USDA's $20.2M Facilities Support Contract Awarded to CELTA SERVICES INC for Southern Research Center

Contract Overview

Contract Amount: $20,219,036 ($20.2M)

Contractor: Celta Services Inc

Awarding Agency: Department of Agriculture

Start Date: 2005-07-15

End Date: 2013-05-31

Contract Duration: 2,877 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATION AND MAINTENANCE SERVICES FOR USDA SOUTHERN REGIONAL RESEARCH CENTER

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70124

State: Louisiana Government Spending

Plain-Language Summary

Department of Agriculture obligated $20.2 million to CELTA SERVICES INC for work described as: OPERATION AND MAINTENANCE SERVICES FOR USDA SOUTHERN REGIONAL RESEARCH CENTER Key points: 1. Contract awarded to CELTA SERVICES INC for facilities support. 2. The contract spans over 8 years, indicating a long-term need. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The total award value is approximately $20.2 million. 5. The contract is for operation and maintenance services at the USDA Southern Regional Research Center.

Value Assessment

Rating: fair

The total award value of $20.2 million over nearly 8 years suggests an average annual cost of roughly $2.5 million. Without specific benchmarks for similar facilities support contracts at USDA research centers, a precise pricing assessment is difficult. However, the duration and scope indicate a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and promotes price discovery. This method is expected to yield a fair market price by leveraging competitive pressures among multiple qualified vendors.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value through a competitive process.

Public Impact

Ensures continued operation and maintenance of critical USDA research facilities. Supports scientific research by providing essential infrastructure services. The long-term nature of the contract provides stability for service delivery. Potential impact on local employment in Louisiana through the contractor's operations.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Long contract duration could lead to price escalation if not managed.
Reliance on a single contractor for essential services poses a risk if performance falters.

Positive Signals

Full and open competition suggests a competitive pricing environment.
Long-term contract provides stability and predictability for USDA operations.
Award to a single entity simplifies management and oversight.

Sector Analysis

This contract falls under Facilities Support Services, a broad category encompassing maintenance, repair, and operational services for government buildings and infrastructure. Spending in this sector is significant across federal agencies, driven by the need to maintain aging facilities and ensure operational continuity for various government functions.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. The primary award was not to a small business, and the contract type (full and open competition) does not inherently favor or disfavor small business participation without specific set-aside provisions.

Oversight & Accountability

The contract was awarded by the Department of Agriculture's Agricultural Research Service. Oversight would involve ensuring CELTA SERVICES INC meets the performance standards outlined in the contract, managing contract modifications, and verifying timely and quality service delivery to maintain the research center's operations.

Related Government Programs

Facilities Support Services
Department of Agriculture Contracting
Agricultural Research Service Programs

Risk Flags

Long contract duration increases risk of cost overruns if not managed.
Potential for vendor lock-in due to the specialized nature of facilities support.
Dependence on a single contractor for critical infrastructure operations.
Lack of specific performance metrics in the provided data makes effectiveness assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $20.2 million to CELTA SERVICES INC. OPERATION AND MAINTENANCE SERVICES FOR USDA SOUTHERN REGIONAL RESEARCH CENTER

Who is the contractor on this award?

The obligated recipient is CELTA SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Research Service).

What is the total obligated amount?

The obligated amount is $20.2 million.

What is the period of performance?

Start: 2005-07-15. End: 2013-05-31.

What was the specific scope of 'Operation and Maintenance Services' included in this contract, and how did it align with the needs of the USDA Southern Regional Research Center?

The scope likely encompassed routine maintenance, repairs, janitorial services, groundskeeping, and potentially utility management for the research center's facilities. This would ensure the physical infrastructure supporting scientific research remained functional and safe. The alignment would be assessed based on the center's specific operational requirements and the contractor's ability to meet those demands consistently throughout the contract period.

How did the pricing structure (Firm Fixed Price) and the competitive bidding process contribute to achieving value for taxpayer money in this contract?

A Firm Fixed Price (FFP) contract shifts most of the risk to the contractor, providing cost certainty for the government. Coupled with full and open competition, this structure incentivizes bidders to offer competitive prices while accurately estimating their costs. The government benefits from predictable expenses and the assurance that the lowest price among qualified bidders was likely secured.

What mechanisms were in place to ensure the effectiveness and quality of the facilities support services provided by CELTA SERVICES INC over the contract's nearly 8-year duration?

Effectiveness and quality would typically be monitored through performance metrics, service level agreements (SLAs), and regular inspections outlined in the contract. The Agricultural Research Service would likely have a contracting officer's representative (COR) responsible for overseeing performance, receiving reports, and addressing any deficiencies. Periodic reviews and contractor performance evaluations would also be crucial.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6309 YORK ST, METAIRIE, LA, 01

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $36,931,171

Exercised Options: $36,751,330

Current Obligation: $20,219,036

Timeline