DoD Awards $30M Facilities Maintenance Contract to Nelson Refrigeration Inc. in Texas
Contract Overview
Contract Amount: $30,077,908 ($30.1M)
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: $12.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DECA WHOLE FACILITIES MAINTENANCE - MAINTENANCE GROUP 7
Place of Performance
Location: JBSA LACKLAND, BEXAR County, TEXAS, 78236
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $30.1 million to NELSON REFRIGERATION INC for work described as: DECA WHOLE FACILITIES MAINTENANCE - MAINTENANCE GROUP 7 Key points: 1. Significant contract value of $30.08 million for facilities maintenance. 2. Awarded through full and open competition, indicating a competitive market. 3. Potential risk associated with long-term contract duration (2020-2026). 4. Services fall under Facilities Support Services, a critical operational area for the Defense Commissary Agency.
Value Assessment
Rating: good
The contract value of $30.08 million appears reasonable for a multi-year facilities maintenance contract covering a large geographic area. Benchmarking against similar large-scale maintenance contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award is expected to result in fair pricing, maximizing taxpayer value for essential facilities maintenance services.
Public Impact
Ensures operational readiness of critical defense facilities. Supports military personnel and their families by maintaining essential services. Potential for job creation in the Texas region. Long-term commitment provides stability for service provider and government.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to price escalation or reduced flexibility.
- Geographic concentration in Texas might limit broader competition in future.
Positive Signals
- Full and open competition ensures market-driven pricing.
- Clear service requirements for facilities maintenance.
- Award to established entity suggests reliable service delivery.
Sector Analysis
This contract falls within the Facilities Support Services sector, which is crucial for maintaining the infrastructure of government agencies. Spending benchmarks for this sector vary widely based on the scope and location of services, but a $30 million contract over six years suggests a substantial operational footprint.
Small Business Impact
While this contract was awarded through full and open competition, there is no specific indication of small business participation or subcontracting goals. Further analysis would be needed to determine if small businesses were involved or could have been.
Oversight & Accountability
The contract's duration and value suggest it would be subject to standard oversight by the Defense Commissary Agency to ensure performance and compliance. Regular performance reviews and financial audits are typical for contracts of this magnitude.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Defense Commissary Agency Programs
Risk Flags
- Long-term contract duration
- Potential for cost escalation impacting contractor performance
- Geographic concentration of services
- Lack of explicit small business participation noted
Tags
facilities-support-services, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.1 million to NELSON REFRIGERATION INC. DECA WHOLE FACILITIES MAINTENANCE - MAINTENANCE GROUP 7
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 $30.1 million.
What is the period of performance?
Start: 2020-07-01. End: 2026-12-31.
What is the specific scope of 'Whole Facilities Maintenance' covered by this contract?
The contract likely encompasses a broad range of maintenance services including HVAC, plumbing, electrical, structural repairs, janitorial services, and groundskeeping for designated facilities. The exact scope would be detailed in the contract's statement of work, specifying preventive, corrective, and emergency maintenance activities to ensure the facilities remain operational and safe.
What are the potential risks associated with a six-year firm-fixed-price contract for facilities maintenance?
A significant risk is that unforeseen cost increases in labor, materials, or energy could erode the contractor's profit margin, potentially leading to reduced service quality or contractor default. Conversely, if costs decrease significantly, the government might be overpaying. The long duration also limits the government's ability to adapt to changing needs or incorporate new technologies without costly modifications.
How effectively does this contract ensure the long-term operational readiness of the facilities it covers?
The contract's effectiveness hinges on the contractor's performance and the adequacy of the maintenance plan. Full and open competition suggests a capable provider was selected. However, ongoing oversight is crucial to ensure preventive maintenance schedules are met, repairs are timely, and the overall condition of the facilities is maintained to support the Defense Commissary Agency's mission throughout the contract period.
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: FIRM FIXED PRICE (J)
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: $151,315,979
Exercised Options: $151,315,979
Current Obligation: $30,077,908
Actual Outlays: $7,749,290
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
More Contracts from Nelson Refrigeration Inc
- Deca Whole Facilites Maintenance - Group 3 — $126.0M (Department of Defense)
- Deca Whole Facilities Maintenance - Maintenance Group 4 — $85.0M (Department of Defense)
- Task Orde for Deca Whole Facilities Maintenance and Equipment Services Supporting Maintenance Group 4 — $43.3M (General Services Administration)
- Deca Whole Facilities Operations and Maintenance Support Services — $38.2M (General Services Administration)
- Deca Whole Facilities Operations and Maintenance Support Service — $24.8M (General Services Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)