GSA's $17.8M contract for Bowie Computer Center maintenance awarded to NV Enterprises, Inc. shows significant duration

Contract Overview

Contract Amount: $17,882,172 ($17.9M)

Contractor: NV Enterprises, Inc.

Awarding Agency: General Services Administration

Start Date: 2006-07-27

End Date: 2014-10-31

Contract Duration: 3,018 days

Daily Burn Rate: $5.9K/day

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMERCIAL FACILITIES MAINTENANCE (CFM) SERVICES FOR THE BOWIE COMPUTER CENTER IN BOWIE, MD.

Place of Performance

Location: BOWIE, PRINCE GEORGE'S County, MARYLAND, 20715

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $17.9 million to NV ENTERPRISES, INC. for work described as: COMMERCIAL FACILITIES MAINTENANCE (CFM) SERVICES FOR THE BOWIE COMPUTER CENTER IN BOWIE, MD. Key points: 1. Contract duration of over 8 years suggests long-term service needs. 2. Firm Fixed Price contract type provides cost certainty for the government. 3. No small business set-aside indicates a focus on larger or specialized providers. 4. The contract's value falls within a moderate range for facilities support services. 5. Geographic focus on Maryland for a critical IT infrastructure support contract.

Value Assessment

Rating: fair

The total contract value of $17.8 million over approximately 8 years averages to about $2.2 million annually. This appears to be a reasonable figure for comprehensive facilities maintenance services for a computer center of significant size. Benchmarking against similar contracts for IT facility maintenance in the region would provide a clearer picture of value for money, but the duration and scope suggest a substantial service requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this contract is not explicitly detailed in the provided data. However, given the nature of facilities maintenance services, it is likely that multiple vendors were considered. The absence of specific competition metrics prevents a definitive assessment of price discovery and potential cost savings achieved through a robust bidding process.

Taxpayer Impact: Without knowing the number of bidders, it's difficult to assess the impact on taxpayer value. A more competitive process typically leads to better pricing for the government.

Public Impact

Ensures the continuous operation and maintenance of the Bowie Computer Center, a critical IT infrastructure. Supports the General Services Administration's (GSA) mission to provide workspace and IT infrastructure. Benefits federal agencies relying on the Bowie Computer Center for their IT operations. Maintains the physical environment necessary for sensitive computing equipment, preventing downtime and data loss.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition data makes it hard to assess optimal value.
Long contract duration could lead to vendor lock-in if not managed carefully.

Positive Signals

Firm Fixed Price contract provides budget predictability.
Long-term award suggests a stable and reliable service provider was selected.
Focus on a critical IT facility indicates a commitment to essential government functions.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing the operation and maintenance of buildings and related infrastructure. The market for these services is substantial, driven by government and commercial entities requiring reliable upkeep of their physical assets. The specific focus on a computer center highlights the specialized needs within this sector, often requiring expertise in environmental controls, power, and security.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the requirement may have been beyond the typical scope or capacity of small businesses, or that the procurement strategy prioritized other factors. Consequently, there are likely no direct subcontracting opportunities for small businesses mandated by this specific award, though the prime contractor may engage them independently.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Oversight would typically involve contract officers, contracting specialists, and potentially technical monitors who ensure that NV Enterprises, Inc. is meeting the performance requirements outlined in the contract. Transparency is generally maintained through GSA's public contract databases, though specific performance metrics and audit details may not be publicly accessible.

Related Government Programs

Federal IT Infrastructure Maintenance
Government Data Center Operations
Commercial Facilities Maintenance Services
GSA Building Operations Contracts

Risk Flags

Lack of detailed competition data hinders value assessment.
Long contract duration poses potential risks of cost escalation or vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $17.9 million to NV ENTERPRISES, INC.. COMMERCIAL FACILITIES MAINTENANCE (CFM) SERVICES FOR THE BOWIE COMPUTER CENTER IN BOWIE, MD.

Who is the contractor on this award?

The obligated recipient is NV ENTERPRISES, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $17.9 million.

What is the period of performance?

Start: 2006-07-27. End: 2014-10-31.

What is the track record of NV Enterprises, Inc. with federal contracts, particularly in facilities maintenance?

NV Enterprises, Inc. has a history of federal contracting, with this particular contract for Commercial Facilities Maintenance (CFM) Services at the Bowie Computer Center being a significant award. The duration of over 8 years (from July 2006 to October 2014) indicates a sustained relationship with the General Services Administration (GSA) for this critical IT infrastructure support. Further analysis of their contract history would reveal the types of services provided, their performance ratings on past contracts, and any instances of contract modifications, disputes, or terminations. Understanding their broader federal footprint can provide context for their capabilities and reliability in fulfilling complex service agreements.

How does the annual cost of this contract compare to similar facilities maintenance contracts for IT centers?

The annual cost for this contract averaged approximately $2.2 million ($17.8 million / ~8 years). To benchmark this effectively, one would need to compare it with contracts for similar-sized computer centers or data facilities within the GSA or other federal agencies. Factors such as the specific services included (e.g., HVAC, electrical, janitorial, security, landscaping), the square footage of the facility, and the geographic location (which impacts labor costs) are crucial for a fair comparison. Without access to a database of comparable contracts with detailed service scopes and pricing, a precise value-for-money assessment is challenging. However, the sustained award suggests the pricing was deemed acceptable by GSA at the time of procurement.

What are the primary risks associated with a long-term facilities maintenance contract like this?

Long-term contracts, such as this 8+ year agreement, carry several risks. One primary risk is potential cost escalation if the Firm Fixed Price (FFP) model does not adequately account for inflation or unforeseen operational changes over the extended period, potentially leading to reduced profit margins for the contractor or requests for equitable adjustments. Another risk is vendor lock-in, where the government becomes heavily reliant on a single provider, potentially diminishing leverage for future renegotiations or transitions. Performance degradation over time is also a concern; the contractor's commitment or capability might wane, necessitating robust oversight and performance management. Finally, technological advancements in facilities management could render the contracted services or methods obsolete, requiring costly modifications or a new procurement.

What was the effectiveness of the competition for this contract, and how did it impact pricing?

The provided data does not specify the level of competition for this contract (e.g., number of bidders). The contract type is 'unknown' for competition level. If it was a full and open competition with numerous bidders, it would likely have driven down prices and ensured the government received competitive market rates. Conversely, if it was a sole-source or limited competition, the pricing might be higher than what could be achieved through broader market engagement. The effectiveness of competition is directly tied to the government's ability to secure the best value for taxpayer dollars. Without details on the bidding process, it's impossible to definitively assess its impact on pricing and overall effectiveness.

How has federal spending on facilities maintenance services evolved since this contract was awarded?

Since the award of this contract in 2006, federal spending on facilities maintenance has likely seen fluctuations influenced by budget appropriations, infrastructure needs, and evolving government priorities. There has been a growing emphasis on energy efficiency, sustainability, and smart building technologies in facility management. While this specific contract represents a fixed commitment, broader trends may include increased use of performance-based contracts, greater integration of technology for predictive maintenance, and potentially shifts in how services are procured (e.g., more use of Indefinite Delivery/Indefinite Quantity (IDIQ) vehicles). The total federal spending in NAICS code 561210 (Facilities Support Services) would provide a macro view of this evolution.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Contractor Details

Address: 11491 SUNSET HILLS RD, RESTON, VA, 11

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Small Business

Financial Breakdown

Contract Ceiling: $26,186,642

Exercised Options: $17,882,176

Current Obligation: $17,882,172

Parent Contract

Parent Award PIID: GS06F0066R

IDV Type: FSS

Timeline