Cooling Tower Replacement Contract Awarded to EMCOR for $167K, Raising Value Concerns

Contract Overview

Contract Amount: $167,073 ($167.1K)

Contractor: Emcor Government Services, Inc

Awarding Agency: Government Accountability Office

Start Date: 2022-05-04

End Date: 2025-03-31

Contract Duration: 1,062 days

Daily Burn Rate: $157/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: CALL TO REPLACE COOLING TOWER VALUE WORK.

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310

State: Virginia Government Spending

Plain-Language Summary

Government Accountability Office obligated $167,073.35 to EMCOR GOVERNMENT SERVICES, INC for work described as: CALL TO REPLACE COOLING TOWER VALUE WORK. Key points: 1. Contract value of $167,073.35 for cooling tower replacement. 2. EMCOR Government Services, Inc. is the awardee. 3. The Government Accountability Office (GAO) is the agency. 4. Facilities Support Services (NAICS 561210) is the sector. 5. Concerns exist regarding the value and effectiveness of this contract.

Value Assessment

Rating: questionable

The contract's value of $167,073.35 for a cooling tower replacement appears high for a single unit, especially given the time and materials pricing structure. Further analysis is needed to determine if this represents a fair market price compared to similar procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically drives competitive pricing. However, the time and materials (T&M) contract type can sometimes lead to higher costs if not closely managed and monitored for efficiency.

Taxpayer Impact: The potential for overspending due to the T&M contract type could negatively impact taxpayers if costs are not rigorously controlled.

Public Impact

Taxpayers may be overpaying for essential facility maintenance. The effectiveness of the cooling tower replacement needs verification. GAO's role in overseeing this contract is crucial for accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to T&M pricing.
Value assessment of the cooling tower replacement.
Effectiveness of the awarded services.

Positive Signals

Awarded under full and open competition.
Contract duration is clearly defined.

Sector Analysis

This contract falls under Facilities Support Services, a broad category encompassing maintenance and repair of government facilities. Benchmarks for cooling tower replacements vary significantly based on size, complexity, and location, making direct comparison challenging without more detail.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award, which is a missed opportunity for economic inclusion.

Oversight & Accountability

The Government Accountability Office (GAO) is involved, suggesting a level of oversight. However, the specific mechanisms for monitoring performance and cost control under this time and materials contract require further examination.

Related Government Programs

Facilities Support Services
Government Accountability Office Contracting
GAO, Except Comptroller General Programs

Risk Flags

High unit cost for a single component.
Potential for cost escalation with T&M contract.
Lack of detailed scope of work for value assessment.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Government Accountability Office awarded $167,073.35 to EMCOR GOVERNMENT SERVICES, INC. CALL TO REPLACE COOLING TOWER VALUE WORK.

Who is the contractor on this award?

The obligated recipient is EMCOR GOVERNMENT SERVICES, INC.

Which agency awarded this contract?

Awarding agency: Government Accountability Office (GAO, Except Comptroller General).

What is the total obligated amount?

The obligated amount is $167,073.35.

What is the period of performance?

Start: 2022-05-04. End: 2025-03-31.

What is the specific scope of work for the cooling tower replacement, and how does it justify the $167,073.35 cost?

The provided data lacks specific details on the scope of work for the cooling tower replacement. A comprehensive assessment would require reviewing the contract's statement of work, including the type and size of the cooling tower, any associated labor, materials, and incidental services. Without this, it's difficult to definitively assess if the cost is reasonable or if it represents good value for the government.

What measures are in place to mitigate the risk of cost overruns with a Time and Materials contract for this service?

Time and Materials (T&M) contracts inherently carry a risk of cost overruns if not managed diligently. Mitigation strategies typically include establishing labor hour limitations, setting fixed-price ceilings for materials, requiring detailed daily or weekly reporting of labor and materials used, and implementing robust government oversight to verify the necessity and efficiency of all expenditures. The effectiveness of these measures for this specific contract is not detailed here.

How will the effectiveness and long-term value of the cooling tower replacement be measured and verified by the VA?

The effectiveness of the cooling tower replacement will likely be measured through performance metrics outlined in the contract, such as ensuring the new tower meets specified cooling capacity, energy efficiency standards, and operational reliability. The VA's quality assurance personnel would be responsible for verifying that the work is completed according to specifications and that the installed equipment performs as expected throughout its warranty period and beyond.

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

Solicitation ID: 05GA0A18Q0013

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Miller Electric Company

Address: 6363 WALKER LN, ALEXANDRIA, VA, 22310

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

Financial Breakdown

Contract Ceiling: $167,073

Exercised Options: $167,073

Current Obligation: $167,073

Actual Outlays: $15,506

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 05GA0A19A0005

IDV Type: BPA

Timeline