DoD's $10.2M Facilities Support Services Contract with CASE, LLC Lacked Competition

Contract Overview

Contract Amount: $10,222,053 ($10.2M)

Contractor: Case, LLC

Awarding Agency: Department of Defense

Start Date: 2006-08-11

End Date: 2011-02-11

Contract Duration: 1,645 days

Daily Burn Rate: $6.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: RM & LOGISTICAL SUPPORT

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $10.2 million to CASE, LLC for work described as: RM & LOGISTICAL SUPPORT Key points: 1. Significant contract value of over $10 million for logistical support. 2. Lack of competition raises concerns about potential overpricing and value. 3. Contract awarded by the Department of the Army, highlighting defense sector spending. 4. Facilities Support Services sector is crucial for operational readiness.

Value Assessment

Rating: questionable

The contract value of $10.2M for 1645 labor hours is difficult to benchmark without specific task details. The lack of competition and the 'labor hours' pricing structure suggest potential for cost overruns and reduced value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection. This significantly restricts price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competitive bidding for a $10.2M contract means taxpayers may have paid more than necessary for these logistical support services.

Public Impact

Taxpayers may have overpaid due to the lack of competitive bidding. The long duration (2006-2011) of this non-competitive contract warrants scrutiny. Essential logistical support services were procured without exploring market alternatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Positive Signals

Essential Service Provided
Long-Term Contractual Relationship

Sector Analysis

This contract falls under Facilities Support Services, a broad category essential for government operations. Spending in this sector can vary widely based on agency needs and contract scope, but competitive procurement is key to efficiency.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the impact on small business participation.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status suggests potential weaknesses in the procurement process. Robust oversight is needed to ensure justification for sole-source or limited competition awards.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for cost overruns
Limited transparency in pricing
Absence of small business participation
Questionable value for taxpayer money

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.2 million to CASE, LLC. RM & LOGISTICAL SUPPORT

Who is the contractor on this award?

The obligated recipient is CASE, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.2 million.

What is the period of performance?

Start: 2006-08-11. End: 2011-02-11.

What was the specific justification for awarding this contract without competition?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. A thorough review would require accessing the contract file to understand the specific justification, such as a critical need, unique capability, or lack of qualified sources. Without this, it's difficult to assess the validity of the non-competitive award.

How does the labor hour pricing compare to industry benchmarks for similar services?

Benchmarking labor hour contracts is challenging without detailed task breakdowns and skill levels. However, the overall $10.2M value over nearly five years, especially without competition, raises a red flag. A competitive process would typically yield more transparent and potentially lower per-hour rates.

What was the impact of this non-competitive award on the overall effectiveness of the Army's logistical support?

While the service was provided, the lack of competition limits the ability to assess if the Army received the most effective and cost-efficient solution available. Alternative providers or innovative approaches might have been missed, potentially impacting long-term operational effectiveness and budget allocation.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Chenega Corporation (UEI: 622692994)

Address: 645 CHURCH ST STE 304, NORFOLK, VA, 03

Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $17,210,269

Exercised Options: $14,852,657

Current Obligation: $10,222,053

Contract Characteristics

Cost or Pricing Data: NO

Timeline