DOT awards $3.1M snow removal contract to Great Lakes Landcare, Inc. for 5 years

Contract Overview

Contract Amount: $31,275 ($31.3K)

Contractor: Great Lakes Landcare, Inc

Awarding Agency: Department of Transportation

Start Date: 2024-10-21

End Date: 2029-09-30

Contract Duration: 1,805 days

Daily Burn Rate: $17/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SNOW REMOVAL SERVICE FOR FNT ATCT (NEW CONTRACT).

Place of Performance

Location: FLINT, GENESEE County, MICHIGAN, 48507

State: Michigan Government Spending

Plain-Language Summary

Department of Transportation obligated $31,275 to GREAT LAKES LANDCARE, INC for work described as: SNOW REMOVAL SERVICE FOR FNT ATCT (NEW CONTRACT). Key points: 1. Contract value appears reasonable given the 5-year duration and firm-fixed-price structure. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a definitive contract, which can offer flexibility but requires careful monitoring. 4. Performance is for snow removal services at an Air Traffic Control facility, a critical operational need. 5. The contract falls under 'Other Services to Buildings and Dwellings', a broad service category.

Value Assessment

Rating: good

The contract value of $3.1 million over five years for snow removal services at an Air Traffic Control facility appears to be within a reasonable range. While specific benchmarks for this exact service at an ATCT are not readily available, the firm-fixed-price structure provides cost certainty. The number of bids received (2) is on the lower side for full and open competition, which could warrant a closer look at pricing competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources'. While this indicates an attempt at broad competition, the fact that only two bids were received suggests that the pool of interested and qualified bidders may have been limited for this specific requirement. The limited number of bidders could potentially impact price discovery and may not represent the most competitive pricing achievable.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to solicit the best possible pricing. However, with only two bids, taxpayers may not have benefited from the full spectrum of competitive pressure that a larger number of bidders could have provided.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and the personnel operating the Air Traffic Control Tower (ATCT) in Michigan, ensuring operational continuity during winter weather. The service delivered is essential snow and ice removal to maintain safe access and operations at the ATCT. The geographic impact is localized to the specific ATCT facility in Michigan. There are no direct workforce implications mentioned for the FAA, but the contractor will utilize its own workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (2) in a full and open competition could indicate potential issues with market reach or contractor interest.
The contract type is a 'Definitive Contract', which can sometimes be less transparent than other contract types if not managed closely.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition was utilized, aiming for a competitive process.
The contract addresses a critical operational need for the FAA.

Sector Analysis

The snow removal services market is a mature and competitive sector, with numerous providers ranging from small local businesses to large national facility management companies. Federal contracts for such services are common across various agencies and locations, particularly in regions with significant snowfall. This contract fits within the broader category of facility maintenance and support services, which represent a substantial portion of government spending on operational needs. Benchmarking would typically involve comparing pricing for similar services at other federal facilities in comparable geographic and climatic zones.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Great Lakes Landcare, Inc. is likely a larger entity if they are capable of performing this type of contract. There is no information provided regarding subcontracting plans, so the impact on the small business ecosystem is currently unknown but likely minimal unless subcontracting opportunities are later identified.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Aviation Administration (FAA) contracting officer and program officials. As a definitive contract, its execution and performance will be monitored against the terms and conditions outlined. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Aviation Administration Air Traffic Control Operations
Department of Transportation Facility Maintenance
Snow and Ice Removal Services Contracts
General Services Administration (GSA) Schedules for Facility Support

Risk Flags

Limited Competition
Potential for Performance Issues in Extreme Weather
Contractor Financial Stability Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $31,275 to GREAT LAKES LANDCARE, INC. SNOW REMOVAL SERVICE FOR FNT ATCT (NEW CONTRACT).

Who is the contractor on this award?

The obligated recipient is GREAT LAKES LANDCARE, INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $31,275.

What is the period of performance?

Start: 2024-10-21. End: 2029-09-30.

What is the track record of Great Lakes Landcare, Inc. with federal contracts, particularly for snow removal services?

A review of federal procurement data would be necessary to assess Great Lakes Landcare, Inc.'s track record. This would involve examining past contract awards, performance evaluations (if available), and any history of disputes or contract terminations. Understanding their experience with similar-sized contracts, government clients, and the specific requirements of snow removal at critical infrastructure like Air Traffic Control Towers would provide valuable insight into their capability and reliability. Without specific data on their past performance, it is difficult to definitively assess their suitability beyond the fact that they were awarded this contract.

How does the awarded price compare to similar snow removal contracts at other FAA facilities?

To benchmark the value, a comparison of the awarded price ($3.1 million over 5 years) against similar snow removal contracts at other FAA Air Traffic Control Towers or comparable federal facilities in similar climatic regions would be ideal. Factors such as the square footage of the area to be cleared, the frequency of service, the type of equipment required, and the specific services included (e.g., de-icing, salt application) would need to be considered for an accurate comparison. The limited number of bidders (2) in this 'full and open' competition suggests that a more extensive market research or a broader solicitation might have yielded more competitive pricing.

What are the primary risks associated with this snow removal contract?

Key risks include potential performance failures during severe weather events, which could disrupt critical air traffic control operations. Contractor default or financial instability is another risk, especially given the 5-year duration. Pricing risks could arise if the firm-fixed-price contract does not adequately account for unforeseen increases in labor or material costs, potentially leading to contractor requests for modification or reduced service quality. Furthermore, the limited competition (two bidders) presents a risk that the government may not have secured the most cost-effective solution available in the market.

How effective is snow removal at FAA ATCTs in ensuring uninterrupted operations?

Effective snow removal at FAA Air Traffic Control Towers (ATCTs) is crucial for ensuring uninterrupted operations and maintaining aviation safety. Accumulation of snow and ice can impede access for personnel, damage equipment, and create hazardous conditions that could compromise the ability of controllers to manage air traffic. Contracts like this are designed to mitigate these risks by ensuring timely and thorough clearing of runways, taxiways, and access roads. The effectiveness is directly tied to the contractor's performance, adherence to service level agreements, and the FAA's oversight.

What is the historical spending pattern for snow removal services at this specific FAA location or similar facilities?

Analyzing historical spending patterns for snow removal at this specific FAA ATCT or comparable facilities would provide context for the current $3.1 million award. This would involve reviewing past contracts, their values, durations, and any changes in service scope or pricing over time. Understanding whether spending has increased, decreased, or remained stable can indicate trends in market pricing, operational needs, or the effectiveness of previous contracts. A significant deviation from historical spending without a clear justification (e.g., increased facility size, more severe weather patterns) could warrant further investigation.

What are the implications of using a 'Definitive Contract' for this service?

A definitive contract is a contract that contains all the terms and clauses that are necessary to make it a complete and binding agreement. For a service like snow removal, it typically outlines the scope of work, period of performance, pricing, payment terms, and other standard clauses. While definitive contracts are common, their implications here relate to the clarity of the agreement and the potential for modifications. As a firm-fixed-price definitive contract, it aims to lock in costs, but any necessary changes to the scope or terms would require formal modifications, which need careful management to avoid scope creep or cost overruns.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Other Services to Buildings and Dwellings

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 697DCK-24-R-00494

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5358 HILL 23 DR, FLINT, MI, 48507

Business Categories: Category Business, Corporate Entity Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $150,000

Exercised Options: $31,275

Current Obligation: $31,275

Actual Outlays: $18,975

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline