GSA Awards $10.2M for Machinery Repair in Washington, Competition Uncertain
Contract Overview
Contract Amount: $10,227,613 ($10.2M)
Contractor: Northern Management Services, Inc.
Awarding Agency: General Services Administration
Start Date: 2004-04-28
End Date: 2012-04-30
Contract Duration: 2,924 days
Daily Burn Rate: $3.5K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 11
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: O&M TASK ORDER AWARD-SPOKANE FB/USCH&USPO
Place of Performance
Location: SPOKANE, SPOKANE County, WASHINGTON, 99201
Plain-Language Summary
General Services Administration obligated $10.2 million to NORTHERN MANAGEMENT SERVICES, INC. for work described as: O&M TASK ORDER AWARD-SPOKANE FB/USCH&USPO Key points: 1. Significant contract value for machinery repair services. 2. Competition method is competitive, but specific details are limited. 3. Potential risks include long duration and fixed-price structure. 4. Spending falls within the broad category of industrial machinery maintenance.
Value Assessment
Rating: fair
The contract value of $10.2M over 8 years for machinery repair is substantial. Benchmarking against similar GSA contracts for industrial equipment maintenance is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was awarded via a competitive delivery order. While competitive, the specific number of bidders and the pricing strategy are not detailed, impacting the assessment of price discovery.
Taxpayer Impact: Taxpayer funds are being used for essential facility maintenance. The competitive nature aims to secure reasonable pricing, but the long duration warrants scrutiny.
Public Impact
Ensures operational readiness of federal facilities in Washington. Supports maintenance of critical industrial machinery. Long-term contract may impact flexibility for future technology adoption.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (8 years)
- Fixed-price contract may not account for unforeseen cost increases
- Small business participation not indicated
Positive Signals
- Competitive award process
- Essential service for facility operations
Sector Analysis
This contract falls under industrial machinery repair and maintenance, a crucial sector for ensuring the operational efficiency of federal buildings. Spending benchmarks are difficult to ascertain without specific equipment types.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business set-aside opportunities were considered or missed.
Oversight & Accountability
The General Services Administration (GSA) is responsible for this contract. Oversight would involve monitoring performance, adherence to contract terms, and ensuring value for taxpayer money over the contract's lifespan.
Related Government Programs
- Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
- General Services Administration Contracting
- Public Buildings Service Programs
Risk Flags
- Long contract duration
- Fixed-price contract risk
- Lack of small business award
- Limited detail on specific services/equipment
Tags
commercial-and-industrial-machinery-and-, general-services-administration, wa, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $10.2 million to NORTHERN MANAGEMENT SERVICES, INC.. O&M TASK ORDER AWARD-SPOKANE FB/USCH&USPO
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 $10.2 million.
What is the period of performance?
Start: 2004-04-28. End: 2012-04-30.
What is the specific type of machinery being maintained, and how does the $10.2M cost align with industry standards for such services?
The data classifies the machinery under NAICS code 811310 (Commercial and Industrial Machinery and Equipment Repair and Maintenance). Without specific equipment details, it's challenging to benchmark the $10.2M cost. However, the 8-year duration suggests a comprehensive, long-term maintenance agreement for potentially complex or numerous assets, making the overall value plausible if services are critical and well-executed.
Given the 8-year duration and fixed-price structure, what are the primary risks to the government regarding cost overruns or service quality degradation?
The primary risk is that a fixed-price contract over such a long period may not adequately account for inflation or unexpected repair needs, potentially leading to cost increases if change orders are frequent or if the initial pricing was too low. Service quality could degrade if incentives for high performance are weak or if contractor staffing/expertise diminishes over time without adequate oversight.
How effectively does the competitive delivery order process ensure optimal value and performance for this long-term machinery maintenance requirement?
A competitive delivery order process is generally effective in establishing a baseline price. However, for an 8-year contract, the initial competition's effectiveness depends on the clarity of the SOW and the evaluation criteria. Long-term value and performance rely heavily on ongoing GSA oversight, performance metrics, and the ability to adapt to changing needs or technologies within the contract framework.
Industry Classification
NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 11
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 607 CHURCH ST, SANDPOINT, ID, 01
Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $9,599,413
Exercised Options: $10,227,613
Current Obligation: $10,227,613
Parent Contract
Parent Award PIID: GS10P03LSD0089
IDV Type: IDC
Timeline
Start Date: 2004-04-28
Current End Date: 2012-04-30
Potential End Date: 2012-04-30 00:00:00
Last Modified: 2013-03-14
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