GSA awards $7.3M for facilities support services at Volpe Center, highlighting competition and long-term needs

Contract Overview

Contract Amount: $7,325,082 ($7.3M)

Contractor: South Dade AIR Conditioning & Refrigeration Inc

Awarding Agency: General Services Administration

Start Date: 2024-02-01

End Date: 2027-01-31

Contract Duration: 1,095 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BUILDING OPERATIONS & MAINTENANCE, SNOW REMOVAL, & LANDSCAPING SERVICES, DOT JOHN A. VOLPE NATIONAL TRANSPORTATION SYSTEMS CENTER (MA0183ZZ) 220 BINNEY STREET, CAMBRIDGE, MA 02142 BPA CALL OPTION 2

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02142

State: Massachusetts Government Spending

Plain-Language Summary

General Services Administration obligated $7.3 million to SOUTH DADE AIR CONDITIONING & REFRIGERATION INC for work described as: BUILDING OPERATIONS & MAINTENANCE, SNOW REMOVAL, & LANDSCAPING SERVICES, DOT JOHN A. VOLPE NATIONAL TRANSPORTATION SYSTEMS CENTER (MA0183ZZ) 220 BINNEY STREET, CAMBRIDGE, MA 02142 BPA CALL OPTION 2 Key points: 1. The contract value of $7.3 million over three years suggests a steady demand for essential building operations. 2. Full and open competition indicates a healthy market response and potential for competitive pricing. 3. The firm-fixed-price structure shifts performance risk to the contractor, ensuring cost certainty for the government. 4. This award supports critical infrastructure at the DOT's Volpe Center, a key research and development hub. 5. The duration of the contract aligns with long-term facility management planning. 6. The contractor, South Dade Air Conditioning & Refrigeration Inc., will be responsible for a range of maintenance tasks.

Value Assessment

Rating: good

The contract value of $7.3 million for three years of facilities support services appears reasonable given the scope of work, which includes building operations, maintenance, snow removal, and landscaping. Benchmarking against similar contracts for facilities support services at federal buildings of comparable size and complexity would provide a more precise value assessment. The firm-fixed-price contract type is generally favorable for the government when requirements are well-defined, as it transfers cost overrun risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors were invited to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is expected to drive down prices and encourage innovation. The General Services Administration (GSA) utilized this approach to ensure the government received the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, leading to more competitive bids and potentially lower overall costs for government services.

Public Impact

Federal employees and visitors at the DOT John A. Volpe National Transportation Systems Center in Cambridge, MA, will benefit from well-maintained facilities. Essential services including building operations, maintenance, snow removal, and landscaping will be continuously provided. The geographic impact is localized to the Volpe Center campus in Cambridge, Massachusetts. The contract supports the operational continuity of a critical federal research and development facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if the contractor faces unforeseen operational challenges.
Reliance on a single contractor for a broad range of essential services could pose a risk if performance falters.

Positive Signals

The firm-fixed-price contract structure incentivizes the contractor to manage costs effectively.
Awarding under full and open competition suggests a robust selection process and a competitive market.
The contract duration provides stability for facility operations at the Volpe Center.

Sector Analysis

Facilities support services, encompassing building operations, maintenance, and related services, represent a significant segment of the government contracting market. This contract falls under the broader category of commercial and institutional building services. The North American Industry Classification System (NAICS) code 561210, Facilities Support Services, covers establishments primarily engaged in providing operating engineers/janitorial services, and/or building management/operation services. Spending in this sector is driven by the government's need to maintain its extensive real property portfolio.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, South Dade Air Conditioning & Refrigeration Inc., is likely a larger entity or has been awarded this contract through a competitive process not restricted to small businesses. There is no explicit information on subcontracting plans for small businesses within this award, which means the direct impact on the small business ecosystem from this specific contract is not detailed.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Oversight mechanisms would typically include regular performance reviews, site inspections, and adherence to contract terms and conditions. Accountability is ensured through the firm-fixed-price structure, which holds the contractor responsible for delivering services within the agreed-upon cost. Transparency is generally maintained through contract award databases and public reporting, although specific performance metrics may not always be publicly disclosed.

Related Government Programs

Federal Building Operations and Maintenance
Department of Transportation Facilities Management
General Services Administration Real Property Management
Volpe Center Support Services

Risk Flags

Contractor performance history not fully detailed.
Specific number of bidders not disclosed for competition analysis.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $7.3 million to SOUTH DADE AIR CONDITIONING & REFRIGERATION INC. BUILDING OPERATIONS & MAINTENANCE, SNOW REMOVAL, & LANDSCAPING SERVICES, DOT JOHN A. VOLPE NATIONAL TRANSPORTATION SYSTEMS CENTER (MA0183ZZ) 220 BINNEY STREET, CAMBRIDGE, MA 02142 BPA CALL OPTION 2

Who is the contractor on this award?

The obligated recipient is SOUTH DADE AIR CONDITIONING & REFRIGERATION INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $7.3 million.

What is the period of performance?

Start: 2024-02-01. End: 2027-01-31.

What is the track record of South Dade Air Conditioning & Refrigeration Inc. in performing similar federal contracts?

A review of federal procurement data would be necessary to fully assess South Dade Air Conditioning & Refrigeration Inc.'s track record. This would involve examining past performance evaluations, any history of contract disputes or terminations, and the successful completion of similar facilities support services contracts. Without specific historical data on this contractor's performance with the federal government, it is difficult to provide a detailed assessment. However, the award of this contract by GSA suggests they met the minimum qualifications and passed initial vetting processes. Further investigation into their past performance ratings and any relevant contract history would be crucial for a comprehensive understanding of their reliability and capability.

How does the awarded price compare to market rates for similar facilities support services?

The awarded contract value of $7.3 million over three years for facilities support services at the Volpe Center needs to be benchmarked against market rates. This comparison would involve analyzing pricing data from similar contracts awarded by GSA or other federal agencies for facilities of comparable size, complexity, and geographic location. Factors such as the specific services included (operations, maintenance, snow removal, landscaping), the firm-fixed-price structure, and the duration of the contract would influence the comparison. A preliminary assessment suggests the price is within a reasonable range for comprehensive facilities management, but a detailed market analysis and comparison with industry benchmarks are required for a definitive conclusion on value for money.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential performance deficiencies by the contractor, unforeseen increases in operational costs that could strain the contractor's ability to deliver under a fixed price, and potential disruptions to the essential services provided. Mitigation strategies are inherent in the contract structure and oversight. The firm-fixed-price (FFP) arrangement shifts cost overrun risk to the contractor. GSA's oversight, including performance monitoring and site inspections, aims to identify and address performance issues early. The contract's duration provides stability, but contingency planning for service continuity in case of contractor failure would be a standard risk mitigation practice for the agency.

How effective is the firm-fixed-price contract type in ensuring value for money for this type of service?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and stable, as is often the case with routine facilities operations and maintenance. It provides cost certainty for the government, as the contractor bears the risk of cost overruns. This incentivizes the contractor to be efficient and manage resources effectively to maintain profitability. For services like building operations, snow removal, and landscaping, where requirements are predictable, FFP can lead to competitive pricing during the bidding process. However, if unforeseen circumstances significantly alter the scope or require substantial changes, managing those changes under FFP can become complex and potentially less cost-effective than other contract types.

What is the historical spending pattern for facilities support services at the Volpe Center or similar GSA-managed facilities?

Historical spending data for facilities support services at the Volpe Center or comparable GSA-managed facilities would provide crucial context for evaluating the current $7.3 million award. Analyzing past expenditures would reveal trends in contract values, service scope changes, and potential cost escalations over time. Understanding this history helps determine if the current award represents an increase, decrease, or stable level of investment. Without access to specific historical GSA spending records for this facility or similar ones, it's challenging to establish a precise pattern. However, the consistent need for such services suggests a recurring and significant budgetary allocation.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14510 SW 284TH ST, HOMESTEAD, FL, 33033

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $16,749,434

Exercised Options: $7,325,082

Current Obligation: $7,325,082

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47PB0022A0001

IDV Type: BPA

Timeline