Army's $46.9M Base Operations Contract Awarded to Professional Contract Services, Inc. Raises Value Questions

Contract Overview

Contract Amount: $46,866,341 ($46.9M)

Contractor: Professional Contract Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-08-03

End Date: 2020-06-30

Contract Duration: 1,793 days

Daily Burn Rate: $26.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF BASE OPERATIONS AND MAINTENANCE SERVICE CONTRACT. BASE PERIOD

Place of Performance

Location: WARREN, MACOMB County, MICHIGAN, 48089

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $46.9 million to PROFESSIONAL CONTRACT SERVICES, INC. for work described as: IGF::OT::IGF BASE OPERATIONS AND MAINTENANCE SERVICE CONTRACT. BASE PERIOD Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract's duration of nearly five years suggests a significant, long-term need for these services. 3. Fixed-price contract type offers some cost certainty but may not fully reflect market fluctuations. 4. The absence of small business set-asides or subcontracting plans warrants further investigation. 5. Performance context is limited due to the 'NOT AVAILABLE FOR COMPETITION' status. 6. Sector positioning within Facilities Support Services indicates a critical role in base maintenance.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and the lack of detailed performance metrics. The firm-fixed-price structure provides a degree of cost control, but without competitive bids, it's difficult to ascertain if the $46.9 million represents optimal value for the services rendered. Comparison to similar base operations contracts would be necessary to assess pricing against market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicated by 'NOT AVAILABLE FOR COMPETITION'. This means there was no open bidding process, and Professional Contract Services, Inc. was selected without direct comparison to other potential providers. The lack of competition limits the government's ability to leverage market forces to secure the best possible price and service terms.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure, as the contractor did not need to underbid rivals to secure the award.

Public Impact

The primary beneficiaries are the Department of the Army, receiving essential base operations and maintenance services. Services delivered include general base upkeep, potentially encompassing facility management, grounds maintenance, and minor repairs. Geographic impact is concentrated at the specific Army installation(s) where the contract is performed in Michigan. Workforce implications include the direct employment of personnel by Professional Contract Services, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and potential cost savings.
Lack of competition may lead to inflated pricing.
No indication of small business participation or subcontracting goals.
Limited public data on performance metrics or service quality.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Long-term contract suggests a stable, ongoing need met by the incumbent.
Contractor has a defined role in essential base operations.

Sector Analysis

This contract falls within the Facilities Support Services sector (NAICS 561210), a broad category encompassing a wide range of services necessary for the operation and maintenance of buildings and infrastructure. The market for these services is substantial, with significant government spending allocated to base operations and maintenance across all military branches. This contract represents a portion of that spending, ensuring the functionality of a specific Army installation.

Small Business Impact

The data indicates this contract was not awarded with small business considerations ('sb': false, 'ss': false). There is no information provided regarding subcontracting plans or goals. This suggests that opportunities for small businesses to participate in this significant contract, either as prime contractors or subcontractors, were likely limited or non-existent, potentially impacting the small business ecosystem around this contract.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) at the Department of the Army, responsible for monitoring performance and ensuring compliance with contract terms. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver services within the agreed budget. Transparency is limited due to the sole-source nature of the award, with fewer public details available compared to competed contracts.

Related Government Programs

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

Risk Flags

Sole-source award justification requires scrutiny.
Potential for non-competitive pricing.
Lack of small business participation.
Performance metrics not publicly detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.9 million to PROFESSIONAL CONTRACT SERVICES, INC.. IGF::OT::IGF BASE OPERATIONS AND MAINTENANCE SERVICE CONTRACT. BASE PERIOD

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 $46.9 million.

What is the period of performance?

Start: 2015-08-03. End: 2020-06-30.

What is the track record of Professional Contract Services, Inc. with federal contracts, particularly in base operations and maintenance?

Information on Professional Contract Services, Inc.'s track record with federal contracts is not detailed in the provided data. However, the award of a nearly five-year, $46.9 million contract suggests a level of established performance or a pre-existing relationship with the Department of the Army. A deeper dive into contract databases like FPDS-NG or SAM.gov would be necessary to assess their history, past performance ratings, any past disputes or terminations, and their experience with similar scope contracts. Understanding their prior performance is crucial for evaluating the risk associated with this sole-source award and ensuring taxpayer value.

How does the awarded price of $46.9 million compare to similar base operations contracts awarded by the Department of the Army or other federal agencies?

Direct comparison of the $46.9 million price is difficult without knowing the specific scope of services, location, and duration of comparable contracts. However, given the nearly five-year duration (1793 days), the average annual value is approximately $9.4 million. This figure needs to be benchmarked against other base operations contracts of similar size and complexity. Factors such as the number of personnel supported, square footage of facilities maintained, and specific services included (e.g., security, utilities, transportation) heavily influence pricing. A competitive analysis would reveal if this annual average is in line with, above, or below market rates for comparable services.

What are the primary risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risks of a sole-source award for a contract valued at $46.9 million include a lack of price competition, potentially leading to inflated costs for taxpayers. Without competing bids, the government loses the opportunity to secure the most favorable pricing and terms. There's also a risk of complacency from the awarded contractor, as they face no direct competitive pressure to innovate or improve service quality. Furthermore, it raises questions about the justification for not competing the requirement, potentially indicating a failure in acquisition planning or an over-reliance on a single provider without exploring alternatives.

What specific base operations and maintenance services are included under this contract, and how is their performance measured?

The provided data only identifies the contract as 'BASE OPERATIONS AND MAINTENANCE SERVICE CONTRACT.' Specific details regarding the exact services (e.g., janitorial, HVAC, electrical, plumbing, groundskeeping, security, waste management) are not included. Similarly, performance metrics, key performance indicators (KPIs), or service level agreements (SLAs) that would be used to measure the contractor's success are absent. Understanding these details is critical for assessing the contract's effectiveness and ensuring the Army receives the expected level of service quality and value for its investment.

What is the historical spending trend for base operations and maintenance services at this specific Army installation or within this region?

The provided data snippet focuses on a single contract award and does not offer historical spending trends. To analyze this, one would need to examine prior contracts for base operations and maintenance at this particular Army installation or for similar facilities in Michigan. This would involve querying federal procurement databases for spending patterns over several years, identifying incumbent contractors, and noting any significant increases or decreases in contract values. Such analysis would help determine if the current $46.9 million award represents a consistent level of investment or a notable shift in spending for these essential services.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV13RA504

Offers Received: 1

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: $72,239,842

Exercised Options: $46,866,341

Current Obligation: $46,866,341

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline