Department of the Army awarded $11M for utility and exterior repairs, with limited competition

Contract Overview

Contract Amount: $10,965,793 ($11.0M)

Contractor: APM, LLC

Awarding Agency: Department of Defense

Start Date: 2007-09-29

End Date: 2010-08-31

Contract Duration: 1,067 days

Daily Burn Rate: $10.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: UTILITY AND EXTERIOR REPAIRS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20016

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to APM, LLC for work described as: UTILITY AND EXTERIOR REPAIRS Key points: 1. The contract value of $10.97 million for utility and exterior repairs represents a significant investment in facility maintenance. 2. Limited competition for this contract may have impacted the final price and the range of solutions considered. 3. The contract duration of 1067 days suggests a need for sustained maintenance and repair services. 4. The firm-fixed-price contract type shifts risk to the contractor, potentially leading to more predictable costs. 5. The absence of small business set-aside indicates a focus on larger contractors or specific capabilities. 6. The contract was awarded by the Department of the Army, highlighting a focus on military infrastructure.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of work and the condition of the facilities. However, $10.97 million for utility and exterior repairs over nearly three years suggests a substantial project. Comparing this to similar large-scale facility maintenance contracts within the Department of Defense or other federal agencies would be necessary to assess if the pricing is competitive. The firm-fixed-price nature implies that the contractor assumed the risk for cost overruns, which can sometimes lead to higher initial bids but better cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was noted as 'NOT AVAILABLE FOR COMPETITION,' which typically implies a limited or sole-source procurement. This could be due to specific circumstances such as urgent needs, unique capabilities of the contractor, or a previous contract that was extended. The limited competition means that the government did not benefit from a wide range of bids, potentially leading to less price discovery and fewer innovative solutions.

Taxpayer Impact: Limited competition can result in higher costs for taxpayers as the government may not secure the most competitive pricing available in the market.

Public Impact

Military personnel and their families stationed at the Army facility benefit from well-maintained utilities and exterior structures. The contract ensures the continued operational readiness of critical Army infrastructure. The services delivered include essential repairs and maintenance to buildings and utility systems. The geographic impact is localized to the specific Army installation where the work is performed. The contract supports jobs within the construction and maintenance sectors, likely benefiting the local workforce near the installation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about whether the best possible price and solution were secured for taxpayer funds.
The lack of transparency in the 'NOT AVAILABLE FOR COMPETITION' designation warrants further investigation into the justification for not opening the bid to a wider pool of contractors.
Without clear performance metrics or a detailed scope of work, it's difficult to assess the contractor's performance and the overall value delivered.

Positive Signals

The firm-fixed-price contract structure transfers cost risk to the contractor, which can be beneficial for budget predictability.
The substantial contract value indicates a significant commitment to maintaining essential infrastructure, which is crucial for operational readiness.
The contract duration suggests a long-term commitment to facility upkeep, potentially leading to more stable service delivery.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building, repair, and maintenance of non-residential structures. Federal spending in this sector is substantial, driven by the need to maintain government facilities, military bases, and public infrastructure. The market includes a wide range of firms, from large construction conglomerates to specialized maintenance providers. This specific contract for utility and exterior repairs is a common type of expenditure for agencies like the Department of Defense, which manage extensive real property portfolios.

Small Business Impact

The contract details indicate that this was not a small business set-aside, and the 'sb' field is false. This suggests that the procurement was likely aimed at larger, more established firms capable of handling the scope and complexity of utility and exterior repairs for a federal agency. There is no explicit information on subcontracting requirements, but for a contract of this size and nature, it is common for prime contractors to engage small businesses for specialized tasks or labor, though this is not guaranteed without specific clauses.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army's contracting and facilities management divisions. Accountability measures are usually embedded within the contract terms, including performance standards, payment schedules tied to milestones, and potential penalties for non-compliance. Transparency is often limited for 'NOT AVAILABLE FOR COMPETITION' awards, but contract award details are usually published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Facility Maintenance Contracts
Army Corps of Engineers Construction Projects
Federal Building and Grounds Maintenance
Utility Infrastructure Repair Contracts
Exterior Building Envelope Services

Risk Flags

Limited Competition
Lack of Detailed Scope of Work
Potential for Cost Overruns (if contractor misjudged scope)
Contractor Performance Risk over Extended Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to APM, LLC. UTILITY AND EXTERIOR REPAIRS

Who is the contractor on this award?

The obligated recipient is APM, 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 $11.0 million.

What is the period of performance?

Start: 2007-09-29. End: 2010-08-31.

What specific types of utility and exterior repairs were included in this $10.97 million contract?

The provided data indicates the contract was for 'UTILITY AND EXTERIOR REPAIRS' under NAICS code 236220 (Commercial and Institutional Building Construction). However, the specific breakdown of services is not detailed. Typically, such contracts could encompass a wide range of work including HVAC system maintenance and repair, plumbing, electrical system upkeep, roofing repairs, facade restoration, structural repairs to exterior walls, window and door replacements, and general grounds maintenance related to building exteriors. Without the full contract statement of work, it's impossible to provide a precise list of all included repairs. The duration of over 1000 days suggests a comprehensive, ongoing maintenance and repair program rather than a single project.

What was the justification for awarding this contract on a 'NOT AVAILABLE FOR COMPETITION' basis?

The designation 'NOT AVAILABLE FOR COMPETITION' implies that the contract was awarded under a limited or sole-source justification. Common reasons for such awards include urgent and compelling needs where a delay would cause significant damage or loss, the requirement for specialized skills or equipment possessed by only one contractor, or situations where a previous contract was extended due to unforeseen circumstances. The specific justification for this Department of the Army contract would be documented in a Justification and Approval (J&A) document, which is typically required for non-competitive procurements above a certain threshold. This document would detail why full and open competition was not feasible or not in the government's best interest.

How does the contract value of $10.97 million compare to similar facility repair contracts awarded by the Department of the Army?

Comparing this $10.97 million contract requires access to a broader dataset of similar Department of the Army contracts for utility and exterior repairs. However, as a general benchmark, this amount represents a significant investment. Federal agencies, particularly the Department of Defense, manage vast real estate portfolios, and large-scale maintenance and repair contracts are common. Contracts of this value often span multiple years and cover extensive facilities. To provide a precise comparison, one would need to analyze contracts with similar NAICS codes (e.g., 236220, 238210 for electrical, 238220 for plumbing) awarded by the Army or other DoD components over a comparable timeframe. Factors like geographic location, specific facility types (barracks, administrative buildings, industrial facilities), and the scope of work (e.g., emergency repairs vs. planned upgrades) would influence the value.

What are the potential risks associated with a firm-fixed-price contract for utility and exterior repairs?

While firm-fixed-price (FFP) contracts are generally favored for their cost control, they carry specific risks, especially for complex repair work. For the government, the primary risk is that the contractor may have inflated the price to cover potential unforeseen issues, leading to a higher overall cost than a cost-reimbursable contract might have incurred if managed efficiently. If the contractor underestimates the scope or encounters unexpected difficulties (e.g., discovering hidden structural damage, asbestos, or complex utility interdependencies), they might cut corners on quality to maintain profitability, potentially leading to premature failures or safety issues. Conversely, the contractor bears the risk of cost overruns, which could lead to financial distress or even contract default if their initial estimate was significantly flawed.

What is the track record of APM, LLC in performing federal contracts, particularly for the Department of the Army?

The provided data identifies APM, LLC as the contractor for this $10.97 million Department of the Army contract. To assess their track record, one would need to examine their past performance on federal contracts. This includes reviewing contract history for timeliness of delivery, quality of work, adherence to budget (though this is an FFP contract), and any past performance evaluations or disputes. Information on previous contracts, including their value, scope, and agency, would be crucial. A search of federal procurement databases (like SAM.gov or FPDS) would likely reveal APM, LLC's contract history. Without access to that detailed history, it's impossible to provide a specific assessment of their track record beyond their role in this particular award.

How does the contract's duration of 1067 days (approximately 2.9 years) impact the assessment of its value and risk?

A contract duration of 1067 days for utility and exterior repairs suggests a long-term, potentially comprehensive maintenance and repair program rather than a single, discrete project. This extended period allows for a more systematic approach to facility upkeep, potentially addressing deferred maintenance and preventing minor issues from escalating. From a value perspective, it can offer better continuity of service and potentially more stable pricing over the contract term compared to multiple short-term contracts. However, it also increases the risk of price escalation if market conditions change significantly during the contract period, although the firm-fixed-price nature aims to mitigate this. For the government, it requires careful planning and oversight to ensure the contractor remains responsive and effective throughout the extended duration.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912DR07R0070

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 22485 LA PALMA AVE, YORBA LINDA, CA, 40

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $10,965,793

Exercised Options: $10,965,793

Current Obligation: $10,965,793

Contract Characteristics

Cost or Pricing Data: NO

Timeline