Facilities support services contract awarded to 7GEN NIKA JV LLC for over $5.3 million

Contract Overview

Contract Amount: $5,324,232 ($5.3M)

Contractor: 7GEN Nika JV LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-20

End Date: 2026-09-19

Contract Duration: 1,825 days

Daily Burn Rate: $2.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MEDCOM G9/HFPA

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78201

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $5.3 million to 7GEN NIKA JV LLC for work described as: MEDCOM G9/HFPA Key points: 1. Contract value appears reasonable for the duration and scope of facilities support services. 2. Limited competition dynamics may impact overall value for money. 3. Contract duration of five years presents potential for cost escalation or scope creep. 4. Performance context is essential to understand the specific services rendered and their effectiveness. 5. This contract falls within the broader facilities management sector for government services.

Value Assessment

Rating: fair

Benchmarking per-unit costs for facilities support services is challenging without detailed service breakdowns. The contract's total value of $5.32 million over five years suggests an average annual spend of approximately $1.06 million. This figure needs to be compared against similar contracts for comparable facilities and service levels within the Department of the Army or other federal agencies to assess value. The firm-fixed-price structure provides cost certainty, but the absence of detailed cost breakdowns makes a precise value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, indicating a lack of broad competition. While specific reasons for the sole-source award are not detailed here, it typically implies that only one responsible source was available or that the award was made under specific statutory exceptions. The limited competition means that the government did not benefit from a competitive bidding process, which could potentially lead to higher prices than if multiple vendors had vied for the contract.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competitive pressures to secure the best possible pricing for taxpayers. This can result in less favorable financial outcomes compared to fully competed contracts.

Public Impact

The Department of the Army is the primary beneficiary, receiving essential facilities support services. Services delivered likely include maintenance, repair, and operational support for government facilities. The geographic impact is concentrated in Texas (TX), where the contractor is located. Workforce implications may include the direct employment of personnel by 7GEN NIKA JV LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced incentive for cost efficiency.
The five-year duration could lead to vendor complacency or a lack of responsiveness to evolving needs without strong performance management.
Absence of detailed service scope makes it difficult to assess if the full range of necessary facilities support is covered.
Contract type is firm fixed price, which is good for cost certainty but may not be optimal if scope changes are frequent.

Positive Signals

Firm fixed-price contract provides budget certainty for the Department of the Army.
The contractor, 7GEN NIKA JV LLC, is awarded the contract, implying they met the necessary qualifications.
The contract is for facilities support services, which are critical for the operational readiness of military installations.

Sector Analysis

The facilities support services sector is a significant component of government contracting, encompassing a wide range of activities from routine maintenance to specialized technical support. This contract, valued at over $5.3 million, represents a moderate investment within this sector. Comparable spending benchmarks would typically involve analyzing the average cost per square foot for facility maintenance across federal agencies or comparing contract values for similar service scopes in different geographic regions. The market for these services is competitive, though specific niches or specialized requirements can lead to less open competition.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. Therefore, there are no direct subcontracting requirements mandated for small businesses within this specific award. The impact on the small business ecosystem is neutral from this contract's perspective, as it does not actively promote small business participation through set-asides or subcontracting goals.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are typically embedded within the contract's performance work statement (PWS) and require adherence to service level agreements. Transparency is generally facilitated through contract databases like FPDS, where basic award information is published. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified within the contract's execution.

Related Government Programs

Facilities Maintenance and Repair Services
Base Operations Support Services
Logistics and Support Services
Department of Defense Facilities Management

Risk Flags

Sole-source award limits competition.
Lack of detailed service scope.
Long contract duration without clear adjustment mechanisms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.3 million to 7GEN NIKA JV LLC. MEDCOM G9/HFPA

Who is the contractor on this award?

The obligated recipient is 7GEN NIKA JV 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 $5.3 million.

What is the period of performance?

Start: 2021-09-20. End: 2026-09-19.

What specific facilities support services are included in this contract, and what are the performance metrics?

The provided data does not detail the specific facilities support services covered under this contract, nor does it outline the performance metrics. Typically, such contracts would include services like general maintenance, HVAC, plumbing, electrical repairs, groundskeeping, custodial services, and potentially specialized support for specific military equipment or infrastructure. Performance metrics are crucial for ensuring service quality and would likely involve response times for service calls, completion rates for scheduled maintenance, and customer satisfaction scores. Without the Performance Work Statement (PWS), a thorough assessment of service delivery and value is not possible.

What is the justification for the sole-source award, and were any alternatives considered?

The justification for this sole-source award is not provided in the data. Sole-source awards are typically granted when only one responsible source can satisfy the agency's needs, often due to unique capabilities, proprietary technology, or urgent requirements where competition is not feasible. The Department of the Army would have had to document this justification, potentially including market research to confirm the lack of competition or the existence of specific exceptions under federal acquisition regulations. Without this documentation, it is impossible to assess if the sole-source determination was appropriate or if alternatives were adequately explored, which is a key factor in ensuring fair pricing and taxpayer value.

How does the annual cost of this contract compare to similar facilities support contracts awarded by the Department of the Army or other federal agencies?

To compare the annual cost of this contract ($1.06 million on average) to similar facilities support contracts, one would need access to a broader dataset of federal awards. Key comparison points would include the size and type of facilities being serviced, the geographic location, the specific services included (e.g., janitorial, HVAC, structural repairs), and the contract duration. For instance, if similar-sized military bases in Texas with comparable service scopes are managed under contracts ranging from $800,000 to $1.3 million annually, this contract might be considered within a reasonable range. However, without such comparative data, assessing its cost-effectiveness remains speculative.

What is the track record of 7GEN NIKA JV LLC in performing federal contracts, particularly in facilities support services?

Information regarding the track record of 7GEN NIKA JV LLC in performing federal contracts is not available in the provided data. A comprehensive assessment would require reviewing their past performance on similar contracts, including client feedback, any past performance evaluations, and any history of contract disputes or terminations. For a sole-source award, the agency's justification should ideally include an assessment of the contractor's capability and past performance to ensure they can successfully execute the required services. Without this information, it's difficult to gauge the reliability and effectiveness of the selected contractor.

What are the potential risks associated with a five-year firm-fixed-price contract for facilities support services, and how are they mitigated?

A five-year firm-fixed-price contract for facilities support services carries several potential risks. For the government, the primary risk is that the fixed price may become uncompetitive over time if market rates decrease or if the scope of work needs significant adjustment, leading to potential overpayment. Conversely, the contractor bears the risk of cost overruns if their expenses increase unexpectedly. Mitigation strategies often include robust performance monitoring, clear contract clauses for scope changes or economic price adjustments (if applicable), and regular performance reviews to ensure the contractor is meeting all obligations. The government's ability to manage scope creep and ensure efficient service delivery is critical.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912DY21R0091

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 600 E MICHIGAN AVE STE B, KALAMAZOO, MI, 49007

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,324,232

Exercised Options: $5,324,232

Current Obligation: $5,324,232

Actual Outlays: $267,362

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline