DOD's $21M Facilities Support Services Contract Awarded to ELEIT TECHNOLOGY, INC. for Alabama Operations

Contract Overview

Contract Amount: $21,055,884 ($21.1M)

Contractor: Eleit Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-01-01

End Date: 2011-09-30

Contract Duration: 1,733 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MATERIAL HANDLING

Place of Performance

Location: ANNISTON, CALHOUN County, ALABAMA, 36201

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $21.1 million to ELEIT TECHNOLOGY, INC. for work described as: MATERIAL HANDLING Key points: 1. Contract value of $21 million over its period of performance. 2. Awarded under full and open competition after exclusion of sources, indicating a competitive process. 3. Services provided are facilities support, a critical component of operational readiness. 4. The contract duration spans over 1700 days, suggesting a long-term need. 5. The contract was awarded to ELEIT TECHNOLOGY, INC., a single entity. 6. The contract is firm-fixed-price, which shifts cost risk to the contractor.

Value Assessment

Rating: fair

The contract's total value of $21 million over approximately 4.7 years averages to about $4.4 million annually. Benchmarking this against similar facilities support contracts is difficult without more specific service details. However, the firm-fixed-price structure suggests that the government has a predictable cost, but the value for money depends heavily on the contractor's efficiency and the scope of services delivered. Without a detailed breakdown of services and performance metrics, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. The number of bidders is not specified, but the 'exclusion of sources' clause suggests a less broad competition than a standard full and open process. This could impact price discovery and potentially lead to higher prices than if all potential sources were considered.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price achievable through a wider bidding process. The exclusion of certain sources warrants further investigation to ensure fairness and optimal use of taxpayer funds.

Public Impact

The primary beneficiaries are the Department of the Army facilities in Alabama, ensuring operational readiness. Services delivered include essential facilities support, maintaining infrastructure and operational environments. The geographic impact is concentrated in Alabama, supporting regional military operations. Workforce implications include potential job creation or retention for facilities support personnel in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for reduced competition due to 'exclusion of sources' clause.
Lack of detailed service scope makes value-for-money assessment difficult.
Firm-fixed-price contracts can sometimes lead to lower quality if not managed closely.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Long contract duration suggests a stable and ongoing requirement.
Awarded under a competitive process, albeit with exclusions.

Sector Analysis

Facilities Support Services fall under the broader professional, scientific, and technical services sector. This sector is crucial for government operations, encompassing a wide range of activities from maintenance and repair to specialized technical support. The market size for government facilities support is substantial, with numerous contractors vying for these essential service contracts. This particular contract fits within the niche of supporting military installations, which often have unique and demanding requirements.

Small Business Impact

The data indicates that small business participation (sb) was false, and there was no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and larger, established firms were likely the primary participants. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award information. The impact on the small business ecosystem is likely minimal for this specific contract.

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 contract type, requiring the contractor to deliver specified services within the agreed price. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Facilities Maintenance and Repair Services
Base Operations Support Services
Logistics and Supply Chain Management
Government Contracting Services

Risk Flags

Limited competition due to source exclusion.
Lack of detailed service scope hinders value assessment.
Potential quality degradation risk in FFP contracts without oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.1 million to ELEIT TECHNOLOGY, INC.. MATERIAL HANDLING

Who is the contractor on this award?

The obligated recipient is ELEIT TECHNOLOGY, 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 $21.1 million.

What is the period of performance?

Start: 2007-01-01. End: 2011-09-30.

What specific facilities support services are included in this $21 million contract?

The provided data indicates the contract is for 'Facilities Support Services' under NAICS code 561210. However, it does not detail the specific services rendered. Typically, facilities support services can encompass a broad range of activities including, but not limited to, building maintenance and repair, groundskeeping, custodial services, pest control, waste management, and potentially minor construction or renovation work. Without a detailed statement of work (SOW) or contract line item numbers (CLINs), the precise scope of services provided by ELEIT TECHNOLOGY, INC. remains unspecified. This lack of detail makes it challenging to benchmark performance or assess the true value delivered.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process compare to standard full and open competition?

Standard 'full and open competition' aims to solicit offers from all responsible sources and to award a contract to the responsible source that provides the best value. 'Full and open competition after exclusion of sources,' as indicated in the contract data, implies that the agency initially considered excluding certain sources from the competition. This exclusion could be based on various factors, such as prior performance issues, specific technical requirements that only a limited number of vendors could meet, or other justifications. While it still involves competition, the exclusion of potential bidders inherently limits the breadth of the competitive field compared to a process where all sources are invited without prior exclusion. This can impact the number of offers received and potentially the competitiveness of the pricing.

What is the typical cost range for facilities support services contracts of this magnitude awarded by the Department of Defense?

The cost range for facilities support services contracts awarded by the Department of Defense (DOD) can vary significantly based on the scope of services, geographic location, duration, and specific requirements of the installation being supported. A $21 million contract over approximately 4.7 years, averaging around $4.4 million annually, is within a common range for significant facilities support operations at a military installation. However, without knowing the specific services (e.g., janitorial, HVAC maintenance, groundskeeping, security infrastructure support) and the size and complexity of the facilities managed, a precise benchmark is difficult. Larger, more complex bases with extensive infrastructure and higher security needs will naturally command higher contract values than smaller facilities.

What are the potential risks associated with a firm-fixed-price contract for facilities support services?

A firm-fixed-price (FFP) contract obligates the contractor to perform the work for a predetermined price, regardless of the contractor's actual costs. For facilities support services, the primary risk for the government under an FFP contract is that the contractor might cut corners on quality or service delivery to maximize profit if not adequately monitored. This could lead to subpar maintenance, delayed repairs, or reduced service levels, potentially impacting facility functionality and operational readiness. Conversely, the FFP structure shifts cost overrun risk to the contractor, providing budget certainty for the government. Effective performance monitoring and clear contract requirements are crucial to mitigate the quality-related risks.

How has ELEIT TECHNOLOGY, INC. performed on previous government contracts, particularly those involving facilities support?

Information regarding the past performance of ELEIT TECHNOLOGY, INC. on previous government contracts, including those for facilities support, is not directly available in the provided data snippet. A comprehensive assessment of this contract's value and risk would require reviewing the contractor's performance history, including any past performance evaluations, contract awards, and any documented issues or successes on similar contracts. Government agencies typically consider past performance as a significant factor in source selection. Without access to this historical data, it is difficult to assess the contractor's track record and reliability for this specific award.

What is the historical spending trend for facilities support services by the Department of the Army in Alabama?

The provided data focuses on a single contract award and does not offer historical spending trends for facilities support services by the Department of the Army (DOD) in Alabama. To analyze historical spending, one would need access to broader contract databases and procurement records covering multiple years and various contracts within the specified region and service category. Such an analysis would reveal patterns in spending levels, identify key contractors, and potentially highlight shifts in procurement strategies or service requirements over time. This single award does not provide sufficient context to establish a historical spending trend.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911KF06R0020

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2400 BOB WALLACE AVE STE 203, HUNTSVILLE, AL, 05

Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $38,275,094

Exercised Options: $21,055,884

Current Obligation: $21,055,884

Contract Characteristics

Cost or Pricing Data: NO

Timeline