DoD's $167M Army Facilities Support Contract with Wolf Creek Federal Services Faces Scrutiny

Contract Overview

Contract Amount: $167,421,431 ($167.4M)

Contractor: Wolf Creek Federal Services Inc

Awarding Agency: Department of Defense

Start Date: 2014-10-29

End Date: 2019-05-31

Contract Duration: 1,675 days

Daily Burn Rate: $100.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::CT::IGF INSTALLATION SUPPORT SERVICES TO U.S. ARMY GARRISON REDSTONE.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $167.4 million to WOLF CREEK FEDERAL SERVICES INC for work described as: IGF::CT::IGF INSTALLATION SUPPORT SERVICES TO U.S. ARMY GARRISON REDSTONE. Key points: 1. Contract awarded to Wolf Creek Federal Services Inc. for facilities support. 2. Significant value of $167.4M over its 5-year period. 3. Competition method was 'Full and Open Competition After Exclusion of Sources', raising questions about true openness. 4. Sector is Facilities Support Services, a critical but often high-cost area for government operations.

Value Assessment

Rating: questionable

The contract's Cost Plus Incentive Fee (CPIF) structure can incentivize cost overruns. Without detailed cost breakdowns and benchmarks, it's difficult to assess if the $167.4M price is reasonable compared to similar facilities support contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The award used 'Full and Open Competition After Exclusion of Sources', indicating a limited competition where specific sources were excluded. This method may restrict price discovery and potentially lead to higher costs than a truly open competition.

Taxpayer Impact: The limited competition and CPIF structure could result in taxpayers paying more than necessary for essential facilities support services.

Public Impact

Taxpayers may be overpaying for essential base maintenance and operations. Lack of transparency in the 'exclusion of sources' process raises concerns about fairness. The long duration and high value could indicate a critical need, but also a potential for inefficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method
CPIF contract type
Lack of clear per-unit cost benchmarks

Positive Signals

Awarded to support critical Army Garrison operations
Contract completed within its period of performance

Sector Analysis

Facilities Support Services (NAICS 561210) are essential for government operations, encompassing maintenance, custodial, and other support functions. Spending in this sector can vary widely, but contracts exceeding $100M warrant close examination for efficiency and value.

Small Business Impact

The data indicates this contract was not awarded to a small business (SB=false). Analysis of subcontracting opportunities for small businesses is not provided but would be crucial for assessing broader economic impact.

Oversight & Accountability

The 'exclusion of sources' in the competition method suggests a potential need for enhanced oversight to ensure fair and open processes. Further review of the justification for exclusion and the contractor's performance would be beneficial.

Related Government Programs

Facilities Support Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition raises concerns about price discovery.
CPIF contract type can lead to cost overruns if not managed closely.
Lack of transparency in source exclusion.
High contract value warrants detailed cost-benefit analysis.
No clear indication of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $167.4 million to WOLF CREEK FEDERAL SERVICES INC. IGF::CT::IGF INSTALLATION SUPPORT SERVICES TO U.S. ARMY GARRISON REDSTONE.

Who is the contractor on this award?

The obligated recipient is WOLF CREEK FEDERAL SERVICES 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 $167.4 million.

What is the period of performance?

Start: 2014-10-29. End: 2019-05-31.

What was the specific justification for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' process, and how did this impact the final price?

The justification for excluding sources is critical to understanding the competition's integrity. If exclusions were arbitrary or lacked a strong rationale, it could suggest a non-competitive environment, potentially inflating costs. A thorough review would examine the documented reasons for exclusion and compare the awarded price against market rates for similar services to gauge the impact on taxpayer funds.

How did the Cost Plus Incentive Fee (CPIF) structure influence cost control and contractor performance in this $167M facilities support contract?

CPIF contracts aim to incentivize efficiency by sharing cost savings or overruns between the government and contractor. However, they can also lead to cost growth if not managed rigorously. Analyzing the incentive targets, actual costs versus targets, and the contractor's performance metrics would reveal whether the CPIF structure effectively controlled costs or contributed to the contract's total value.

What were the key performance indicators (KPIs) for this facilities support contract, and how effectively did Wolf Creek Federal Services Inc. meet them over the contract's duration?

Understanding the KPIs is essential for assessing the contract's effectiveness. Metrics related to response times, quality of maintenance, energy efficiency, and overall facility readiness would provide insight. Evaluating the contractor's performance against these KPIs, along with any penalties or awards tied to performance, would determine if the government received adequate value for the $167.4M investment.

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 BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9124P13R0010

Offers Received: 6

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Alaska Corporation

Address: 3800 CENTERPOINT DR STE 700, ANCHORAGE, AK, 99503

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, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $215,726,895

Exercised Options: $215,726,895

Current Obligation: $167,421,431

Subaward Activity

Number of Subawards: 81

Total Subaward Amount: $8,234,393

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline