Dod's $23.4M Real Estate Services Contract Awarded to Arsenal Business and Technology Partnership, Ltd. With No Competition

Contract Overview

Contract Amount: $23,386,764 ($23.4M)

Contractor: Arsenal Business and Technology Partnership, Ltd.

Awarding Agency: Department of Defense

Start Date: 2006-08-11

End Date: 2010-08-11

Contract Duration: 1,461 days

Daily Burn Rate: $16.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SERVICES

Place of Performance

Location: WATERVLIET, ALBANY County, NEW YORK, 12189

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $23.4 million to ARSENAL BUSINESS AND TECHNOLOGY PARTNERSHIP, LTD. for work described as: SERVICES Key points: 1. The contract's value of $23.4 million over four years suggests a significant investment in real estate services. 2. The absence of competition raises concerns about potential overpricing and lack of innovation. 3. The contract's duration of 1461 days (4 years) indicates a long-term need for these services. 4. The firm fixed-price contract type aims to control costs, but the lack of competition may undermine this. 5. The contract is categorized under 'Other Activities Related to Real Estate', suggesting specialized support. 6. The award to a single vendor without a competitive process warrants scrutiny for fairness and value.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive data. However, a $23.4 million award for real estate services over four years, especially without competition, suggests a potentially high per-unit cost or an inflated overall price. Without comparable bids or market analysis, it's difficult to definitively assess value for money. The firm fixed-price nature offers some cost control, but the absence of competitive pressure could lead to inefficiencies or higher-than-market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This indicates that the Department of the Army identified a specific need that they believed only ARSENAL BUSINESS AND TECHNOLOGY PARTNERSHIP, LTD. could fulfill, or that circumstances precluded a competitive process. The lack of multiple bidders means there was no opportunity for price discovery through market forces, potentially leading to a less favorable price for the government.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive bidding. The government missed the opportunity to leverage market competition to secure the best possible price and terms.

Public Impact

The primary beneficiaries are likely the Department of Defense and its various installations requiring real estate support services. The services delivered are categorized under 'Other Activities Related to Real Estate', which could include property management, leasing, acquisition support, or other specialized real estate functions. The geographic impact is likely concentrated in areas where the Department of the Army operates and requires real estate expertise. Workforce implications could involve the utilization of specialized real estate professionals, either employed by the contractor or potentially augmented by government personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award raises questions about the necessity and justification for not competing.
Limited transparency into the selection process due to the absence of bids.
Potential for vendor lock-in given the long-term nature of the contract without competitive pressure.

Positive Signals

Firm fixed-price contract type helps to establish a clear cost ceiling.
The contract duration suggests a stable, long-term requirement for these services.
Award to a single entity might indicate specialized expertise or a unique capability.

Sector Analysis

The contract falls within the professional services sector, specifically focusing on real estate. The market for government real estate services is substantial, encompassing property management, acquisition, leasing, and disposal. This contract represents a portion of the Department of Defense's broader spending on facilities and infrastructure management. Comparable spending benchmarks would typically involve analyzing other large-scale real estate service contracts awarded by federal agencies, considering the scope of services and contract duration.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. The award to a single, likely larger, entity without specific small business considerations suggests that opportunities for small businesses in this specific procurement may have been limited.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve contract officers, program managers, and potentially inspectors general within the Department of Defense. Accountability measures would be tied to the performance metrics and deliverables outlined in the contract. Transparency is limited due to the sole-source nature of the award, making it difficult for the public to assess the justification and fairness of the procurement process.

Related Government Programs

Department of Defense Facilities Management
Federal Real Estate Services
Army Installation Support Contracts
Government Property Management
Real Estate Advisory Services

Risk Flags

Sole-source award without clear justification.
Potential for inflated pricing due to lack of competition.
Limited transparency in the procurement process.
Absence of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.4 million to ARSENAL BUSINESS AND TECHNOLOGY PARTNERSHIP, LTD.. SERVICES

Who is the contractor on this award?

The obligated recipient is ARSENAL BUSINESS AND TECHNOLOGY PARTNERSHIP, LTD..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.4 million.

What is the period of performance?

Start: 2006-08-11. End: 2010-08-11.

What specific real estate services are covered under this contract?

The contract is broadly categorized under 'Other Activities Related to Real Estate' (NAICS code 531390). While the specific services are not detailed in the provided data, this category typically encompasses a wide range of activities. These could include property management, leasing and leasing administration, real estate consulting, site selection, acquisition and disposal support, appraisal services, and potentially environmental assessments related to real property. The exact scope would be defined in the contract's statement of work, which is not available here. Given the significant value and duration, it likely involves comprehensive support for a portfolio of Army real estate assets.

What is the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED' and is a 'SOLE SOURCE'. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. Without further documentation (like a Justification and Approval document), the specific reason for this sole-source award remains unknown. It could be due to unique capabilities possessed by ARSENAL BUSINESS AND TECHNOLOGY PARTNERSHIP, LTD., proprietary technology, or a situation where a competitive process was deemed impractical or not in the government's best interest at the time of award.

How does the firm fixed-price contract type mitigate risks in a sole-source award?

A firm fixed-price (FFP) contract type establishes a ceiling price that the contractor agrees not to exceed. This shifts the risk of cost overruns from the government to the contractor. In a sole-source situation, where competitive pressure is absent, the FFP structure is particularly important for the government. It provides a defined budget and incentivizes the contractor to manage their costs efficiently to maximize their profit margin. However, it does not guarantee the 'best' price, as the baseline price was not determined through competition. The government still needs to ensure the initial price is fair and reasonable through negotiation and market research, even in a sole-source context.

What is the historical spending pattern for similar real estate services by the Department of the Army?

Analyzing historical spending patterns for similar real estate services by the Department of the Army requires access to comprehensive federal procurement data beyond this single contract. Generally, the Army, as a major component of the Department of Defense, manages vast real estate holdings, necessitating significant spending on related services. This spending can fluctuate based on infrastructure needs, base realignments, and specific project requirements. Without specific data on prior contracts for 'Other Activities Related to Real Estate' or comparable services, it's difficult to establish a precise historical trend. However, it's reasonable to assume consistent, substantial investment in real estate support due to the scale of Army operations.

What are the potential implications of a 4-year contract duration for real estate services?

A 4-year contract duration (1461 days) for real estate services suggests a long-term, stable requirement for the services provided by ARSENAL BUSINESS AND TECHNOLOGY PARTNERSHIP, LTD. This duration can offer benefits such as continuity of service, reduced administrative burden associated with frequent re-procurement, and the potential for the contractor to develop deep expertise specific to the Army's needs. However, it also means the government is committed to this vendor for an extended period, potentially missing out on innovations or cost savings that could arise from market competition if the contract were shorter or included options for re-competition. It also ties the government's hands if performance issues arise.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Other Activities Related to Real Estate

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W52H0906R5033

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 44 DALLLIBA AVENUE, WATERVLIET, NY, 12189

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,386,764

Exercised Options: $23,386,764

Current Obligation: $23,386,764

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline