DoD's $24.8M Facilities Support Services Contract Awarded to AMERITAC, INC. for Post Maintenance

Contract Overview

Contract Amount: $24,879,062 ($24.9M)

Contractor: Ameritac, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-09-01

End Date: 2011-08-31

Contract Duration: 1,825 days

Daily Burn Rate: $13.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: POST MAINTENANCE

Place of Performance

Location: FORT MONROE, HAMPTON (CITY) County, VIRGINIA, 23651, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.9 million to AMERITAC, INC. for work described as: POST MAINTENANCE Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1825 days (5 years) indicates a long-term need for these services. 3. Services fall under Facilities Support Services, a broad category crucial for operational readiness. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 5. The award was made by the Department of the Army, a major component of the DoD. 6. The contract was awarded in 2006, providing historical context for current spending patterns.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. The Cost Plus Fixed Fee (CPFF) structure means the government pays the actual costs plus a fixed fee, which can lead to cost overruns if not managed tightly. Comparing it to similar facilities support contracts would require access to detailed service scopes and pricing structures from other awards. The total value of $24.8 million over five years averages to approximately $4.97 million annually, which needs to be assessed against the specific services provided and the geographic scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be open, there was an initial exclusion of certain sources before the final competition. The number of bidders is not specified, but the 'full and open' nature suggests multiple entities had the opportunity to bid, which generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: A competitive bidding process, even with initial exclusions, is generally favorable for taxpayers as it encourages multiple companies to offer their best pricing and service terms to win the contract.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel, who receive essential facilities maintenance and support services. Services delivered include post maintenance, ensuring operational readiness and habitability of military facilities. The geographic impact is likely concentrated at the specific Army installation(s) where the post maintenance is performed. Workforce implications include employment opportunities for individuals in facilities management, maintenance, and related trades, both directly by the contractor and potentially through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust oversight to prevent contractor inefficiencies from increasing costs.
The 'after exclusion of sources' clause warrants further investigation into the rationale for initial exclusions.
Lack of specific performance metrics in the provided data makes it difficult to assess the quality of services delivered.
The contract's age (awarded in 2006) means current market rates and service expectations may have evolved significantly.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace for these services.
The long contract duration suggests a stable and reliable service provider was selected.
The contract falls under a standard service category (Facilities Support Services) with established industry practices.

Sector Analysis

Facilities Support Services represent a significant segment of the government contracting market, encompassing a wide range of activities from janitorial services to complex building maintenance and management. This contract fits within the broader Defense sector's need for operational infrastructure support. Comparable spending benchmarks would typically involve analyzing the average cost per square foot for similar maintenance services across different military branches or government agencies, adjusted for geographic location and service complexity. The market for these services is generally competitive, with numerous firms capable of providing them.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program for this particular award. However, the prime contractor, AMERITAC, INC., may still engage small businesses as subcontractors based on their own procurement strategies and the availability of qualified small business vendors in the market.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army. Given the Cost Plus Fixed Fee structure, rigorous monitoring of costs incurred by the contractor and the justification for the fixed fee would be essential. Transparency would be facilitated through contract reporting mechanisms and potentially through the Federal Procurement Data System (FPDS). Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or alleged.

Related Government Programs

Base Operations Support (BOS)
Logistics and Supply Chain Management
Facilities Engineering and Maintenance
Construction and Repair Services
Government Property Management

Risk Flags

Contract awarded under 'after exclusion of sources' clause.
Cost Plus Fixed Fee contract type requires diligent oversight.
Contract awarded in 2006; current market conditions and pricing may differ significantly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.9 million to AMERITAC, INC.. POST MAINTENANCE

Who is the contractor on this award?

The obligated recipient is AMERITAC, 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 $24.9 million.

What is the period of performance?

Start: 2006-09-01. End: 2011-08-31.

What was the specific rationale for excluding certain sources before the 'full and open competition' phase?

The data indicates the contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This specific clause suggests that prior to the final competitive bidding process, certain potential offerors were excluded. The reasons for such exclusions can vary widely, including but not limited to, prior performance issues, failure to meet specific pre-qualification criteria, or national security concerns. Without further documentation or context from the awarding agency (Department of the Army), the precise rationale remains unclear. Understanding this exclusion is important as it could indicate potential risks associated with the excluded parties or specific requirements that only a limited set of contractors could meet, potentially impacting the overall competitiveness and final price.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar facilities support services?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or involves a high degree of uncertainty, such as research and development or complex services. In this case, for facilities support, it means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the contractor but shifts more cost risk to the government. FFP contracts provide greater cost certainty for the government but require a very well-defined scope to avoid disputes. For routine facilities maintenance, FFP is often preferred for predictability. The use of CPFF here suggests potential complexities or evolving needs in the post maintenance services that warranted this structure, necessitating strong government oversight to manage costs effectively.

What is the typical profit margin (fixed fee) for CPFF contracts in the Facilities Support Services sector?

The fixed fee in a Cost Plus Fixed Fee (CPFF) contract represents the contractor's profit and is negotiated upfront. Typical profit margins for CPFF contracts can vary significantly based on the industry, the complexity of the work, the level of risk involved, and agency-specific regulations. For services like facilities support, which are generally considered less risky than, for example, cutting-edge R&D, fixed fees often range from 5% to 15% of the estimated cost. However, government-wide policies and agency guidelines may impose caps or target ranges. Without knowing the total estimated cost upon which the fixed fee was calculated for AMERITAC, INC.'s contract, it's impossible to determine the exact percentage. A fee at the higher end of this range might warrant closer scrutiny to ensure it aligns with industry norms and the actual risk undertaken.

How has spending on Facilities Support Services by the Department of the Army evolved since this contract was awarded in 2006?

Spending on Facilities Support Services by the Department of the Army has likely seen fluctuations and overall increases since 2006, influenced by factors such as military readiness requirements, base realignments and closures, infrastructure modernization efforts, and changes in defense budgets. While this specific $24.8 million contract represents a portion of that spending over its five-year period (2006-2011), broader trends indicate a consistent and substantial investment in maintaining military installations. Analyzing historical spending data from sources like FPDS or agency budget reports would reveal aggregate figures for facilities maintenance and support, potentially showing shifts towards outsourcing, privatization, or increased focus on energy efficiency and sustainability in recent years.

What are the potential risks associated with a 5-year contract for post maintenance services?

A 5-year contract for post maintenance services, while providing stability, carries several potential risks. Firstly, the fixed nature of the contract might not adequately account for significant inflation or unexpected increases in material and labor costs over the term, potentially straining the contractor's profitability or leading to requests for equitable adjustments. Secondly, if the scope of work evolves or new technologies emerge, the contract might become outdated, failing to meet current operational needs without costly modifications or change orders. Thirdly, long-term contracts can sometimes lead to complacency in performance if oversight is not consistently rigorous. Finally, the government's ability to adapt to changing requirements or switch to potentially more cost-effective solutions is limited during the contract period.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911S006R0015

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ameritac Inc (UEI: 847230935)

Address: 2380 SALVIO STREET, CONCORD, CA, 94520

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Emerging Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,453,073

Exercised Options: $26,453,073

Current Obligation: $24,879,062

Contract Characteristics

Cost or Pricing Data: NO

Timeline