DoD Awards $126M Facilities Maintenance Contract to Nelson Refrigeration Inc
Contract Overview
Contract Amount: $125,957,036 ($126.0M)
Contractor: Nelson Refrigeration Inc
Awarding Agency: Department of Defense
Start Date: 2020-07-01
End Date: 2026-12-31
Contract Duration: 2,374 days
Daily Burn Rate: $53.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: DECA WHOLE FACILITES MAINTENANCE - GROUP 3
Place of Performance
Location: JBSA LACKLAND, BEXAR County, TEXAS, 78236
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $126.0 million to NELSON REFRIGERATION INC for work described as: DECA WHOLE FACILITES MAINTENANCE - GROUP 3 Key points: 1. The contract is for facilities support services in Texas. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract duration is over 6 years, suggesting a long-term need. 4. The primary contractor is Nelson Refrigeration Inc.
Value Assessment
Rating: fair
The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. The awarded amount of $125,957,036 over approximately 6.5 years needs further scrutiny against similar facilities maintenance contracts to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the Time and Materials pricing structure requires diligent oversight to ensure competitive pricing is maintained throughout the contract's life.
Taxpayer Impact: Taxpayer funds are being used for essential facilities maintenance. The effectiveness of the competition and contract management will determine the ultimate value for taxpayers.
Public Impact
Ensures operational readiness of DoD facilities. Supports critical infrastructure maintenance for military personnel and families. Potential for job creation within the facilities maintenance sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing structure
- Lack of specific performance metrics in provided data
- Potential for cost escalation
Positive Signals
- Full and open competition
- Long-term contract addressing sustained need
Sector Analysis
This contract falls within the Facilities Support Services sector, which is crucial for maintaining government infrastructure. Spending benchmarks for this sector vary widely based on facility size, type, and geographic location.
Small Business Impact
The provided data does not indicate if small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Time and Materials contract type necessitates strong government oversight to monitor labor hours, material costs, and prevent scope creep to ensure accountability and cost control.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Defense Commissary Agency Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of specific performance metrics in the provided data.
- Need for robust government oversight to manage contractor performance and costs.
- Unclear impact on small businesses.
Tags
facilities-support-services, department-of-defense, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $126.0 million to NELSON REFRIGERATION INC. DECA WHOLE FACILITES MAINTENANCE - GROUP 3
Who is the contractor on this award?
The obligated recipient is NELSON REFRIGERATION INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Commissary Agency).
What is the total obligated amount?
The obligated amount is $126.0 million.
What is the period of performance?
Start: 2020-07-01. End: 2026-12-31.
What is the estimated cost per square foot for the facilities being maintained under this contract, and how does it compare to industry benchmarks?
Without specific details on the square footage of the facilities covered and the services provided, a precise cost per square foot cannot be calculated. However, the total contract value of $125,957,036 over approximately 6.5 years suggests a significant operational scale. A detailed breakdown of services and facility size is required to compare against industry benchmarks for facilities maintenance.
What are the key performance indicators (KPIs) for this contract, and what are the contractor's performance ratings?
The provided data does not include specific Key Performance Indicators (KPIs) or performance ratings for Nelson Refrigeration Inc. Robust KPIs are essential for a Time and Materials contract to ensure service quality and value. The Department of Defense should have established metrics to track maintenance response times, repair completion rates, and overall facility condition.
How does the pricing structure of this Time and Materials contract ensure cost-effectiveness compared to a fixed-price contract for similar services?
Time and Materials contracts offer flexibility for undefined scopes of work but carry a higher risk of cost escalation. For services with predictable requirements, a fixed-price contract often provides better cost certainty for the government. The effectiveness of this T&M contract hinges on stringent oversight, detailed cost tracking, and clear definitions of billable hours and materials to ensure it remains cost-effective.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 12110 CARY CIR, LA VISTA, NE, 68128
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $620,315,990
Exercised Options: $620,315,990
Current Obligation: $125,957,036
Actual Outlays: $31,534,264
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QSHA20D000F
IDV Type: FSS
Timeline
Start Date: 2020-07-01
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-02-04
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