DoD's $67.7M Facilities Support Contract Awarded to Wolf Creek Federal Services Inc. in Alabama

Contract Overview

Contract Amount: $67,693,819 ($67.7M)

Contractor: Wolf Creek Federal Services Inc

Awarding Agency: Department of Defense

Start Date: 2022-09-01

End Date: 2024-02-29

Contract Duration: 546 days

Daily Burn Rate: $124.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PM/SO AND SO UPGRADE LABOR AND ODC

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $67.7 million to WOLF CREEK FEDERAL SERVICES INC for work described as: PM/SO AND SO UPGRADE LABOR AND ODC Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract duration of 546 days suggests a significant, ongoing need for facilities support. 3. Awarded to a single contractor, raising questions about the extent of competition. 4. The North American Industry Classification System (NAICS) code 561210 points to a focus on facilities support services. 5. The contract is not a small business set-aside, suggesting larger prime contractors were eligible. 6. The contract was awarded in Alabama, indicating a specific geographic focus for the services.

Value Assessment

Rating: fair

The total contract value of $67.7 million over approximately 18 months represents a substantial investment in facilities support. Without specific benchmarks for comparable services in the region or for the Department of Defense, it is difficult to definitively assess value for money. The firm-fixed-price structure provides cost certainty, but the absence of competitive bidding may have led to a higher price than could have been achieved through a more open process. Further analysis would require benchmarking against similar contracts for facilities maintenance and operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple potential vendors. This approach is typically used when only one vendor possesses the unique capabilities, qualifications, or is the only responsible source available to meet the government's needs. The lack of competition means that price discovery through market forces was not utilized, potentially impacting the final negotiated price.

Taxpayer Impact: Taxpayers may not have received the benefit of the lowest possible price that could have been achieved through a competitive bidding process. The government may have paid a premium due to the absence of competing offers.

Public Impact

The Department of the Army benefits from essential facilities support services, ensuring operational readiness and infrastructure maintenance. Services likely include a range of maintenance, repair, and operational support for government facilities within the specified geographic area. The geographic impact is concentrated in Alabama, where the facilities requiring support are located. The contract supports a workforce, potentially including direct employees of Wolf Creek Federal Services Inc. and any subcontractors, contributing to local employment in Alabama.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Sole-source awards can limit opportunities for new or smaller businesses to enter the federal contracting space.
Performance risks associated with sole-source contracts can be higher if robust oversight is not in place.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to an established contractor like Wolf Creek Federal Services Inc. may indicate a level of trust in their ability to perform.
The contract addresses a clear need for facilities support, essential for agency operations.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, is a broad sector encompassing a wide range of services necessary for the operation and maintenance of buildings and other physical structures. This includes services like janitorial, security, landscaping, and building systems maintenance. The federal government is a significant consumer of these services, awarding billions annually to ensure its vast portfolio of real estate and infrastructure remains functional and secure. This specific contract fits within the broader trend of federal agencies outsourcing non-core functions to specialized service providers.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting goals for small businesses within the provided data. This suggests that the primary award was made to a large business, and any involvement of small businesses would likely be through subcontracting opportunities initiated by Wolf Creek Federal Services Inc. The absence of explicit set-aside provisions means that the direct impact on the small business ecosystem for this specific award is not guaranteed and depends on the prime contractor's subcontracting strategy.

Oversight & Accountability

The provided data does not detail specific oversight mechanisms for this contract. However, as a Department of Defense contract, it would typically fall under the purview of the agency's contracting officer and potentially an Inspector General's office for audits and investigations. Transparency would be assessed through contract award databases and performance reports, if publicly available. Accountability would be managed through contract clauses, performance metrics, and potential remedies for non-performance.

Related Government Programs

Base Operations Support Services
Facilities Maintenance Contracts
Government Property Management
Logistics and Support Services
Public Building Services

Risk Flags

Sole-source award may limit price competition.
Lack of transparency in the justification for sole-source award.
Potential for higher costs due to absence of competitive bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $67.7 million to WOLF CREEK FEDERAL SERVICES INC. PM/SO AND SO UPGRADE LABOR AND ODC

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 $67.7 million.

What is the period of performance?

Start: 2022-09-01. End: 2024-02-29.

What is the historical spending pattern for facilities support services by the Department of the Army in Alabama?

Analyzing historical spending patterns for facilities support services by the Department of the Army in Alabama requires access to comprehensive federal procurement data. Typically, agencies like the Army award numerous contracts for these services across various installations and regions. Trends might show an increasing reliance on outsourcing, shifts in service providers over time, or fluctuations in contract values based on budget allocations and infrastructure needs. Without specific historical data for this contract's predecessors or similar awards in Alabama, it's challenging to establish a precise pattern. However, the consistent need for such services suggests a recurring expenditure, with values potentially influenced by inflation, scope changes, and the number of facilities managed.

How does the awarded price compare to industry benchmarks for similar facilities support contracts?

Benchmarking the awarded price of $67.7 million against industry standards for similar facilities support contracts is crucial for assessing value for money. This comparison would ideally involve analyzing data from other government agencies or large private sector organizations that procure comparable services. Key metrics would include cost per square foot, cost per facility, or cost per service type (e.g., maintenance, security). Given that this contract was sole-sourced, a direct comparison to competitively bid contracts would be most informative. If publicly available data indicates that similar competitively awarded contracts have lower per-unit costs or offer a broader scope of services for a comparable price, it would suggest that this sole-source award may not represent optimal value.

What are the specific performance metrics and Key Performance Indicators (KPIs) associated with this contract?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) for this contract. In a typical federal contract for facilities support services, KPIs often include response times for maintenance requests, uptime of critical building systems (e.g., HVAC, electrical), cleanliness standards, security incident response rates, and customer satisfaction scores. The effectiveness of the contractor, Wolf Creek Federal Services Inc., would be measured against these predefined standards. Robust KPIs are essential for ensuring the government receives the quality of services expected and for holding the contractor accountable for performance. Without these details, a thorough assessment of service delivery quality is not possible.

What is the track record of Wolf Creek Federal Services Inc. in performing similar large-scale facilities support contracts?

Wolf Creek Federal Services Inc. has a track record in performing government contracts, including those related to facilities support. To assess their capability for this specific $67.7 million contract, a review of their past performance on similar-sized and scope contracts would be necessary. This would involve examining past contract awards, performance evaluations (such as Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. A history of successful, on-time, and within-budget performance on comparable projects would indicate a lower risk for this award. Conversely, any significant past performance issues could raise concerns about the government's ability to achieve desired outcomes.

What is the potential impact of this sole-source award on future competition for similar services?

A sole-source award, by its nature, bypasses the competitive process, which can have implications for future competition. If this contract is awarded because Wolf Creek Federal Services Inc. is perceived as the only viable option, it might discourage other potential vendors from developing capabilities in this specific niche or geographic area, assuming they believe future opportunities will also be sole-sourced. Conversely, if the sole-source justification was specific to unique circumstances that are unlikely to recur, it may not significantly impact future competition. However, a pattern of sole-source awards for services that could potentially be competed can lead to market concentration and reduced innovation over time.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9124P22R0015

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Government Solutions, LLC

Address: 3800 CENTERPOINT DR STE 1200, ANCHORAGE, AK, 99503

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $71,134,772

Exercised Options: $71,134,772

Current Obligation: $67,693,819

Subaward Activity

Number of Subawards: 55

Total Subaward Amount: $3,813,341

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline