DoD's $18.1M Facilities Support Contract Awarded to Tipton-FSI Joint Venture for Operations & Maintenance

Contract Overview

Contract Amount: $18,147,459 ($18.1M)

Contractor: Tipton-Fsi Joint Venture, LLC

Awarding Agency: Department of Defense

Start Date: 2020-02-28

End Date: 2025-09-01

Contract Duration: 2,012 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MOTSU O&M

Place of Performance

Location: SOUTHPORT, BRUNSWICK County, NORTH CAROLINA, 28461

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $18.1 million to TIPTON-FSI JOINT VENTURE, LLC for work described as: MOTSU O&M Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a Definitive Contract with a Firm Fixed Price, indicating predictable costs. 3. Operations and Maintenance services are crucial for facility functionality and longevity. 4. The contract duration spans over five years, providing long-term support. 5. The awardee, Tipton-FSI Joint Venture, LLC, is responsible for delivering these essential services. 6. The contract is not set aside for small businesses, implying larger prime contractors were eligible. 7. North Carolina is the specified location for service delivery.

Value Assessment

Rating: good

The contract's firm fixed price structure is generally favorable for cost control. Benchmarking against similar facilities support contracts is necessary to fully assess value for money, as specific performance metrics and service levels are not detailed here. The duration of the contract suggests a significant scope of work, and the price should be evaluated in relation to the expected output and market rates for similar services in North Carolina.

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,' which typically means that all responsible sources were permitted to submit a bid. The presence of 3 bids indicates a moderate level of competition. While not a completely unrestricted competition, it suggests that multiple capable vendors vied for the contract, which can contribute to price discovery and potentially better value.

Taxpayer Impact: The competitive nature of this award, despite the exclusion of some sources, likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

The Department of the Army benefits from consistent and reliable facilities operations and maintenance. Military personnel and civilian staff at the North Carolina facility will have access to well-maintained infrastructure. The contract supports the operational readiness of the military installation. Local workforce in North Carolina may see employment opportunities through the prime contractor and potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs within the Definitive Contract structure.
Dependence on a single joint venture for critical facilities operations could pose a risk if performance falters.
Limited transparency on specific performance metrics and quality control measures within the provided data.

Positive Signals

Firm Fixed Price contract type helps to lock in costs and mitigate budget uncertainty.
Awarded through a competitive process, suggesting a reasonable price was achieved.
Long contract duration provides stability and continuity of essential services.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, encompass a broad range of services essential for the operation and maintenance of buildings and grounds. This sector is critical for government operations, ensuring that infrastructure is functional, safe, and well-maintained. Spending in this area is often substantial across various federal agencies, with contracts ranging from routine janitorial services to complex building systems management. The market includes numerous service providers, from large corporations to specialized small businesses.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no explicit subcontracting goals for small businesses were mandated ('sb': false, 'st': 'NC'). This suggests that the primary focus was on securing a capable prime contractor, likely a larger entity or joint venture, to handle the extensive facilities support requirements. The absence of small business set-asides means that opportunities for small businesses would primarily arise through subcontracting, if initiated by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program/project managers within the Department of the Army. Performance monitoring, quality assurance surveillance plans (QASPs), and regular reviews are standard mechanisms to ensure contractor compliance. Transparency is generally maintained through contract databases and reporting requirements, though specific oversight details are not provided in this data snippet. Inspector General involvement would be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

Base Operations Support (BOS)
Facilities Maintenance Services
Logistics and Support Services
Government Property Management
Construction and Engineering Services

Risk Flags

Potential for performance degradation over the contract's long duration.
Risk of cost increases if market conditions change significantly, despite FFP.
Limited visibility into specific performance metrics and quality assurance processes.
Absence of explicit small business subcontracting goals may limit direct economic impact on SMBs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.1 million to TIPTON-FSI JOINT VENTURE, LLC. MOTSU O&M

Who is the contractor on this award?

The obligated recipient is TIPTON-FSI JOINT VENTURE, 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 $18.1 million.

What is the period of performance?

Start: 2020-02-28. End: 2025-09-01.

What is the historical spending pattern for facilities support services by the Department of the Army in North Carolina?

Analyzing historical spending for facilities support services by the Department of the Army in North Carolina requires access to detailed procurement data over multiple fiscal years. Generally, the Army, like other branches of the DoD, allocates significant resources to maintaining its vast infrastructure. Spending patterns can fluctuate based on infrastructure upgrades, new construction projects, changes in operational tempo, and budget allocations. Contracts for Operations and Maintenance (O&M) are typically recurring, reflecting the ongoing need for services such as groundskeeping, repairs, HVAC maintenance, and janitorial support. Without specific historical data for this contract or similar ones in the region, it's difficult to pinpoint precise trends, but consistent annual spending in the millions is expected for a facility of significant size.

How does the per-unit cost of services under this contract compare to industry benchmarks for similar facilities support contracts?

Determining the per-unit cost comparison requires breaking down the total contract value ($18.1M) by the specific services rendered and their respective quantities or units (e.g., cost per square foot maintained, cost per HVAC unit serviced, cost per janitorial hour). The provided data lacks this granular detail. However, a general comparison can be made by looking at industry reports and databases that track average costs for facilities management services based on facility type, size, and geographic location. Given that this is a Firm Fixed Price contract awarded through competition, it suggests the price is intended to be competitive. A thorough analysis would involve obtaining a detailed schedule of services and rates from the contract and comparing these against established benchmarks for similar government or commercial facilities in North Carolina.

What are the key performance indicators (KPIs) used to evaluate the performance of Tipton-FSI Joint Venture, LLC under this contract?

Key Performance Indicators (KPIs) for facilities support contracts typically focus on service availability, response times, quality of work, safety compliance, and cost control. For this specific contract, KPIs would likely include metrics such as the percentage of scheduled maintenance completed on time, average response time for emergency repairs, customer satisfaction ratings from facility users, adherence to safety protocols (e.g., incident rates), and performance against budget. The contract documents, including the Performance Work Statement (PWS) or Statement of Work (SOW), would detail these specific KPIs and the associated measurement and evaluation criteria. Regular performance reviews between the Army and Tipton-FSI would assess adherence to these KPIs.

What is the potential impact of this contract on the small business ecosystem in North Carolina?

As this contract was not set aside for small businesses and the data indicates no mandated small business subcontracting goals, its direct positive impact on the small business ecosystem in North Carolina may be limited. The prime contractor, Tipton-FSI Joint Venture, LLC, is responsible for fulfilling the contract requirements. While they may voluntarily subcontract portions of the work to local small businesses, there is no contractual obligation specified in the provided data. The primary benefit to the small business ecosystem would be indirect, potentially through job creation if the prime contractor hires locally, or if they choose to engage small businesses as suppliers or subcontractors without a formal requirement.

What are the risks associated with a long-term (over 5 years) facilities support contract?

Long-term facilities support contracts, like this one spanning over five years, carry several potential risks. Firstly, there's the risk of price escalation if market rates for labor and materials increase significantly beyond initial projections, although the Firm Fixed Price structure aims to mitigate this for the government. Secondly, contractor performance can degrade over time due to complacency or changes in management/staffing, leading to decreased service quality. Thirdly, technological advancements in facilities management might render current methods or equipment obsolete, requiring costly upgrades or contract modifications. Finally, changes in government requirements or budget priorities could necessitate contract adjustments or even early termination, leading to potential disputes or inefficiencies.

How does the 'Full and Open Competition After Exclusion of Sources' clause affect the bidding pool and potential pricing?

The 'Full and Open Competition After Exclusion of Sources' clause indicates that while the competition was intended to be broad, certain categories of potential offerors or specific sources were intentionally excluded. This exclusion could be based on various factors, such as specific security requirements, past performance issues with certain entities, or the need for specialized capabilities that only a limited number of firms possess. While it aims for broad competition among eligible entities, the exclusion might reduce the overall number of bidders compared to unrestricted full and open competition. This could potentially lead to less aggressive pricing if the excluded sources were significant competitors, or it might ensure that only highly qualified and relevant bidders participate, potentially leading to better technical solutions.

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 NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912PM19R0030

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 301 GLEN HOLLIDAY RD, INDIAN MOUND, TN, 37079

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,147,459

Exercised Options: $18,147,459

Current Obligation: $18,147,459

Actual Outlays: $2,508,962

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline