DoD's $46M Base Operations Support Bridge Contract Awarded to Rock Island Integrated Services Without Competition

Contract Overview

Contract Amount: $45,953,245 ($46.0M)

Contractor: Rock Island Integrated Services

Awarding Agency: Department of Defense

Start Date: 2019-03-14

End Date: 2022-02-28

Contract Duration: 1,082 days

Daily Burn Rate: $42.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE OPERATIONS SUPPORT SERVICES BRIDGE CONTRACT UNDEFINITIZED CONTRACT ACTION

Place of Performance

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

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $46.0 million to ROCK ISLAND INTEGRATED SERVICES for work described as: BASE OPERATIONS SUPPORT SERVICES BRIDGE CONTRACT UNDEFINITIZED CONTRACT ACTION Key points: 1. The contract's value of $45.95 million over 1082 days indicates a significant investment in essential base operations. 2. Awarded as a sole-source, undefinitized contract action, it bypasses standard competitive processes, raising questions about price discovery. 3. The firm-fixed-price structure aims to control costs, but the lack of competition may limit potential savings. 4. Performance context is limited due to the bridge contract nature, suggesting a temporary solution rather than a long-term strategic acquisition. 5. Facilities Support Services (NAICS 561210) is a broad category, and the specific scope of 'base operations' needs further clarification. 6. The contract's duration of nearly three years suggests a substantial operational need for these services.

Value Assessment

Rating: questionable

Benchmarking the value of this $45.95 million contract is challenging without a clear understanding of the specific services provided under 'Base Operations Support Services'. However, the lack of competition suggests that taxpayers may not have received the best possible pricing. Comparing this to similar contracts for base support services, especially those that have undergone full and open competition, would be crucial to assess if the price is reasonable. The undefinitized contract action (UCA) status also implies that the final price may be subject to negotiation and potential increases.

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. The data indicates it was 'NOT COMPETED'. This approach bypasses the standard procurement process where multiple vendors would submit bids, allowing for price comparison and selection of the most advantageous offer. The lack of competition means that the Department of the Army did not explore alternative vendors or pricing structures that might have been available through a competitive solicitation.

Taxpayer Impact: Awarding contracts without competition can lead to higher costs for taxpayers, as the government may not benefit from the price reductions typically achieved through a bidding process. It also limits transparency and opportunities for new or smaller businesses to enter the federal contracting space.

Public Impact

The primary beneficiaries are likely military personnel and their families stationed at the facility where these base operations are conducted, ensuring a functional and supported environment. Services delivered encompass a wide range of essential functions required to maintain military installations, potentially including maintenance, security, logistics, and administrative support. The geographic impact is localized to the specific military installation in Illinois (ST: IL, SN: ILLINOIS) where Rock Island Integrated Services is providing support. Workforce implications include the direct employment of individuals by Rock Island Integrated Services to perform these support functions, as well as indirect impacts on military and civilian personnel who rely on these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing and reduced value for taxpayer dollars.
The undefinitized contract action (UCA) status introduces cost uncertainty and potential for future price escalations.
Limited transparency due to sole-source award makes it difficult to assess the full scope and necessity of services.
The broad nature of 'Base Operations Support Services' without specific deliverables raises concerns about performance monitoring and accountability.

Positive Signals

Firm-fixed-price contract type helps to establish a ceiling on costs, providing some level of budget predictability.
The contract is for essential base operations, indicating a critical need for the services being provided.
Awarding to a single contractor may streamline management and execution if the contractor has established expertise in the specific base environment.

Sector Analysis

Base Operations Support Services fall under the Facilities Support Services sector (NAICS 561210), a significant segment of the government contracting market. This sector includes a wide array of services essential for the functioning of government facilities, from maintenance and repair to security and logistical support. The total federal spending in this sector is substantial, with numerous contracts awarded annually across various agencies. This particular contract represents a portion of the Department of Defense's extensive spending on maintaining its operational infrastructure, ensuring readiness and functionality of military installations.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (SB: false) and was not awarded to a small business (SS: false). Therefore, there are no direct subcontracting implications or benefits for the small business ecosystem stemming from this specific award. The lack of a small business set-aside means that larger, established companies were eligible to bid, and in this case, a sole-source award was made, bypassing competitive opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As an undefinitized contract action (UCA), there is an inherent need for close monitoring and negotiation to reach a definitive agreement. Transparency is limited due to the sole-source nature of the award. Inspector General (IG) jurisdiction would apply if any allegations of fraud, waste, or abuse arise. The firm-fixed-price structure provides a degree of cost control, but the lack of competition necessitates diligent oversight to ensure fair pricing and adequate performance.

Related Government Programs

Base Operations Support Services
Facilities Maintenance Contracts
Logistics and Support Services
Department of Defense Procurement
Sole-Source Contract Awards

Risk Flags

Sole-source award bypasses competition
Undefinitized Contract Action (UCA) introduces cost uncertainty
Lack of detailed scope of work in provided data
Potential for price inflation due to non-competitive award

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.0 million to ROCK ISLAND INTEGRATED SERVICES. BASE OPERATIONS SUPPORT SERVICES BRIDGE CONTRACT UNDEFINITIZED CONTRACT ACTION

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 $46.0 million.

What is the period of performance?

Start: 2019-03-14. End: 2022-02-28.

What specific services are included under 'Base Operations Support Services' for this contract?

The provided data categorizes this contract under 'Base Operations Support Services' (NAICS 561210: Facilities Support Services) but does not detail the specific deliverables. Typically, these services encompass a broad range of functions necessary for the daily operation and maintenance of a military installation. This can include, but is not limited to, facility management, grounds maintenance, custodial services, pest control, refuse collection, transportation support, security services, and administrative support. Without a detailed statement of work (SOW) or contract line item numbers (CLINs), it is impossible to ascertain the precise scope of services Rock Island Integrated Services is obligated to provide under this $45.95 million award.

Why was this contract awarded on a sole-source basis instead of through full and open competition?

The data explicitly states the contract was 'NOT COMPETED' and awarded on a 'sole-source' basis. The rationale for sole-source awards typically falls under specific exceptions to the Competition in Contracting Act (CICA), such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling need where competition is not feasible. Without further documentation from the Department of the Army, the exact justification for bypassing competition remains unclear. This lack of competition raises concerns about potential price inflation and missed opportunities for obtaining better value through a competitive bidding process.

How does the undefinitized contract action (UCA) status impact the contract's cost and timeline?

An undefinitized contract action (UCA) allows the government to order supplies or services and reach a definitive contract later. This is often used in urgent situations or when the full scope of work is not yet defined. For this $45.95 million contract, the UCA status means that the initial award price is an estimate, and the final negotiated price could be higher or lower. It introduces cost uncertainty and requires diligent negotiation by the government to establish a fair and reasonable final price. The 'bridge contract' nature suggests it was likely used to ensure continuity of essential services while a more permanent, potentially competitive, contract was being established.

What is the historical spending pattern for Base Operations Support Services at this specific installation or for the Department of the Army?

The provided data focuses on a single bridge contract and does not offer historical spending patterns. However, Base Operations Support Services are a recurring and significant expenditure for the Department of Defense across numerous installations. Historically, these services are often contracted out to private entities to ensure efficient facility management and operational readiness. Analyzing past contracts for similar services at this specific installation or within the Army could reveal trends in pricing, contractor performance, and the prevalence of sole-source versus competitive awards. Without access to broader historical data, it's difficult to contextualize this $45.95 million award within a larger spending trend.

What are the potential risks associated with a sole-source, undefinitized contract for essential base operations?

The primary risks associated with a sole-source, undefinitized contract for essential base operations include: 1) Inflated Costs: Without competition, the contractor may not be incentivized to offer the lowest possible price, leading to higher costs for taxpayers. 2) Scope Creep: The lack of a fully defined scope in a UCA can lead to the gradual expansion of services without commensurate price adjustments. 3) Performance Issues: While the contractor is obligated to perform, the absence of competitive pressure might reduce the incentive for exceptional performance. 4) Lack of Innovation: Sole-source awards limit the introduction of new technologies or more efficient methods that might be brought by competing firms. 5) Accountability Challenges: Monitoring performance and ensuring value can be more difficult without the benchmarks provided by a competitive process.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W52P1J19RJC00

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fluor Corporation

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: $45,953,245

Exercised Options: $45,953,245

Current Obligation: $45,953,245

Actual Outlays: $1,450,040

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline