Treasury's $26M Facilities Management Contract with National Facility Services Faces Scrutiny

Contract Overview

Contract Amount: $26,027,290 ($26.0M)

Contractor: National Facility Services Inc

Awarding Agency: Department of the Treasury

Start Date: 2015-10-01

End Date: 2022-03-31

Contract Duration: 2,373 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS - CONSOLIDATED FACILITIES MANAGEMENT CONTRACT - ANDOVER

Place of Performance

Location: BOYLSTON, WORCESTER County, MASSACHUSETTS, 01505

State: Massachusetts Government Spending

Plain-Language Summary

Department of the Treasury obligated $26.0 million to NATIONAL FACILITY SERVICES INC for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS - CONSOLIDATED FACILITIES MANAGEMENT CONTRACT - ANDOVER Key points: 1. The contract awarded to National Facility Services Inc. for facilities management services is a significant expenditure. 2. Competition was conducted under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting potential limitations. 3. The contract duration of 2373 days (over 6 years) indicates a long-term commitment. 4. The 'FIRM FIXED PRICE' contract type aims to control costs but may limit flexibility. 5. The absence of small business participation is noted.

Value Assessment

Rating: fair

The contract's value of $26 million over approximately 6.5 years averages around $4 million annually. Benchmarking against similar large-scale facilities management contracts is difficult without more granular service details, but the overall value appears substantial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that while open, certain sources were initially excluded, potentially impacting the breadth of competition and price discovery. This method requires justification.

Taxpayer Impact: The total value of $26 million represents a significant taxpayer investment. The effectiveness of the competition method in securing the best value for taxpayers is a key consideration.

Public Impact

Taxpayers fund essential facilities management services for the IRS, ensuring operational continuity. The long-term nature of the contract impacts budget predictability for the agency. The contract's performance directly affects the working environment for IRS employees. The exclusion of certain sources in the competition raises questions about fairness and potential cost savings missed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method
No small business participation
Long contract duration

Positive Signals

Firm fixed price contract type
Consolidated facilities management

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad category encompassing maintenance, operation, and management of buildings and grounds. Spending in this sector can vary widely based on facility size, complexity, and geographic location. This contract appears to be a significant investment within this sector for the IRS.

Small Business Impact

The data indicates that small businesses were not involved in this contract (ss: false, sb: false). This suggests that the prime contractor did not subcontract to small businesses or that the contract was not set aside for them, potentially limiting opportunities for smaller enterprises.

Oversight & Accountability

Oversight of this contract would involve monitoring performance against service level agreements, ensuring compliance with contract terms, and verifying that the fixed price remains competitive throughout its duration. The IRS's contracting office and potentially an IG would be responsible.

Related Government Programs

Facilities Support Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Potential for reduced competition due to source exclusion.
Lack of small business participation.
Long contract duration may reduce flexibility and increase risk of cost escalation if not managed well.
Need for robust performance monitoring to ensure value for money over the contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $26.0 million to NATIONAL FACILITY SERVICES INC. IGF::OT::IGF FOR OTHER FUNCTIONS - CONSOLIDATED FACILITIES MANAGEMENT CONTRACT - ANDOVER

Who is the contractor on this award?

The obligated recipient is NATIONAL FACILITY SERVICES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.0 million.

What is the period of performance?

Start: 2015-10-01. End: 2022-03-31.

What was the justification for excluding specific sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process, and did this exclusion lead to a less competitive bidding environment?

The justification for excluding sources typically relates to specific technical requirements, past performance, or proprietary capabilities. Without further documentation, it's unclear if this exclusion limited competition. However, any exclusion inherently reduces the pool of potential bidders, which could impact price discovery and potentially lead to higher costs for the government compared to a truly open competition.

How does the per-unit cost or service delivery cost compare to industry benchmarks for similar facilities management services, considering the contract's duration and scope?

Benchmarking this contract's cost is challenging without detailed service breakdowns. However, the $26 million total over 6.5 years suggests significant annual spending. A thorough review would involve comparing specific service costs (e.g., HVAC maintenance, janitorial services, groundskeeping) against industry averages for facilities of comparable size and complexity to assess value for money.

What mechanisms are in place to ensure effective performance and accountability from National Facility Services Inc. throughout the contract's extended duration, especially given the lack of small bus

Effective oversight mechanisms would include regular performance reviews, clear service level agreements (SLAs), and robust reporting requirements. The agency should actively monitor contractor performance and address any deficiencies promptly. The absence of small business participation doesn't directly impact accountability but might indicate a missed opportunity for broader economic impact and potentially diverse service delivery approaches.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: TIRNE15R00001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 730 MAIN ST, BOYLSTON, MA, 01505

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

Financial Breakdown

Contract Ceiling: $26,027,290

Exercised Options: $26,027,290

Current Obligation: $26,027,290

Actual Outlays: $10,890,109

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline