DoD Grounds Maintenance Contract Awarded to Irvington Maintenance Venture LLC for Over $15.6 Million

Contract Overview

Contract Amount: $15,626,396 ($15.6M)

Contractor: Irvington Maintenance Venture LLC

Awarding Agency: Department of Defense

Start Date: 2020-07-02

End Date: 2026-01-01

Contract Duration: 2,009 days

Daily Burn Rate: $7.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GROUNDS MAINTENANCE SERVICE

Place of Performance

Location: FORT HOOD, BELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $15.6 million to IRVINGTON MAINTENANCE VENTURE LLC for work described as: GROUNDS MAINTENANCE SERVICE Key points: 1. The contract value of $15.6 million over its period of performance represents a significant investment in grounds maintenance services. 2. Competition dynamics for this contract, competed under SAP (Simplified Acquisition Procedures), suggest a potentially efficient procurement process for smaller dollar values. 3. The contract's duration and firm-fixed-price nature indicate a predictable cost structure for the Department of the Army. 4. Performance context will be crucial to assess the value delivered against the funds obligated. 5. This contract falls within the broader 'Landscaping Services' sector, a common requirement for government facilities. 6. The award to a single entity, Irvington Maintenance Venture LLC, highlights the importance of specialized service providers in government contracting.

Value Assessment

Rating: fair

Benchmarking the value of this $15.6 million contract for grounds maintenance is challenging without specific service deliverables and performance metrics. However, the average annual value is approximately $2.6 million. Compared to similar large-scale grounds maintenance contracts for federal agencies, this appears to be within a reasonable range, assuming the scope of services is comprehensive. The firm-fixed-price structure suggests the government has negotiated a set price, but ongoing monitoring of performance will be key to ensuring value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which are typically used for purchases below the threshold for full and open competition. While the exact number of bidders is not specified, SAP generally allows for a limited number of quotes or proposals to be solicited. This approach aims for efficiency in smaller procurements but may not always yield the broadest possible competition, potentially impacting price discovery compared to full and open competition.

Taxpayer Impact: For taxpayers, competition under SAP can lead to faster contract awards and potentially lower administrative costs. However, the limited number of bidders might mean that the government does not secure the absolute lowest price achievable through a wider bidding process.

Public Impact

The primary beneficiaries are the Department of Defense and the Department of the Army, ensuring well-maintained grounds at their facilities. Services delivered include landscaping and grounds maintenance, contributing to the operational readiness and aesthetic appeal of military installations. The geographic impact is concentrated in Texas (ST: TX, SN: TEXAS), where the services are to be performed. Workforce implications include job creation for groundskeepers, landscapers, and related support staff employed by Irvington Maintenance Venture LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs and is not managed under the firm-fixed-price contract.
Dependence on a single contractor for essential grounds maintenance services could pose a risk if performance issues arise.
Limited competition under SAP might mean taxpayers are not receiving the most competitive pricing available.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government.
The contract duration allows for consistent service delivery and planning.
Awarding to a specialized maintenance venture suggests a focus on expertise in groundskeeping.

Sector Analysis

Grounds maintenance and landscaping services represent a significant segment of the facilities management industry. Federal agencies, with their extensive real estate holdings, are major consumers of these services. The market is characterized by a mix of large, diversified facility management companies and smaller, specialized landscaping firms. Government contracts often require adherence to specific environmental standards and security protocols, differentiating them from purely commercial contracts. Comparable spending benchmarks for grounds maintenance at federal installations vary widely based on size, location, and complexity of the grounds.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. The award to Irvington Maintenance Venture LLC, without specific size information, suggests it may not be classified as a small business for this procurement. This means opportunities for small businesses to participate in this specific contract are likely limited unless they are direct subcontractors to the prime.

Oversight & Accountability

Oversight for this contract will primarily reside with the contracting officer and the relevant program managers within the Department of the Army. Accountability measures are typically enforced through contract clauses, performance reviews, and payment schedules tied to satisfactory performance. Transparency is facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction may apply if allegations of fraud, waste, or abuse arise.

Related Government Programs

Federal Grounds Maintenance Contracts
Department of Defense Facilities Management
Army Corps of Engineers Construction and Operations
Landscaping Services for Government Properties
Simplified Acquisition Procedures Contracts

Risk Flags

Potential for performance issues due to limited competition.
Risk of cost escalation if not managed under FFP.
Dependence on contractor's ability to meet service level agreements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.6 million to IRVINGTON MAINTENANCE VENTURE LLC. GROUNDS MAINTENANCE SERVICE

Who is the contractor on this award?

The obligated recipient is IRVINGTON MAINTENANCE VENTURE 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 $15.6 million.

What is the period of performance?

Start: 2020-07-02. End: 2026-01-01.

What is the track record of Irvington Maintenance Venture LLC with federal contracts, particularly in grounds maintenance?

A review of federal procurement data indicates that Irvington Maintenance Venture LLC has been awarded multiple contracts, primarily within the grounds maintenance and facilities support domain. While specific details on past performance quality are not publicly available in this summary, the existence of multiple awards suggests a level of established capability and experience in serving government needs. Further analysis would require examining individual contract performance reports and any associated award or termination history to fully assess their track record. The current contract's duration and value indicate a significant level of trust placed in the contractor by the Department of the Army.

How does the annual value of this contract compare to other large federal grounds maintenance contracts?

The annual value of this contract, approximately $2.6 million ($15.6M / 6 years), places it in the mid-to-large tier for federal grounds maintenance agreements. Larger contracts, often for extensive base operations or multi-region support, can exceed $10-20 million annually. Smaller, localized contracts for specific facilities might range from tens of thousands to a few hundred thousand dollars per year. This contract's value suggests a substantial scope of services, likely covering significant acreage or multiple facilities within its Texas service area, making it comparable to other significant federal grounds maintenance efforts.

What are the primary risks associated with a firm-fixed-price contract for grounds maintenance?

The primary risk with a firm-fixed-price (FFP) contract for grounds maintenance is the potential for the contractor to cut corners on service quality to maintain profitability if costs increase unexpectedly (e.g., due to unforeseen weather, material price hikes, or labor shortages). Conversely, the government risks paying a premium if the contractor's actual costs are significantly lower than anticipated. For the government, effective performance monitoring and clear quality standards are crucial to mitigate risks related to service quality. For the contractor, accurately estimating all potential costs and contingencies during the bidding phase is paramount.

How effective are Simplified Acquisition Procedures (SAP) in ensuring competitive pricing for contracts of this size?

Simplified Acquisition Procedures (SAP) are designed for efficiency and speed in procuring goods and services below certain dollar thresholds (currently $250,000, though specific agency thresholds can vary, and larger amounts can be procured using SAP under specific circumstances). While SAP can lead to quicker awards and reduced administrative burden, it typically involves soliciting a limited number of quotes rather than full and open competition. This can sometimes result in less aggressive pricing compared to processes that attract a wider range of bidders. For contracts approaching the upper limits of SAP, the potential for missed savings increases. The effectiveness in ensuring competitive pricing is therefore often a trade-off between speed/efficiency and the breadth of market engagement.

What is the historical spending trend for grounds maintenance services by the Department of the Army?

Historical spending by the Department of the Army on grounds maintenance services has generally been substantial, reflecting the vast number of installations and facilities requiring upkeep. While specific year-over-year trends fluctuate based on budget allocations, infrastructure projects, and strategic priorities, there is a consistent and significant allocation towards landscaping, horticultural services, and general groundskeeping. Spending often increases during periods of base expansion or major renovation projects. Conversely, budget constraints can lead to reductions in non-essential groundskeeping activities. Overall, it represents a stable, albeit variable, expenditure category within the Army's facilities maintenance budget.

Are there specific performance metrics or KPIs tied to this contract that would indicate value for money?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) tied to this contract. Typically, for grounds maintenance contracts, such metrics would include standards for mowing frequency, weed control effectiveness, landscape appearance, response times for emergency grounds issues, and adherence to environmental regulations. The effectiveness of this contract in delivering value for money would be assessed by comparing the actual services rendered against these defined standards and the contract price. Without access to the contract's statement of work and performance evaluation reports, a definitive assessment of value is not possible.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Landscaping Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: W9115119R0005

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 203 GOOD AVE STE B, INDIANAPOLIS, IN, 46219

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $15,888,834

Exercised Options: $15,888,834

Current Obligation: $15,626,396

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline