Treasury's $36.1M HVAC Maintenance Contract Awarded to General and Mechanical Services, LLC
Contract Overview
Contract Amount: $36,136 ($36.1K)
Contractor: General and Mechanical Services, LLC
Awarding Agency: Department of the Treasury
Start Date: 2024-09-16
End Date: 2026-09-15
Contract Duration: 729 days
Daily Burn Rate: $50/day
Sector: Other
Official Description: HVAC PREVENTATIVE MAINTENANCE SERVICES
Place of Performance
Location: Maryland, 21409
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $36,136.17 to GENERAL AND MECHANICAL SERVICES, LLC for work described as: HVAC PREVENTATIVE MAINTENANCE SERVICES Key points: 1. Contract value of $36.17 million over two years. 2. General and Mechanical Services, LLC is the sole awardee. 3. Potential risk associated with single-vendor reliance for critical infrastructure. 4. Focus on essential building maintenance services.
Value Assessment
Rating: fair
The contract value of $36.17 million for two years of HVAC preventative maintenance appears to be within a reasonable range for large-scale federal facilities. Benchmarking against similar contracts would provide a more definitive assessment of its competitiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This appears to be a sole-source award, potentially limiting price discovery and competition. The justification for sole-source procurement needs to be thoroughly reviewed to ensure it aligns with federal acquisition regulations and best practices.
Taxpayer Impact: Sole-source awards can sometimes lead to higher costs for taxpayers if robust competition is bypassed without sufficient justification.
Public Impact
Ensures operational continuity of critical federal facilities. Supports the functioning of the Bureau of the Fiscal Service. Potential for increased costs due to lack of competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Potential for price escalation
- Dependence on a single contractor
Positive Signals
- Ensures essential service delivery
- Contract duration aligns with service needs
Sector Analysis
HVAC maintenance is a critical component of facilities management across all government sectors. Spending benchmarks vary significantly based on facility size, complexity, and geographic location. This contract falls within the facilities maintenance and support services category.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses had an opportunity to compete or participate as subcontractors.
Oversight & Accountability
Oversight will be crucial to ensure General and Mechanical Services, LLC meets all performance requirements and that the pricing remains fair throughout the contract term, especially given the sole-source nature of the award.
Related Government Programs
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Sole-source award
- Lack of demonstrated competition
- Potential for cost overruns
- Contractor performance risk
Tags
department-of-the-treasury, md, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $36,136.17 to GENERAL AND MECHANICAL SERVICES, LLC. HVAC PREVENTATIVE MAINTENANCE SERVICES
Who is the contractor on this award?
The obligated recipient is GENERAL AND MECHANICAL SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).
What is the total obligated amount?
The obligated amount is $36,136.17.
What is the period of performance?
Start: 2024-09-16. End: 2026-09-15.
What is the justification for awarding this HVAC maintenance contract on a sole-source basis?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. A thorough review of the contract's justification document is necessary to understand the specific rationale and ensure it meets federal acquisition regulations.
What are the potential risks associated with a sole-source contract for essential HVAC maintenance?
Sole-source contracts can pose risks such as higher costs due to lack of competition, reduced incentive for the contractor to innovate or improve service quality, and potential vendor lock-in. If the contractor fails to perform or experiences financial difficulties, finding a replacement quickly could be challenging and disruptive to essential government operations.
How will the government ensure the value and effectiveness of this contract over its duration?
Effective oversight, performance monitoring, and regular contract reviews are essential. The government should establish clear performance metrics and key performance indicators (KPIs) to track the contractor's adherence to service level agreements. Periodic price reasonableness checks and market research can also help ensure the contract remains cost-effective.
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