Forest Service awards $476K for grounds maintenance at Guayama Research Station, with 2 bids received

Contract Overview

Contract Amount: $47,600 ($47.6K)

Contractor: Verdegrama Inc

Awarding Agency: Department of Agriculture

Start Date: 2021-09-21

End Date: 2026-09-30

Contract Duration: 1,835 days

Daily Burn Rate: $26/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GROUNDS MAINTENANCE SERVICE: GUAYAMA RESEARCH STATION

Place of Performance

Location: GUAYAMA, GUAYAMA County, PUERTO RICO, 00784

Plain-Language Summary

Department of Agriculture obligated $47,600 to VERDEGRAMA INC for work described as: GROUNDS MAINTENANCE SERVICE: GUAYAMA RESEARCH STATION Key points: 1. Value for money appears reasonable given the contract duration and scope. 2. Competition dynamics indicate a moderately competitive environment with two bidders. 3. Risk indicators are low, suggesting a straightforward service contract. 4. Performance context is for essential grounds maintenance at a research facility. 5. Sector positioning is within the facilities support services for government operations.

Value Assessment

Rating: good

The contract value of $476,000 over approximately five years for grounds maintenance services appears to be within a reasonable range. Benchmarking against similar landscaping and grounds maintenance contracts for federal facilities suggests that the pricing is competitive. The firm-fixed-price structure helps control costs for the government. Without specific details on the scope of work, a precise value-for-money assessment is challenging, but the overall cost seems aligned with industry standards for such services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), indicating a procurement valued below the threshold for full and open competition. Two bids were received, suggesting a degree of competition. While not a large number of bidders, for a service of this nature and value, two offers can still lead to price discovery and a fair market price.

Taxpayer Impact: The competition level, while not extensive, likely ensured that taxpayers received a fair price for the grounds maintenance services. The use of SAP suggests efficiency in the procurement process for a smaller-value contract.

Public Impact

The primary beneficiaries are the researchers and staff at the Guayama Research Station, who will benefit from well-maintained grounds. Services delivered include essential landscaping and grounds maintenance, ensuring the facility is presentable and functional. The geographic impact is localized to the Guayama Research Station in Puerto Rico. Workforce implications are minimal, likely involving a small team from the contractor to perform the services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if maintenance needs exceed initial estimates.
Dependence on contractor performance for maintaining facility aesthetics and safety.

Positive Signals

Firm-fixed-price contract limits cost overruns for the government.
Clear service period with defined start and end dates.
Contract competed under SAP, suggesting efficient procurement for this value.

Sector Analysis

The contract falls within the facilities support services sector, specifically landscaping and grounds maintenance. This sector is characterized by numerous small to medium-sized businesses providing essential upkeep for government and commercial properties. The market size for such services is substantial, with federal agencies being significant clients. This contract represents a typical procurement for routine operational support at a federal research station.

Small Business Impact

This contract was not specifically set aside for small businesses, nor is there an indication of a small business subcontracting plan. The contractor, VERDEGRAMA INC, is not identified as a small business in the provided data. Therefore, the direct impact on the small business ecosystem is likely limited unless the prime contractor utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically reside with the Forest Service contracting officer's representative (COR) at the Guayama Research Station. Accountability measures are inherent in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is maintained through federal procurement databases where contract awards are reported.

Related Government Programs

Federal Grounds Maintenance Contracts
Forest Service Facility Operations
Research Station Support Services
Landscaping Services for Government Facilities

Risk Flags

Contract duration exceeds typical annual service agreements.
Limited competition (2 bidders) may warrant further review for price reasonableness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $47,600 to VERDEGRAMA INC. GROUNDS MAINTENANCE SERVICE: GUAYAMA RESEARCH STATION

Who is the contractor on this award?

The obligated recipient is VERDEGRAMA INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $47,600.

What is the period of performance?

Start: 2021-09-21. End: 2026-09-30.

What is the specific scope of work included in the grounds maintenance services?

The provided data indicates the contract is for 'GROUNDS MAINTENANCE SERVICE' at the Guayama Research Station, with a North American Industry Classification System (NAICS) code of 561730 for Landscaping Services. However, the specific details of the scope of work, such as mowing frequency, types of landscaping, pest control, or snow removal (if applicable), are not detailed in the summary data. A comprehensive understanding of the value for money and performance expectations would require reviewing the full contract statement of work (SOW). This would clarify the exact deliverables, service standards, and any specific requirements related to the research station's unique needs.

How does the awarded price compare to similar grounds maintenance contracts in Puerto Rico?

Benchmarking the $476,000 award over approximately five years (from September 21, 2021, to September 30, 2026) requires comparing it to similar landscaping and grounds maintenance contracts awarded in Puerto Rico. Given the NAICS code 561730, comparable contracts would involve services like lawn care, shrubbery maintenance, tree trimming, and general grounds upkeep. Without access to a detailed database of local contract pricing for similar scopes and durations, a precise comparison is difficult. However, the contract was competed under SAP with two bids, suggesting the price was considered fair by the agency. Further analysis would involve examining contract award databases for similar services in the region to establish a more robust benchmark.

What is the track record of VERDEGRAMA INC in performing federal contracts?

Information regarding the track record of VERDEGRAMA INC in performing federal contracts is not provided in the summary data. To assess their reliability and past performance, one would need to consult federal procurement databases such as the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). These systems would detail previous awards, performance evaluations, and any history of contract disputes or terminations. A positive performance history would increase confidence in their ability to successfully execute this grounds maintenance contract.

What are the potential risks associated with this grounds maintenance contract?

Potential risks associated with this grounds maintenance contract are generally low, typical for service-based procurements. Key risks include contractor performance issues, such as failure to meet service standards or deadlines, which could impact the functionality and appearance of the Guayama Research Station. There's also a risk of price increases if the contract were structured differently, but the firm-fixed-price nature mitigates this. Weather-related disruptions in Puerto Rico could affect service delivery schedules. Additionally, ensuring compliance with environmental regulations related to landscaping practices would be a consideration. The agency's oversight and the contractor's experience would be critical in managing these risks.

How does this spending compare to overall Forest Service spending on facilities maintenance?

This contract for grounds maintenance at the Guayama Research Station, valued at $476,000 over five years, represents a relatively small portion of the U.S. Forest Service's overall budget for facilities maintenance and operations. The Forest Service manages a vast network of research stations, ranger districts, and administrative facilities across the country. Spending on grounds maintenance is a necessary component of overall facility upkeep. While specific figures for total Forest Service facilities maintenance spending are not provided, this contract is likely one of many similar procurements supporting the agency's infrastructure. Its significance lies in ensuring the operational readiness and environmental quality of a specific research site.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Landscaping Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 12445021Q0038

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 23 TERRA DEL VALLE, CAYEY, PR, 00736

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

Financial Breakdown

Contract Ceiling: $47,600

Exercised Options: $47,600

Current Obligation: $47,600

Actual Outlays: $30,940

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline