Guam Base Operations Support Contract Awarded to DZSP 21 LLC for $92.7M
Contract Overview
Contract Amount: $92,716,804 ($92.7M)
Contractor: Dzsp 21 LLC
Awarding Agency: Department of Defense
Start Date: 2017-07-01
End Date: 2018-04-30
Contract Duration: 303 days
Daily Burn Rate: $306.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF AWARD OF CONTRACT N62742-17-C-1170, GUAM BASE OPERATIONS SUPPORT SERVICES FOR THE JOINT REGION MARIANAS (JRM). OBLIGATION OF BASE PERIOD.
Place of Performance
Location: SANTA RITA, GUAM County, GUAM, 96915
Plain-Language Summary
Department of Defense obligated $92.7 million to DZSP 21 LLC for work described as: IGF::OT::IGF AWARD OF CONTRACT N62742-17-C-1170, GUAM BASE OPERATIONS SUPPORT SERVICES FOR THE JOINT REGION MARIANAS (JRM). OBLIGATION OF BASE PERIOD. Key points: 1. The contract is for base period operations support services for Joint Region Marianas. 2. DZSP 21 LLC, the incumbent, was awarded the contract. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The services fall under Facilities Support Services, a broad category with varying cost benchmarks.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee structure carries inherent risk for cost escalation. Benchmarking this specific service package against similar contracts is challenging due to its comprehensive nature and geographic location.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, suggesting a limited competition approach. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of full and open competition raises concerns about whether the government received the best possible price for these essential services.
Public Impact
Ensures critical base operations and support services for military personnel and families in Guam. Supports the strategic military presence in the Indo-Pacific region. Potential for increased costs due to non-competitive award and cost-plus fee structure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competitive award
- Cost-plus fixed fee contract type
- Potential for cost overruns
Positive Signals
- Ensures continuity of essential base operations
- Supports strategic military presence
Sector Analysis
Facilities Support Services are crucial for maintaining military installations. Spending in this sector can vary widely based on location, scope, and contract type. This contract's value is significant for the Guam region.
Small Business Impact
The data indicates the awardee is DZSP 21 LLC, a large business. There is no information provided regarding small business participation or subcontracting opportunities within this award.
Oversight & Accountability
The award was made under the base period. Further oversight would be needed to assess the execution of this contract and any subsequent option periods for cost control and performance.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
- Limited transparency on justification for non-competition
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 $92.7 million to DZSP 21 LLC. IGF::OT::IGF AWARD OF CONTRACT N62742-17-C-1170, GUAM BASE OPERATIONS SUPPORT SERVICES FOR THE JOINT REGION MARIANAS (JRM). OBLIGATION OF BASE PERIOD.
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 $92.7 million.
What is the period of performance?
Start: 2017-07-01. End: 2018-04-30.
What was the justification for not competing this contract, and what steps were taken to ensure a fair price was negotiated?
The justification for not competing this contract is not provided in the data. Typically, non-competitive awards require a formal justification, such as a sole-source requirement or urgent need. Without this information, it's difficult to assess the fairness of the price or the effectiveness of the negotiation process.
What are the specific risks associated with the Cost Plus Fixed Fee structure in this contract, and how are they being mitigated?
The primary risk of a Cost Plus Fixed Fee contract is that the contractor may have less incentive to control costs, as the government bears the majority of the expense. Mitigation strategies could include robust oversight, detailed cost reporting requirements, and performance incentives tied to cost efficiency. The effectiveness of these mitigations is not detailed in the provided data.
How does the performance of DZSP 21 LLC on this contract compare to industry benchmarks for facilities support services in similar geographic locations?
Benchmarking this contract's performance is difficult without specific performance metrics and detailed cost breakdowns. While the contract value is substantial, its effectiveness hinges on the quality and efficiency of the services provided. A comparison to industry benchmarks would require access to detailed performance reports and cost data, which are not available here.
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 COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6274217R1170
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 901 LINCOLN DR W STE 200, MARLTON, NJ, 08053
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $92,716,804
Exercised Options: $92,716,804
Current Obligation: $92,716,804
Actual Outlays: $-2,312
Subaward Activity
Number of Subawards: 23
Total Subaward Amount: $6,508,496
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-07-01
Current End Date: 2018-04-30
Potential End Date: 2018-04-30 00:00:00
Last Modified: 2021-08-22
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