DoD's $18.97M Facilities Operations Support Services contract awarded to REAMS ENTERPRISES INC. shows potential value concerns

Contract Overview

Contract Amount: $18,974,052 ($19.0M)

Contractor: Reams Enterprises Inc.

Awarding Agency: Department of Defense

Start Date: 2004-07-29

End Date: 2009-07-31

Contract Duration: 1,828 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200411!000885!2100!W911SE!ACA, SOUTH REGION CONTRACTING CT!W911SE04C0008 !A!N! !N! ! !20040729!20050731!625290663!625290663!625290663!N!REAMS ENTERPRISES INC !1478 CENTRAL AVENUE !EAST POINT !GA!30344!30928!121!13!FORT MCPHERSON !FULTON !GEORGIA !+000003256883!N!N!000017258415!S216!FACILITIES OPERATIONS SUPPORT SERVICES !S1 !SERVICES !000 !* !561210!E! !3! ! ! ! ! !99990909!B! ! !B! !A!U!J!2!001!K! !C!N!Z! ! !N!B!N!Y! ! !Z! !K!A!00 !A!B!N! ! ! ! !2100!W33NY2!0001! !

Place of Performance

Location: ATLANTA, GEORGIA, 30330

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $19.0 million to REAMS ENTERPRISES INC. for work described as: 200411!000885!2100!W911SE!ACA, SOUTH REGION CONTRACTING CT!W911SE04C0008 !A!N! !N! ! !20040729!20050731!625290663!625290663!625290663!N!REAMS ENTERPRISES INC !1478 CENTRAL AVENUE !EAST POINT !GA!30344!30928!121!13!FORT MCPHERSON !FULT… Key points: 1. The contract's total value of $18.97M over its period of performance raises questions about cost-effectiveness. 2. Awarded under full and open competition, the pricing structure warrants further scrutiny against market benchmarks. 3. The duration of the contract and its fixed-price nature may limit flexibility in adapting to changing needs. 4. Performance context is limited, making it difficult to assess the contractor's effectiveness and value delivered. 5. This contract falls within the Facilities Support Services sector, a common area for government outsourcing. 6. The absence of small business set-aside provisions suggests limited direct impact on small business participation.

Value Assessment

Rating: questionable

The total award amount of $18.97M for facilities operations support services over approximately five years appears high when compared to similar contracts. Without detailed breakdowns of services provided and performance metrics, it is difficult to benchmark the value for money. The firm fixed-price nature of the contract, while offering cost certainty, could also lead to overpayment if the scope of work does not fully utilize the contractor's capacity or if market rates for services decrease over time. Further analysis of the specific services rendered and their associated costs is needed to definitively assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple potential bidders were considered. However, the specific details of the exclusion of sources are not provided, which could limit the breadth of competition. The number of bidders is not specified, making it difficult to assess the intensity of the competition. A robust competitive environment typically drives down prices and improves service quality, but the specifics of this procurement's competition level are unclear.

Taxpayer Impact: While full and open competition is generally beneficial for taxpayers by fostering a competitive bidding environment, the lack of clarity on source exclusions and the number of bidders prevents a definitive assessment of optimal price discovery for this specific contract.

Public Impact

The primary beneficiaries are likely the Department of Defense and its personnel at Fort McPherson, Georgia, who receive essential facilities operations support. Services delivered include a broad range of facilities maintenance and operational support, ensuring the functionality of military installations. The geographic impact is localized to Fort McPherson, Georgia, supporting the base's infrastructure and operational readiness. Workforce implications may include the direct employment of personnel by REAMS ENTERPRISES INC. for service delivery, as well as potential indirect impacts on base personnel relying on these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not accurately reflect actual service needs over its duration.
Limited transparency into the specific cost components of the services provided, making value assessment challenging.
The 'after exclusion of sources' clause in the competition type warrants further investigation to ensure maximum competition was achieved.
Lack of detailed performance metrics makes it difficult to gauge the effectiveness and efficiency of the contractor's services.

Positive Signals

Awarded through a full and open competition process, suggesting an effort to solicit a wide range of potential providers.
The firm fixed-price contract provides cost certainty for the government, mitigating risks associated with cost-reimbursement contracts.
The contractor, REAMS ENTERPRISES INC., has secured a significant contract, indicating a level of capability and trust from the awarding agency.

Sector Analysis

This contract falls within the Facilities Support Services industry, a broad category encompassing maintenance, repair, and operational support for physical infrastructure. The government is a major consumer of these services, often outsourcing them to private companies to manage costs and leverage specialized expertise. The market for facilities management is competitive, with numerous providers ranging from small local businesses to large multinational corporations. Benchmarking this contract's value would require comparison against similar service contracts awarded by federal agencies or large private sector organizations for comparable facilities and service scopes.

Small Business Impact

This contract does not appear to have been set aside for small businesses, as indicated by the 'ss' and 'sb' fields being false. Consequently, there are no direct subcontracting implications for small businesses mandated by a set-aside. The absence of a small business set-aside means that larger, established firms were likely the primary focus of the competition. This could limit opportunities for small businesses to participate in delivering these specific services, although they might still be involved as subcontractors if the prime contractor chooses to engage them.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army at Fort McPherson. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases like FPDS, which provide basic information on contract value, awardee, and dates. The extent of Inspector General jurisdiction would depend on specific allegations of fraud, waste, or abuse related to the contract's performance or award.

Related Government Programs

Base Operations Support Services
Facilities Maintenance Contracts
Government Contracting
Department of Defense Procurement
Services Contracts

Risk Flags

Potential for cost overruns due to fixed-price nature over a long duration.
Lack of detailed performance metrics makes value assessment difficult.
Ambiguity in 'after exclusion of sources' competition type.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.0 million to REAMS ENTERPRISES INC.. 200411!000885!2100!W911SE!ACA, SOUTH REGION CONTRACTING CT!W911SE04C0008 !A!N! !N! ! !20040729!20050731!625290663!625290663!625290663!N!REAMS ENTERPRISES INC !1478 CENTRAL AVENUE !EAST POINT !GA!30344!30928!121!13!FORT MCPHERSON !FULTON !GEORGIA !+000003256883!N!N!000017258415!S216!FACILITIES OPERATIONS SUPPORT SERVICES !S1 !SERVICES !000 !* !561210!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is REAMS ENTERPRISES 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 $19.0 million.

What is the period of performance?

Start: 2004-07-29. End: 2009-07-31.

What is the track record of REAMS ENTERPRISES INC. in performing similar federal contracts?

Information on REAMS ENTERPRISES INC.'s track record with similar federal contracts is not detailed in the provided data snippet. To assess their performance history, one would need to consult databases like the Federal Procurement Data System (FPDS) or agency-specific performance evaluation systems. This would involve searching for other contracts awarded to REAMS ENTERPRISES INC., examining their value, duration, scope of services, and any reported performance ratings or past performance reviews. A history of successful contract completion, positive performance feedback, and adherence to timelines and budgets would indicate a reliable contractor. Conversely, a record of disputes, contract terminations, or poor performance ratings would raise concerns about their capability to fulfill the current $18.97M facilities operations support services contract effectively.

How does the per-unit cost of services compare to market rates or similar government contracts?

The provided data does not include a breakdown of per-unit costs for the services rendered under this contract, nor does it offer specific details that would allow for direct comparison to market rates or similar government contracts. The total award amount of $18.97M is for a broad scope of 'Facilities Operations Support Services' over an extended period. To perform a meaningful comparison, one would need to identify specific service line items (e.g., HVAC maintenance, janitorial services, groundskeeping) and their associated costs. These costs would then need to be benchmarked against publicly available data for similar services procured by other federal agencies or against industry standard pricing. Without this granular data, assessing whether the per-unit cost represents good value for money is speculative.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data snippet does not specify the key performance indicators (KPIs) or the methods used for measuring the performance of REAMS ENTERPRISES INC. under this facilities operations support services contract. Typically, such contracts include a detailed statement of work (SOW) and performance work statement (PWS) that outline specific deliverables, service levels, and quality standards. Performance is often evaluated through metrics such as response times for service requests, completion rates, customer satisfaction surveys, and adherence to safety and environmental regulations. Without access to the SOW/PWS and any associated performance reports, it is impossible to assess how effectively the contractor is meeting the government's requirements or if the services delivered align with the substantial financial investment.

What is the historical spending trend for facilities operations support services at Fort McPherson or within the Department of the Army?

The provided data snippet focuses on a single contract award and does not offer historical spending trends for facilities operations support services at Fort McPherson or within the broader Department of the Army. To analyze historical spending, one would need to access procurement data over multiple fiscal years. This would involve querying databases like FPDS for all contracts related to facilities operations support services awarded to Fort McPherson or by the Army. Examining this data would reveal patterns in spending levels, identify major contractors, and show whether spending has increased, decreased, or remained stable over time. Such analysis is crucial for understanding the long-term investment in these services and identifying potential efficiencies or areas of concern.

Are there any identified risks associated with the contractor's financial stability or operational capacity to fulfill this contract?

The provided data snippet does not contain specific information regarding identified risks associated with REAMS ENTERPRISES INC.'s financial stability or operational capacity for this particular contract. Standard government procurement processes often include assessments of a contractor's past performance, financial health, and management capability. However, these assessments are not typically detailed in the public award data. To evaluate such risks, one would need to review contractor performance evaluations, financial reports (if publicly available), and any debriefings or protests related to the contract award. The absence of explicit risk flags in the summary data does not guarantee the absence of underlying risks; further due diligence would be required.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1478 CENTRAL AVENUE, EAST POINT, GA, 05

Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations

Contract Characteristics

Cost or Pricing Data: NO

Timeline