NIST awards $13.6M for Central Utility Plant O&M to Peak Facility Solutions, raising competition concerns
Contract Overview
Contract Amount: $13,617,361 ($13.6M)
Contractor: Peak Facility Solutions LLC
Awarding Agency: Department of Commerce
Start Date: 2021-05-21
End Date: 2027-02-24
Contract Duration: 2,105 days
Daily Burn Rate: $6.5K/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: OPERATIONS, MAINTENANCE AND REPAIR SERVICES OF THE CENTRAL UTILITY PLANT NIST BOULDER
Place of Performance
Location: BOULDER, BOULDER County, COLORADO, 80305
State: Colorado Government Spending
Plain-Language Summary
Department of Commerce obligated $13.6 million to PEAK FACILITY SOLUTIONS LLC for work described as: OPERATIONS, MAINTENANCE AND REPAIR SERVICES OF THE CENTRAL UTILITY PLANT NIST BOULDER Key points: 1. Contract value of $13.6M over 5 years for essential utility plant services. 2. Competition was full and open after exclusion of sources, suggesting potential limitations. 3. Risk of price escalation due to firm fixed-price contract and long duration. 4. Sector is industrial machinery repair and maintenance, critical for research facilities.
Value Assessment
Rating: fair
The $13.6M contract value appears reasonable for a 5-year O&M service contract for a central utility plant. Benchmarking against similar NIST or other federal agency contracts for comparable facilities would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition after exclusion of sources.' While this indicates competition, the exclusion of sources warrants further investigation to understand its impact on price discovery and overall market reach.
Taxpayer Impact: Taxpayer funds are being used for essential facility maintenance. The effectiveness of the competition method in securing the best value for taxpayers is a key consideration.
Public Impact
Ensures continuous operation of critical research infrastructure at NIST Boulder. Supports the National Institute of Standards and Technology's mission by maintaining essential utilities. Potential for cost savings or overspending depending on the effectiveness of the 'exclusion of sources' competition.
Waste & Efficiency Indicators
Waste Risk Score: 64 / 10
Warning Flags
- Competition method ('exclusion of sources') may limit true market competition.
- Long contract duration (2105 days) increases risk of price drift.
- Firm fixed-price contract may not fully account for unforeseen operational costs.
Positive Signals
- Essential service for a critical research facility.
- Awarded to a single contractor, potentially simplifying management.
- Contract duration aligns with long-term facility needs.
Sector Analysis
This contract falls within the Industrial Machinery and Equipment Repair and Maintenance sector. Spending in this area is crucial for government facilities, particularly research institutions like NIST, to ensure operational continuity and safety.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were excluded from the competition or if they did not bid.
Oversight & Accountability
The 'exclusion of sources' clause in the competition method requires scrutiny to ensure adequate oversight and accountability in the procurement process. NIST should ensure transparency in the justification for excluding sources.
Related Government Programs
- Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
- Department of Commerce Contracting
- National Institute of Standards and Technology Programs
Risk Flags
- Limited competition due to 'exclusion of sources'.
- Long contract duration increases price risk.
- Potential for contractor profit maximization on fixed-price contract.
- No small business participation noted.
Tags
commercial-and-industrial-machinery-and-, department-of-commerce, co, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $13.6 million to PEAK FACILITY SOLUTIONS LLC. OPERATIONS, MAINTENANCE AND REPAIR SERVICES OF THE CENTRAL UTILITY PLANT NIST BOULDER
Who is the contractor on this award?
The obligated recipient is PEAK FACILITY SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Institute of Standards and Technology).
What is the total obligated amount?
The obligated amount is $13.6 million.
What is the period of performance?
Start: 2021-05-21. End: 2027-02-24.
What was the specific justification for excluding certain sources in the 'full and open competition after exclusion of sources' method, and did this exclusion impact the final price?
The justification for excluding sources is critical. If sources were excluded for non-essential reasons, it could indicate a lack of robust competition, potentially leading to a higher price than could have been achieved through unrestricted competition. NIST should provide clear documentation justifying any source exclusions to ensure fair pricing and taxpayer value.
What are the potential risks associated with a firm fixed-price contract for a 5-year utility plant O&M service, especially given the long duration?
A firm fixed-price contract for a long duration like 5 years carries risks of price escalation if market conditions change significantly (e.g., labor costs, material prices). The contractor may build in higher contingency costs to mitigate their risk, potentially leading to a higher overall price for the government. Conversely, if costs are lower than anticipated, the contractor benefits.
How does the performance of Peak Facility Solutions LLC on similar contracts inform the assessment of this award's effectiveness?
Assessing the past performance of Peak Facility Solutions LLC on comparable contracts is vital. If they have a strong track record of reliability, cost control, and quality service in utility plant operations, it suggests this award is likely effective. Conversely, any history of performance issues would raise concerns about the effectiveness and value of this contract.
Industry Classification
NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 1333ND20RNB190010
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 32258 STENZEL DR, CONIFER, CO, 80433
Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $13,617,361
Exercised Options: $13,617,361
Current Obligation: $13,617,361
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-05-21
Current End Date: 2027-02-24
Potential End Date: 2027-02-24 00:00:00
Last Modified: 2026-02-12
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