GSA awards $43.3M facilities maintenance contract to Nelson Refrigeration Inc. over 5 years

Contract Overview

Contract Amount: $43,318,781 ($43.3M)

Contractor: Nelson Refrigeration Inc

Awarding Agency: General Services Administration

Start Date: 2015-07-01

End Date: 2020-06-30

Contract Duration: 1,826 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF TASK ORDE FOR DECA WHOLE FACILITIES MAINTENANCE AND EQUIPMENT SERVICES SUPPORTING MAINTENANCE GROUP 4.

Place of Performance

Location: FORT LEE, PRINCE GEORGE County, VIRGINIA, 23801

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $43.3 million to NELSON REFRIGERATION INC for work described as: IGF::OT::IGF TASK ORDE FOR DECA WHOLE FACILITIES MAINTENANCE AND EQUIPMENT SERVICES SUPPORTING MAINTENANCE GROUP 4. Key points: 1. Contract value represents significant investment in facilities support services. 2. Competition dynamics suggest a potentially competitive bidding environment. 3. Fixed-price contract type aims to control costs and manage risk. 4. Contract duration of five years allows for long-term planning and stability. 5. Performance period spans a significant portion of the last decade. 6. Services support critical maintenance operations for a federal agency.

Value Assessment

Rating: good

The contract's total value of $43.3 million over five years averages approximately $8.66 million annually. Benchmarking against similar facilities support contracts is challenging without more specific service details. However, the firm fixed-price structure suggests an effort to establish predictable costs. The number of bids received (7) indicates a moderate level of interest, which can be a positive sign for value, though a deeper dive into the pricing of each bid would be needed for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. Seven bids were received, suggesting a reasonable level of competition for these services. A competitive process generally helps ensure that the government receives fair market prices and that the most capable contractor is selected.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple companies to offer their best pricing and services, leading to potentially lower costs and higher quality outcomes compared to sole-source or limited competition awards.

Public Impact

Federal agencies benefit from reliable facilities maintenance, ensuring operational continuity. The contract supports essential maintenance and equipment services. Services are geographically focused within Virginia. The contract supports jobs within the facilities management and maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs within the fixed-price contract.
Dependence on a single contractor for critical facilities maintenance could pose operational risks.
Ensuring consistent service quality over a five-year period requires robust oversight.

Positive Signals

Full and open competition suggests a robust market for these services.
Firm fixed-price contract provides cost certainty for the government.
Long contract duration allows for contractor investment in service improvements.
Award to a single entity simplifies contract management.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad category encompassing a wide range of services necessary for the operation of buildings and other facilities. This sector includes services like building maintenance, cleaning, and operation. The federal government is a significant consumer of these services to maintain its vast real estate portfolio. The market size for facilities management is substantial, with numerous private sector firms competing for government contracts. This specific contract fits within the broader trend of federal agencies outsourcing non-core functions to specialized service providers.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Nelson Refrigeration Inc. is the prime contractor. There is no explicit information on subcontracting plans or performance related to small businesses within this data snippet. Further analysis would be needed to determine if small businesses are involved as subcontractors and the extent of their participation in fulfilling this contract.

Oversight & Accountability

The contract is a Delivery Order under an existing contract, likely subject to the oversight mechanisms of the parent contract and the Federal Acquisition Regulation (FAR). The firm fixed-price (FFP) nature of the contract provides a degree of cost control. Oversight would typically involve contract officers, contracting specialists, and potentially technical monitors to ensure performance standards are met. Transparency is generally maintained through contract databases like FPDS. The specific Inspector General jurisdiction would depend on the agency and the nature of any potential issues.

Related Government Programs

Facilities Maintenance Services
Building Operations Support
Government Property Management
General Services Administration Contracts
Federal Building Operations

Risk Flags

Potential for scope creep in fixed-price contracts.
Ensuring consistent service quality over a long duration.
Contractor performance risk.
Dependence on a single provider for critical services.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $43.3 million to NELSON REFRIGERATION INC. IGF::OT::IGF TASK ORDE FOR DECA WHOLE FACILITIES MAINTENANCE AND EQUIPMENT SERVICES SUPPORTING MAINTENANCE GROUP 4.

Who is the contractor on this award?

The obligated recipient is NELSON REFRIGERATION INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $43.3 million.

What is the period of performance?

Start: 2015-07-01. End: 2020-06-30.

What is the track record of Nelson Refrigeration Inc. with federal contracts?

Nelson Refrigeration Inc. has been awarded multiple federal contracts, primarily for facilities maintenance and related services. The provided data shows this specific contract, a Delivery Order valued at $43.3 million, was awarded in July 2015 and completed in June 2020. While this indicates a history of federal engagement, a comprehensive assessment of their track record would require examining past performance evaluations, any contract disputes or terminations, and the overall volume and scope of their previous federal awards. Without access to detailed performance reviews or a broader contract history, it's difficult to definitively assess their reliability and past success beyond the existence of this significant award.

How does the pricing of this contract compare to similar facilities maintenance contracts?

Directly comparing the pricing of this $43.3 million, five-year contract to similar facilities maintenance contracts is challenging without more granular data on the specific services rendered, geographic location, and the exact scope of work. The contract's average annual value is approximately $8.66 million. Factors influencing price include the size and complexity of the facilities, the types of maintenance required (e.g., HVAC, electrical, plumbing, general upkeep), and prevailing labor costs in Virginia. The fact that it was awarded under full and open competition with seven bidders suggests that the pricing was likely competitive within the market at the time of award. However, a definitive benchmark would require access to a database of comparable contracts with detailed cost breakdowns.

What are the primary risks associated with this type of facilities maintenance contract?

Key risks for this facilities maintenance contract include potential cost overruns if the firm fixed-price (FFP) contract doesn't adequately account for unforeseen issues or scope creep. Service quality degradation over the five-year period is another risk, necessitating robust performance monitoring and quality assurance processes. Operational disruption due to contractor performance failures or emergencies is also a concern, especially given the critical nature of facilities support. Furthermore, reliance on a single contractor for essential services can create dependency. Finally, ensuring compliance with all federal regulations and safety standards throughout the contract's life cycle requires diligent oversight.

How effective is the firm fixed-price contract type for managing facilities maintenance costs?

The firm fixed-price (FFP) contract type is generally effective for managing costs in predictable service environments like facilities maintenance, as it shifts the risk of cost overruns to the contractor. This structure incentivizes the contractor to control expenses and operate efficiently to maximize profit. For the government, it provides budget certainty. However, FFP contracts can be less flexible if the scope of work changes significantly, potentially leading to costly change orders or disputes if not managed carefully. For services with highly variable or unpredictable elements, other contract types might be more suitable. In this case, assuming the scope was well-defined, FFP offers good cost control.

What is the historical spending trend for facilities support services by the General Services Administration?

The General Services Administration (GSA) is a major federal agency responsible for managing and supporting the operations of federal government facilities. Historical spending data for GSA on facilities support services (NAICS 561210) would likely show a consistent and substantial investment over time, reflecting the vast portfolio of buildings GSA manages and leases across the country. Spending trends are influenced by factors such as federal real estate utilization, infrastructure modernization initiatives, and budget allocations. While this specific $43.3 million contract is a single data point, GSA's overall spending in this category is significant and represents a core part of its mission to provide workspace and services to federal agencies.

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID08140013

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Panasonic Corporation (UEI: 690536552)

Address: 12110 CARY CIR STE 6, LAVISTA, NE, 68128

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,577,051

Exercised Options: $43,318,781

Current Obligation: $43,318,781

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS08Q15BPD0002

IDV Type: IDC

Timeline