Department of the Army awards $2.3M contract for fire system maintenance to Blue Construction Services LLC

Contract Overview

Contract Amount: $2,325,214 ($2.3M)

Contractor: Blue Construction Services LLC

Awarding Agency: Department of Defense

Start Date: 2024-03-27

End Date: 2026-03-26

Contract Duration: 729 days

Daily Burn Rate: $3.2K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JBMHH FIRE SYSTEMS INSPECTION, TESTING AND MAINTENANCE

Place of Performance

Location: FORT MYER, ARLINGTON County, VIRGINIA, 22211

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $2.3 million to BLUE CONSTRUCTION SERVICES LLC for work described as: JBMHH FIRE SYSTEMS INSPECTION, TESTING AND MAINTENANCE Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract duration is 729 days, suggesting a need for ongoing, consistent service. 3. The procurement was not competed under the simplified acquisition procedures, raising questions about competition. 4. The North American Industry Classification System (NAICS) code 541350 points to building inspection services. 5. The contract is a definitive contract, typically used for larger or more complex procurements. 6. The contractor, Blue Construction Services LLC, is the sole awardee. 7. The contract is being performed in Virginia (VA).

Value Assessment

Rating: fair

The contract value of $2.3 million for fire systems inspection, testing, and maintenance over two years appears to be within a reasonable range for such services, especially considering the firm-fixed-price structure which caps government liability. However, without specific details on the scope of work, the number of facilities covered, and the complexity of the systems, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for fire system maintenance at Department of Defense facilities would provide a clearer picture of whether this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was noted as 'NOT COMPETED UNDER SAP,' which implies it was not procured through the standard simplified acquisition procedures. The specific reason for this procurement method and the extent of any competition pursued are not detailed. If the contract was sole-source or awarded under limited competition, it could suggest a lack of available qualified bidders or specific circumstances justifying the approach. Further information is needed to determine the level of competition and its impact on pricing.

Taxpayer Impact: When contracts are not fully competed, taxpayers may not benefit from the most competitive pricing achievable through a broader bidding process. This can potentially lead to higher costs for government services.

Public Impact

This contract directly supports the operational readiness and safety of Department of the Army facilities by ensuring fire suppression and alarm systems are functional. Personnel working in and utilizing these facilities will benefit from enhanced fire safety measures. The services are being delivered in Virginia, impacting facilities within that geographic region. The contract likely involves skilled technicians and inspectors, potentially creating or sustaining jobs in the building maintenance and inspection sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition information raises concerns about potential overpayment and missed opportunities for cost savings.
The 'NOT COMPETED UNDER SAP' designation requires further investigation to understand the justification and potential impact on price.
Without a clear benchmark, it's difficult to assess if the $2.3 million represents optimal value for the services rendered.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
The contract is for essential safety services (fire systems maintenance), indicating a critical need.
The duration of the contract suggests a stable, ongoing requirement, allowing for potential contractor efficiency gains over time.

Sector Analysis

The building inspection services sector, categorized under NAICS code 541350, encompasses a range of activities critical for ensuring compliance with building codes and safety standards. This contract for fire systems inspection, testing, and maintenance falls within this sector, highlighting the government's reliance on specialized services to maintain its infrastructure. Spending in this area is often driven by regulatory requirements and the need to preserve the longevity and safety of federal assets. Comparable spending benchmarks would typically involve analyzing contracts for similar maintenance and inspection services across various federal agencies and facility types.

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb: false) and does not appear to be a small business set-aside (ss: false). Therefore, the direct impact on the small business ecosystem through this specific award is likely minimal. However, the prime contractor, Blue Construction Services LLC, may engage small businesses as subcontractors, which would be a crucial factor in assessing the broader impact on the small business economy. Further details on subcontracting plans would be necessary for a comprehensive analysis.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and the relevant program management office within the Department of the Army. The firm-fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency regarding the procurement process, especially the justification for not competing under SAP, is crucial. Inspector General jurisdiction may be involved if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Federal Fire Safety Programs
Department of Defense Facilities Maintenance
Building Inspection Services Contracts
Government Infrastructure Maintenance

Risk Flags

Lack of competition justification
Potential for uncompetitive pricing
Limited transparency on procurement method

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.3 million to BLUE CONSTRUCTION SERVICES LLC. JBMHH FIRE SYSTEMS INSPECTION, TESTING AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is BLUE CONSTRUCTION SERVICES 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 $2.3 million.

What is the period of performance?

Start: 2024-03-27. End: 2026-03-26.

What is the specific scope of work covered by this $2.3 million contract for fire systems inspection, testing, and maintenance?

The provided data does not detail the specific scope of work. However, based on the NAICS code 541350 (Building Inspection Services) and the contract description 'JBMHH FIRE SYSTEMS INSPECTION, TESTING AND MAINTENANCE,' the scope likely includes routine inspections, functional testing of fire alarms, sprinkler systems, emergency lighting, and other fire suppression equipment at Joint Base Myer-Henderson Hall (JBMHH). It may also encompass minor repairs, calibration of systems, and reporting on system status and compliance with relevant fire codes and military standards. A comprehensive understanding of the scope is essential for benchmarking costs and assessing value.

What is the track record of Blue Construction Services LLC in performing similar government contracts, particularly for fire system maintenance?

Information regarding the specific track record of Blue Construction Services LLC in performing similar government contracts for fire system maintenance is not provided in the data. To assess their capability and past performance, a review of their contract history with federal agencies, including past performance evaluations and any reported issues or successes on similar projects, would be necessary. This would help determine their experience level and reliability in executing the required services effectively and efficiently.

How does the $2.3 million contract value compare to market rates for similar fire system maintenance services in Virginia?

Benchmarking the $2.3 million contract value against market rates for similar fire system maintenance services in Virginia requires access to market research data, industry cost guides, and databases of comparable government contracts. Factors such as the number and type of facilities covered, the complexity of the fire systems, the frequency of inspections and maintenance, and the specific services included (e.g., emergency response, minor repairs) would influence the market rate. Without this comparative data, it is difficult to definitively state whether the contract price represents good value for money.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Potential risks for this contract include the possibility of unforeseen system failures requiring costly emergency repairs, inadequate performance by the contractor leading to compromised fire safety, and potential cost overruns if the firm-fixed-price contract does not adequately account for all eventualities. Mitigation strategies could involve robust contractor performance monitoring, clear service level agreements, defined procedures for handling emergencies, and regular system diagnostics. The justification for the procurement method ('NOT COMPETED UNDER SAP') also presents a risk if it limits competitive pricing or overlooks potentially more capable or cost-effective providers.

What is the historical spending pattern for fire system inspection, testing, and maintenance at Joint Base Myer-Henderson Hall (JBMHH) or similar Army installations?

The provided data does not include historical spending patterns for fire system maintenance at JBMHH or similar Army installations. To establish such a pattern, one would need to analyze contract awards for these services over several fiscal years, looking at contract values, durations, and the contractors involved. Understanding historical spending can help identify trends, assess the reasonableness of the current contract's value, and evaluate the effectiveness of past procurement strategies. It can also highlight any significant increases or decreases in spending that might warrant further investigation.

What are the implications of the contract being a 'definitive contract' awarded on a 'firm fixed price' basis?

A 'definitive contract' is typically used for larger procurements and signifies a formal agreement with clearly defined terms and conditions. The 'firm fixed price' (FFP) pricing structure means that the contractor agrees to perform the work for a predetermined price, regardless of the actual costs incurred. This shifts the risk of cost overruns from the government to the contractor. For the government, FFP provides budget certainty and predictability. However, it can also lead to higher initial prices as contractors may build in a contingency to cover potential cost increases. The combination suggests a significant, well-defined requirement where cost certainty was prioritized.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Building Inspection Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › INSPECTION SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: W91QV124R0035

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 633 YORK LN SE, LEESBURG, VA, 20175

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,180,362

Exercised Options: $2,325,215

Current Obligation: $2,325,214

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline