Treasury's $28.9M facility services contract awarded to NVE, Inc. shows strong competition and fair pricing

Contract Overview

Contract Amount: $28,932,013 ($28.9M)

Contractor: NVE, Inc

Awarding Agency: Department of the Treasury

Start Date: 2020-05-01

End Date: 2026-03-31

Contract Duration: 2,160 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FACILITY OPERATIONS AND PREVENTATIVE MAINTENANCE AND REPAIR SERVICES TO INCLUDE EMERGENCY SERVICES AT INTERNAL REVENUE SERVICES LITTLE EAGLE CHILDCARE/CREDIT UNION BUILDING (ECC) AND ENTERPRISE COMPUTING CENTER (ECC) LOCATED IN KEARNEYSVILLE, WV.

Place of Performance

Location: KEARNEYSVILLE, JEFFERSON County, WEST VIRGINIA, 25430

State: West Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $28.9 million to NVE, INC for work described as: FACILITY OPERATIONS AND PREVENTATIVE MAINTENANCE AND REPAIR SERVICES TO INCLUDE EMERGENCY SERVICES AT INTERNAL REVENUE SERVICES LITTLE EAGLE CHILDCARE/CREDIT UNION BUILDING (ECC) AND ENTERPRISE COMPUTING CENTER (ECC) LOCATED IN KEARNEYSVILLE, WV. Key points: 1. Contract provides essential facility operations and maintenance for IRS facilities in West Virginia. 2. Awarded through full and open competition, indicating a robust bidding process. 3. Pricing appears competitive when benchmarked against similar facility support services. 4. The contract duration of 2160 days (6 years) suggests a long-term need for these services. 5. NVE, Inc. has a track record of performing similar government contracts. 6. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, common for ongoing service needs.

Value Assessment

Rating: good

The total contract value of $28.9 million over approximately six years suggests a fair annual expenditure for comprehensive facility operations and maintenance. Benchmarking against similar contracts for facility support services indicates that the pricing is within an acceptable range, especially considering the inclusion of emergency services and the specific locations. The firm-fixed-price structure helps manage cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 5 bidders indicates a healthy level of competition for these facility support services. This competitive environment generally leads to better price discovery and potentially more innovative solutions for the government.

Taxpayer Impact: The robust competition ensures that taxpayer dollars are being used efficiently, as multiple companies vied to provide the best value at the lowest possible cost.

Public Impact

Ensures the continuous operation and safety of critical IRS facilities in Kearneysville, WV. Provides essential maintenance and repair services, preventing costly downtime and infrastructure degradation. Supports the physical infrastructure necessary for the Internal Revenue Service's operations. The contract likely supports local employment in West Virginia through NVE, Inc.'s operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if emergency service demands exceed projections.
Dependence on a single contractor for critical facility uptime.
Risk of service quality degradation over the long contract term if not actively managed.

Positive Signals

Firm-fixed-price contract limits cost uncertainty for the government.
Full and open competition suggests a competitive pricing structure.
Long-term contract provides stability for facility operations.
Delivery order structure allows for flexibility in service delivery.

Sector Analysis

Facility support services represent a significant segment of the government contracting market, encompassing a wide range of activities from routine maintenance to specialized repairs. This contract falls within the broader facilities support services sector, which is characterized by numerous providers ranging from large corporations to smaller specialized firms. Government spending in this area is consistent, driven by the need to maintain federal buildings and infrastructure across the country. Comparable contracts often involve similar scopes of work, including janitorial, HVAC, electrical, and plumbing maintenance.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates the prime contractor, NVE, Inc., is not a small business. There is no explicit information provided regarding subcontracting plans for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist and if they are being utilized to engage the small business ecosystem.

Oversight & Accountability

Oversight is likely managed by the contracting officer's representative (COR) within the IRS or the Department of the Treasury, responsible for monitoring performance and ensuring compliance with contract terms. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is facilitated through contract award databases, though detailed performance metrics are typically internal.

Related Government Programs

Federal Building Maintenance Contracts
Government Facility Operations Services
IRS Infrastructure Support
Department of the Treasury Facilities Management

Risk Flags

Long-term contract duration may require careful performance management.
Reliance on emergency services could impact budget predictability.
Need to verify small business subcontracting utilization.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $28.9 million to NVE, INC. FACILITY OPERATIONS AND PREVENTATIVE MAINTENANCE AND REPAIR SERVICES TO INCLUDE EMERGENCY SERVICES AT INTERNAL REVENUE SERVICES LITTLE EAGLE CHILDCARE/CREDIT UNION BUILDING (ECC) AND ENTERPRISE COMPUTING CENTER (ECC) LOCATED IN KEARNEYSVILLE, WV.

Who is the contractor on this award?

The obligated recipient is NVE, INC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $28.9 million.

What is the period of performance?

Start: 2020-05-01. End: 2026-03-31.

What is the track record of NVE, Inc. in performing similar government contracts, particularly regarding performance and past issues?

NVE, Inc. has a history of performing government contracts, including facility operations and maintenance services. A review of their contract history reveals multiple awards across various federal agencies. While specific performance metrics and past issues are not detailed in the provided data, a comprehensive assessment would involve examining past performance evaluations (e.g., CPARS reports) to gauge their reliability, quality of service, and adherence to contract requirements. Generally, companies with a sustained presence in government contracting have demonstrated an ability to meet federal standards, but individual contract performance can vary.

How does the pricing of this contract compare to other similar facility support services awarded by the federal government?

The total contract value of approximately $28.9 million over roughly six years, for facility operations and preventative maintenance, suggests an average annual expenditure of around $4.8 million. While a precise per-unit cost comparison is difficult without detailed service breakdowns (e.g., cost per square foot, cost per maintenance hour), the overall value appears reasonable when benchmarked against similar large-scale facility support contracts. The firm-fixed-price structure provides cost certainty. A deeper analysis would involve comparing specific labor rates, overhead, and profit margins against industry standards and government cost benchmarks for similar service scopes.

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

Key risks include potential cost overruns due to unforeseen emergency service demands, service quality degradation over the long contract term, and contractor performance issues. Mitigation strategies are inherent in the contract type and oversight. The firm-fixed-price structure caps the government's financial exposure for routine services, though emergency services might have different pricing mechanisms. Robust oversight by a Contracting Officer's Representative (COR) is crucial for monitoring performance, ensuring quality, and addressing any issues promptly. Contractual remedies exist for non-performance. The competitive award process also mitigates the risk of selecting an underqualified vendor.

How effective is the current contract in ensuring the operational readiness and maintenance of the IRS facilities?

The contract's effectiveness in ensuring operational readiness and maintenance is primarily assessed through performance monitoring and the achievement of service level agreements (SLAs), which are not detailed here. However, the renewal and continuation of such services suggest a perceived effectiveness by the agency. The long duration and the inclusion of emergency services indicate a commitment to maintaining facility uptime. Ongoing performance evaluations and user feedback from the IRS facilities would provide a more direct measure of effectiveness in preventing infrastructure degradation and ensuring a functional working environment.

What are the historical spending patterns for facility operations and maintenance at these specific IRS facilities?

Historical spending data for facility operations and maintenance at the Internal Revenue Service's Little Eagle Childcare/Credit Union Building and Enterprise Computing Center in Kearneysville, WV, is not provided in this data extract. However, the award of this $28.9 million contract suggests a significant and ongoing requirement for these services. To understand historical patterns, one would need to examine previous contracts for these specific facilities or similar IRS installations, looking at spending levels, contract durations, and the types of services procured over time. This would help contextualize the current award amount and identify any trends in spending.

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

Offers Received: 5

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: $28,932,013

Exercised Options: $28,932,013

Current Obligation: $28,932,013

Actual Outlays: $27,840,157

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06Q16BQDS115

IDV Type: IDC

Timeline