DoD's $21.4M Lodging Contract with SRM Group, LLC Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $21,378,052 ($21.4M)
Contractor: SRM Group, LLC
Awarding Agency: Department of Defense
Start Date: 2015-02-11
End Date: 2020-05-31
Contract Duration: 1,936 days
Daily Burn Rate: $11.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF LODGING/TRANSPORTATION SERVICES
Place of Performance
Location: NORTH LITTLE ROCK, PULASKI County, ARKANSAS, 72199
State: Arkansas Government Spending
Plain-Language Summary
Department of Defense obligated $21.4 million to SRM GROUP, LLC for work described as: IGF::OT::IGF LODGING/TRANSPORTATION SERVICES Key points: 1. The contract value is substantial at over $21 million. 2. SRM GROUP, LLC secured this definitive contract. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. The contract spans nearly five years, indicating a long-term need. 5. The sector is primarily lodging and transportation services.
Value Assessment
Rating: fair
The contract was awarded at a firm fixed price, which provides cost certainty. However, without specific unit cost data or benchmarks for similar lodging services, a precise value assessment is difficult. The total value suggests significant service volume over the contract period.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and can lead to more competitive pricing compared to sole-source or limited competition awards.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process, potentially lowering overall costs.
Public Impact
Provides essential lodging and transportation services for military personnel. Supports operational readiness and personnel deployment for the Department of the Army. The long contract duration impacts budget planning for the agency. Potential for economic impact in the service region (Arkansas).
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific per-unit cost data makes detailed value analysis challenging.
- Contract duration could lead to price increases if not managed effectively.
- Dependence on a single contractor for essential services carries inherent risk.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Firm fixed price contract provides cost predictability.
- Long-term contract can ensure service continuity.
Sector Analysis
This contract falls within the hospitality and travel services sector, specifically for lodging and transportation. Government spending in this area is crucial for supporting military operations, deployments, and personnel travel. Benchmarks for similar government lodging contracts can vary widely based on location, duration, and service level.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Standard oversight mechanisms for federal contracts would apply, including performance monitoring and compliance checks to ensure services meet requirements and are delivered at the agreed-upon price.
Related Government Programs
- Hotels (except Casino Hotels) and Motels
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of detailed cost breakdown.
- Limited information on performance metrics.
- Potential for price creep without robust oversight.
- Long contract duration without clear exit strategy details.
Tags
hotels-except-casino-hotels-and-motels, department-of-defense, ar, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.4 million to SRM GROUP, LLC. IGF::OT::IGF LODGING/TRANSPORTATION 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 $21.4 million.
What is the period of performance?
Start: 2015-02-11. End: 2020-05-31.
What was the average per-diem rate or cost per service unit under this contract, and how does it compare to government lodging per-diem rates or industry averages?
The provided data does not include specific per-unit costs, such as per-diem rates for lodging or transportation. To assess value effectively, this information would be crucial. Comparing these unknown rates to established government per-diem limits or prevailing market rates for similar services in Arkansas would reveal whether the $21.4 million expenditure was cost-effective.
What were the key performance indicators (KPIs) for this contract, and how was SRM GROUP, LLC's performance measured against them?
The data does not specify the key performance indicators (KPIs) used to evaluate SRM GROUP, LLC's performance. Effective oversight would involve tracking metrics related to service quality, timeliness, customer satisfaction, and adherence to contract terms. Without these KPIs, it's difficult to assess the contractor's performance and the overall effectiveness of the service delivery.
Were there any contract modifications or change orders issued during the contract period, and what was their impact on the total cost and scope of services?
The provided data does not detail any contract modifications or change orders. Such changes can significantly impact the total cost and scope of services. Investigating modification history would be essential to understand if the initial $21.4 million award value was maintained or if additional funds were obligated, and to assess the justification for any such changes.
Industry Classification
NAICS: Accommodation and Food Services › Traveler Accommodation › Hotels (except Casino Hotels) and Motels
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912JF14R0010
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 101 MARIETTA ST NW STE 3330, ATLANTA, GA, 30303
Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,378,052
Exercised Options: $21,378,052
Current Obligation: $21,378,052
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2015-02-11
Current End Date: 2020-05-31
Potential End Date: 2020-05-31 00:00:00
Last Modified: 2019-05-16
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