DoD's $22.2M Facilities Support Contract Awarded to Regal Select Services Inc. for Florida Operations

Contract Overview

Contract Amount: $22,229,312 ($22.2M)

Contractor: Regal Select Services Inc

Awarding Agency: Department of Defense

Start Date: 2010-09-01

End Date: 2015-08-31

Contract Duration: 1,825 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIRM FIXED PRICE FOR BASE YEAR

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32508

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $22.2 million to REGAL SELECT SERVICES INC for work described as: FIRM FIXED PRICE FOR BASE YEAR Key points: 1. The contract's firm fixed-price structure provides cost certainty for the government. 2. Full and open competition suggests a potentially competitive bidding process. 3. The contract duration of 5 years (1825 days) indicates a long-term need for these services. 4. Facilities support services are critical for maintaining operational readiness. 5. The award was made by the Department of the Navy, a major component of the DoD. 6. The North American Industry Classification System (NAICS) code 561210 points to facilities support services. 7. The contract was awarded under the DCA (Defense Contract Audit Agency) designation. 8. The base year value of $22.2M requires careful monitoring for cost efficiency over its life.

Value Assessment

Rating: good

The contract's firm fixed-price (FFP) nature is generally favorable for cost control, as it shifts risk to the contractor. Benchmarking this specific $22.2M award requires more granular data on the scope of facilities support services provided. However, FFP contracts are standard for services where the scope is well-defined, aiming to prevent cost overruns. The absence of detailed performance metrics or comparison data makes a definitive value assessment challenging, but the pricing structure itself is a positive indicator for budget predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. This typically suggests a robust bidding process with the potential for multiple offers. The number of bidders (2) is on the lower side for full and open competition, which could warrant further investigation into market dynamics or potential barriers to entry. However, having at least two bidders generally allows for some price discovery and selection of the most advantageous offer.

Taxpayer Impact: A competitive bidding process, even with two bidders, is generally beneficial for taxpayers as it encourages contractors to offer competitive pricing to win the award.

Public Impact

Military personnel and civilian staff benefit from well-maintained facilities, ensuring operational readiness and a safe working environment. The services delivered include essential facility operations and maintenance, supporting the Navy's mission. The contract has a geographic impact primarily in Florida, where the facilities are located. The contract likely supports a workforce involved in facility management, maintenance, and related support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (2) in a full and open competition could indicate potential market concentration or barriers.
Lack of detailed performance data makes it difficult to assess the contractor's track record and value for money beyond the pricing structure.

Positive Signals

Firm Fixed Price contract type provides budget certainty and shifts cost risk to the contractor.
Full and Open Competition suggests an effort to maximize the pool of potential offerors.
Long contract duration (5 years) implies a stable, ongoing requirement for essential services.

Sector Analysis

Facilities Support Services, classified under NAICS code 561210, represent a significant segment of the government contracting market. This sector encompasses a wide range of services including building operation and maintenance, janitorial services, and groundskeeping. Government spending in this area is substantial, driven by the need to maintain extensive real property assets across various agencies. Comparable contracts often involve long-term agreements with fixed pricing structures to ensure predictable operational costs for essential infrastructure.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses stemming from a set-aside provision. The primary contractor, Regal Select Services Inc., would determine any subcontracting opportunities based on their own business strategy and the specific requirements of the facilities support services.

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. Performance monitoring, invoice review, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Base Operations Support (BOS)
Facilities Maintenance Contracts
Logistics and Support Services
Department of Defense Contracts
Naval Facilities Engineering Command Contracts

Risk Flags

Potential for underperformance due to long-term fixed pricing.
Risk of scope creep impacting contractor profitability or service quality.
Limited competition (2 bidders) may reduce price competitiveness.
Dependence on a single contractor for essential facilities services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.2 million to REGAL SELECT SERVICES INC. FIRM FIXED PRICE FOR BASE YEAR

Who is the contractor on this award?

The obligated recipient is REGAL SELECT 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 $22.2 million.

What is the period of performance?

Start: 2010-09-01. End: 2015-08-31.

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

Analyzing historical spending for facilities support services by the Department of the Navy in Florida requires access to detailed contract databases and budget allocations. Generally, the Navy maintains a significant real estate portfolio, necessitating consistent investment in facilities maintenance and operations. Spending patterns are influenced by factors such as infrastructure age, modernization initiatives, and operational tempo. Without specific historical data for this contract or similar services in the region, it's difficult to provide precise figures. However, it's reasonable to assume that annual spending in the multi-million dollar range is typical for comprehensive facilities support at major naval installations. Trends may show increases during periods of base expansion or significant repair cycles, and decreases during budget austerity measures.

How does the awarded price of $22.2 million compare to similar facilities support contracts?

Benchmarking the $22.2 million award requires comparing it against contracts with similar scope, duration, geographic location, and service complexity. Facilities support services can range widely, from basic janitorial to comprehensive base operations. A 5-year contract at this value suggests a substantial scope of work. To assess value, one would ideally compare the per-square-foot cost, cost per facility, or cost per service element against industry standards or other government contracts. Given the limited information, a direct comparison is challenging. However, for large-scale base operations or facility management contracts, multi-million dollar annual values are not uncommon, especially for military installations which often have extensive and specialized requirements.

What are the key performance indicators (KPIs) used to evaluate Regal Select Services Inc.'s performance under this contract?

Key Performance Indicators (KPIs) for facilities support contracts typically focus on service delivery, response times, and quality of work. Common KPIs include response times for maintenance requests (e.g., emergency vs. routine), completion rates for scheduled preventive maintenance, customer satisfaction scores from facility users, adherence to safety protocols, and energy efficiency targets. For this specific contract, the Department of the Navy would have established specific measurable standards within the Performance Work Statement (PWS). Regular performance reviews would assess Regal Select Services Inc.'s achievement against these KPIs, influencing payment and potential future contract awards. The absence of these specific KPIs in the award data limits a detailed performance assessment.

What is the contractor's track record with the Department of Defense or other federal agencies?

Regal Select Services Inc. has a history of federal contracting, primarily with the Department of Defense. Examining their past performance records, such as those available through the Federal Awardee Performance and Integrity Information System (FAPIIS), would provide insights into their reliability, quality of service, and compliance history. Federal agencies often use past performance evaluations as a significant factor in source selection. A positive track record with multiple agencies, particularly the DoD, suggests a demonstrated capability to meet government requirements. Conversely, any documented performance issues, disputes, or corrective actions would raise concerns about their suitability for current and future contracts.

What are the potential risks associated with a 5-year firm-fixed-price contract for facilities support?

A significant risk with a 5-year Firm-Fixed-Price (FFP) contract for facilities support is the potential for scope creep or unforeseen cost increases that are not adequately captured in the initial pricing. While FFP shifts cost risk to the contractor, if the scope of work expands significantly beyond the original PWS due to changing mission requirements or unforeseen facility issues, the contractor may struggle to maintain profitability without renegotiation, potentially impacting service quality. Conversely, if the government's needs decrease, they may be locked into paying for services no longer required. Another risk is contractor underperformance if they cut corners to maintain margins over the long term. Robust oversight and clear contract modification procedures are crucial to mitigate these risks.

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: N6945010R0778

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 110 WEST WILLIAMS STREET STE B, ABBEVILLE, AL, 01

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,229,312

Exercised Options: $22,229,312

Current Obligation: $22,229,312

Contract Characteristics

Cost or Pricing Data: NO

Timeline