GSA awards $7.9M Facilities Support Services contract to Northern Management Services, Inc. for 5 years

Contract Overview

Contract Amount: $7,938,031 ($7.9M)

Contractor: Northern Management Services, Inc.

Awarding Agency: General Services Administration

Start Date: 2021-11-01

End Date: 2026-10-31

Contract Duration: 1,825 days

Daily Burn Rate: $4.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE YEAR FUNDING

Place of Performance

Location: OROVILLE, OKANOGAN County, WASHINGTON, 98844

State: Washington Government Spending

Plain-Language Summary

General Services Administration obligated $7.9 million to NORTHERN MANAGEMENT SERVICES, INC. for work described as: BASE YEAR FUNDING Key points: 1. Contract value appears reasonable for a 5-year facilities support services agreement. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type may limit cost overruns for the government. 4. Contract duration of 5 years provides long-term stability for service delivery. 5. Service Area Code 561210 indicates a focus on facilities maintenance and operations. 6. The award was made under a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated framework.

Value Assessment

Rating: good

The base year funding of approximately $7.9 million for a 5-year contract suggests an annual value of roughly $1.58 million. This appears to be within a reasonable range for comprehensive facilities support services, especially considering the contract is with the General Services Administration (GSA), which often handles large-scale operations. Benchmarking against similar GSA contracts for facilities management in the Washington D.C. area would provide a more precise value assessment, but the initial figures do not raise immediate red flags.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and service proposals. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was intended and likely achieved, which is beneficial for price discovery.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and improving the quality of services received. Full and open competition is the preferred method for maximizing value for the government.

Public Impact

Federal employees and visitors in GSA-managed facilities in Washington D.C. will benefit from maintained and operational spaces. Services delivered include facilities support, likely encompassing maintenance, cleaning, security, and operational management. The geographic impact is concentrated in Washington D.C., where GSA facilities are located. The contract supports jobs within the facilities management and support services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess service quality.
The BPA Call mechanism, while efficient, might limit the scope for innovation compared to a standalone RFP.

Positive Signals

The use of a firm-fixed-price contract type helps control costs for the government.
Awarding under full and open competition suggests a commitment to achieving best value.
The contract is managed by the General Services Administration, an agency with extensive experience in procurement and contract oversight.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, represents a significant segment of the government services market. This sector encompasses a wide range of activities from building operations and maintenance to groundskeeping and pest control. Government spending in this area is substantial, driven by the need to maintain a vast portfolio of federal buildings and installations. Contracts like this one are crucial for ensuring the functionality and safety of public infrastructure. Comparable spending benchmarks would typically be found within GSA's own historical data for similar service contracts in the region.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications mandated by a small business set-aside. However, the prime contractor, Northern Management Services, Inc., may still engage small businesses as subcontractors to fulfill portions of the contract, depending on their own business practices and the nature of the services required.

Oversight & Accountability

The General Services Administration (GSA) is responsible for the oversight of this contract. As a large federal agency, GSA has established procurement regulations and contract management procedures. Oversight mechanisms would typically include regular performance reviews, site inspections, and financial audits. Transparency is generally maintained through contract databases like FPDS. The specific Inspector General jurisdiction would likely fall under the GSA Office of Inspector General.

Related Government Programs

Federal Buildings Fund
Public Buildings Service Operations
Facilities Maintenance Contracts
Government Property Management

Risk Flags

Potential for cost overruns if scope significantly expands beyond initial fixed-price estimates.
Risk of service disruption due to contractor performance issues.
Dependence on a single contractor for critical facility operations.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $7.9 million to NORTHERN MANAGEMENT SERVICES, INC.. BASE YEAR FUNDING

Who is the contractor on this award?

The obligated recipient is NORTHERN MANAGEMENT SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.9 million.

What is the period of performance?

Start: 2021-11-01. End: 2026-10-31.

What is the track record of Northern Management Services, Inc. with federal contracts, particularly with GSA?

A thorough review of Northern Management Services, Inc.'s federal contract history would be necessary to assess their track record. This would involve examining past performance evaluations, any instances of contract disputes or terminations, and their experience with similar types of facilities support services. Data from the Federal Procurement Data System (FPDS) or other contract databases would be crucial for this analysis. Understanding their performance on previous GSA contracts, if any, would provide valuable insight into their reliability and capability to execute the current award effectively. Without specific historical data on this contractor, it is difficult to definitively assess their past performance.

How does the awarded price compare to market rates for similar facilities support services in the Washington D.C. area?

To benchmark the awarded price against market rates, one would need to gather data on similar facilities support service contracts awarded by other federal agencies or even state and local governments in the Washington D.C. metropolitan area. This would involve identifying contracts with comparable scopes of work, service levels, and contract durations. Analyzing the per-square-foot maintenance costs or hourly rates for specific services (e.g., janitorial, HVAC maintenance) from these comparable contracts would allow for a direct comparison. The current contract's annual value of approximately $1.58 million, derived from the base year funding, would be the primary figure for this market analysis.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, facilities support service contracts include KPIs related to response times for maintenance requests, building system uptime, cleanliness standards, energy efficiency targets, and customer satisfaction. The contract documents, such as the Performance Work Statement (PWS), would detail these metrics. Regular performance reviews between GSA and Northern Management Services, Inc. would assess the contractor's adherence to these KPIs. The absence of this information in the summary data limits a full assessment of performance management.

What is the historical spending trend for facilities support services by the GSA's Public Buildings Service?

Analyzing historical spending trends for facilities support services by GSA's Public Buildings Service (PBS) would require accessing multi-year spending data. This would involve looking at aggregate spending on NAICS code 561210 and related categories over several fiscal years. Trends might indicate whether spending is increasing, decreasing, or remaining stable, potentially influenced by factors like federal building occupancy rates, infrastructure modernization initiatives, or budget allocations. Comparing the current award amount to these historical averages would provide context on the scale and significance of this particular contract within PBS's overall spending portfolio.

Are there any known risks associated with Northern Management Services, Inc. or the nature of facilities support services?

Potential risks associated with Northern Management Services, Inc. would be identified through a review of their past performance history, financial stability, and any legal or regulatory issues. For facilities support services, common risks include service disruptions due to unforeseen events (e.g., natural disasters, pandemics), contractor performance failures leading to facility downtime, cost overruns if the fixed-price model proves inadequate for unexpected issues, and security breaches if security services are part of the scope. The 'full and open competition' aspect mitigates some risk by selecting from multiple qualified bidders, but ongoing monitoring is crucial.

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: 607 CHURCH ST, SANDPOINT, ID, 83864

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,316,485

Exercised Options: $7,938,031

Current Obligation: $7,938,031

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47PL0221A0006

IDV Type: BPA

Timeline