SRM GROUP, LLC awarded $8.1M for WRNMMC Project Support Services, with 5 bidders competing

Contract Overview

Contract Amount: $8,130,332 ($8.1M)

Contractor: SRM Group, LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-29

End Date: 2026-09-29

Contract Duration: 1,461 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WRNMMC PROJECT SUPPORT SERVICES

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20889

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $8.1 million to SRM GROUP, LLC for work described as: WRNMMC PROJECT SUPPORT SERVICES Key points: 1. The contract value of $8.1 million over approximately four years suggests a moderate annual spend. 2. With 5 bidders, the competition level indicates a healthy market for these services. 3. The firm-fixed-price contract type shifts performance risk to the contractor. 4. This award falls under facilities support services, a common requirement for large government installations. 5. The contract's duration of 1461 days provides stability for both the government and the contractor. 6. The award was made under a 'full and open competition after exclusion of sources' strategy, suggesting a specific justification for the procurement approach.

Value Assessment

Rating: good

The contract value of $8.1 million over roughly four years averages to approximately $2 million annually. Benchmarking this against similar facilities support contracts requires detailed analysis of scope and location. However, the presence of 5 bidders suggests that the pricing was likely competitive, as SRM GROUP, LLC was selected from a pool of capable offerors. The firm-fixed-price nature of the award also implies that the contractor has committed to delivering services within a set budget, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' While the 'full and open' aspect suggests broad solicitation, the 'exclusion of sources' clause indicates that certain potential sources were intentionally not considered, possibly due to specific requirements or prior relationships. The fact that 5 bidders participated demonstrates a reasonable level of competition within the defined parameters of the solicitation.

Taxpayer Impact: The competition level, while not purely unrestricted, still provided multiple offers, which generally aids in price discovery and ensures taxpayers receive a fair value for the services rendered.

Public Impact

The primary beneficiary is the Walter Reed National Military Medical Center (WRNMMC), which will receive essential facilities support services. Services delivered likely include maintenance, repair, operations, and potentially other logistical support functions critical to the medical center's operations. The geographic impact is concentrated in Maryland (MD), specifically Bethesda, where WRNMMC is located. The contract supports jobs within the facilities management and support services sector, contributing to the local economy in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause warrants further investigation to ensure it was fully justified and did not unduly limit competition.
The specific scope of 'Project Support Services' is broad and requires clear performance metrics to ensure accountability.
Reliance on a single contractor for critical facilities support could pose a risk if performance degrades or the contractor faces financial instability.

Positive Signals

The award to SRM GROUP, LLC under full and open competition indicates a successful procurement process that attracted multiple bidders.
The firm-fixed-price contract type provides cost certainty for the government.
The contract duration offers stability and allows for long-term planning of facilities support at WRNMMC.

Sector Analysis

This contract falls within the Facilities Support Services sector, a segment of the broader professional, scientific, and technical services industry. This sector is characterized by a mix of large, established providers and smaller, specialized firms. Government contracts for facilities support are substantial, driven by the extensive real estate holdings of federal agencies. Benchmarking this $8.1 million contract requires comparison with similar service contracts at large federal installations, considering factors like square footage, types of services, and geographic location.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'small business' flag is false. There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. Therefore, the direct impact on the small business ecosystem from this particular contract appears limited, though the prime contractor may engage small businesses as subcontractors if it aligns with their operational strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) at the Department of the Army, who ensures performance meets contractual requirements. Accountability is built into the firm-fixed-price structure, with payments contingent on satisfactory service delivery. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support Services
Facilities Maintenance Contracts
Logistics and Support Services
Medical Facility Management
Department of Defense Facilities Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Scope definition for 'Project Support Services' may require further clarification.
Contractor performance risk inherent in firm-fixed-price contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.1 million to SRM GROUP, LLC. WRNMMC PROJECT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SRM GROUP, 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 $8.1 million.

What is the period of performance?

Start: 2022-09-29. End: 2026-09-29.

What is the specific scope of 'Project Support Services' included in this contract?

The provided data categorizes this contract under NAICS code 561210 (Facilities Support Services), but the specific 'Project Support Services' scope is not detailed. Typically, such services at a large medical facility like WRNMMC could encompass a wide range of activities including, but not limited to, general maintenance and repair of buildings and grounds, custodial services, pest control, refuse collection, security services, mail services, and potentially specialized project management for facility upgrades or repairs. A thorough review of the contract's Statement of Work (SOW) would be necessary to ascertain the precise deliverables and performance standards.

How does the pricing of this contract compare to similar facilities support services contracts awarded by the Department of Defense?

Direct price comparison is challenging without knowing the exact scope, duration, and location-specific economic factors of comparable contracts. However, the annual average of approximately $2 million for facilities support at a major military medical center is within a plausible range. The firm-fixed-price structure suggests that SRM GROUP, LLC has factored in all anticipated costs and risks. To perform a robust benchmark, one would need to analyze contracts with similar square footage, service intensity (e.g., level of medical facility specialization), and geographic labor rates. The presence of 5 bidders suggests the government's estimate was likely competitive.

What are the key performance indicators (KPIs) used to evaluate SRM GROUP, LLC's performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for facilities support services, common KPIs often include response times for service requests (e.g., maintenance issues), completion rates for scheduled preventive maintenance, customer satisfaction scores from facility users, adherence to safety protocols, and quality of work metrics (e.g., cleanliness standards, repair effectiveness). The COR would monitor these KPIs, and performance would be formally assessed, likely impacting future contract awards or options.

What is the track record of SRM GROUP, LLC in performing similar government contracts?

Information on SRM GROUP, LLC's specific track record is not included in the provided data. A comprehensive assessment would require reviewing their past performance evaluations on federal contracts, particularly those involving facilities support services or work at large government installations. Databases like the Contractor Performance Assessment Reporting System (CPARS) would contain detailed feedback on their timeliness, quality of work, cost control, and overall management. Their ability to win this contract suggests they have a satisfactory or better past performance record.

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

Potential risks include performance failures by the contractor, cost overruns (though mitigated by the firm-fixed-price structure), and potential disruptions to WRNMMC operations if services are interrupted. Mitigation strategies typically involve robust contract oversight by the COR, clear performance standards in the SOW, regular performance reviews, and the contractor's own risk management processes. The 'exclusion of sources' clause, if not fully justified, could also be a risk if it limited the pool of qualified bidders and potentially led to a less competitive price.

How does this contract fit into the broader context of facilities management spending at the Department of Defense?

This $8.1 million contract represents a component of the Department of Defense's (DoD) substantial spending on facilities management, which is essential for maintaining its vast infrastructure globally. The DoD's annual facilities maintenance and operations budget runs into billions of dollars. Contracts like this one, awarded through competitive processes, are crucial for ensuring that military installations, including critical healthcare facilities like WRNMMC, are well-maintained and operational. This specific award contributes to the overall efficiency and readiness of military medical 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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY17R0028

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6910 RICHMOND HWY STE 500, ALEXANDRIA, VA, 22306

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,539,516

Exercised Options: $8,263,121

Current Obligation: $8,130,332

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY21D0019

IDV Type: IDC

Timeline