Guam Base Operations Support Contract Awarded for $268M to DZSP 21 LLC
Contract Overview
Contract Amount: $268,109,846 ($268.1M)
Contractor: Dzsp 21 LLC
Awarding Agency: Department of Defense
Start Date: 2020-08-13
End Date: 2023-07-31
Contract Duration: 1,082 days
Daily Burn Rate: $247.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: AWARD OF CONTRACT N62742-20-C-1199, GUAM BASE OPERATIONS SUPPORT SERVICES FOR THE JOINT REGION MARIANAS (JRM). OBLIGATION OF MOBILIZATION AND BASE PERIOD.
Place of Performance
Location: SANTA RITA, GUAM County, GUAM, 96915
Plain-Language Summary
Department of Defense obligated $268.1 million to DZSP 21 LLC for work described as: AWARD OF CONTRACT N62742-20-C-1199, GUAM BASE OPERATIONS SUPPORT SERVICES FOR THE JOINT REGION MARIANAS (JRM). OBLIGATION OF MOBILIZATION AND BASE PERIOD. Key points: 1. Significant contract for essential base operations support in Guam. 2. DZSP 21 LLC, a single entity, secured this large award. 3. The contract spans over three years, indicating a substantial commitment. 4. Facilities Support Services sector, crucial for military readiness.
Value Assessment
Rating: good
The contract's Cost Plus Award Fee structure allows for performance-based incentives. While specific pricing benchmarks for this exact scope in Guam are scarce, the awarded amount appears substantial for comprehensive base operations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method aims to ensure the government receives competitive pricing by allowing all eligible offerors to participate.
Taxpayer Impact: Taxpayer funds are being utilized for essential military base operations, ensuring the functionality and readiness of Joint Region Marianas.
Public Impact
Ensures continued operational readiness and support for U.S. military forces in Guam. Supports critical infrastructure and services at Joint Region Marianas. Provides employment opportunities within Guam's local economy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can sometimes lead to cost overruns if not managed tightly.
- Geographic isolation of Guam may impact logistical costs and contractor performance.
- Dependence on a single contractor for essential services presents a risk.
Positive Signals
- Awarded through full and open competition, indicating potential for good value.
- Contract includes performance incentives, encouraging high-quality service delivery.
- Long-term commitment suggests stability for base operations.
Sector Analysis
This contract falls within the Facilities Support Services sector, which encompasses a wide range of services necessary for the operation and maintenance of government facilities. Spending in this sector is consistently high due to the ongoing need for base upkeep and operational support.
Small Business Impact
The contract was awarded to DZSP 21 LLC, and the data does not indicate any specific subcontracting requirements for small businesses. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for oversight. The Cost Plus Award Fee structure implies performance monitoring and evaluation to ensure accountability and value for taxpayer money.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost creep in Cost Plus Award Fee contracts.
- Geographic location may increase operational costs and logistical challenges.
- Reliance on a single contractor for critical base functions.
- Lack of detailed performance metrics in the provided award data.
- Limited insight into 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 $268.1 million to DZSP 21 LLC. AWARD OF CONTRACT N62742-20-C-1199, GUAM BASE OPERATIONS SUPPORT SERVICES FOR THE JOINT REGION MARIANAS (JRM). OBLIGATION OF MOBILIZATION AND 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 $268.1 million.
What is the period of performance?
Start: 2020-08-13. End: 2023-07-31.
What specific performance metrics are tied to the 'Award Fee' component of this contract, and how are they measured?
The performance metrics for the 'Award Fee' are not detailed in the provided data. Typically, these metrics would cover areas such as maintenance, security, logistics, and quality of life services. The contracting officer would establish specific measurable objectives and evaluation criteria, with regular performance reviews determining the fee awarded.
What is the historical cost performance of DZSP 21 LLC on similar base operations support contracts?
Historical cost performance data for DZSP 21 LLC on similar contracts is not available in this dataset. A comprehensive risk assessment would require reviewing their past contract performance, including any instances of cost overruns or underruns, and the reasons behind them, to gauge their financial management capabilities.
How does the cost of these base operations services in Guam compare to similar services provided at other U.S. military installations globally?
Direct cost comparison is challenging due to unique factors in Guam, such as geographic isolation, higher cost of living, and specific logistical demands. However, benchmarks for base operations support services at comparable overseas or remote U.S. installations would be necessary to assess if the $268 million award represents a competitive price point.
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-Parsons Global Logistics Services, LLC
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: $651,181,759
Exercised Options: $268,354,301
Current Obligation: $268,109,846
Actual Outlays: $2,042,024
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-08-13
Current End Date: 2023-07-31
Potential End Date: 2028-10-31 00:00:00
Last Modified: 2026-01-13
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