analysis of the specific services rendered and their necessity would be required for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition procurement. The specific justification for this limited competition is not provided but typically involves unique capabilities, urgent needs, or a lack of available sources. The absence of a competitive bidding process means that price discovery through market forces was not utilized, potentially leading to higher costs for the government.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible pricing through competitive bidding, potentially resulting in higher expenditures for taxpayers.

Public Impact

The Department of the Navy benefits from essential facilities support services. Services include maintenance, repair, and operational support for government facilities. The geographic impact is localized to the facilities managed by the Department of the Navy in Virginia. The contract supports jobs within the facilities management and support services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award requires strong justification to ensure necessity and value.
Performance metrics and oversight are critical due to limited market pressure.

Positive Signals

Firm fixed-price contract type helps control costs.
Professional Contract Services, Inc. is a provider of these essential services.
The contract duration aligns with the need for continuous facilities support.

Sector Analysis

The facilities support services sector is a significant component of the broader professional, scientific, and technical services industry. This contract, valued at over $34.6 million, represents a substantial award within this niche. Comparable spending benchmarks for similar facilities support contracts with the Department of Defense can vary widely based on the scope of services, geographic location, and contract type. The market is often characterized by a mix of large, established service providers and smaller, specialized firms.

Small Business Impact

This contract does not indicate any small business set-aside provisions (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The absence of set-asides means the prime contract was not specifically targeted to encourage small business participation, and opportunities for small businesses would likely arise only if Professional Contract Services, Inc. voluntarily subcontracted.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Navy. Accountability measures would be defined in the contract's performance work statement. Transparency is facilitated through contract award databases, though detailed justifications for sole-source awards may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Facilities Maintenance Services
Base Operations Support
Professional Services Contracts
Department of Defense Procurement
Navy Facilities Management

Risk Flags

Limited competition
Sole-source award justification required
Potential for non-competitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.6 million to PROFESSIONAL CONTRACT SERVICES, INC.. OPTION III FUNDING

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 $34.6 million.

What is the period of performance?

Start: 2023-04-01. End: 2024-03-31.

What specific facilities support services are included in this contract?

The provided data indicates the contract falls under NAICS code 561210 (Facilities Support Services) and is awarded to Professional Contract Services, Inc. by the Department of the Navy. While the exact services are not detailed, this NAICS code typically encompasses a wide range of activities such as operating and maintaining buildings and other types of real property. This can include services like janitorial, security, landscaping, pest control, and potentially minor repair and maintenance. The firm fixed-price nature suggests a defined scope of work for which the contractor is paid a set amount. A comprehensive understanding of the specific deliverables would require reviewing the contract's statement of work.

How does the $34.6 million contract value compare to similar facilities support contracts?

Comparing the $34.6 million value requires context on the duration and scope of services. For a one-year contract (365 days), this is a significant amount, suggesting a comprehensive set of facilities support services is being provided across potentially multiple or large facilities. Without knowing the specific services, number of facilities, or geographic spread, direct comparison is difficult. However, large-scale facilities support contracts for federal agencies can range from tens to hundreds of millions of dollars annually, depending on the complexity and scale of operations managed. The 'NOT AVAILABLE FOR COMPETITION' status also complicates value assessment, as competitive bids often drive prices down.

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

The primary risk of a sole-source award for facilities support is the potential for inflated pricing due to the lack of competition. Without competing bids, the government may not achieve the best possible value for its money. Another risk is complacency from the contractor, as there is less market pressure to innovate or improve service quality. Furthermore, the justification for the sole-source award must be robust; if the justification is weak or inaccurate, it could indicate poor procurement practices or a lack of due diligence. Ensuring strong contract oversight and performance management becomes even more critical in sole-source situations to mitigate these risks.

What is the historical spending pattern for facilities support services by the Department of the Navy?

Historical spending patterns for facilities support services by the Department of the Navy are substantial, reflecting the vast infrastructure they manage. While specific aggregate data for this contract's category isn't provided, the Navy consistently awards numerous contracts for base operations, maintenance, and facility management across its numerous installations worldwide. Annual spending in this sector often runs into billions of dollars, encompassing a wide array of services from routine upkeep to major infrastructure projects. This particular $34.6 million award represents one component of that larger, ongoing investment in maintaining operational readiness and infrastructure.

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

Information on the specific track record of Professional Contract Services, Inc. (PCS) in government contracting is not detailed in the provided data. However, PCS is known to be a significant provider of services to the federal government, often focusing on facilities maintenance and support. Their ability to secure contracts, especially sole-source ones, suggests a history of performance or specialized capabilities recognized by agencies. A deeper dive into their contract history, past performance reviews, and any reported issues would be necessary for a complete assessment of their track record. Their presence in the market indicates they are an established entity within the government contracting landscape for these types of services.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

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: $34,648,929

Exercised Options: $34,648,929

Current Obligation: $34,648,929

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008520D0040

IDV Type: IDC

Timeline