USDA awards $24.4M for facilities support, including pest and elevator maintenance, over five years

Contract Overview

Contract Amount: $24,408,921 ($24.4M)

Contractor: NVE, Inc

Awarding Agency: Department of Agriculture

Start Date: 2023-06-01

End Date: 2028-05-31

Contract Duration: 1,826 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE OPERATIONS AND MAINTENANCE, PEST MANAGEMENT AND ELEVATOR INSPECTION AND MAINTENANCE TO USDA HEADQUARTERS FACILITIES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $24.4 million to NVE, INC for work described as: PROVIDE OPERATIONS AND MAINTENANCE, PEST MANAGEMENT AND ELEVATOR INSPECTION AND MAINTENANCE TO USDA HEADQUARTERS FACILITIES. Key points: 1. The contract covers essential building operations and maintenance, ensuring functionality of USDA headquarters. 2. Services include pest management and elevator inspection/maintenance, critical for safety and usability. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The contract duration is five years, providing long-term support for facilities. 5. The firm-fixed-price structure aims to control costs by setting a predetermined price. 6. This contract represents a significant investment in maintaining federal infrastructure.

Value Assessment

Rating: good

The total award of $24.4 million over five years averages to approximately $4.88 million annually. Benchmarking this against similar large-scale facilities support contracts for federal buildings of comparable size and complexity is challenging without more specific service details. However, the firm-fixed-price nature of the contract suggests that the government has negotiated a set price, which can be advantageous for budget predictability. The number of bidders (6) indicates a reasonable level of interest, which typically correlates with fair market pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six bids received. This indicates that multiple vendors were aware of and interested in the opportunity, and the government actively sought a broad range of potential contractors. The presence of six bidders suggests a healthy level of competition, which generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied to offer the best services at the most competitive price.

Public Impact

USDA headquarters facilities in Washington D.C. will benefit from consistent and reliable operations and maintenance. Employees and visitors will experience a safe and functional working environment due to pest management and elevator maintenance. The contract supports the operational continuity of critical government functions housed within the USDA headquarters. The contract likely supports jobs within the facilities management and maintenance sector, potentially in the Washington D.C. metropolitan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen maintenance issues arise beyond the initial contract's defined services.
Reliance on a single contractor for critical infrastructure maintenance could pose a risk if performance falters.
Ensuring consistent quality across all services (pest control, elevator maintenance, general O&M) requires robust oversight.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive market was leveraged.
Long-term contract (5 years) allows for stable planning and execution of services.
Multiple services consolidated under one contract may lead to administrative efficiencies.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, is a significant sector within the broader commercial and government services industry. This sector encompasses a wide range of activities including general building maintenance, HVAC, plumbing, electrical, pest control, and elevator services. Federal spending in this area is substantial, driven by the need to maintain aging infrastructure and ensure the operational readiness of government facilities across the country. This contract fits within the typical spending patterns for large federal agency headquarters.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. Given the scale and nature of the services (comprehensive facilities operations and maintenance for a major headquarters), it is plausible that the prime contractor may engage small businesses for specialized tasks or as subcontractors. However, without specific subcontracting plans or set-aside provisions, the direct impact on the small business ecosystem is not immediately clear and may be limited unless proactively managed by the prime.

Oversight & Accountability

Oversight for this contract would typically fall under the USDA's Office of the Chief Financial Officer and the relevant facilities management divisions. The firm-fixed-price contract structure provides a degree of accountability by locking in costs. Performance monitoring, regular inspections, and adherence to service level agreements (SLAs) would be key oversight mechanisms. Transparency is generally maintained through contract award databases, but detailed performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
Department of Defense Facilities Maintenance Contracts
National Institutes of Health (NIH) Facilities Operations
Veterans Affairs (VA) Medical Center Maintenance

Risk Flags

Potential for performance issues if specialized subcontractors are not managed effectively.
Risk of cost escalation for the contractor impacting service quality if not managed well.
Dependence on a single entity for critical infrastructure maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $24.4 million to NVE, INC. PROVIDE OPERATIONS AND MAINTENANCE, PEST MANAGEMENT AND ELEVATOR INSPECTION AND MAINTENANCE TO USDA HEADQUARTERS FACILITIES.

Who is the contractor on this award?

The obligated recipient is NVE, INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $24.4 million.

What is the period of performance?

Start: 2023-06-01. End: 2028-05-31.

What is the historical spending by the USDA on facilities support services over the past five years?

Analyzing historical spending on facilities support services by the USDA is crucial for context. While specific figures for the USDA headquarters alone are not provided, broader trends in federal facilities maintenance spending can offer insights. The General Services Administration (GSA) manages a vast portfolio of federal buildings and consistently allocates billions annually for operations, maintenance, and repair. For the USDA specifically, understanding their budget allocation towards facilities management, including prior contracts for similar services, would allow for a comparison of the current $24.4 million award against previous investments. This helps determine if the current spending represents an increase, decrease, or stable level of investment in maintaining their primary operational sites.

How does the per-year cost of this contract compare to similar facilities support contracts for federal buildings in the Washington D.C. area?

The annual cost of this contract is approximately $4.88 million ($24.4M / 5 years). To benchmark this effectively, one would need to compare it with contracts for facilities support services at other federal buildings of similar size and complexity within the Washington D.C. metropolitan area. Factors such as the age of the building, specific services required (e.g., specialized HVAC, security systems, extensive landscaping), and the level of service (e.g., 24/7 operations vs. standard business hours) significantly influence pricing. Without access to a database of comparable contracts and their specific scopes of work, a precise per-unit cost comparison is difficult. However, the fact that six bids were received suggests the pricing is likely within a competitive range for the services offered.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific performance metrics or Service Level Agreements (SLAs) for this contract. Typically, facilities support contracts include detailed requirements for response times for maintenance requests, uptime guarantees for critical systems (like elevators and HVAC), pest control frequency and efficacy standards, and inspection protocols. These metrics are essential for measuring the contractor's performance and ensuring the government receives the contracted value. The USDA's contracting officers and facilities managers would be responsible for monitoring adherence to these SLAs and enforcing penalties or rewards as stipulated in the contract.

What is the track record of NVE, Inc. in performing similar large-scale federal facilities support contracts?

NVE, Inc.'s track record in performing similar large-scale federal facilities support contracts is a key indicator of their capability and reliability. A thorough review would involve examining their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or contract terminations, and the scale and complexity of previous contracts they have managed. Information on their experience with pest management, elevator maintenance, and general building operations for federal agencies would be particularly relevant. Assessing their financial stability and capacity to manage a contract of this magnitude ($24.4 million over five years) is also critical for understanding potential risks.

What is the potential risk associated with consolidating pest management and elevator maintenance under a single facilities support contract?

Consolidating specialized services like pest management and elevator maintenance under a single, broad facilities support contract carries potential risks. Firstly, it requires the prime contractor, NVE, Inc., to possess or effectively manage subcontractors with deep expertise in these distinct areas. A lack of specialized knowledge in either area could lead to suboptimal service delivery, safety issues (especially with elevators), or increased costs due to inefficient management. Secondly, oversight becomes more complex, as the government must ensure that both specialized functions are being performed to high standards, not just the general maintenance. If NVE, Inc. subcontracts these services, the government's recourse for performance issues might be complicated, potentially involving multiple layers of communication and dispute resolution.

How does the firm-fixed-price (FFP) contract type influence the risk allocation between the government and NVE, Inc. for this facilities support contract?

The Firm-Fixed-Price (FFP) contract type primarily shifts the risk of cost overruns to the contractor, NVE, Inc. Under an FFP agreement, the contractor is obligated to perform the specified work for the agreed-upon price, regardless of their actual costs. This provides the USDA with significant cost certainty and budget predictability. However, it also means that if NVE, Inc. encounters unforeseen difficulties or incurs higher-than-expected costs (e.g., due to unexpected maintenance needs, labor cost increases, or material price hikes), their profit margin will be reduced, or they could incur a loss. The government's risk is generally lower in terms of cost, but they assume the risk that the contractor might cut corners on quality or service to protect their profit margin if costs escalate unexpectedly.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12314422Q0076

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13800 COPPERMINE RD, HERNDON, VA, 20171

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $36,733,783

Exercised Options: $24,408,921

Current Obligation: $24,408,921

Actual Outlays: $19,890,550

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06Q16BQDS115

IDV Type: IDC

Timeline