GSA awards $24.6M for facilities support in Puerto Rico and USVI, with competition impacting value

Contract Overview

Contract Amount: $24,616,354 ($24.6M)

Contractor: South Dade AIR Conditioning & Refrigeration Inc

Awarding Agency: General Services Administration

Start Date: 2022-09-07

End Date: 2026-10-31

Contract Duration: 1,515 days

Daily Burn Rate: $16.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: O&M SERVICES FOR THE CARIBBEAN FOBS IN PUERTO RICO AND USVI STARTING 1 NOVEMBER 2022 TO 31 OCTOBER 2023.

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00918

Plain-Language Summary

General Services Administration obligated $24.6 million to SOUTH DADE AIR CONDITIONING & REFRIGERATION INC for work described as: O&M SERVICES FOR THE CARIBBEAN FOBS IN PUERTO RICO AND USVI STARTING 1 NOVEMBER 2022 TO 31 OCTOBER 2023. Key points: 1. Contract value of $24.6M over its period of performance. 2. Competition dynamics suggest potential for competitive pricing. 3. Risk indicators are moderate, given the nature of O&M services. 4. Performance context involves essential operational support for federal facilities. 5. Sector positioning is within facilities management and support services.

Value Assessment

Rating: good

The contract's value of $24.6M for O&M services over approximately four years appears reasonable given the scope of supporting federal facilities in the Caribbean. Benchmarking against similar facilities support contracts in geographically challenging locations would provide a more precise value assessment. The firm-fixed-price structure helps control costs, but the ultimate value depends on the efficiency and effectiveness of the contractor's service delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of competition is generally favorable for price discovery and can lead to more competitive pricing for the government. The specific number of bidders is not provided, which would offer further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through a competitive bidding process, ensuring the government receives the best value for its investment.

Public Impact

Federal facilities in Puerto Rico and the US Virgin Islands will receive essential operations and maintenance services. Ensures continuity of government operations in these key locations. Supports the infrastructure necessary for federal agency presence in the Caribbean. Potential for local employment opportunities within the facilities management sector in Puerto Rico and the USVI.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise in remote locations.
Ensuring consistent service quality across multiple geographically dispersed facilities.
Dependence on contractor's ability to manage supply chains for parts and labor in the Caribbean.

Positive Signals

Firm-fixed-price contract limits the government's exposure to cost increases.
Full and open competition suggests a competitive pricing environment.
Contract duration provides stability for essential facility operations.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of buildings and infrastructure. This sector is critical for government operations, ensuring that federal facilities are functional, safe, and well-maintained. Spending in this area is consistent across various federal agencies and locations, with significant market size driven by the extensive real estate holdings of the U.S. government.

Small Business Impact

The contract was awarded through full and open competition and does not indicate any specific small business set-aside. While the prime contractor, SOUTH DADE AIR CONDITIONING & REFRIGERATION INC, is not explicitly identified as a small business in the provided data, the contract's structure does not preclude subcontracting opportunities. The extent of small business participation will depend on the prime contractor's subcontracting plan and the availability of qualified small businesses for specialized services within the scope of facilities support.

Oversight & Accountability

The General Services Administration (GSA), through its Public Buildings Service, is responsible for overseeing this contract. Oversight mechanisms would typically include performance monitoring, quality assurance checks, and contract closeout procedures. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Buildings Fund
Base Operations Support Contracts
Government Facilities Maintenance
Public Buildings Service Contracts

Risk Flags

Geographic isolation may increase logistical costs and complexity.
Potential for weather-related disruptions impacting service delivery.
Contractor's ability to source specialized parts and skilled labor in remote locations.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $24.6 million to SOUTH DADE AIR CONDITIONING & REFRIGERATION INC. O&M SERVICES FOR THE CARIBBEAN FOBS IN PUERTO RICO AND USVI STARTING 1 NOVEMBER 2022 TO 31 OCTOBER 2023.

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 $24.6 million.

What is the period of performance?

Start: 2022-09-07. End: 2026-10-31.

What is the historical spending pattern for facilities support services in Puerto Rico and the US Virgin Islands by the GSA?

Analyzing historical spending for facilities support in these specific regions by GSA would provide crucial context for the current $24.6M award. Without specific historical data, it's difficult to ascertain if this award represents an increase, decrease, or stable level of investment. However, GSA's mission involves managing and maintaining federal properties, suggesting a consistent need for such services. Factors like the number and size of federal facilities, their age, and the specific maintenance requirements in a tropical climate would influence spending levels. Understanding past contract values, durations, and the competitive landscape for similar services in the past would help determine if the current award is cost-effective and aligned with long-term strategic needs for federal infrastructure in the Caribbean.

How does the per-unit cost of services under this contract compare to similar contracts in other U.S. territories or mainland locations?

A direct per-unit cost comparison is challenging without detailed service breakdowns and specific metrics (e.g., cost per square foot maintained, cost per HVAC unit serviced). However, operating in the Caribbean can often incur higher costs due to logistics, transportation of materials and personnel, and potentially higher labor rates for specialized skills. If this contract's pricing, when normalized for scope and location, is significantly higher than comparable mainland contracts, it could indicate potential inefficiencies or market-specific cost drivers. Conversely, if it aligns with or is lower than other island-based contracts, it suggests competitive pricing given the operational environment. Further analysis would require access to detailed cost breakdowns and a robust database of comparable contracts.

What are the key performance indicators (KPIs) used to measure the contractor's performance and ensure value for money?

Key Performance Indicators (KPIs) for facilities support contracts typically focus on service availability, response times, quality of repairs, preventative maintenance completion rates, and customer satisfaction. For this contract, specific KPIs would likely include metrics related to HVAC system uptime, electrical and plumbing system reliability, grounds maintenance standards, and emergency response capabilities. The firm-fixed-price nature of the contract incentivizes the contractor to meet these KPIs efficiently. Performance evaluations, likely conducted by GSA contracting officers' representatives (CORs), would assess adherence to these KPIs. Failure to meet critical KPIs could result in contract remedies, including potential financial penalties or termination, thereby safeguarding taxpayer funds and ensuring essential services are delivered effectively.

What is the track record of SOUTH DADE AIR CONDITIONING & REFRIGERATION INC with federal contracts, particularly in facilities management?

SOUTH DADE AIR CONDITIONING & REFRIGERATION INC has a history of performing federal contracts, primarily within the facilities maintenance and repair domain. Examining their past performance on similar contracts, especially those involving government facilities and complex operational environments, is crucial for assessing their capability and reliability. Key aspects to review include their on-time delivery record, adherence to budget, quality of work, and any past performance issues or disputes. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would provide detailed insights into their previous project successes and challenges. A strong track record suggests a lower risk of performance issues and a higher likelihood of delivering value for money on this current contract.

What are the potential risks associated with performing O&M services in the Caribbean, and how are they mitigated in this contract?

Performing O&M services in the Caribbean presents unique risks, including logistical challenges for parts and personnel, susceptibility to extreme weather events (hurricanes), potential for higher labor costs, and unique environmental considerations (e.g., salt corrosion). This contract, awarded under full and open competition with a firm-fixed-price structure, aims to mitigate some of these risks. The fixed price caps cost exposure for the government. However, the contractor bears the primary risk of managing supply chains and labor effectively in these locations. Contractual clauses related to disaster preparedness, response, and potentially force majeure events would be critical. GSA's oversight will be essential in monitoring the contractor's risk management strategies and ensuring service continuity despite these environmental and logistical hurdles.

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: $63,279,732

Exercised Options: $24,616,354

Current Obligation: $24,616,354

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47PC0822A0004

IDV Type: BPA

Timeline