GCR-DEAN LLC awarded $10.4M contract for NRC custodial services, highlighting facilities support needs

Contract Overview

Contract Amount: $10,365,074 ($10.4M)

Contractor: Gcr-Dean LLC

Awarding Agency: Nuclear Regulatory Commission

Start Date: 2022-01-27

End Date: 2027-02-28

Contract Duration: 1,858 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CUSTODIAL SERVICES FOR THE NUCLEAR REGULATORY COMMISSION HEADQUARTERS WHITE FLINT COMPLEX AND NRC WAREHOUSE

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Nuclear Regulatory Commission obligated $10.4 million to GCR-DEAN LLC for work described as: CUSTODIAL SERVICES FOR THE NUCLEAR REGULATORY COMMISSION HEADQUARTERS WHITE FLINT COMPLEX AND NRC WAREHOUSE Key points: 1. Contract value of $10.4M over five years suggests a significant investment in maintaining federal facilities. 2. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process, though with specific source exclusions. 3. The contract duration of 1858 days (approx. 5 years) allows for consistent service delivery and potential for contractor efficiency gains. 4. The firm fixed-price contract type shifts cost risk to the contractor, potentially incentivizing cost control. 5. Focus on custodial services for the NRC Headquarters and Warehouse points to essential operational support for a critical regulatory agency. 6. The contract's geographic location in Maryland aligns with the NRC's primary operational base.

Value Assessment

Rating: good

The contract value of approximately $10.4 million over five years for custodial services at the NRC Headquarters and Warehouse appears reasonable given the scope of maintaining federal facilities. Benchmarking against similar facilities support contracts for government buildings of comparable size and complexity would provide a more precise value assessment. The firm fixed-price structure suggests the contractor bears the primary risk for cost overruns, which can be a positive indicator of value if the contractor manages operations efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded from consideration. The specific reasons for exclusion are not detailed but could relate to prior performance, security requirements, or other specialized capabilities. The level of competition, even with exclusions, is crucial for understanding price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: While the competition was not fully open, the exclusion of sources suggests a deliberate selection process. Taxpayers benefit from a competitive bid process that aims to secure the best value, even if the pool of bidders was narrowed.

Public Impact

The primary beneficiaries are the employees and visitors of the Nuclear Regulatory Commission Headquarters and Warehouse, who will experience a cleaner and more functional work environment. The services delivered include essential custodial and maintenance functions critical for the operational integrity of federal facilities. The geographic impact is concentrated in Maryland, where the NRC facilities are located. The contract supports jobs within the facilities management and janitorial services sector, contributing to the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if excluded sources were highly competitive and offered lower pricing.
Risk of service disruption if the selected contractor faces unforeseen operational challenges.
Dependence on a single contractor for a critical support function over a multi-year period.

Positive Signals

Firm fixed-price contract incentivizes contractor efficiency and cost management.
Long-term contract duration allows for stable service provision and potential for economies of scale.
Focus on essential custodial services ensures a baseline level of facility upkeep.

Sector Analysis

The facilities support services sector, encompassing custodial, maintenance, and related services, is a significant component of government contracting. This contract falls within the broader category of commercial services, specifically focusing on building operations and maintenance. The market for these services is generally competitive, with numerous providers ranging from small businesses to large corporations. The Nuclear Regulatory Commission, as a federal agency, requires specialized support that adheres to strict government standards and security protocols.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, GCR-DEAN LLC, is likely not a small business. There is no explicit information regarding subcontracting plans for small businesses within this award. The absence of a small business set-aside means that opportunities for small business participation would depend on GCR-DEAN LLC's own subcontracting strategy, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Nuclear Regulatory Commission's contracting officers and program managers. Accountability measures are embedded within the firm fixed-price contract terms, requiring the contractor to meet specific service level agreements. Transparency is generally maintained through contract award databases and public reporting, although detailed performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Facilities Maintenance Contracts
Government Janitorial Services
Nuclear Regulatory Commission Operations Support
General Services Administration (GSA) Schedules for Facilities Services

Risk Flags

Potential for service quality degradation under firm fixed-price contract over long duration.
Exclusion of sources may limit competitive pricing and innovation.
Dependence on contractor performance for essential facility operations.

Frequently Asked Questions

What is this federal contract paying for?

Nuclear Regulatory Commission awarded $10.4 million to GCR-DEAN LLC. CUSTODIAL SERVICES FOR THE NUCLEAR REGULATORY COMMISSION HEADQUARTERS WHITE FLINT COMPLEX AND NRC WAREHOUSE

Who is the contractor on this award?

The obligated recipient is GCR-DEAN LLC.

Which agency awarded this contract?

Awarding agency: Nuclear Regulatory Commission (Nuclear Regulatory Commission).

What is the total obligated amount?

The obligated amount is $10.4 million.

What is the period of performance?

Start: 2022-01-27. End: 2027-02-28.

What is the track record of GCR-DEAN LLC in performing similar federal custodial service contracts?

Assessing the track record of GCR-DEAN LLC requires a review of their past performance on federal contracts, particularly those involving custodial services for government facilities. Information on past performance is often available through sources like the Federal Procurement Data System (FPDS) or agency-specific performance evaluation systems. Key indicators to examine would include contract awards, contract values, duration, and any reported performance issues or commendations. A history of successful contract completion, adherence to schedules, and positive client feedback would suggest a lower risk for this current contract. Conversely, a pattern of performance deficiencies, contract disputes, or terminations would raise concerns about their capability to meet the NRC's requirements.

How does the awarded price compare to similar custodial service contracts for federal buildings of comparable size and complexity?

To benchmark the value, one would compare the total contract value ($10.4M over approx. 5 years) and its implied annual cost (approx. $2.08M/year) against similar contracts. This involves identifying contracts for custodial services at federal buildings with similar square footage, security requirements, and service levels. Data from the Federal Procurement Data System (FPDS) or other government contract databases can be used for this comparison. Factors such as geographic location (labor costs vary significantly), specific service requirements (e.g., specialized cleaning, waste management), and contract type (firm fixed-price vs. cost-plus) must be considered. If the NRC contract's cost per square foot or per employee served is significantly higher than comparable contracts, it may indicate a potential overpayment or less efficient service delivery.

What are the specific reasons for the exclusion of certain sources in this 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The specific reasons for excluding certain sources in a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award are typically documented in the contract file and procurement justification. Common reasons include: 1) Prior performance issues with specific contractors, where their past work did not meet agency standards, leading to their exclusion to mitigate risk. 2) Specialized requirements that only a limited number of contractors can meet, and the excluded sources did not possess these unique capabilities. 3) Security concerns or specific vetting requirements that certain potential bidders could not satisfy. 4) A determination that excluding certain sources would result in a more advantageous outcome for the government, perhaps due to unique technical solutions or cost efficiencies offered by the remaining bidders. Without access to the specific contract file, the exact rationale remains speculative.

What are the potential risks associated with a firm fixed-price contract for custodial services over a five-year period?

A firm fixed-price (FFP) contract for custodial services over five years shifts the primary risk of cost overruns to the contractor, GCR-DEAN LLC. While this can incentivize efficiency, potential risks include: 1) Contractor underperformance: To maintain profitability under an FFP, the contractor might cut corners on staffing, materials, or service quality, leading to a decline in custodial standards. 2) Inflexibility to changing needs: If the NRC's requirements change significantly over the five years (e.g., increased facility usage, new cleaning protocols), modifying the FFP contract can be difficult and may require renegotiation, potentially at a higher cost. 3) Contractor financial instability: If the contractor experiences financial difficulties, it could jeopardize service continuity. 4) Limited innovation: The contractor may be less inclined to invest in new technologies or processes if they do not see a clear return within the fixed price.

How does this contract align with the NRC's overall spending on facilities management and support services?

To understand alignment, one would need to analyze the NRC's historical spending patterns on facilities management and support services. This involves examining annual budgets and actual expenditures for custodial services, maintenance, repairs, and other related operational support over several fiscal years. Comparing the $10.4M awarded for this specific contract to the total annual spending on facilities support would indicate its relative significance. If this contract represents a substantial portion of the NRC's facilities budget, it suggests a high priority placed on maintaining these specific headquarters and warehouse facilities. Conversely, if it's a small fraction, it might be considered routine operational spending.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 31310021Q0105

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 315 PAGE RD, PINEHURST, NC, 28374

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $10,365,074

Exercised Options: $10,365,074

Current Obligation: $10,365,074

Actual Outlays: $8,039,882

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QSHA19D000T

IDV Type: IDC

Timeline