Guam Base Operations Support Contract Awarded to DZSP 21 LLC for $116.6M
Contract Overview
Contract Amount: $116,618,944 ($116.6M)
Contractor: Dzsp 21 LLC
Awarding Agency: Department of Defense
Start Date: 2018-05-01
End Date: 2019-02-28
Contract Duration: 303 days
Daily Burn Rate: $384.9K/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 N62742-18-C-1110, 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 $116.6 million to DZSP 21 LLC for work described as: IGF::OT::IGF AWARD OF CONTRACT N62742-18-C-1110, 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 was awarded this definitive contract. 3. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. This award falls under Facilities Support Services, a broad category with varying cost benchmarks.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee structure can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking against similar facilities support contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, suggesting a sole-source or limited competition award. Lack of competition can hinder price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition raises concerns about whether the government secured the best possible price for these essential services.
Public Impact
Ensures critical base operations support for U.S. military personnel and infrastructure in Guam. Supports regional security and readiness in the Indo-Pacific. Potential for increased costs due to non-competitive award and CPFF contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competitive award
- Cost Plus Fixed Fee contract type
- Lack of detailed cost transparency
Positive Signals
- Ensures essential base operations
- Supports strategic location in Guam
Sector Analysis
Facilities Support Services contracts encompass a wide range of activities. Benchmarking is challenging without specific service details, but large-scale base operations can represent significant government expenditure.
Small Business Impact
The data does not indicate any specific provisions or awards to small businesses within this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The non-competitive nature of this award warrants close oversight to ensure cost control and effective service delivery. Audits of the fixed fee and allowable costs are crucial.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Limited transparency on cost drivers
- No indication of small business participation
Tags
facilities-support-services, department-of-defense, gu, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $116.6 million to DZSP 21 LLC. IGF::OT::IGF AWARD OF CONTRACT N62742-18-C-1110, 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 $116.6 million.
What is the period of performance?
Start: 2018-05-01. End: 2019-02-28.
What was the justification for not competing this significant base operations contract?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards require a detailed justification, such as a lack of available sources, urgent and compelling needs, or specific national security requirements. Without this information, it's difficult to assess the necessity of the non-competitive approach.
How does the Cost Plus Fixed Fee structure impact the risk of cost overruns for this contract?
The Cost Plus Fixed Fee (CPFF) structure inherently carries a higher risk of cost overruns compared to fixed-price contracts. While the fee is fixed, the government bears the risk of increased costs for labor, materials, and other direct expenses. Effective oversight and robust cost accounting are essential to mitigate this risk.
What is the potential long-term financial impact of awarding such a large contract without competition?
Awarding a large contract without competition can lead to a higher overall financial burden on taxpayers. Without competitive pressure, the contractor may not be incentivized to offer the lowest possible price. This can set a precedent for future contracts in the region and may result in sustained higher costs for essential services.
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: N6274218R1110
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: $116,618,944
Exercised Options: $116,618,944
Current Obligation: $116,618,944
Actual Outlays: $24,969
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-05-01
Current End Date: 2019-02-28
Potential End Date: 2019-02-28 00:00:00
Last Modified: 2021-08-15
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