Department of the Army awards $67.8M for Installation Support Services, with 2 bidders competing

Contract Overview

Contract Amount: $67,760,937 ($67.8M)

Contractor: Rock Island Integrated Services

Awarding Agency: Department of Defense

Start Date: 2013-05-24

End Date: 2017-08-31

Contract Duration: 1,560 days

Daily Burn Rate: $43.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INSTALLATION SUPPORT SERVICES

Place of Performance

Location: ROCK ISLAND, ROCK ISLAND County, ILLINOIS, 61299

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $67.8 million to ROCK ISLAND INTEGRATED SERVICES for work described as: INSTALLATION SUPPORT SERVICES Key points: 1. Contract value of $67.8M for facilities support services over a 4-year period. 2. Awarded under full and open competition, indicating a broad market solicitation. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The contractor, Rock Island Integrated Services, has a track record with the Department of Defense. 5. The contract was awarded in 2013 and completed in 2017, providing historical performance data. 6. The North American Industry Classification System (NAICS) code 561210 points to facilities support services. 7. The contract was awarded as a definitive contract, suggesting a standard procurement vehicle.

Value Assessment

Rating: fair

The total contract value of $67.8M over approximately 4 years averages to about $17M annually. Benchmarking this against similar large-scale installation support contracts is challenging without more specific service details. However, the firm fixed-price nature suggests that the government aimed for predictable costs. The awarded amount appears within a reasonable range for comprehensive facilities management services for a significant installation, but a detailed cost breakdown and comparison to industry standards would be needed for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The data indicates there were 2 bidders for this contract. While two bidders represent some level of competition, it is on the lower end for a contract of this magnitude. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions. The limited number of bidders here might suggest a specialized market or potential barriers to entry for other firms.

Taxpayer Impact: For taxpayers, two bidders mean that while some price competition likely occurred, there may have been an opportunity for even greater savings if more companies had participated. This could indicate that the government secured a reasonable price, but potentially not the absolute best possible price.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel, who receive essential installation support services. Services delivered likely include maintenance, repair, operations, and potentially other facility management functions. The contract's geographic impact is centered in Illinois, where the contractor is located and services were likely performed. Workforce implications include employment opportunities for individuals in facilities management and support roles within Illinois.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have resulted in a higher price than if more firms had competed.
The contract was awarded as a definitive contract, which can sometimes be less flexible than other contract types.
Lack of specific details on performance metrics makes it difficult to fully assess the contractor's effectiveness.
The contract duration of 4 years (1560 days) is substantial, requiring sustained performance oversight.

Positive Signals

Awarded under full and open competition, ensuring a broad solicitation process.
Firm Fixed Price contract structure shifts cost risk to the contractor, potentially saving taxpayer money if costs are managed efficiently.
The contractor, Rock Island Integrated Services, has experience with the Department of Defense, suggesting familiarity with government requirements.
The contract was completed, indicating a defined period of service delivery.

Sector Analysis

The facilities support services sector is a critical component of government operations, encompassing a wide range of activities from routine maintenance to complex building management. This contract, valued at approximately $67.8M over four years, falls within the typical spending range for large-scale support services for military installations. The NAICS code 561210 covers establishments primarily engaged in operating and maintaining buildings and other facilities, for others. This market is often characterized by a mix of large, established service providers and smaller, specialized firms. Government contracts in this space are significant, representing a substantial portion of the overall facilities management market.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions, as the 'sb' field is false. Furthermore, the 'ss' field is also false, meaning it was not a small business set-aside. This suggests the contract was competed broadly without specific targets for small business participation. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, Rock Island Integrated Services, but there is no explicit requirement mandated by the contract terms as presented. The impact on the small business ecosystem is likely minimal unless the prime contractor actively engages small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract would have been managed by the contracting agency, the Department of the Army, through its contracting officers and potentially program managers. Accountability measures are inherent in the Firm Fixed Price contract type, where the contractor is responsible for delivering services within the agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS, which provide basic information on contract value, duration, and parties involved. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance or close-out.

Related Government Programs

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

Risk Flags

Limited Competition
Potential for Cost Overruns (if contractor mismanaged)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $67.8 million to ROCK ISLAND INTEGRATED SERVICES. INSTALLATION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ROCK ISLAND INTEGRATED SERVICES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $67.8 million.

What is the period of performance?

Start: 2013-05-24. End: 2017-08-31.

What specific services were included under this "Installation Support Services" contract?

The provided data does not detail the specific services encompassed by "Installation Support Services." Typically, this category for the Department of the Army can include a broad spectrum of facility-related functions. These often encompass routine maintenance and repair of buildings and grounds, utilities management (water, sewer, electricity), waste management, pest control, fire protection, transportation support within the installation, and potentially security services. The exact scope would have been defined in the Performance Work Statement (PWS) attached to the contract. Without the PWS, it's difficult to ascertain the precise value delivered or benchmark performance accurately.

How does the $67.8M contract value compare to other similar installation support contracts awarded by the Department of the Army?

The $67.8M total contract value over approximately four years, averaging around $17M annually, places this contract in the mid-to-large range for installation support services. The Department of the Army manages numerous installations globally, and contract values can vary significantly based on the size and complexity of the installation, geographic location, and the specific services required. Larger installations or those with extensive infrastructure and specialized needs can command contracts in the hundreds of millions or even billions. This $67.8M contract appears to be for a moderately sized installation or a specific set of services rather than comprehensive base operations for a major command. A direct comparison requires identifying contracts with similar scope, duration, and service requirements.

What is the significance of the contract being a "Definitive Contract" with a "Firm Fixed Price"?

A "Definitive Contract" is a standard, legally binding agreement that clearly defines the rights and responsibilities of both the government and the contractor. It's the most common type of contract. The "Firm Fixed Price" (FFP) pricing structure is significant because it places the primary responsibility for cost control on the contractor. Under an FFP contract, the contractor agrees to a set price for the work, regardless of their actual costs. This shifts the risk of cost overruns to the contractor, making it advantageous for the government when the scope of work is well-defined and the contractor has good cost-estimating capabilities. It provides budget certainty for the government but can lead to higher initial prices to account for contractor risk.

What does the limited number of bidders (2) suggest about the market for these installation support services?

The fact that only two bidders responded to this "Full and Open Competition" solicitation suggests several possibilities about the market for these specific installation support services. It could indicate a highly specialized niche market where only a few companies possess the necessary expertise, resources, and clearances to perform the work. Alternatively, it might suggest high barriers to entry, such as significant bonding requirements, complex security protocols, or substantial capital investment needed to compete. It's also possible that the solicitation's terms or geographic location made it less attractive to a wider pool of potential bidders. Regardless, a limited number of bidders generally reduces the intensity of price competition.

What is the historical spending pattern for installation support services by the Department of the Army around the 2013-2017 period?

During the 2013-2017 period, the Department of the Army, like other branches of the military, consistently allocated significant funds towards installation support services. This period followed major overseas contingency operations and saw a continued focus on maintaining domestic infrastructure and readiness. Spending in this category typically remained robust, reflecting the ongoing need for maintenance, operations, and facility management across numerous bases and posts. While specific annual totals fluctuate based on budget allocations and evolving requirements, installation support was a core and substantial part of the Army's procurement portfolio. This $67.8M contract aligns with the general trend of substantial, ongoing investment in base infrastructure and services during that timeframe.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fluor Corporation (UEI: 006907190)

Address: BLDG 102 W BASEMENT ROCK ISLAND ARSENAL, ROCK ISLAND, IL, 61299

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $67,760,937

Exercised Options: $67,760,937

Current Obligation: $67,760,937

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline