Department of Defense awards $17.4M for facilities support services, with limited competition

Contract Overview

Contract Amount: $17,442,367 ($17.4M)

Contractor: Primus Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-04-26

End Date: 2012-03-28

Contract Duration: 2,163 days

Daily Burn Rate: $8.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200607!600557!2100!W911S0!ACA, NRCC - GENERAL SUPPORT DIVI!W911S006C0005 !A!N! !N! ! !20060426!20070430!167232532!167232532!167232532!N!FIELD SUPPORT SERVICES, INC !BLDG 2590 CURRIE ROAD !FORT SILL !OK!73503!11280!041!42!CARLISLE BARRACKS !CUMBERLAND !PENN !+000000719721!N!N!000014509578!M152!OPERATION/MAINTENANCE BUILDINGS !S1 !SERVICES !000 !* !561210!E! !3! ! ! ! ! !99990909!B! ! !N!Z!B!U!J!1!001!N!5A!C!Y!Z! ! !N!A!N!N!E! ! ! !D!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: CARLISLE, CUMBERLAND County, PENNSYLVANIA, 17013

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $17.4 million to PRIMUS SOLUTIONS, INC. for work described as: 200607!600557!2100!W911S0!ACA, NRCC - GENERAL SUPPORT DIVI!W911S006C0005 !A!N! !N! ! !20060426!20070430!167232532!167232532!167232532!N!FIELD SUPPORT SERVICES, INC !BLDG 2590 CURRIE ROAD !FORT SILL !OK!73503!11280!041!42!CARLISLE BARRACKS !CUMB… Key points: 1. Contract awarded for facilities support services, indicating a need for ongoing building operations and maintenance. 2. The contract was not competitively procured, raising questions about potential cost efficiencies and value for money. 3. A single award was made, suggesting potential limitations in market availability or a strategic decision to sole-source. 4. The duration of the contract (over 5 years) suggests a long-term requirement for these services. 5. The contract falls under Facilities Support Services, a broad category essential for government operations. 6. The awardee, Field Support Services, Inc., is positioned to provide critical support to military installations.

Value Assessment

Rating: questionable

The contract value of $17.4 million over its extended period is difficult to benchmark without more detailed service breakdowns and comparable contracts. The lack of competition makes it challenging to assess if the pricing represents a fair market value. Without a competitive bidding process, there's a risk that the awarded price may not be the most cost-effective option available to the government. Further analysis would require understanding the specific services rendered and comparing them to industry standards for facilities maintenance and support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning it was not open to full and open competition. This typically occurs when only one responsible source is available or when a compelling reason exists to limit competition. The implications for price discovery are significant, as the absence of multiple bids means the government did not benefit from the competitive pressure that usually drives down prices. This approach can sometimes be justified for specialized services or urgent needs, but it warrants scrutiny regarding cost-effectiveness.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive bidding. Without multiple offers, the government had less leverage to negotiate the best possible price, potentially leading to higher overall expenditure for these essential services.

Public Impact

Military personnel and civilian staff at Fort Sill, Oklahoma, benefit from well-maintained facilities, ensuring operational readiness. The contract provides essential services for the operation and maintenance of buildings, contributing to a safe and functional environment. The primary geographic impact is Fort Sill, Oklahoma, where the contractor is expected to perform services. The contract supports a workforce involved in facilities management, maintenance, and potentially related support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits transparency and potential for cost savings through bidding.
Extended contract duration without competitive re-evaluation could mask inefficiencies over time.

Positive Signals

Award ensures continuity of essential facilities support services.
Contracting with a single provider can streamline management and communication for specific needs.
The awardee is tasked with maintaining critical infrastructure at a military installation.

Sector Analysis

Facilities Support Services (NAICS 561210) is a significant sector within the broader professional, scientific, and technical services industry. This sector encompasses a wide range of services related to the operation and maintenance of buildings and other facilities. Government agencies are major consumers of these services, requiring support for everything from routine janitorial work to complex building systems management. The market size is substantial, with numerous private sector firms competing for contracts. This particular award fits within the government's ongoing need to maintain its vast real estate portfolio, ensuring operational efficiency and safety.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by the 'ss' field being false. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a set-aside suggests that the primary awardee is likely a larger entity, and opportunities for small businesses may be limited unless they are subcontracted by the prime. Further investigation into subcontracting goals would be necessary to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The contract's performance would be monitored to ensure compliance with terms and conditions. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Specific accountability measures would be detailed within the contract's performance work statement and clauses.

Related Government Programs

Base Operations Support (BOS)
Facilities Engineering Services
Building Maintenance and Repair
Logistics and Support Services

Risk Flags

Sole-source award limits price competition.
Lack of detailed service scope in summary data hinders value assessment.
Extended contract duration without competitive re-evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.4 million to PRIMUS SOLUTIONS, INC.. 200607!600557!2100!W911S0!ACA, NRCC - GENERAL SUPPORT DIVI!W911S006C0005 !A!N! !N! ! !20060426!20070430!167232532!167232532!167232532!N!FIELD SUPPORT SERVICES, INC !BLDG 2590 CURRIE ROAD !FORT SILL !OK!73503!11280!041!42!CARLISLE BARRACKS !CUMBERLAND !PENN !+000000719721!N!N!000014509578!M152!OPERATION/MAINTENANCE BUILDINGS !S1 !SERVICES !000 !* !561210!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is PRIMUS SOLUTIONS, 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 $17.4 million.

What is the period of performance?

Start: 2006-04-26. End: 2012-03-28.

What specific services are included under 'OPERATION/MAINTENANCE BUILDINGS' for this contract?

The provided data indicates the contract is for 'OPERATION/MAINTENANCE BUILDINGS' under NAICS code 561210 (Facilities Support Services). While the specific details are not fully enumerated in the abbreviated data, this category typically encompasses a broad range of activities essential for the upkeep and functioning of government facilities. These services often include routine maintenance, repairs, janitorial services, groundskeeping, pest control, waste management, and the operation of building systems such as HVAC, electrical, and plumbing. The contract likely specifies the exact scope and standards for these services in its Performance Work Statement (PWS), which is not included in the provided data. The duration of the contract (over 5 years) suggests a comprehensive and ongoing requirement for these facility management tasks.

How does the pricing of this contract compare to similar facilities support contracts awarded by the Department of Defense?

Direct price comparison is challenging due to the sole-source nature of this award and the lack of detailed service breakdowns in the provided data. Typically, competitive solicitations allow for benchmarking against multiple bids, revealing market rates. Without this, assessing the value for money requires comparing the awarded price per unit of service (e.g., per square foot maintained, per service call) against industry averages or other competitively awarded contracts for similar scope and scale. Given the limited competition, there is a higher risk that this contract's pricing may not be as favorable as it could have been under a competitive process. Further analysis would necessitate accessing the full contract details and relevant market research.

What are the primary risks associated with a sole-source award for facilities support services?

The primary risks associated with a sole-source award for facilities support services include potential overpayment due to the absence of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in the procurement process. Taxpayers may bear a higher cost than necessary. Furthermore, if the sole-source justification was based on specific capabilities that later prove inadequate or if the contractor's performance falters, the government has limited immediate alternatives without initiating a new, potentially lengthy, sole-source justification or a full competitive procurement. This can lead to service disruptions or continued reliance on a potentially underperforming vendor.

What is the historical spending pattern for facilities support services at Fort Sill, Oklahoma, or similar installations?

The provided data only includes details for this specific contract awarded in 2006. To analyze historical spending patterns, one would need access to a broader dataset encompassing previous contracts for facilities support services at Fort Sill, Oklahoma, and potentially other similar Army installations. This would involve examining contract values, durations, award types (competitive vs. sole-source), and the contractors involved over several fiscal years. Such an analysis would help identify trends in spending, understand the typical cost of these services, and assess whether this particular award represents an outlier in terms of cost or duration compared to historical norms. Without this broader historical context, it's difficult to draw conclusions about spending patterns.

What is the track record of Field Support Services, Inc. in performing similar government contracts?

The provided data identifies Field Support Services, Inc. as the awardee for this contract. To assess their track record, one would need to examine their past performance on other government contracts, particularly those involving facilities support services. This would involve searching contract databases for previous awards to this company, reviewing past performance evaluations (if publicly available), and looking for any reported issues such as contract disputes, performance deficiencies, or past performance ratings. A strong track record of successful contract completion and positive performance reviews would indicate a lower risk associated with this award. Conversely, a history of issues would raise concerns about the contractor's ability to meet the requirements of this new contract.

Industry Classification

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

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation (UEI: 076637073)

Address: BLDG. 2590 CURRIE ROAD, FORT SILL, OK, 73503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline