Department of the Army awards $11.7M for facilities support services, with limited competition

Contract Overview

Contract Amount: $11,673,931 ($11.7M)

Contractor: Pride Industries

Awarding Agency: Department of Defense

Start Date: 2022-06-16

End Date: 2026-06-15

Contract Duration: 1,460 days

Daily Burn Rate: $8.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PREVENTATIVE MAINTENANCE/CORRECTIVE MAINTENANCE

Place of Performance

Location: FOREST PARK, CLAYTON County, GEORGIA, 30297

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $11.7 million to PRIDE INDUSTRIES for work described as: PREVENTATIVE MAINTENANCE/CORRECTIVE MAINTENANCE Key points: 1. The contract value of $11.7 million over four years suggests a significant investment in maintaining Army facilities. 2. The 'NOT COMPETED' status raises questions about potential cost savings and the availability of competitive pricing. 3. The firm-fixed-price contract type provides cost certainty for the government, shifting performance risk to the contractor. 4. The contractor, PRIDE INDUSTRIES, has been awarded this definitive contract, indicating a specific need for their services. 5. The contract's duration of 1460 days (4 years) points to a long-term requirement for ongoing facility maintenance. 6. The 'GA' and 'GEORGIA' location indicators suggest the services are geographically concentrated within the state.

Value Assessment

Rating: fair

Benchmarking the value of this $11.7 million contract for facilities support services is challenging without more specific details on the scope of work and service levels. However, the average contract value for facilities support services can vary widely based on the size and complexity of the facilities. Given the 'NOT COMPETED' status, it's difficult to assess if the pricing is competitive. The firm-fixed-price nature of the contract provides budget predictability, but the absence of competition may mean the government is not achieving the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED,' indicating that a full and open competition was not conducted. This typically occurs when only one responsible source is available or when an exception to full competition applies. The lack of multiple bidders means there was no direct price comparison or negotiation driven by market forces, potentially leading to a higher price than if it had been competed.

Taxpayer Impact: The absence of competition means taxpayers may not be benefiting from the most cost-effective solution. Without competitive bids, there's a risk that the awarded price is not optimized, leading to potentially higher overall government expenditure for these services.

Public Impact

The primary beneficiaries are the Department of the Army, which will receive essential facilities maintenance and support services. The services delivered include preventative and corrective maintenance, crucial for ensuring the operational readiness and longevity of Army installations. The geographic impact is concentrated in Georgia, where the Army facilities requiring these services are located. Workforce implications may include the direct employment of personnel by PRIDE INDUSTRIES to perform the maintenance tasks, potentially creating or sustaining jobs in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Limited transparency into the justification for not competing the contract.
Potential for vendor lock-in if this is a recurring need without re-competition.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contract duration suggests a stable, long-term need being met.
Award to a known contractor (PRIDE INDUSTRIES) may indicate reliability for specific services.

Sector Analysis

Facilities Support Services, classified under NAICS code 561210, is a broad sector encompassing a wide range of services necessary for the operation and maintenance of buildings and grounds. This includes everything from janitorial services to complex building systems maintenance. The federal government is a significant consumer of these services across all its agencies and installations. Spending in this sector can range from small, localized contracts to large, multi-year agreements for major installations. This specific contract fits within the broader category of government infrastructure and operational support spending.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no specific mention of small business subcontracting requirements (sb: false). This suggests that the primary award was made to a larger entity, and there may be limited direct opportunities for small businesses within this specific contract, unless PRIDE INDUSTRIES voluntarily engages them as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting agency, the Department of the Army, and potentially the relevant Inspector General's office. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed price. Transparency is limited by the 'NOT COMPETED' status, as the detailed justification for this award method may not be publicly accessible. The contract's performance will likely be monitored through regular reporting and inspections.

Related Government Programs

Base Operations Support Services
Facilities Maintenance Contracts
Government Property Management
Department of Defense Infrastructure Support

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.7 million to PRIDE INDUSTRIES. PREVENTATIVE MAINTENANCE/CORRECTIVE MAINTENANCE

Who is the contractor on this award?

The obligated recipient is PRIDE INDUSTRIES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.7 million.

What is the period of performance?

Start: 2022-06-16. End: 2026-06-15.

What specific facilities and services are covered under this $11.7 million contract?

The contract specifies 'PREVENTATIVE MAINTENANCE/CORRECTIVE MAINTENANCE' for facilities support services. While the exact scope is not detailed in the provided data, this generally includes routine upkeep, inspections, and repairs to ensure the operational integrity of buildings, grounds, and associated infrastructure. This could encompass HVAC systems, plumbing, electrical, structural repairs, landscaping, and janitorial services, depending on the specific requirements outlined in the full contract documentation. The value of $11.7 million over four years suggests a comprehensive maintenance program for one or more significant Army installations within Georgia.

What is the justification for awarding this contract on a sole-source basis?

The provided data states the contract was 'NOT COMPETED,' which implies a sole-source or limited competition award. The specific justification for this is not detailed in the abbreviated data. Common reasons for sole-source awards include the existence of only one responsible source capable of providing the required services, urgent and compelling needs where competition is not feasible, or if the contract is a follow-on to a previous sole-source award where the original justification still holds. Without the official justification document, it's impossible to confirm the exact reason, but it signifies that the Army determined that full and open competition was not practicable or in the government's best interest for this particular requirement.

How does the $11.7 million contract value compare to similar facilities support contracts awarded by the Department of Defense?

Comparing this $11.7 million contract value requires context on the scope and scale of facilities managed. The Department of Defense awards numerous facilities support contracts, ranging from small local services to massive base operations support agreements. For instance, large base operations contracts can run into hundreds of millions of dollars annually. This $11.7 million contract, spread over four years (approximately $2.9 million per year), appears to be a mid-sized contract, likely covering maintenance for a specific set of facilities or a smaller installation. Without knowing the specific assets and services included, a precise benchmark is difficult, but it represents a substantial, ongoing investment in facility upkeep.

What are the potential risks associated with a 'NOT COMPETED' contract for facilities support?

The primary risk of a 'NOT COMPETED' contract is the potential for inflated costs due to the absence of competitive pressure. Without multiple bids, the government may not achieve the most favorable pricing. There's also a risk of reduced innovation, as the contractor may have less incentive to propose cost-saving efficiencies. Furthermore, it can raise concerns about fairness and equal opportunity for other capable contractors. Transparency is often reduced, making it harder for the public and oversight bodies to scrutinize the value for money. Finally, if the sole-source justification is weak or becomes outdated, the government might be locked into a suboptimal arrangement.

What is the track record of PRIDE INDUSTRIES in performing similar government contracts?

PRIDE INDUSTRIES is a known entity in the facilities management sector, often holding government contracts. Their track record would need to be assessed through contract performance databases (like SAM.gov or FPDS) to evaluate past performance ratings, any disputes or terminations, and the types of services they have successfully delivered. Given they were awarded this definitive contract, it suggests they have a history of satisfactory performance or possess unique capabilities deemed necessary by the Department of the Army. A deeper dive into their past federal awards would reveal their experience with similar scope, scale, and security requirements.

How does the firm-fixed-price (FFP) contract type impact risk and cost certainty for this facilities support service?

The Firm-Fixed-Price (FFP) contract type is generally favored by the government for services where the scope of work is well-defined and performance risks are manageable. For this facilities support contract, FFP means PRIDE INDUSTRIES agrees to perform the specified preventative and corrective maintenance for a set price. This provides significant cost certainty for the Department of the Army, as the total cost is known upfront. The risk of cost overruns is primarily borne by PRIDE INDUSTRIES; if their costs increase due to unforeseen issues or inefficiencies, their profit margin will decrease. Conversely, if they can perform the work more efficiently than anticipated, their profit will increase. This structure incentivizes the contractor to manage costs effectively.

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: W912DY22R0010

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10030 FOOTHILLS BLVD, ROSEVILLE, CA, 95747

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,250,156

Exercised Options: $12,898,710

Current Obligation: $11,673,931

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline