DoD Awards $32.2M for Facilities Support Services in Guam, Continuing Existing Contracts
Contract Overview
Contract Amount: $32,232,773 ($32.2M)
Contractor: Dzsp 21 LLC
Awarding Agency: Department of Defense
Start Date: 2025-09-08
End Date: 2026-07-31
Contract Duration: 326 days
Daily Burn Rate: $98.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: THIS CONTRACT AWARD IS TO CONTINUE SERVICES AS OUTLINED IN CONTRACTS N6274220C1199 AND N4019223C5300. THIS ACTION IS EXECUTED FOR ADMINISTRATIVE PURPOSES ONLY TO ENABLE ASSIGNMENT OF ADDITIONAL SLINS AND ACRNS.
Place of Performance
Location: SANTA RITA, GUAM County, GUAM, 96915
Plain-Language Summary
Department of Defense obligated $32.2 million to DZSP 21 LLC for work described as: THIS CONTRACT AWARD IS TO CONTINUE SERVICES AS OUTLINED IN CONTRACTS N6274220C1199 AND N4019223C5300. THIS ACTION IS EXECUTED FOR ADMINISTRATIVE PURPOSES ONLY TO ENABLE ASSIGNMENT OF ADDITIONAL SLINS AND ACRNS. Key points: 1. The award is administrative, extending services under existing contracts. 2. Facilities Support Services is a broad category with significant government spending. 3. The contract's cost-plus award fee structure can incentivize performance but requires careful oversight. 4. Competition was full and open, suggesting a competitive bidding process.
Value Assessment
Rating: fair
The contract value of $32.2M for approximately 22 months of service appears reasonable for facilities support in Guam, given the location and scope. Benchmarking against similar contracts for facilities management in remote or high-cost areas would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders participated. This method generally promotes price discovery and competitive pricing, although the specific pricing mechanisms within the cost-plus award fee structure need monitoring.
Taxpayer Impact: Taxpayer funds are being used to continue essential facilities support services, ensuring operational continuity. The competitive award aims to secure these services at a reasonable cost.
Public Impact
Ensures continued operation of facilities critical to Navy operations in Guam. Supports local employment and economic activity through service provision. Maintains infrastructure necessary for national defense readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in cost-plus award fee contracts.
- Administrative nature of the award may obscure true cost drivers.
- Reliance on existing contracts could limit innovation.
Positive Signals
- Full and open competition ensures a competitive environment.
- Contract continuation provides service stability.
- Focus on essential facilities support.
Sector Analysis
Facilities Support Services (NAICS 561210) is a significant sector within government contracting, encompassing a wide range of maintenance, operation, and support activities for real property. Spending in this sector is consistently high due to the government's extensive real estate holdings.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small business set-asides were considered or if the prime contractor utilizes small business subcontractors.
Oversight & Accountability
The administrative nature of this award requires diligent oversight to ensure that the cost-plus award fee structure is managed effectively and that performance objectives are met. Tracking expenditures against performance metrics is crucial for accountability.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost-plus award fee contracts can lead to higher costs if not managed tightly.
- Administrative awards may lack transparency regarding specific service details.
- Potential for contractor to focus on maximizing award fee rather than essential service.
- Lack of small business participation noted.
Tags
facilities-support-services, department-of-defense, gu, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.2 million to DZSP 21 LLC. THIS CONTRACT AWARD IS TO CONTINUE SERVICES AS OUTLINED IN CONTRACTS N6274220C1199 AND N4019223C5300. THIS ACTION IS EXECUTED FOR ADMINISTRATIVE PURPOSES ONLY TO ENABLE ASSIGNMENT OF ADDITIONAL SLINS AND ACRNS.
Who is the contractor on this award?
The obligated recipient is DZSP 21 LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $32.2 million.
What is the period of performance?
Start: 2025-09-08. End: 2026-07-31.
What specific services are included under these facilities support contracts, and how do they align with the stated administrative purpose?
The data indicates this award is for administrative purposes to enable the assignment of additional SLINs and ACRNs, continuing services outlined in previous contracts. While the specific services aren't detailed here, facilities support typically includes maintenance, repair, operations, and management of buildings and grounds. Understanding the precise scope is key to assessing value and effectiveness.
How is the 'award fee' component structured, and what metrics are used to determine contractor performance and potential bonuses?
The contract type is 'Cost Plus Award Fee' (CPAF). This structure reimburses the contractor for allowable costs plus a fee that is composed of a base fee and an award amount. The award amount is determined by the government based on the contractor's performance against pre-defined criteria, incentivizing high performance.
Given the administrative nature of this award, what mechanisms are in place to prevent scope creep or unjustified cost increases?
While the award is administrative, the underlying contracts likely have defined scopes. The CPAF structure itself, tied to performance metrics, should deter unjustified cost increases. Robust government oversight, regular performance reviews, and clear communication channels are essential to manage scope and costs effectively.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6274219R1199
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: PAE Government Services Inc.
Address: 4800 WESTFIELDS BLVD STE 400, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $321,571,381
Exercised Options: $120,870,935
Current Obligation: $32,232,773
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-09-08
Current End Date: 2026-07-31
Potential End Date: 2029-01-31 00:00:00
Last Modified: 2026-03-09
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