Fort Knox Facilities Maintenance Contract Awarded to SourceAmerica for Over $96 Million

Contract Overview

Contract Amount: $96,959,369 ($97.0M)

Contractor: Sourceamerica

Awarding Agency: Department of Defense

Start Date: 2016-08-01

End Date: 2018-07-31

Contract Duration: 729 days

Daily Burn Rate: $133.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF FACILITIES MAINTENANCE SERVICES FOR DPW, FORT KNOX, KY

Place of Performance

Location: FORT KNOX, HARDIN County, KENTUCKY, 40121

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $97.0 million to SOURCEAMERICA for work described as: IGF::OT::IGF FACILITIES MAINTENANCE SERVICES FOR DPW, FORT KNOX, KY Key points: 1. Contract awarded to a non-profit agency, raising questions about competitive pricing and value for money. 2. Limited competition due to the nature of the award mechanism. 3. Potential for higher costs compared to open market solutions. 4. Performance period spans two years, indicating a need for ongoing facility support. 5. Contract falls within the facilities support services sector. 6. No indication of small business set-aside or subcontracting goals.

Value Assessment

Rating: questionable

The contract's value of over $96 million for two years of facilities maintenance at Fort Knox warrants scrutiny. Awarded to SourceAmerica, a non-profit agency, it bypasses traditional competitive bidding processes. This raises concerns about whether the government is achieving optimal value for money compared to what might be obtained through a fully competed contract. Benchmarking against similar facilities maintenance contracts, especially those awarded through full and open competition, would be necessary to definitively assess pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed on the open market. SourceAmerica operates under a specific government mandate to provide employment opportunities for individuals with disabilities, often through non-competitive or limited-competition awards. While this serves a valuable social purpose, it means that the typical dynamics of price discovery through multiple bids are absent. The limited competition structure is inherent to the program's design rather than a result of market conditions.

Taxpayer Impact: Taxpayers may be paying a premium for this contract due to the lack of competitive pressure. However, this is balanced against the social mission of providing employment for individuals with disabilities.

Public Impact

Individuals with disabilities benefit from employment opportunities through SourceAmerica's programs. Essential facilities maintenance services are provided to Fort Knox, ensuring operational readiness. The contract supports the Kentucky region through employment and service delivery. Workforce implications include the employment of individuals with disabilities in service roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may lead to higher costs.
Transparency in pricing and performance metrics could be limited.
Reliance on a single non-profit provider may reduce flexibility.

Positive Signals

Supports a valuable social mission of employing individuals with disabilities.
Ensures critical facilities maintenance for a key military installation.
Provides stable employment opportunities within the supported community.

Sector Analysis

The facilities support services sector is a broad category encompassing a wide range of services necessary for the operation and maintenance of buildings and grounds. This contract, focused on maintenance for a military installation, fits within this sector. Government spending in this area is substantial, often involving long-term contracts for base operations and maintenance. Comparable spending benchmarks would typically be derived from other large-scale government facilities maintenance contracts, though direct comparisons are difficult without knowing the specific scope of work and location.

Small Business Impact

This contract does not appear to have a small business set-aside component. SourceAmerica's model focuses on employing individuals with disabilities, which is a distinct objective from promoting small business participation. There is no information provided regarding subcontracting opportunities for small businesses under this award.

Oversight & Accountability

Oversight for contracts awarded through agencies like SourceAmerica typically involves monitoring performance against contract requirements and ensuring compliance with program objectives. Accountability measures would focus on the delivery of required facilities maintenance services and the fulfillment of SourceAmerica's mission. Transparency may be less than in fully competed contracts, as the award process is predetermined. Inspector General jurisdiction would likely apply to ensure proper use of federal funds.

Related Government Programs

Base Operations Support Contracts
Facilities Maintenance Services
Procurement through Non-Profit Agencies
Services for Individuals with Disabilities

Risk Flags

Non-competitive award
Potential for higher costs
Lack of transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $97.0 million to SOURCEAMERICA. IGF::OT::IGF FACILITIES MAINTENANCE SERVICES FOR DPW, FORT KNOX, KY

Who is the contractor on this award?

The obligated recipient is SOURCEAMERICA.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $97.0 million.

What is the period of performance?

Start: 2016-08-01. End: 2018-07-31.

What is the historical spending pattern for facilities maintenance at Fort Knox?

Historical spending data for facilities maintenance at Fort Knox prior to this $96.9 million contract (2016-2018) is not directly available in the provided data. However, understanding the historical context is crucial for evaluating the value and necessity of the current contract. Typically, military installations require continuous and substantial investment in facilities maintenance. Analyzing past contracts, including their duration, scope, and cost, would reveal trends in spending and identify any significant shifts in procurement strategies or cost structures. Without this historical data, it is difficult to ascertain if the current contract represents an increase, decrease, or stable level of spending for these services at Fort Knox.

How does the pricing of this contract compare to market rates for similar facilities maintenance services?

Directly comparing the pricing of this contract to open market rates is challenging due to its award mechanism. SourceAmerica operates under a mandate to provide employment for individuals with disabilities, which can influence its cost structure and pricing. Contracts awarded through full and open competition typically allow for price discovery based on market competition. Without specific line-item details of the services provided and their associated costs, and without a benchmark of similar services procured competitively, it is difficult to definitively state whether this contract is priced above, below, or at market rates. The 'value for money' assessment would require a detailed analysis comparing the scope of work and outcomes against competitively procured contracts.

What are the specific performance metrics and quality standards outlined in this contract?

The provided data does not detail the specific performance metrics or quality standards for this facilities maintenance contract. Typically, such contracts would include Service Level Agreements (SLAs) or performance work statements (PWS) that define measurable objectives for services like response times, repair completion rates, preventative maintenance schedules, and overall facility condition. The effectiveness of the contract hinges on robust oversight and clear metrics to ensure that Fort Knox receives the required level of maintenance and that taxpayer funds are used efficiently. Without access to the full contract document, a thorough assessment of performance expectations and quality assurance cannot be made.

What is the track record of SourceAmerica in delivering facilities maintenance services for the Department of Defense?

SourceAmerica is a non-profit organization that fulfills government contracts to create jobs for people with disabilities. While they are known for their mission-driven approach, their track record specifically in delivering large-scale facilities maintenance services for the Department of Defense (DoD) would need to be evaluated based on past performance reviews and contract outcomes. Information on their success in meeting performance requirements, managing large contracts, and ensuring quality service delivery for similar DoD installations would be crucial. Assessing their past performance would involve reviewing contract close-out reports, customer satisfaction surveys, and any documented instances of performance issues or successes.

What is the potential risk associated with a non-competitive award for essential services like facilities maintenance?

The primary risk associated with a non-competitive award for essential services like facilities maintenance is the potential for reduced value for money. Without the pressure of competition, there is less incentive for the contractor to offer the lowest possible price or the most efficient service delivery methods. This can lead to higher costs for taxpayers. Additionally, a lack of competition might limit the adoption of innovative solutions or technologies that could be introduced by a more competitive market. While SourceAmerica serves a vital social mission, the government must ensure robust oversight to mitigate the financial risks inherent in non-competitive procurements.

Industry Classification

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

Product/Service Code: CONSTRUCTION AND BUILDING MATERIAL

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9124D16R0016

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8401 OLD COURTHOUSE RD STE 110, VIENNA, VA, 22182

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $105,275,661

Exercised Options: $105,275,661

Current Obligation: $96,959,369

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline