DoD's $11.8M Facilities Investment Services Contract Awarded to Ben Fitzgerald Real Estate Services

Contract Overview

Contract Amount: $11,790,308 ($11.8M)

Contractor: BEN Fitzgerald Real Estate Services, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2018-08-03

End Date: 2023-08-02

Contract Duration: 1,825 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FACILTIES INVESTMENT SERVICES

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19107

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to BEN FITZGERALD REAL ESTATE SERVICES, L.L.C. for work described as: FACILTIES INVESTMENT SERVICES Key points: 1. Contract value represents a significant investment in facilities management. 2. Competition dynamics suggest a potentially competitive bidding environment. 3. Risk indicators include contract duration and fixed-price nature. 4. Performance context is within the broader scope of Army facilities support. 5. Sector positioning is within the facilities support services industry.

Value Assessment

Rating: fair

The contract value of approximately $11.8 million over five years for facilities investment services appears to be within a reasonable range for large-scale support contracts. Benchmarking against similar contracts for facilities management and investment services is crucial for a definitive value assessment. The fixed-price contract type suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the scope is well-defined. However, without detailed breakdowns of services rendered and comparison to industry standards for specific tasks, a precise value-for-money judgment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this contract. While more bidders could potentially drive prices lower, a competitive process was indeed followed. The number of bidders is a key factor in assessing whether the government received the best possible pricing and value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and better pricing. The fact that multiple companies vied for this contract suggests that taxpayer dollars were likely used efficiently.

Public Impact

The Department of the Army is the primary beneficiary, receiving facilities investment services. Services delivered likely include maintenance, repair, upgrades, and management of real property assets. Geographic impact is centered in Pennsylvania, where the contractor is based. Workforce implications may involve the employment of real estate professionals, facility managers, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 5 years (1825 days) could lead to complacency or reduced urgency if not managed effectively.
Fixed-price contract type may incentivize cost-cutting that could impact service quality if not closely monitored.
Reliance on a single contractor for facilities investment over an extended period could limit flexibility in adapting to changing needs.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Fixed-price contract type shifts cost overrun risk to the contractor.
Contractor's specific expertise in real estate services is likely a positive signal for specialized needs.

Sector Analysis

The facilities support services sector is a critical component of government operations, encompassing a wide range of activities from routine maintenance to major capital investments. This contract falls within the broader facilities management and real estate services industry, which is characterized by a mix of large, established firms and smaller, specialized providers. The total addressable market for government facilities services is substantial, with agencies constantly seeking efficient ways to manage their vast real estate portfolios. This contract's value of approximately $11.8 million is moderate within the context of large federal contracts but significant for the specific services provided.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, the prime contractor's own size and potential use of small business subcontractors for specialized tasks would need further investigation to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the Department of the Army. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to successful delivery. Transparency is facilitated through contract databases like FPDS, which report award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Facilities Maintenance Services
Real Estate Management Contracts
Base Operations Support
Government Property Management

Risk Flags

Long contract duration
Potential for performance degradation over time
Scope definition clarity for fixed-price contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to BEN FITZGERALD REAL ESTATE SERVICES, L.L.C.. FACILTIES INVESTMENT SERVICES

Who is the contractor on this award?

The obligated recipient is BEN FITZGERALD REAL ESTATE SERVICES, L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.8 million.

What is the period of performance?

Start: 2018-08-03. End: 2023-08-02.

What is the track record of Ben Fitzgerald Real Estate Services, L.L.C. with federal contracts?

Ben Fitzgerald Real Estate Services, L.L.C. has been awarded federal contracts, with this specific contract valued at approximately $11.8 million representing a significant portion of their federal engagements. Analyzing their past performance on similar contracts, including adherence to schedules, quality of service, and any reported disputes or contract modifications, would provide a clearer picture of their reliability and capability. A review of their contract history would reveal if they have a history of successful contract completion, timely delivery, and compliance with federal regulations. Information on past performance evaluations, if available, would be particularly insightful in assessing their suitability for complex facilities investment services.

How does the awarded price compare to market rates for similar facilities investment services?

The awarded price of approximately $11.8 million over five years for facilities investment services needs to be benchmarked against prevailing market rates for comparable services. This involves comparing the contract's scope of work, duration, and the specific services provided (e.g., property management, maintenance, capital planning) with similar contracts awarded by other federal agencies or even state and local governments. Industry surveys and cost-estimating guides for facilities management can also provide valuable context. Without this comparative analysis, it is difficult to definitively state whether the government secured a competitive price or if there is potential for cost savings through renegotiation or a more competitive bidding process in the future.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential cost overruns (though mitigated by the firm-fixed-price structure), contractor performance issues impacting service quality, and the long duration (five years) potentially leading to a lack of flexibility or innovation. The firm-fixed-price (FFP) contract type shifts the risk of cost increases to the contractor, which is a significant mitigation factor for the government. However, the government must ensure the scope is clearly defined to prevent disputes. Performance risks are mitigated through contract monitoring, performance metrics, and potential penalties or remedies for non-performance. The long duration risk can be managed through regular performance reviews and contract management oversight to ensure the contractor remains responsive to evolving needs.

How effective is the Department of the Army in managing facilities investment services through contracts like this?

The effectiveness of the Department of the Army in managing facilities investment services through contracts like this can be assessed by examining the outcomes achieved relative to the investment. Key indicators include the condition of facilities post-service, the efficiency gains realized, and the overall cost-effectiveness of the contracted services compared to in-house management or alternative approaches. The Army's ability to clearly define requirements, monitor contractor performance, and adapt contracts to changing needs are crucial. A review of past performance data, user satisfaction surveys (if applicable), and any audits or reviews by oversight bodies would provide insights into the effectiveness of their contract management practices in this domain.

What are the historical spending patterns for facilities investment services within the Department of the Army or similar agencies?

Historical spending patterns for facilities investment services within the Department of the Army and similar large federal agencies reveal a consistent and substantial allocation of resources towards maintaining and upgrading vast real estate portfolios. Agencies like the Army, Navy, and Air Force, as well as civilian departments like GSA and VA, spend billions annually on facility operations, maintenance, and modernization. Spending often fluctuates based on infrastructure needs, budget appropriations, and strategic priorities. Analyzing trends in contract awards, average contract values, and the types of services procured over the past decade can highlight shifts in strategy, such as increased reliance on performance-based contracts or a greater focus on energy efficiency and sustainability in facilities management.

What is the significance of the 'Facilities Support Services' NAICS code (561210) in the context of federal spending?

The NAICS code 561210, 'Facilities Support Services,' is significant as it categorizes a broad range of services essential for the operation and maintenance of government facilities. Federal agencies consistently award substantial contracts under this code, covering everything from janitorial and groundskeeping to complex building operations, maintenance, and repair. Spending within this category reflects the government's ongoing commitment to maintaining its physical infrastructure. Analyzing spending under this code provides insights into the scale of government facility management needs, the types of services most frequently outsourced, and the competitive landscape among contractors vying for these essential services.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912BU18R0018

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 INDEPENDENCE PLACE STE 222, TYLER, TX, 75703

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,790,308

Exercised Options: $11,790,308

Current Obligation: $11,790,308

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06Q16BQDS103

IDV Type: IDC

Timeline