NASA awards $33.5M custodial contract to Brevard Achievement Center, a sole-source provider

Contract Overview

Contract Amount: $33,464,743 ($33.5M)

Contractor: Brevard Achievement Center, Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2008-10-01

End Date: 2014-03-25

Contract Duration: 2,001 days

Daily Burn Rate: $16.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: KSC CUSTODIAL SERVICES CONTRACT

Place of Performance

Location: ORLANDO, BREVARD County, FLORIDA, 32899

State: Florida Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $33.5 million to BREVARD ACHIEVEMENT CENTER, INC. for work described as: KSC CUSTODIAL SERVICES CONTRACT Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Long contract duration of over 5 years may not reflect current market conditions. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Contractor is a non-profit organization, potentially impacting cost structures. 5. Services provided are essential for facility maintenance and operational readiness. 6. Geographic concentration in Florida for service delivery.

Value Assessment

Rating: fair

The contract's total value of $33.5 million over approximately 5.5 years averages to about $6 million annually. Without comparable contract data for custodial services at NASA facilities or similar government installations, a precise value-for-money assessment is challenging. However, the sole-source nature of the award raises concerns about whether the pricing reflects competitive market rates. The fixed-price structure is generally favorable for the government in controlling costs, but the lack of competition could lead to suboptimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This typically occurs when only one responsible source is available or capable of meeting the government's needs. The lack of competition means that NASA did not benefit from the price discovery and potential cost savings that a competitive bidding process could have provided. The justification for this sole-source award would need to be thoroughly reviewed to understand why other potential providers were not considered.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to secure the best possible value for public funds.

Public Impact

The primary beneficiary is NASA, ensuring the cleanliness and maintenance of its facilities at the Kennedy Space Center. Essential janitorial and custodial services are delivered, contributing to a safe and functional work environment. The geographic impact is localized to the Kennedy Space Center in Florida. The contract supports the workforce employed by Brevard Achievement Center, a non-profit organization. Maintains operational readiness and a professional appearance for a critical federal agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competitive pricing and potential cost savings for taxpayers.
  • Long contract duration may not align with current market efficiencies or technological advancements in custodial services.
  • Lack of transparency in the justification for sole-source procurement.

Positive Signals

  • Contract awarded to a non-profit organization, potentially aligning with social good objectives.
  • Fixed-price contract shifts performance risk to the contractor, ensuring cost certainty for the government.
  • Essential services are secured for NASA's critical facilities.

Sector Analysis

The custodial services sector is a mature and competitive market, with numerous firms offering janitorial and facility maintenance. Government contracts for these services are common across various agencies. While this contract is for a significant dollar amount, it represents a small portion of the overall federal spending on facilities maintenance. Benchmarking against similar-sized custodial contracts for large federal installations would be necessary for a more precise value assessment, but the sole-source nature complicates direct comparisons.

Small Business Impact

This contract was not awarded as a small business set-aside, and the contractor, Brevard Achievement Center, is a non-profit organization. There is no indication of subcontracting requirements for small businesses within the provided data. The award to a non-profit may have implications for the broader small business ecosystem if those funds could have otherwise been directed to for-profit small businesses through competitive set-asides.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the National Aeronautics and Space Administration's contracting officers and program managers. Accountability measures are inherent in the fixed-price contract structure, requiring the contractor to deliver specified services. Transparency regarding the sole-source justification and performance metrics would be key areas for oversight. The Inspector General's office may conduct audits or investigations if concerns arise regarding contract performance or procurement integrity.

Related Government Programs

  • Federal Custodial Services Contracts
  • NASA Facility Maintenance Contracts
  • Non-Profit Government Contractors
  • Sole-Source Procurement Analysis

Risk Flags

  • Sole-source award
  • Lack of competitive bidding
  • Long contract duration

Tags

nasa, custodial-services, florida, sole-source, fixed-price, non-profit, facility-maintenance, large-contract, brevard-achievement-center, kennedy-space-center

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $33.5 million to BREVARD ACHIEVEMENT CENTER, INC.. KSC CUSTODIAL SERVICES CONTRACT

Who is the contractor on this award?

The obligated recipient is BREVARD ACHIEVEMENT CENTER, INC..

Which agency awarded this contract?

Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).

What is the total obligated amount?

The obligated amount is $33.5 million.

What is the period of performance?

Start: 2008-10-01. End: 2014-03-25.

What is the track record of Brevard Achievement Center as a federal contractor, particularly with NASA?

Brevard Achievement Center (BAC) has a history of contracting with the federal government, including NASA. As a non-profit organization, BAC often focuses on providing employment opportunities for individuals with disabilities. Their track record with NASA likely centers on fulfilling essential support services, such as custodial work. While specific performance details are not provided in this data, their continued awards suggest a satisfactory performance history in meeting contractual obligations. Further investigation into past performance reviews and any documented issues would provide a more comprehensive understanding of their reliability and effectiveness as a federal contractor.

How does the pricing of this $33.5 million custodial contract compare to similar contracts for NASA or other federal agencies?

A direct, precise comparison of pricing is difficult without access to detailed cost breakdowns and market data for comparable contracts. However, the contract's value of approximately $6 million annually for custodial services at a major NASA facility is substantial. The sole-source nature of this award raises a red flag regarding potential overpricing, as competitive bidding typically drives prices down. To benchmark effectively, one would need to identify similar-sized custodial contracts at other large federal installations (e.g., other NASA centers, military bases) that were awarded competitively. Analyzing the scope of services, square footage, and labor rates in those comparable contracts would allow for a more informed assessment of whether Brevard Achievement Center's pricing is reasonable or inflated due to the lack of competition.

What are the primary risks associated with this sole-source custodial services contract?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the absence of competitive pressure. Without multiple bidders vying for the contract, the government may not be securing the most cost-effective solution. Another risk is the potential for complacency from the contractor, as there is no immediate threat of losing the contract to a competitor. Furthermore, the long duration of the contract (over 5 years) increases the risk that the pricing and service levels may become misaligned with evolving market standards or technological advancements in custodial services over time. Ensuring robust oversight and performance monitoring is crucial to mitigate these risks.

How effective is the fixed-price contract type in ensuring performance for these essential custodial services?

The fixed-price contract type is generally effective in ensuring performance for essential services like custodial work because it shifts the primary financial risk to the contractor. Brevard Achievement Center is obligated to provide the specified services within the agreed-upon price. If costs exceed the fixed price due to contractor inefficiencies or unforeseen issues, the contractor absorbs those losses. Conversely, if the contractor can perform the services more efficiently than anticipated, they retain the profit. This structure incentivizes the contractor to manage costs effectively and deliver the required services to maintain profitability, thereby promoting performance. However, the government must still actively monitor performance to ensure quality standards are met.

What is the historical spending pattern for custodial services at NASA's Kennedy Space Center?

The provided data indicates a single contract for custodial services at KSC valued at $33.5 million, spanning from October 2008 to March 2014. This suggests a significant, long-term commitment to a single provider for these essential services. Without access to historical procurement databases or agency budget reports, it's difficult to establish a broader spending pattern. However, the duration and value of this contract imply that custodial services are a consistent and substantial operational expense for NASA at KSC. Future spending would likely depend on NASA's ongoing facility needs, budget allocations, and procurement strategies, which could involve continued sole-source awards or a shift towards competitive contracting.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesServices to Buildings and DwellingsJanitorial Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1845 COGSWELL ST, ROCKLEDGE, FL, 08

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,523,704

Exercised Options: $33,523,704

Current Obligation: $33,464,743

Timeline

Start Date: 2008-10-01

Current End Date: 2014-03-25

Potential End Date: 2014-03-25 00:00:00

Last Modified: 2014-03-26

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