GSA awards $31.2M contract for engine parts, with a significant portion allocated to spare components

Contract Overview

Contract Amount: $31,246,348 ($31.2M)

Contractor: Federal Resources Supply Company, LLC

Awarding Agency: General Services Administration

Start Date: 2025-03-31

End Date: 2026-06-24

Contract Duration: 450 days

Daily Burn Rate: $69.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FMS TECMOTIV ENGINES AVDS 17902CA AND SPARE PARTS

Place of Performance

Location: NIAGARA FALLS, NIAGARA County, NEW YORK, 14305

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $31.2 million to FEDERAL RESOURCES SUPPLY COMPANY, LLC for work described as: FMS TECMOTIV ENGINES AVDS 17902CA AND SPARE PARTS Key points: 1. Value-for-money assessment indicates a need for detailed benchmarking against similar engine part procurements. 2. Competition dynamics show a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with contract duration and fixed-price terms being key factors. 4. Performance context relies on the successful delivery of engine components and spare parts. 5. Sector positioning places this contract within the analytical laboratory instrument manufacturing industry, though the product is engine parts.

Value Assessment

Rating: fair

The contract value of $31.2 million for engine parts and spares appears substantial. Benchmarking against similar procurements for specialized engine components is crucial to determine if this represents a fair market price. The fixed-price nature of the contract shifts some risk to the contractor, but the specific unit costs and the proportion allocated to spare parts require further scrutiny to ensure value.

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 were likely solicited. The level of competition is a positive sign for price discovery and potentially achieving a more favorable price for the government. However, the number of actual bids received and the bid spread would provide a clearer picture of the competitive intensity.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation.

Public Impact

The primary beneficiaries are likely entities requiring these specific engine components and spare parts, potentially for maintenance, repair, or operational needs. Services delivered include the provision of specialized engine parts and associated spare components. The geographic impact is centered in New York (NY), where the contractor is located. Workforce implications are likely related to the manufacturing, assembly, and logistics involved in producing and delivering these engine parts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation if spare parts demand exceeds initial projections.
Dependence on contractor's supply chain for timely delivery of specialized components.
Ensuring quality control and adherence to specifications for critical engine parts.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Fixed-price contract type can provide cost certainty for the government.
Clear delivery order structure allows for phased procurement of parts.

Sector Analysis

This contract falls under the broad category of manufacturing and supply of specialized components. While the NAICS code points to Analytical Laboratory Instrument Manufacturing, the actual product is engine parts. This suggests a potential misclassification or a highly specialized niche within manufacturing. The market for such specialized engine components can be limited, making competitive sourcing critical.

Small Business Impact

The contract was not set aside for small businesses, and the contractor, FEDERAL RESOURCES SUPPLY COMPANY, LLC, is not explicitly identified as a small business in the provided data. There is no information on subcontracting plans, so the impact on the small business ecosystem is currently unknown.

Oversight & Accountability

Oversight will likely be managed by the General Services Administration (GSA) through its Federal Acquisition Service. Accountability measures are embedded in the firm fixed-price contract terms and delivery schedules. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics are not provided.

Related Government Programs

Engine Component Procurement
Spare Parts Logistics
Federal Supply Schedule Contracts
Defense Logistics Agency (DLA) Procurements

Risk Flags

Potential NAICS code mismatch
Limited public information on specific engine parts procured
Unclear impact on small business subcontracting

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $31.2 million to FEDERAL RESOURCES SUPPLY COMPANY, LLC. FMS TECMOTIV ENGINES AVDS 17902CA AND SPARE PARTS

Who is the contractor on this award?

The obligated recipient is FEDERAL RESOURCES SUPPLY COMPANY, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $31.2 million.

What is the period of performance?

Start: 2025-03-31. End: 2026-06-24.

What is the historical spending pattern for similar engine parts and spares by the General Services Administration?

Analyzing historical spending by the GSA for comparable engine parts and spare components is essential for context. Without specific historical data, it's difficult to ascertain if the $31.2 million award represents an increase, decrease, or stable trend in federal investment for these items. Examining past contract values, quantities procured, and pricing trends for similar items would reveal whether this award is in line with previous procurement activities or if it signifies a shift in demand or market pricing. This historical perspective is crucial for evaluating the long-term value and potential cost-effectiveness of the current award.

How does the unit cost of these engine parts compare to market rates or similar government contracts?

A detailed comparison of the unit costs for the engine parts and spare components awarded under this contract against prevailing market rates and similar government contracts is a key value assessment. If specific unit prices are available, they should be benchmarked against industry price lists, commercial catalog prices, and prices paid by other federal agencies for identical or comparable items. Significant deviations from market or benchmark prices could indicate either exceptional value or potential overpricing. The fixed-price nature of the contract provides some cost certainty, but understanding the underlying unit economics is vital for a thorough value-for-money analysis.

What are the specific risks associated with the contractor's performance and delivery schedule?

The primary risks associated with FEDERAL RESOURCES SUPPLY COMPANY, LLC's performance revolve around the timely and quality delivery of specialized engine parts and spare components. Given the contract duration of approximately 450 days (from order to end date), potential risks include supply chain disruptions, manufacturing delays, or quality control issues that could impact the availability of critical parts. The fixed-price contract shifts some financial risk to the contractor, but delays or non-compliance could still lead to operational impacts for the end-user. Robust oversight and clear communication channels are necessary to mitigate these performance and delivery risks.

What is the estimated total cost of ownership for these engine parts over their lifecycle?

The total cost of ownership (TCO) for these engine parts extends beyond the initial $31.2 million award. It encompasses not only the purchase price but also potential costs related to maintenance, repair, installation, disposal, and any associated operational downtime. While the contract covers the acquisition of the parts themselves, a comprehensive TCO analysis would require understanding the expected lifespan of these components, their reliability, and the availability and cost of related services or consumables. Without this broader lifecycle perspective, the true economic impact of this procurement cannot be fully assessed.

How does the competition level for this contract compare to other procurements in the analytical laboratory instrument manufacturing sector?

This contract was awarded under full and open competition, which is generally a positive indicator for competitive pricing. However, the NAICS code (334516 - Analytical Laboratory Instrument Manufacturing) appears incongruent with the product description (engine parts). If this contract is indeed for engine parts, its competition level should be compared to procurements within the relevant manufacturing sector for such components, not necessarily the analytical laboratory instrument sector. A high level of competition in the engine parts market would typically lead to better pricing for the government, whereas limited competition could result in higher costs.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QSWC25Q0039

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 235-G LOG CANOE CIR, STEVENSVILLE, MD, 21666

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business

Financial Breakdown

Contract Ceiling: $31,246,348

Exercised Options: $31,246,348

Current Obligation: $31,246,348

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS07F9287S

IDV Type: FSS

Timeline