VA's $27.7M Facilities Maintenance Contract Awarded to Prosource Consulting, LLC Under Full and Open Competition

Contract Overview

Contract Amount: $27,683,162 ($27.7M)

Contractor: Prosource Consulting , LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-04-01

End Date: 2020-09-30

Contract Duration: 1,643 days

Daily Burn Rate: $16.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF CONSOLIDATED FACILITIES MAINTENANCE

Place of Performance

Location: BROOKLYN, KINGS County, NEW YORK, 11209

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $27.7 million to PROSOURCE CONSULTING , LLC for work described as: IGF::OT::IGF CONSOLIDATED FACILITIES MAINTENANCE Key points: 1. Contract awarded to Prosource Consulting, LLC for facilities support services. 2. The contract was competed under a full and open competition. 3. The contract duration spans over 4 years, from April 2016 to September 2020. 4. The total award amount is approximately $27.7 million. 5. The contract type is Firm Fixed Price, indicating predictable costs. 6. The North American Industry Classification System (NAICS) code is 561210 for Facilities Support Services. 7. The contract was awarded as a Delivery Order. 8. The place of performance is New York.

Value Assessment

Rating: good

The total award of $27.7 million over approximately 4 years suggests a moderate annual spend for facilities support services. Benchmarking this against similar contracts would require access to a broader dataset of VA or other federal agency facilities maintenance contracts. However, the firm fixed-price nature of the contract provides cost certainty for the government, which is a positive indicator of value. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money 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 a full and open competition, meaning all responsible sources were permitted to submit offers. The data indicates there were 4 bids received. A full and open competition generally fosters a competitive environment, which can lead to better pricing and service quality as contractors vie for the award. The presence of multiple bidders suggests a healthy level of market interest and potential for price discovery.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value by encouraging a wide range of offers and driving down prices through market forces.

Public Impact

The Department of Veterans Affairs benefits from this contract by ensuring the maintenance and operation of its facilities. This contract supports the delivery of essential facilities support services, contributing to the overall functionality of VA operations. The geographic impact is primarily in New York, where the services are performed. The contract likely supports a workforce involved in facilities maintenance, janitorial services, and potentially other support functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite fixed-price contract.
Dependence on a single contractor for critical facilities maintenance could pose a risk if performance falters.
Ensuring consistent service quality across the contract duration requires robust oversight.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm Fixed Price contract type provides cost predictability for the government.
Contract duration of over 4 years allows for stable service provision and potential for contractor expertise development.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, represents a significant segment of the government contracting market. This sector encompasses a wide range of services essential for the operation and maintenance of government buildings and infrastructure. Spending in this area is often consistent due to the ongoing need for upkeep. Comparable spending benchmarks would typically involve analyzing the total federal outlays for facilities maintenance across various agencies and contract types, which often run into billions of dollars annually.

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 impacts on the small business ecosystem stemming from a small business set-aside. The competition was full and open, allowing large businesses to compete. Future contracts in this category might benefit from specific small business considerations to foster broader participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Veterans Affairs. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office of the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Facilities Maintenance Contracts
Department of Veterans Affairs Operations and Maintenance
Government-wide Facilities Support Services
General Services Administration (GSA) Schedules for Facilities Management

Risk Flags

Potential for service quality degradation if cost-cutting measures are implemented by the contractor.
Risk of scope creep without proper contract modification procedures.
Dependence on a single vendor for critical infrastructure support.
Need for continuous performance monitoring to ensure adherence to contract terms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $27.7 million to PROSOURCE CONSULTING , LLC. IGF::OT::IGF CONSOLIDATED FACILITIES MAINTENANCE

Who is the contractor on this award?

The obligated recipient is PROSOURCE CONSULTING , LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $27.7 million.

What is the period of performance?

Start: 2016-04-01. End: 2020-09-30.

What is Prosource Consulting, LLC's track record with federal contracts, particularly with the Department of Veterans Affairs?

Prosource Consulting, LLC has been awarded federal contracts, including this significant facilities maintenance contract with the Department of Veterans Affairs (VA). A deeper dive into their contract history would reveal the number of contracts awarded, their total value, performance ratings (if available), and any past performance issues or commendations. Examining their portfolio across different agencies and contract types would provide a comprehensive understanding of their experience and reliability as a federal contractor. This specific contract, valued at approximately $27.7 million over four years, suggests a substantial engagement with the VA, indicating a level of trust and capability in managing large-scale service agreements.

How does the $27.7 million award compare to similar facilities maintenance contracts awarded by the VA or other federal agencies?

The $27.7 million award for facilities maintenance over approximately four years represents an average annual expenditure of roughly $6.9 million. To benchmark this effectively, one would need to compare it against a dataset of similar contracts for facilities support services (NAICS 561210) awarded by the VA and other agencies like the General Services Administration (GSA) or the Department of Defense. Factors such as facility size, geographic location, scope of services (e.g., janitorial, HVAC, groundskeeping), and contract duration significantly influence pricing. A full and open competition with multiple bidders, as in this case, generally suggests a competitive price point. However, without specific comparable contract data, it's difficult to definitively state if this award represents exceptional value or is within the expected market range.

What are the primary risks associated with this firm fixed-price contract for facilities maintenance?

While a firm fixed-price (FFP) contract offers cost certainty, risks can still emerge. One primary risk is the potential for the contractor, Prosource Consulting, LLC, to cut corners on service quality to maintain profitability if their initial cost estimates were too low or if unforeseen operational challenges arise. Scope creep, where the government requests additional services not originally defined in the contract, can also become a risk if not managed meticulously, potentially leading to disputes or the need for contract modifications. Furthermore, over-reliance on a single contractor for critical facilities maintenance could pose a disruption risk if the contractor experiences financial instability, labor disputes, or significant performance failures. Robust government oversight and clear performance metrics are crucial to mitigate these risks.

How effective has the VA been in managing facilities maintenance contracts of this scale and type?

Assessing the overall effectiveness of the VA in managing facilities maintenance contracts requires a broader analysis of their contract performance data, including past performance reviews, contract close-out data, and any documented disputes or successful resolutions. This specific contract, awarded under full and open competition and completed within its timeframe, suggests a degree of successful management. However, the VA has faced scrutiny in various areas, and contract management effectiveness can vary significantly by program, agency component, and contracting office. Evaluating the effectiveness would involve examining metrics related to service delivery, cost control, contractor performance, and stakeholder satisfaction over the contract's lifecycle.

What are the historical spending patterns for facilities support services by the Department of Veterans Affairs?

Historical spending patterns for facilities support services by the Department of Veterans Affairs (VA) typically show a consistent and substantial investment due to the extensive network of hospitals, clinics, and administrative buildings they operate. Annual spending often runs into hundreds of millions, if not billions, of dollars across various contracts, including maintenance, repair, custodial services, and groundskeeping. This spending is influenced by factors such as the age and condition of facilities, expansion projects, and evolving healthcare delivery models. Analyzing trends over several fiscal years would reveal fluctuations based on budget allocations, infrastructure needs, and strategic priorities within the VA.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7450 HERITAGE VILLAGE PLZ UNIT 201, GAINESVILLE, VA, 20155

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $37,429,039

Exercised Options: $28,235,883

Current Obligation: $27,683,162

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS21F0062V

IDV Type: FSS

Timeline