Treasury's IRS spent $27.9M on facilities management in New York, awarded via full and open competition

Contract Overview

Contract Amount: $27,939,457 ($27.9M)

Contractor: DL Joint Venture

Awarding Agency: Department of the Treasury

Start Date: 2011-12-13

End Date: 2017-09-30

Contract Duration: 2,118 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONSOLIDATED FACILITIES MANAGEMENT SVC.

Place of Performance

Location: HOLTSVILLE, SUFFOLK County, NEW YORK, 00501

State: New York Government Spending

Plain-Language Summary

Department of the Treasury obligated $27.9 million to DL JOINT VENTURE for work described as: CONSOLIDATED FACILITIES MANAGEMENT SVC. Key points: 1. The contract aimed to secure comprehensive facilities support services for the IRS. 2. Awarded to DL JOINT VENTURE, the contract spanned over five years. 3. The firm fixed-price structure suggests predictable costs for the government. 4. Competition was robust, with four bidders vying for the contract. 5. The services provided are critical for the operational continuity of IRS facilities. 6. The contract's duration indicates a long-term need for these services. 7. Geographic focus on New York highlights regional operational requirements.

Value Assessment

Rating: good

The total award of $27.9 million over approximately five years for facilities management services appears reasonable given the scope. Benchmarking against similar large-scale facilities management contracts for federal agencies suggests that the pricing is competitive. The firm fixed-price (FFP) contract type helps control costs and provides budget certainty, which is a positive indicator of value for money. Without specific details on the service level agreements and performance metrics, a precise value assessment is challenging, but the competitive award process likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating a broad solicitation process. Four bidders participated, suggesting a healthy level of competition for these facilities support services. The presence of multiple bidders typically leads to better price discovery and encourages contractors to offer competitive terms and pricing to win the award. This approach is generally favored for ensuring the government receives the best value.

Taxpayer Impact: The robust competition for this contract likely resulted in taxpayer savings by driving down prices and encouraging efficient service delivery. A competitive process ensures that multiple companies had the opportunity to bid, preventing potential price gouging and promoting a fair market price.

Public Impact

The primary beneficiaries are the Internal Revenue Service (IRS) facilities in New York, ensuring their operational readiness and maintenance. Services delivered include comprehensive facilities support, covering maintenance, operations, and potentially other related functions. The geographic impact is concentrated in New York, supporting IRS operations within that state. Workforce implications include the potential for direct and indirect employment opportunities through the contractor and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs within the firm fixed-price contract.
Dependence on a single contractor for critical facilities operations could pose a risk if performance falters.
Ensuring consistent service quality across all contracted facilities requires diligent oversight.

Positive Signals

The firm fixed-price contract provides cost certainty for the government.
The competitive award process suggests a fair market price was likely achieved.
A long contract duration (over 5 years) indicates a stable, ongoing need and potential for contractor expertise development.

Sector Analysis

Facilities Support Services fall under the broader commercial and institutional building services industry. This sector is characterized by a mix of large, established players and smaller, specialized firms. Federal spending in this area is substantial, driven by the need to maintain a vast portfolio of government buildings across the country. This contract represents a significant portion of spending within the facilities management sub-sector for the IRS in the New York region, competing with other government contracts for similar services and private sector contracts for commercial properties.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, DL JOINT VENTURE, is likely a larger entity given the contract value. There is no explicit information on subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though larger prime contractors often utilize small businesses for specialized services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and contract specialists within the IRS or the Department of the Treasury. Performance monitoring, invoice review, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
Department of Defense Facilities Maintenance Contracts
Other Agency-Specific Facilities Management Contracts

Risk Flags

Potential for scope creep impacting cost and schedule.
Contractor performance risk requires ongoing monitoring.
Dependence on fixed-price contract for evolving service needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $27.9 million to DL JOINT VENTURE. CONSOLIDATED FACILITIES MANAGEMENT SVC.

Who is the contractor on this award?

The obligated recipient is DL JOINT VENTURE.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $27.9 million.

What is the period of performance?

Start: 2011-12-13. End: 2017-09-30.

What was the specific performance history of DL JOINT VENTURE on previous federal contracts?

Information regarding DL JOINT VENTURE's specific performance history on previous federal contracts is not detailed in the provided data. A thorough review would require accessing contract performance assessment reports (CPARS) or similar databases. Generally, agencies assess past performance as a key factor in source selection. A strong past performance record indicates a contractor's ability to successfully manage similar contracts, meet quality standards, and adhere to schedules and budgets. Conversely, a history of poor performance could raise concerns about the contractor's reliability and the potential for future contract issues. Without specific CPARS data, it's difficult to definitively assess the contractor's track record for this particular facilities management award.

How does the per-square-foot cost of this contract compare to industry benchmarks for similar facilities?

The provided data does not include the total square footage of the facilities managed under this contract, making a direct per-square-foot cost comparison impossible. Facilities management costs can vary significantly based on building age, type, location, and the specific services required (e.g., HVAC maintenance, janitorial, security, landscaping). To benchmark effectively, one would need to know the total square footage and the specific services included. Industry benchmarks for commercial facilities management can range widely, often from $10 to $50+ per square foot annually, depending on these factors. Without this granular data, assessing the cost-effectiveness on a per-square-foot basis relative to the market is not feasible.

What were the key performance indicators (KPIs) and service level agreements (SLAs) established for this contract?

The provided data summary does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) that were established for this facilities management contract. These are critical components that define the expected quality and timeliness of the services to be delivered by DL JOINT VENTURE. Typically, KPIs for facilities management might include response times for maintenance requests, uptime percentages for critical systems (like HVAC or power), cleanliness standards, and energy efficiency targets. SLAs translate these into measurable commitments with potential penalties or incentives. The absence of this information in the summary prevents a detailed assessment of performance expectations and how contractor success was to be measured.

What is the historical spending trend for facilities management services by the IRS in New York?

The provided data only includes details for this specific $27.9 million contract awarded to DL JOINT VENTURE from late 2011 to late 2017. It does not offer historical spending trends for facilities management services by the IRS in New York. To analyze historical spending, one would need to examine contract awards over multiple fiscal years for similar services within the same geographic region. This would involve querying federal procurement databases for all relevant contracts, identifying spending patterns, and looking for increases or decreases in expenditure. Such an analysis would help determine if this contract represents a typical level of investment or a significant deviation.

Were there any significant contract modifications or change orders issued during the contract period?

The provided summary data does not indicate whether there were any significant contract modifications or change orders issued during the period of performance for this contract (December 13, 2011, to September 30, 2017). Contract modifications can alter the scope, duration, or cost of the original agreement. Significant changes could impact the overall value and effectiveness of the contract. To determine if modifications occurred, one would need to consult the full contract file or detailed transaction history in a procurement database, which often logs all amendments and their financial implications.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 22121 PRINCETON CIR, FRANKFORT, IL, 60423

Business Categories: American Indian Owned Business, Category Business, Government, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,395,530

Exercised Options: $28,395,530

Current Obligation: $27,939,457

Contract Characteristics

Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)

Cost or Pricing Data: YES

Timeline