DoD's $222.6M Facilities Support Services Contract with SourceAmerica Shows Limited Competition

Contract Overview

Contract Amount: $222,634,435 ($222.6M)

Contractor: Sourceamerica

Awarding Agency: Department of Defense

Start Date: 2018-07-31

End Date: 2023-09-28

Contract Duration: 1,885 days

Daily Burn Rate: $118.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TOTAL FACILITY MAINTENANCE

Place of Performance

Location: FORT KNOX, HARDIN County, KENTUCKY, 40121

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $222.6 million to SOURCEAMERICA for work described as: TOTAL FACILITY MAINTENANCE Key points: 1. The contract's value of over $222 million over its five-year term represents significant federal investment in facilities maintenance. 2. The sole-source nature of this award raises questions about potential price efficiencies and the breadth of available solutions. 3. A long contract duration of 1885 days suggests a need for stable, long-term service provision, but also limits flexibility. 4. The firm fixed-price structure provides cost certainty for the government but may shift performance risks to the contractor. 5. The absence of small business set-aside provisions indicates a focus on large-scale service providers for this requirement. 6. The contract's geographic focus on Kentucky (ST: KY) highlights regional service delivery for Department of the Army facilities.

Value Assessment

Rating: fair

Benchmarking the value-for-money for this sole-source contract is challenging without comparable bids. The firm fixed-price structure offers budget predictability, but the total value of $222.6 million over nearly five years suggests a substantial investment. Without competitive pricing data, it's difficult to definitively assess if this represents optimal value. However, the scale of services required for facilities support across a large agency like the Army often necessitates significant financial commitments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one source is capable of meeting the requirement, or for specific socio-economic reasons. The lack of competition means there were no other bidders to compare against, potentially limiting price discovery and the government's ability to secure the most cost-effective solution through market forces.

Taxpayer Impact: Taxpayers may not benefit from the cost savings that can arise from a competitive bidding process, potentially leading to a higher overall cost for these essential facilities support services.

Public Impact

The primary beneficiaries are the Department of the Army, receiving essential facilities maintenance and support services to ensure operational readiness. Services delivered likely include a wide range of facility upkeep, such as janitorial, grounds maintenance, minor repairs, and potentially specialized technical support. The geographic impact is concentrated in Kentucky (ST: KY), where the Army facilities requiring these services are located. Workforce implications include the potential for significant employment opportunities within Kentucky, supporting local economies through jobs in facilities management and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in pricing due to no competitive bids.
Potential for cost overruns if not managed tightly due to fixed-price nature.
Contract duration may not align with evolving facility needs.

Positive Signals

Firm fixed-price contract provides budget certainty.
Long-term contract ensures continuity of essential services.
Focus on a single provider may streamline management and coordination.
Services are critical for maintaining operational readiness of Army facilities.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad category encompassing a wide range of services essential for the operation and maintenance of buildings and grounds. This sector is highly competitive, with numerous providers ranging from small local businesses to large multinational corporations. Federal spending in this area is substantial, supporting government infrastructure across all branches and agencies. This contract with SourceAmerica, valued at over $222 million, represents a significant portion of federal spending within this niche, particularly for the Department of the Army's infrastructure in Kentucky.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data indicates 'sb' is false. This suggests that the requirement was not specifically targeted to small businesses, and the prime contractor, SourceAmerica, is likely a large entity or an organization that facilitates services through various means, potentially including larger subcontractors. There is no explicit information on subcontracting plans for small businesses within the provided data, which could limit opportunities for the small business ecosystem in this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting agency, the Department of the Army, and potentially the Department of Defense's Inspector General. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services within the agreed budget. Transparency is limited due to the sole-source nature, but contract performance metrics and payment records would be subject to internal government review and audit.

Related Government Programs

Department of Defense Facilities Maintenance Contracts
Army Base Operations Support Contracts
General Services Administration (GSA) Facilities Management Schedules
Federal Buildings and Grounds Maintenance Services
SourceAmerica Public Sector Contracts

Risk Flags

Sole-source award limits price competition.
Lack of detailed performance metrics in summary data.
Potential for cost inefficiencies due to non-competitive nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $222.6 million to SOURCEAMERICA. TOTAL FACILITY MAINTENANCE

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 $222.6 million.

What is the period of performance?

Start: 2018-07-31. End: 2023-09-28.

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

Analyzing historical spending trends for facilities support services by the Department of the Army specifically within Kentucky requires access to detailed historical contract databases. The provided data only covers this single contract from July 2018 to September 2023. To establish a trend, one would need to aggregate data for similar NAICS codes (e.g., 561210) awarded by the Army in Kentucky over multiple fiscal years. This would involve identifying all relevant contracts, their values, durations, and award types. Without this broader dataset, it's impossible to determine if the $222.6 million awarded to SourceAmerica represents an increase, decrease, or stable level of spending compared to previous periods or other providers.

How does the per-unit cost of services under this contract compare to industry benchmarks for facilities support?

Determining a precise per-unit cost for services under this contract is challenging without a detailed breakdown of the services provided and their associated quantities or metrics (e.g., cost per square foot maintained, cost per janitorial hour). The contract is a firm fixed-price award valued at $222.6 million over 1885 days. To benchmark, we would need to identify specific service deliverables and their pricing. Industry benchmarks for facilities support vary widely based on geographic location, facility type, and service scope. For instance, janitorial services might be benchmarked per square foot, while landscaping might be per acre. Given the sole-source nature and lack of detailed service line items in the provided summary, a direct per-unit cost comparison to market rates is not feasible with the current data.

What is SourceAmerica's track record with federal facilities support contracts, particularly sole-source awards?

SourceAmerica is a non-profit organization that focuses on creating employment opportunities for individuals with disabilities by fulfilling federal contracts. They often operate under specific government programs that may facilitate sole-source or preferred contracting arrangements. Their track record with federal facilities support contracts is generally extensive, given their mission. However, the specifics of their performance, including cost-effectiveness and service quality on sole-source awards like this one, would require a deeper dive into their contract history, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any associated audits or reviews. Without access to these detailed performance records, assessing their specific track record on this contract remains limited.

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

A sole-source, firm-fixed-price contract for facilities support carries several potential risks. For the government, the primary risk is the lack of competitive pricing, which could lead to paying a premium for services compared to what might be achieved through open competition. There's also a risk that the contractor may not be incentivized to innovate or improve efficiency beyond what is contractually required, as the profit margin is fixed. If the scope of work changes significantly or unforeseen issues arise, the fixed-price nature can lead to disputes or costly change orders. For the contractor, the risk lies in underestimating the costs or complexity of the work, potentially leading to losses if they cannot deliver within the fixed price. The sole-source aspect also means the government is reliant on a single provider, risking service disruption if the contractor faces financial or operational difficulties.

How does this contract's value compare to other large federal facilities maintenance contracts?

The $222.6 million value of this contract over approximately five years places it as a significant federal facilities support award. To compare it effectively, one would need to examine other large-scale contracts within the same or similar NAICS codes (e.g., 561210) awarded by various federal agencies. For instance, contracts for base operations support (BOS) at major military installations often run into hundreds of millions of dollars. Similarly, facilities management contracts for large civilian agency headquarters or extensive government property portfolios can reach comparable values. Without specific data on other large contracts, it's difficult to definitively state if this is exceptionally high or typical, but its multi-million dollar value indicates it covers substantial operational requirements.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9124D17R0037

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8401 OLD COURTHOUSE RD, 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: $226,981,762

Exercised Options: $226,981,762

Current Obligation: $222,634,435

Actual Outlays: $12,941,547

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline