DHS Awards $28.8M Task Order for Facilities Maintenance to Native Energy & Technology Inc

Contract Overview

Contract Amount: $28,843,294 ($28.8M)

Contractor: Native Energy & Technology Inc

Awarding Agency: Department of Homeland Security

Start Date: 2019-03-07

End Date: 2024-11-01

Contract Duration: 2,066 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TASK ORDER COVERING PREVENTATIVE MAINTENANCE AND EQUIPMENT REPAIRS IGF::OT::IGF

Place of Performance

Location: LAREDO, WEBB County, TEXAS, 78040

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $28.8 million to NATIVE ENERGY & TECHNOLOGY INC for work described as: TASK ORDER COVERING PREVENTATIVE MAINTENANCE AND EQUIPMENT REPAIRS IGF::OT::IGF Key points: 1. The contract focuses on preventative maintenance and equipment repairs, a critical but often overlooked area of government operations. 2. Native Energy & Technology Inc. secured this award, indicating potential competition within the facilities support services sector. 3. The long duration (2019-2024) suggests a need for sustained service, but also raises questions about long-term value and potential for price creep. 4. The sector is Facilities Support Services, a broad category essential for agency operations but with varying cost benchmarks.

Value Assessment

Rating: fair

The award amount of $28.8M over approximately 5.7 years suggests an average annual spend of around $5M. Benchmarking this against similar facilities maintenance contracts is difficult without more specific service details, but it appears to be within a reasonable range for comprehensive support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically drives competitive pricing. The fixed-price structure further supports price discovery and limits the government's exposure to cost overruns.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers, as it encourages multiple bidders to offer their best prices, leading to potential cost savings.

Public Impact

Ensures operational continuity for U.S. Customs and Border Protection facilities through essential maintenance. Supports a private sector company, contributing to economic activity and employment. The long-term nature of the contract could lead to predictable service delivery but also warrants scrutiny for ongoing cost-effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may mask potential inefficiencies or price increases over time.
Lack of specific performance metrics makes it hard to assess true value for money.
Limited information on the specific types of equipment and facilities covered.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm fixed-price contract limits cost risk for the government.
Essential services for critical border operations.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad sector encompassing a wide range of maintenance and operational support for buildings and grounds. Spending in this sector can vary significantly based on the size and complexity of the facilities managed.

Small Business Impact

The data indicates that neither small business nor socio-economic set-asides were utilized for this contract, suggesting it was awarded to a larger, non-small business entity.

Oversight & Accountability

The contract's long duration and significant value warrant regular oversight to ensure performance standards are met and costs remain competitive throughout its term. Performance reviews and audits would be crucial.

Related Government Programs

Facilities Support Services
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Long contract duration (over 5 years) may lead to complacency or reduced price competitiveness over time.
Lack of specific performance metrics makes objective assessment of value difficult.
Potential for cost increases if scope creep is not managed effectively, despite fixed-price structure.
No indication of small business participation, potentially missing opportunities for economic inclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $28.8 million to NATIVE ENERGY & TECHNOLOGY INC. TASK ORDER COVERING PREVENTATIVE MAINTENANCE AND EQUIPMENT REPAIRS IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is NATIVE ENERGY & TECHNOLOGY INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $28.8 million.

What is the period of performance?

Start: 2019-03-07. End: 2024-11-01.

How does the annual cost of this contract compare to industry benchmarks for similar facilities maintenance services, considering the specific assets managed by CBP?

Without detailed information on the specific facilities and equipment covered under this task order, a precise comparison to industry benchmarks is challenging. However, the approximate $5 million annual spend for comprehensive preventative maintenance and repairs appears within a reasonable range for large federal agency facilities. Further analysis would require data on square footage, types of systems maintained (HVAC, electrical, plumbing), and geographic locations.

What are the key performance indicators (KPIs) used to measure the effectiveness of Native Energy & Technology Inc.'s services, and how are they monitored?

The provided data does not specify the key performance indicators (KPIs) or the monitoring mechanisms in place for this contract. Effective oversight would necessitate clearly defined KPIs related to response times, repair completion rates, preventative maintenance schedules adherence, and client satisfaction. Regular performance reviews by the U.S. Customs and Border Protection are essential to ensure the contractor is meeting these standards and delivering value.

Given the firm fixed-price structure, what mechanisms are in place to prevent potential scope creep or change orders that could significantly increase the total cost to taxpayers?

While a firm fixed-price contract is designed to cap costs, scope creep can still occur through poorly defined initial requirements or unforeseen circumstances. The government contracting officer must rigorously manage the contract, ensuring any proposed changes are thoroughly vetted for necessity and impact on cost and schedule. A clear process for change order proposals and approvals, with strong justification, is critical to protect taxpayer interests.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12830 COGBURN, SAN ANTONIO, TX, 78249

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,106,848

Exercised Options: $28,843,294

Current Obligation: $28,843,294

Actual Outlays: $12,998,560

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B01C19D00000004

IDV Type: IDC

Timeline