DoD's $27M BAMC Logistics Contract Awarded to Prosperitus Solutions Faces Scrutiny

Contract Overview

Contract Amount: $27,091,238 ($27.1M)

Contractor: Prosperitus Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2018-06-01

End Date: 2023-11-30

Contract Duration: 2,008 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 43

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IGF::CT::IGF LOGISTICS SUPPORT SERVICES, BROOK ARMY MEDICAL CENTER (BAMC), JBSA FT SAM HOUSTON TX.

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $27.1 million to PROSPERITUS SOLUTIONS LLC for work described as: IGF::CT::IGF LOGISTICS SUPPORT SERVICES, BROOK ARMY MEDICAL CENTER (BAMC), JBSA FT SAM HOUSTON TX. Key points: 1. The contract value of $27.1 million for logistics support services at BAMC is significant. 2. Prosperitus Solutions LLC secured this award under a full and open competition. 3. Potential risks include the long duration (2018-2023) and the firm-fixed-price structure. 4. The sector is Facilities Support Services, a critical component of healthcare operations.

Value Assessment

Rating: fair

The contract's firm-fixed-price structure suggests a focus on cost control. However, without specific performance metrics or benchmarks for similar logistics contracts at large medical facilities, a definitive value assessment is challenging. The award amount appears reasonable for a five-year contract of this nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value. The exclusion of sources might warrant further investigation into its justification.

Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price. However, the exclusion of sources could potentially limit competition and impact overall cost-effectiveness.

Public Impact

Ensures critical logistics operations at a major military medical center are maintained. Supports the healthcare needs of service members and their families. The contract's duration impacts long-term resource allocation and planning for BAMC. Potential for service disruptions if contractor performance falters.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Contract duration is long (5 years).
  • Exclusion of sources in competition.
  • No small business participation noted.

Positive Signals

  • Awarded through full and open competition.
  • Firm fixed price contract type.

Sector Analysis

Facilities Support Services are essential for the smooth operation of healthcare facilities like BAMC. Spending in this sector can vary widely based on facility size and complexity. This contract's value appears within a reasonable range for a large medical center's comprehensive logistics needs over five years.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (sb: false). This suggests that the prime contractor is likely a larger entity, and there may be missed opportunities for small business subcontracting within the scope of this significant contract.

Oversight & Accountability

The contract's long duration and the 'exclusion of sources' clause warrant careful oversight to ensure continued fair pricing and performance. Regular performance reviews and audits would be crucial to maintain accountability and taxpayer value throughout the contract's life.

Related Government Programs

  • Facilities Support Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Long contract duration (5 years).
  • Exclusion of sources in competition.
  • No small business participation.
  • Lack of detailed performance data.
  • Potential for price creep despite fixed-price structure.

Tags

facilities-support-services, department-of-defense, tx, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.1 million to PROSPERITUS SOLUTIONS LLC. IGF::CT::IGF LOGISTICS SUPPORT SERVICES, BROOK ARMY MEDICAL CENTER (BAMC), JBSA FT SAM HOUSTON TX.

Who is the contractor on this award?

The obligated recipient is PROSPERITUS SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.1 million.

What is the period of performance?

Start: 2018-06-01. End: 2023-11-30.

What was the specific justification for excluding sources during the full and open competition, and did this exclusion impact the final price?

The justification for excluding sources needs to be thoroughly reviewed. While full and open competition is generally positive, excluding specific sources can limit competitive pressure, potentially leading to higher prices than if all capable vendors had participated. An analysis of the bidding process and the number of bids received would clarify the impact on price discovery and taxpayer value.

Are there any performance concerns or documented issues related to Prosperitus Solutions LLC's service delivery under this contract?

Assessing performance is crucial given the contract's five-year duration. Without access to performance reports, contractor quality assessments, or customer feedback, it's difficult to gauge the effectiveness of the services provided. Any documented issues or consistent underperformance would raise significant concerns about value for money and operational impact.

How does the per-unit cost of logistics support services under this contract compare to industry benchmarks for similar military or large-scale healthcare facilities?

A direct comparison of per-unit costs is challenging without detailed service breakdowns and specific benchmark data for comparable facilities. However, the overall contract value of $27.1 million for five years suggests an average annual spend of approximately $5.4 million. This figure should be evaluated against industry standards for logistics management in large healthcare settings to determine cost-effectiveness.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W81K0018R0012

Offers Received: 43

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1014 PEABODY AVE, SAN ANTONIO, TX, 78211

Business Categories: 8(a) Program Participant, Category Business, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $27,091,238

Exercised Options: $27,091,238

Current Obligation: $27,091,238

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2018-06-01

Current End Date: 2023-11-30

Potential End Date: 2023-11-30 00:00:00

Last Modified: 2024-04-25

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