GSA's $24.8M Facilities Support Contract Awarded to Nelson Refrigeration Inc. for Texas Operations

Contract Overview

Contract Amount: $24,843,197 ($24.8M)

Contractor: Nelson Refrigeration Inc

Awarding Agency: General Services Administration

Start Date: 2011-10-01

End Date: 2015-06-30

Contract Duration: 1,368 days

Daily Burn Rate: $18.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DECA WHOLE FACILITIES OPERATIONS AND MAINTENANCE SUPPORT SERVICE

Place of Performance

Location: LACKLAND AFB, BEXAR County, TEXAS, 78236

State: Texas Government Spending

Plain-Language Summary

General Services Administration obligated $24.8 million to NELSON REFRIGERATION INC for work described as: DECA WHOLE FACILITIES OPERATIONS AND MAINTENANCE SUPPORT SERVICE Key points: 1. The contract value represents a significant investment in maintaining federal facilities. 2. Competition dynamics for this contract are crucial for ensuring cost-effectiveness. 3. Performance history and contractor reliability are key risk indicators. 4. The duration of the contract provides context for long-term facility needs. 5. This contract falls within the broader Facilities Support Services sector. 6. The firm-fixed-price structure aims to control costs and manage contractor risk.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more granular data on the specific services provided. The total award of $24.8 million over its period of performance suggests a substantial operational commitment. However, without comparable contracts for similar scope and scale in the same geographic region, a definitive value-for-money assessment is difficult. The firm-fixed-price contract type indicates an attempt to establish cost certainty, but the ultimate value depends on the efficiency of service delivery and the actual needs met.

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 offers. The presence of 3 bidders suggests a moderate level of competition for this requirement. While more than one bidder is positive, a higher number of competitors typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process and evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation. The fact that multiple companies vied for this contract suggests that taxpayer dollars were likely used more efficiently than in a sole-source scenario.

Public Impact

Federal facilities in Texas will benefit from consistent and reliable operations and maintenance support. The contract ensures the continued functionality of critical infrastructure, supporting government operations. The geographic impact is concentrated in Texas, where the facilities are located. Workforce implications include employment opportunities for skilled trades and maintenance personnel in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs within the firm-fixed-price structure.
Dependence on a single contractor for critical facility operations introduces performance risk.
Ensuring consistent service quality across the contract duration requires diligent oversight.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a potentially competitive pricing structure.
The contract duration allows for stable, long-term facility support.

Sector Analysis

This contract falls within the Facilities Support Services industry, a broad sector encompassing a wide range of services necessary for the operation and maintenance of buildings and infrastructure. This sector is characterized by numerous small, medium, and large businesses offering specialized services. Government spending in this area is substantial, reflecting the vast real estate holdings of federal agencies. Comparable spending benchmarks would typically involve analyzing other large-scale facilities maintenance contracts awarded by agencies like GSA, DOD, or other civilian departments.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited. However, the prime contractor, Nelson Refrigeration Inc., may engage small businesses as subcontractors, which would then provide indirect benefits. Further investigation into subcontracting plans would be needed for a comprehensive assessment.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Oversight mechanisms likely include regular performance reviews, site inspections, and invoice auditing. Accountability measures are embedded in the contract terms, with potential penalties for non-performance. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Buildings Fund
Government Facilities Operations
Public Buildings Service Contracts
General Services Administration Procurement

Risk Flags

Potential for cost overruns
Contractor performance risk
Dependence on single contractor

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $24.8 million to NELSON REFRIGERATION INC. DECA WHOLE FACILITIES OPERATIONS AND MAINTENANCE SUPPORT SERVICE

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 $24.8 million.

What is the period of performance?

Start: 2011-10-01. End: 2015-06-30.

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

The General Services Administration (GSA) is a major consumer of facilities support services, reflecting its role in managing and operating federal buildings. Historical spending patterns reveal a consistent and significant allocation of resources towards operations and maintenance. This includes a wide array of services such as HVAC, janitorial, security, and groundskeeping. Over the years, GSA's spending in this category has generally trended upwards, driven by factors like an aging federal building inventory, increased security requirements, and the expansion of federal operations. Analyzing specific contract vehicles and their durations, like the one awarded to Nelson Refrigeration Inc., provides granular insights into how these funds are deployed geographically and by service type. The agency often utilizes various contract types, including firm-fixed-price and cost-plus, depending on the nature of the services and the perceived risks. Benchmarking current spending against historical averages can help identify potential efficiencies or areas of increased cost.

How does the per-unit cost of this contract compare to similar facilities support contracts?

Determining a precise per-unit cost comparison for this contract is challenging without more detailed service breakdowns and specific metrics. The total award of $24.8 million covers a broad range of facilities support services over a period of 1368 days. To conduct a meaningful comparison, one would need to identify similar contracts awarded by GSA or other agencies for comparable facilities in terms of size, complexity, and geographic location. Key metrics for comparison could include cost per square foot for maintenance, cost per HVAC unit serviced, or cost per janitorial hour. Without such granular data, any per-unit cost assessment remains speculative. However, the firm-fixed-price nature of the contract suggests an attempt to cap costs, which, if managed effectively, could indicate a competitive per-unit cost relative to market rates.

What is Nelson Refrigeration Inc.'s track record with federal contracts, particularly in facilities support?

Nelson Refrigeration Inc. has a history of performing federal contracts, including those related to facilities support. Examining their contract performance history, including past awards, contract values, and any reported performance issues or accolades, is crucial for assessing their reliability. Federal procurement databases often contain information on past performance evaluations. For this specific contract, the award itself indicates that they met the government's requirements at the time of selection. However, a deeper dive into their portfolio would reveal the scale and complexity of previous projects they have managed. A consistent record of successful contract completion, on time and within budget, would be a positive indicator. Conversely, any history of contract disputes, performance failures, or significant overruns would raise concerns about their capacity to deliver on this current award.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this facilities support contract include potential performance failures by the contractor, cost overruns if the firm-fixed-price structure is not managed effectively, and dependence on a single entity for critical operations. Performance failures could lead to disruptions in federal facility operations, impacting government services. Cost overruns might occur if unforeseen issues arise that increase the scope or complexity of the required maintenance beyond initial estimates. Dependence on one contractor creates a vulnerability if the company faces financial difficulties or operational challenges. Mitigation strategies typically involve robust contract oversight by the GSA, including regular performance reviews, site visits, and clear communication channels. The firm-fixed-price contract itself acts as a risk mitigation tool by placing the burden of cost control on the contractor. Furthermore, contract clauses may include remedies for non-performance, such as penalties or termination.

How does the geographic location (Texas) influence the cost and execution of this contract?

The geographic location in Texas can influence the cost and execution of this facilities support contract in several ways. Labor costs for skilled maintenance personnel can vary significantly by region, and Texas may have specific market rates for electricians, HVAC technicians, and other trades. The cost of materials and supplies needed for maintenance and repairs can also be affected by local availability and transportation costs. Furthermore, the climate in Texas, particularly extreme heat in certain areas, can place additional demands on HVAC systems, potentially increasing the scope and frequency of maintenance required. The presence of a strong local supply chain for parts and services could facilitate quicker repairs and potentially lower costs. Conversely, a less developed supply chain or higher demand for services in a particular Texas locale could drive up expenses and impact response times.

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: 12RT0026

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Clayton, Dubilier & Rice, Inc. (UEI: 080405368)

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: $25,391,217

Exercised Options: $24,843,197

Current Obligation: $24,843,197

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS08T10BPD0223

IDV Type: IDC

Timeline