DoD's $78M Facilities Maintenance Contract Awarded to Professional Contract Services, Inc. with Limited Competition

Contract Overview

Contract Amount: $78,328,696 ($78.3M)

Contractor: Professional Contract Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-09-29

End Date: 2025-12-31

Contract Duration: 1,919 days

Daily Burn Rate: $40.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FACILITY MAINTENANCE VERTICAL

Place of Performance

Location: WARREN, MACOMB County, MICHIGAN, 48088

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $78.3 million to PROFESSIONAL CONTRACT SERVICES, INC. for work described as: FACILITY MAINTENANCE VERTICAL Key points: 1. The contract's value of $78.3 million over its potential duration suggests a significant investment in facilities support. 2. Limited competition for this contract raises questions about potential price overruns and the optimal use of taxpayer funds. 3. The firm-fixed-price contract type aims to control costs, but the absence of robust competition may undermine this. 4. The contract's duration of nearly five years (through December 2025) indicates a long-term need for these services. 5. The primary service area is facilities support, a critical but often overlooked component of operational readiness. 6. The award to a single vendor without full and open competition warrants scrutiny regarding the justification for limited bidding.

Value Assessment

Rating: fair

Benchmarking the value of this $78.3 million contract is challenging without more detailed service breakdowns and comparable contract data. However, the lack of competitive bidding suggests that the government may not have secured the most advantageous pricing. The firm-fixed-price structure is a positive indicator for cost control, but the absence of multiple bids limits the ability to assess if the price is truly competitive within the market for facilities support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under a limited competition, meaning it was not fully and openly competed. The specific reasons for this limitation are not detailed in the provided data. Typically, limited competition occurs when only one responsible source is available, or for urgent and compelling reasons. The lack of multiple bidders means that price discovery through competitive negotiation was likely constrained, potentially leading to higher costs for the government.

Taxpayer Impact: Limited competition can mean taxpayers may not be receiving the best possible price for these essential services. Without a competitive process, there is less pressure on the contractor to offer cost savings.

Public Impact

The Department of the Army benefits from the continuity of facilities maintenance and support services, crucial for operational readiness. The contract ensures the upkeep and functionality of military facilities, directly impacting the environment where service members live and work. Services delivered likely include maintenance, repair, and general upkeep of buildings and grounds within the Army's purview. The geographic impact is concentrated in Michigan, where the facilities covered by this contract are located. Workforce implications may include direct employment by Professional Contract Services, Inc. and potential subcontracting opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential price inflation and lack of cost-effectiveness.
The absence of detailed performance metrics makes it difficult to assess the contractor's effectiveness and value.
Lack of transparency in the justification for limited competition hinders public accountability.
The long contract duration without clear performance benchmarks could lead to complacency.
The significant dollar value awarded without robust competition warrants further investigation into the procurement process.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Professional Contract Services, Inc. is awarded the contract, suggesting they met the minimum requirements.
The contract duration indicates a stable, long-term need for these services, allowing for consistent support.
The services provided are essential for maintaining operational facilities.

Sector Analysis

The facilities support services sector is a significant part of the broader professional, scientific, and technical services industry. This contract falls under the Facilities Support Services category (NAICS 561210), which encompasses establishments primarily engaged in providing operating engineers, building management, and operational services. The total federal spending in this sector can be substantial, supporting military bases, government buildings, and other critical infrastructure. This specific contract represents a notable portion of spending within this niche, particularly for the Department of the Army.

Small Business Impact

The data indicates that small business participation is not a primary focus for this contract, as the 'ss' (small business set-aside) and 'sb' (small business) flags are false. There is no explicit mention of subcontracting goals for small businesses. This suggests that the contract may not be designed to specifically benefit the small business ecosystem, and opportunities for small businesses may be limited unless they are direct subcontractors to the prime vendor.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specified services within the agreed price. Transparency is limited by the 'limited competition' award, as the justification for this approach is not publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Base Operations Support (BOS)
Logistics and Support Services
Government Facilities Management
Professional Services Contracts
Department of Defense Procurement

Risk Flags

Limited competition award
Lack of detailed justification for limited competition
Absence of performance metrics in provided data
No small business subcontracting goals specified

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $78.3 million to PROFESSIONAL CONTRACT SERVICES, INC.. FACILITY MAINTENANCE VERTICAL

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 $78.3 million.

What is the period of performance?

Start: 2020-09-29. End: 2025-12-31.

What is the specific justification for awarding this contract under limited competition?

The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' which is a designation for limited competition. The specific justification, such as a sole-source provider, urgent need, or unique capability, is not detailed in the data. Typically, agencies must document and justify why full and open competition was not feasible. Without this documentation, it is difficult to assess if the limited competition was appropriate and in the government's best interest. This lack of transparency can raise concerns about whether the government obtained the best possible value and pricing.

How does the per-unit cost of services compare to similar contracts or market rates?

The provided data does not include a breakdown of per-unit costs for the services rendered under this $78.3 million contract. The contract is for 'Facilities Support Services' (NAICS 561210), which can encompass a wide range of activities. To perform a meaningful comparison, one would need to identify specific line items (e.g., cost per square foot maintained, cost per maintenance hour) and benchmark them against similar contracts awarded by the Department of Defense or other federal agencies, as well as against prevailing market rates for facilities management in Michigan. The absence of this granular data prevents a direct value-for-money assessment at the unit level.

What is the track record of Professional Contract Services, Inc. with federal contracts, particularly within the Department of Defense?

The provided data identifies Professional Contract Services, Inc. as the contractor but does not offer details on their past performance or track record with federal agencies. A comprehensive assessment would require reviewing their contract history, including past performance evaluations, any awards or penalties, and their experience with similar-sized and scoped facilities support contracts. Understanding their history, especially with the Department of the Army, would provide insight into their reliability, quality of service, and ability to manage large-scale contracts effectively. Without this information, it's difficult to gauge their suitability beyond meeting the minimum requirements for this award.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this facilities maintenance contract. These are critical components that define the expected quality, timeliness, and scope of services. Without explicit KPIs and SLAs, it is challenging to objectively measure the contractor's performance and ensure that the Department of the Army is receiving the full value of the $78.3 million investment. Effective oversight relies on clearly defined and measurable performance standards against which the contractor's delivery can be assessed.

How does the total contract value compare to historical spending on facilities maintenance by the Department of the Army in Michigan?

The total contract value of $78.3 million is substantial for facilities maintenance. To assess its historical context, one would need to analyze the Department of the Army's historical spending on facilities maintenance specifically within Michigan over previous fiscal years. This comparison would reveal whether this contract represents an increase, decrease, or stable level of investment in facility upkeep in the region. Understanding historical spending patterns helps determine if the current award is aligned with long-term budget strategies and operational needs for facility management.

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: W56HZV20RL804

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: $79,082,207

Exercised Options: $78,377,548

Current Obligation: $78,328,696

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline