DoD's $50M Fort Knox Base Operations Contract Awarded to Professional Contract Services, Inc

Contract Overview

Contract Amount: $50,008,791 ($50.0M)

Contractor: Professional Contract Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-12-01

End Date: 2025-11-30

Contract Duration: 730 days

Daily Burn Rate: $68.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FT. KNOX BASE OPERATION SUPPORT SERVICES

Place of Performance

Location: FORT KNOX, HARDIN County, KENTUCKY, 40121

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $50.0 million to PROFESSIONAL CONTRACT SERVICES, INC. for work described as: FT. KNOX BASE OPERATION SUPPORT SERVICES Key points: 1. Contract value of $50M over two years suggests significant operational scope. 2. Awarded on a 'not available for competition' basis, raising questions about market testing. 3. The firm fixed-price contract type shifts performance risk to the contractor. 4. Facilities Support Services (NAICS 561210) is a broad category encompassing many essential base functions. 5. The contract duration of 730 days allows for stable service delivery but limits re-competition opportunities. 6. The base is located in Kentucky, indicating a regional economic impact.

Value Assessment

Rating: fair

Benchmarking the value of this $50M contract is challenging without specific service details. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be favorable for the government if managed effectively. However, the lack of competition makes it difficult to assess if the pricing reflects competitive market rates. Comparing this to similar base operation contracts across the DoD would be necessary for a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'not available for competition' basis, indicating that a competitive process was not utilized. This typically occurs when only one source is capable of meeting the government's needs, often due to specialized requirements, urgent needs, or existing infrastructure. The lack of multiple bidders means there was no direct price comparison or incentive for vendors to offer their best pricing.

Taxpayer Impact: The absence of competition means taxpayers may not have benefited from the cost savings typically achieved through a bidding process, potentially leading to a higher overall cost for these essential base support services.

Public Impact

The primary beneficiaries are the U.S. Army personnel and operations at Fort Knox, Kentucky, who will receive essential base support services. Services delivered likely include a wide range of facilities management, maintenance, and operational support critical for base functionality. The geographic impact is concentrated in Kentucky, supporting local employment and businesses through the contractor's operations. Workforce implications include direct and indirect job creation by Professional Contract Services, Inc. in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially increases costs for taxpayers.
The broad scope of 'Facilities Support Services' could mask inefficiencies if not closely monitored.
Contract duration of two years without competition reduces opportunities for performance improvement through market forces.

Positive Signals

Firm fixed-price contract shifts cost overrun risk to the contractor.
Awarding to a single entity can ensure continuity of essential base operations.
The contract value suggests a significant scope of services, potentially covering critical functions.

Sector Analysis

The Facilities Support Services sector (NAICS 561210) is a substantial part of the government contracting landscape, encompassing a wide array of services essential for maintaining government facilities. This contract fits within the broader defense sector's need for reliable base operations. Comparable spending benchmarks for base operations can vary widely depending on the size and strategic importance of the installation, but contracts in the tens of millions of dollars are common for large bases.

Small Business Impact

The data indicates that small business participation was not a stated requirement or outcome for this contract, as the 'sb' field is false. There is no information provided regarding subcontracting plans for small businesses. This suggests that the primary contractor, Professional Contract Services, Inc., is expected to perform the majority of the work, and opportunities for small businesses within this specific contract may be limited unless proactively sought by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices at Fort Knox. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver specified services within the agreed price. Transparency is limited by the sole-source nature of the award, but contract performance metrics and payment information should be publicly accessible through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support Services
Facilities Maintenance and Management
Department of Defense Contracts
Army Installation Support

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.0 million to PROFESSIONAL CONTRACT SERVICES, INC.. FT. KNOX BASE OPERATION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is PROFESSIONAL CONTRACT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $50.0 million.

What is the period of performance?

Start: 2023-12-01. End: 2025-11-30.

What specific services are included under 'Facilities Support Services' for Fort Knox?

While the specific line items are not detailed in the provided data, 'Facilities Support Services' (NAICS 561210) typically encompasses a broad range of activities essential for the operation and maintenance of a military installation. This can include, but is not limited to, grounds maintenance, custodial services, pest control, refuse collection, facility repair and maintenance (HVAC, plumbing, electrical), transportation services, mail services, and potentially security or fire protection services. The exact scope is defined in the Performance Work Statement (PWS) of the contract, which would detail the required tasks, standards, and performance metrics.

Why was this contract awarded on a 'not available for competition' basis?

Contracts are awarded on a 'not available for competition' basis when only one responsible source is capable of providing the required supplies or services. Common justifications include urgent and compelling needs where delay would cause serious injury to the government, or when the services require unique capabilities, specialized knowledge, or proprietary technology possessed by only one contractor. For base operations, this could potentially arise if a contractor had unique infrastructure or systems already in place that were critical and costly to replicate, or if there was an immediate, unforeseen need that precluded a lengthy competitive process. The specific justification would be documented in the contract award file.

How does the firm fixed-price contract type benefit the government in this scenario?

The firm fixed-price (FFP) contract type is generally considered advantageous for the government when the scope of work is well-defined and the risk of cost overruns can be reasonably estimated. Under an FFP contract, the contractor agrees to a total price for a well-defined effort, and is responsible for all costs incurred to complete the work. This shifts the financial risk of performance to the contractor. For the government, this provides cost certainty, as the price is fixed regardless of the contractor's actual costs. It incentivizes the contractor to control costs and improve efficiency to maximize profit, which can indirectly benefit the government through better service delivery.

What is the typical market size for Facilities Support Services contracts awarded by the DoD?

The market for Facilities Support Services (NAICS 561210) awarded by the Department of Defense is substantial, encompassing numerous contracts across various installations and agencies. While specific figures fluctuate annually, the DoD consistently awards billions of dollars in contracts for base operations and facility support. These contracts range from small, localized maintenance agreements to large, comprehensive base operations support (BOS) contracts similar in nature to this one, often valued in the tens or hundreds of millions of dollars. The market is competitive, with numerous large and small businesses vying for these essential service contracts, although specific justifications can lead to sole-source awards.

What are the potential risks associated with a sole-source award for base operations?

The primary risk associated with a sole-source award for base operations is the potential for inflated pricing due to the lack of competition. Without competing bids, the government may not achieve the best possible price for the services rendered. Additionally, a sole-source award can reduce the incentive for the contractor to innovate or improve service quality beyond the minimum required, as there is no direct market pressure from competitors. There's also a risk if the sole-source contractor experiences financial difficulties or performance issues, as finding and transitioning to an alternative provider can be complex and disruptive.

How does the duration of this contract (730 days) impact service continuity and cost?

A contract duration of 730 days (two years) provides a significant period of stability for essential base operations at Fort Knox. This continuity allows the contractor, Professional Contract Services, Inc., to plan resources effectively and ensures uninterrupted service delivery, which is critical for military readiness and personnel welfare. From a cost perspective, a longer duration can sometimes lead to better pricing as the contractor can amortize startup costs over a longer period. However, it also means the government is locked into a specific price for two years, potentially missing out on cost savings if market rates were to decrease or if a more efficient contractor emerged during that time.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 718 W FM 1626, AUSTIN, TX, 78748

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: $134,442,527

Exercised Options: $68,550,485

Current Obligation: $50,008,791

Actual Outlays: $6,446,990

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $371,042

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline