GSA's $2.38M Water Tank & Cooling Tower Project Awarded to Blue Spader Contractors Inc

Contract Overview

Contract Amount: $2,375,893 ($2.4M)

Contractor: Blue Spader Contractors Inc

Awarding Agency: General Services Administration

Start Date: 2024-07-03

End Date: 2026-07-24

Contract Duration: 751 days

Daily Burn Rate: $3.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 985 WATER TANK REPLACEMENT AND COOLING TOWER SWEEPING PROJECT, 985 MICHIGAN AVENUE, DETROIT, MICHIGAN.

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48226

State: Michigan Government Spending

Plain-Language Summary

General Services Administration obligated $2.4 million to BLUE SPADER CONTRACTORS INC for work described as: 985 WATER TANK REPLACEMENT AND COOLING TOWER SWEEPING PROJECT, 985 MICHIGAN AVENUE, DETROIT, MICHIGAN. Key points: 1. The contract value of $2.38 million for water tank replacement and cooling tower sweeping appears to be a significant investment for the specified services. 2. Competition dynamics are unclear due to the 'NOT AVAILABLE FOR COMPETITION' status, raising questions about potential cost efficiencies. 3. The fixed-firm price contract type suggests cost certainty for the government, but the lack of competition may limit price negotiation. 4. Performance context is limited, but the duration of 751 days indicates a substantial project scope. 5. This contract falls within the Plumbing, Heating, and Air-Conditioning Contractors sector, a critical area for building maintenance. 6. The absence of small business set-aside flags suggests this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service specifications and comparable project data. The $2.38 million price tag for water tank replacement and cooling tower sweeping over a 751-day period suggests a substantial undertaking. However, the lack of competitive bidding makes it difficult to assess if this represents a fair market price or if taxpayers received optimal value. Further analysis would require understanding the scope of work, materials, and labor involved, as well as comparing it to similar projects in the Detroit area or within the General Services Administration portfolio.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was designated as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. This means that only one contractor, Blue Spader Contractors Inc., was solicited or considered for this work. The rationale behind this designation is not provided, but it typically implies circumstances such as urgent need, unique capabilities, or a lack of other qualified sources. The absence of a competitive bidding process means that the government did not benefit from the price discovery and potential cost savings that typically arise from multiple offers.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government may not secure the most competitive pricing available in the market. Without competition, there is less pressure on the contractor to offer the lowest possible price.

Public Impact

Federal employees and visitors at 985 Michigan Avenue, Detroit, Michigan, will benefit from improved water quality and HVAC system efficiency. The project will ensure the reliable operation of essential building systems, contributing to a safe and functional work environment. The geographic impact is localized to Detroit, Michigan, specifically at the GSA-managed facility. The contract is expected to create or sustain jobs within the plumbing, heating, and air-conditioning trades in the local Detroit area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated pricing.
Limited transparency into the justification for sole-source award.
Potential for cost overruns if scope is not tightly managed.
Dependence on a single contractor for critical building infrastructure.

Positive Signals

Firm fixed-price contract provides cost certainty.
Project addresses essential building maintenance needs.
Long-term duration suggests a comprehensive approach to the work.

Sector Analysis

This contract falls within the construction and maintenance sector, specifically focusing on plumbing, heating, and air-conditioning services. The market for such services is generally robust, with numerous contractors capable of performing this type of work. However, the specific nature of water tank replacement and cooling tower sweeping might require specialized expertise or adherence to particular regulatory standards. The General Services Administration (GSA) is a major federal agency that procures a wide range of facilities management and construction services across the country, making this contract a typical, albeit potentially high-value, component of their operational spending.

Small Business Impact

The contract details indicate that this was not a small business set-aside, and the 'sb' field is false. This suggests that the procurement was not specifically designed to award a portion of the work to small businesses. Consequently, there are no explicit subcontracting requirements for small businesses mandated by this contract's structure. The impact on the small business ecosystem is neutral, as it was not prioritized for small business participation, nor does it appear to exclude them from potential subcontracting opportunities if Blue Spader Contractors Inc. chooses to engage them.

Oversight & Accountability

Oversight for this contract will primarily fall under the General Services Administration (GSA), specifically its Public Buildings Service. As a definitive contract awarded under a firm fixed-price structure, GSA will monitor performance against the contract terms and schedule. The Inspector General of the GSA is responsible for auditing and investigating potential fraud, waste, and abuse within GSA contracts, including this one. Transparency is facilitated through federal procurement databases, though the justification for the sole-source award may not be publicly detailed.

Related Government Programs

GSA Facilities Management Contracts
Public Building Maintenance
HVAC System Upgrades
Water System Infrastructure Projects
Federal Building Renovations

Risk Flags

Sole-source award lacks competitive pricing.
Justification for sole-source award not provided.
Potential for cost inefficiency due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.4 million to BLUE SPADER CONTRACTORS INC. 985 WATER TANK REPLACEMENT AND COOLING TOWER SWEEPING PROJECT, 985 MICHIGAN AVENUE, DETROIT, MICHIGAN.

Who is the contractor on this award?

The obligated recipient is BLUE SPADER CONTRACTORS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2024-07-03. End: 2026-07-24.

What is the specific scope of work for the water tank replacement and cooling tower sweeping project?

The provided data does not detail the specific scope of work beyond the general description of 'WATER TANK REPLACEMENT AND COOLING TOWER SWEEPING PROJECT.' A comprehensive understanding would require access to the contract's statement of work (SOW). This would typically include specifications for the type and size of water tanks to be replaced, the methods and frequency of cooling tower sweeping, any required testing or certification, and specific compliance standards (e.g., EPA, local health codes). Without this detail, it's difficult to fully assess the project's complexity or justify the contract's value.

What is the justification for awarding this contract on a sole-source basis?

The contract is marked as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award to Blue Spader Contractors Inc. The specific justification for this designation is not provided in the abbreviated data. Common reasons for sole-source awards include urgent and compelling needs where only one contractor can meet the requirement, situations where the contractor possesses unique capabilities or proprietary technology, or when the contract is a follow-on effort to a previous competition where only one source is deemed viable. A thorough review of the contract file or agency justifications would be necessary to understand the precise rationale.

How does the contract duration of 751 days compare to similar projects?

A contract duration of 751 days (approximately 25 months) for water tank replacement and cooling tower sweeping suggests a significant scope of work or a phased approach. For routine cooling tower maintenance, this duration might be considered long unless it includes extensive replacement of major components or multiple facilities. Water tank replacement can be a substantial project, but the combined scope requires context. Benchmarking against similar GSA projects or industry standards for facilities maintenance would be necessary to determine if this duration is appropriate and efficient, or if it indicates potential inefficiencies or an overly broad scope for the stated services.

What is the track record of Blue Spader Contractors Inc. with the federal government?

The provided data identifies Blue Spader Contractors Inc. as the awardee but does not offer details on their past performance or track record with the federal government. To assess their reliability and experience, one would typically look at their contract history, including past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. Without this information, it is difficult to gauge their suitability and past success in fulfilling similar federal contracts.

Are there any comparable contracts for water tank replacement and cooling tower sweeping within the GSA or other federal agencies?

The abbreviated data does not provide information on comparable contracts. A detailed analysis would involve searching federal procurement databases (like SAM.gov or FPDS) for similar projects awarded by the GSA or other agencies. Key search parameters would include the type of service (water tank replacement, cooling tower maintenance), contract value range, duration, and geographic location. Comparing this contract's value and duration to similar, competitively awarded contracts would help determine if the $2.38 million price is reasonable and if the sole-source award represents good value for the taxpayer.

What are the potential risks associated with a sole-source contract of this magnitude?

The primary risks associated with a sole-source contract of this magnitude ($2.38 million) include the potential for paying a non-competitive price, reduced incentive for the contractor to perform efficiently, and a lack of transparency regarding the necessity of the sole-source award. Taxpayers may bear a higher cost than if the contract had been competed. Additionally, if Blue Spader Contractors Inc. underperforms, the government has limited recourse without going through a potentially lengthy and costly process to terminate for default and find a new contractor, especially if they are the only qualified entity.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47PF0024R0052

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 332 S MAIN ST STE A, ROMEO, MI, 48065

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

Financial Breakdown

Contract Ceiling: $2,375,893

Exercised Options: $2,375,893

Current Obligation: $2,375,893

Actual Outlays: $1,798,772

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline