GSA awards $2M contract for HVAC upgrades at National Records Center, raising value-for-money questions

Contract Overview

Contract Amount: $2,023,793 ($2.0M)

Contractor: NS & Associates, LLC

Awarding Agency: General Services Administration

Start Date: 2024-07-11

End Date: 2026-09-19

Contract Duration: 800 days

Daily Burn Rate: $2.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AHU REPLACEMENT & LOADING DOCK AIR CURTAINS LOCATED AT THE WASHINGTON NATIONAL RECORDS CENTER BUILDING

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $2.0 million to NS & ASSOCIATES, LLC for work described as: AHU REPLACEMENT & LOADING DOCK AIR CURTAINS LOCATED AT THE WASHINGTON NATIONAL RECORDS CENTER BUILDING Key points: 1. Contract awarded for essential building maintenance, including HVAC and air curtains. 2. The contract's value appears reasonable for the scope of work, but detailed benchmarking is needed. 3. Limited competition raises concerns about optimal price discovery and potential for overpayment. 4. The fixed-price contract structure shifts some risk to the contractor. 5. This contract supports the preservation of vital national records by ensuring climate control. 6. The General Services Administration (GSA) is the awarding agency, overseeing federal building infrastructure.

Value Assessment

Rating: fair

The contract value of approximately $2 million for HVAC replacement and air curtain installation at a federal building seems within a plausible range for such infrastructure projects. However, without specific details on the scope of work, the age and condition of the existing systems, and the complexity of the installation, a definitive value assessment is challenging. Benchmarking against similar GSA projects for building modernization or HVAC upgrades in the region would be necessary to determine if the pricing is competitive and represents good value for taxpayers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, NS & ASSOCIATES, LLC, was solicited. This significantly limits competition, which can lead to higher prices and reduced innovation compared to an open or limited competition. The justification for a sole-source award is not provided, but typically it would involve a unique capability, urgent need, or lack of available sources. The absence of multiple bids means there's no direct price comparison to gauge market competitiveness.

Taxpayer Impact: Sole-source awards can result in taxpayers paying a premium, as the government lacks the leverage that multiple competing offers provide to secure the best possible price.

Public Impact

The primary beneficiaries are federal agencies and the public who rely on the Washington National Records Center for access to historical documents. The contract delivers critical infrastructure improvements, ensuring stable environmental conditions for the preservation of national records. The geographic impact is localized to the Washington National Records Center facility in Maryland. The contract supports the construction sector workforce involved in building maintenance and renovation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing.
Lack of transparency in sole-source justification.
Potential for cost overruns if scope is not tightly managed.

Positive Signals

Addresses critical infrastructure needs for records preservation.
Fixed-price contract shifts some performance risk to the contractor.
Contract awarded to a known entity (NS & ASSOCIATES, LLC).

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on HVAC and related building systems. The federal government is a significant consumer of construction and maintenance services, with spending often driven by the need to maintain aging infrastructure and ensure operational efficiency. Benchmarking this contract against similar GSA or other agency projects for building modernization or HVAC upgrades would provide context on market rates and typical project scales within this sector.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside requirement (ss: false, sb: false). This means there is no explicit mandate for NS & ASSOCIATES, LLC to subcontract with small businesses. The impact on the small business ecosystem is therefore neutral to potentially negative, as opportunities that might have been directed towards small businesses through set-asides are not present in this specific award.

Oversight & Accountability

Oversight for this contract will be managed by the General Services Administration (GSA), likely through its Public Buildings Service. Accountability measures are embedded in the firm-fixed-price contract type, which obligates the contractor to complete the work for a set price. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Building Maintenance
HVAC System Upgrades
National Archives and Records Administration Facilities
GSA Public Buildings Service Contracts
Commercial Building Construction

Risk Flags

Sole-source award limits competition.
Lack of detailed justification for sole-source award.
Potential for overpayment due to limited competition.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.0 million to NS & ASSOCIATES, LLC. AHU REPLACEMENT & LOADING DOCK AIR CURTAINS LOCATED AT THE WASHINGTON NATIONAL RECORDS CENTER BUILDING

Who is the contractor on this award?

The obligated recipient is NS & ASSOCIATES, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2024-07-11. End: 2026-09-19.

What is the track record of NS & ASSOCIATES, LLC with the federal government, particularly with GSA?

Information regarding the specific track record of NS & ASSOCIATES, LLC with the federal government, and GSA in particular, is not detailed in the provided data. A thorough analysis would require examining past performance evaluations, contract history, and any reported issues or successes on previous federal awards. Understanding their experience with similar HVAC replacement projects and their history of meeting deadlines and budget constraints would be crucial for assessing their reliability and capability for this current contract. Without this historical data, the assessment of contractor performance remains incomplete.

How does the $2,037,931.13 contract value compare to similar HVAC replacement projects undertaken by GSA or other federal agencies?

A direct comparison of the $2,037,931.13 contract value requires access to a database of similar federal HVAC replacement projects, including their scope, size, location, and complexity. Given this is a sole-source award, external benchmarking is critical. Factors such as the square footage of the building, the age and type of the existing HVAC system, the specific components being replaced (e.g., chillers, boilers, air handlers), and the extent of ductwork modifications or electrical upgrades would influence the cost. Without such comparative data, it's difficult to definitively state whether this contract represents a competitive price or if it's potentially inflated due to the lack of competition.

What are the specific risks associated with a sole-source award for critical building infrastructure like HVAC replacement?

The primary risk associated with a sole-source award for critical infrastructure is the lack of competitive pressure, which can lead to inflated pricing and potentially lower quality outcomes. Taxpayers may end up paying more than necessary because there are no competing bids to drive down costs. Furthermore, the government has less leverage to negotiate favorable terms or ensure the most innovative solutions are considered. If the sole-source contractor underperforms or encounters unforeseen issues, the government has limited alternative options for recourse or replacement without potentially causing significant delays and cost increases to an already critical project.

What is the expected impact of these HVAC upgrades on the operational efficiency and energy consumption of the Washington National Records Center?

The expected impact of these HVAC upgrades on operational efficiency and energy consumption is likely positive, assuming modern, energy-efficient systems are installed. New HVAC systems typically offer better climate control, leading to improved preservation conditions for sensitive records and potentially reducing the risk of damage from temperature or humidity fluctuations. Modern systems are also designed to be more energy-efficient, which could lead to reduced electricity consumption and lower utility costs for the GSA over the life of the contract. However, the precise energy savings and efficiency gains would depend on the specific technologies chosen and the building's overall energy management strategy.

What is the historical spending pattern for building maintenance and upgrades at the Washington National Records Center?

Historical spending patterns for building maintenance and upgrades at the Washington National Records Center are not provided in the current data. To assess this, one would need to review past GSA contracts and expenditures related to this specific facility. Analyzing historical data would reveal the frequency of major upgrade projects, the typical costs associated with routine maintenance versus capital improvements, and whether spending has been consistent or subject to significant fluctuations. Understanding past investment levels can provide context for the current $2 million award and help determine if it aligns with previous spending trends or represents a significant deviation.

Are there any specific performance metrics or deliverables outlined in the contract that will be used to measure success?

The provided data indicates the contract is a 'DEFINITIVE CONTRACT' with a 'FIRM FIXED PRICE' type and specifies start and end dates, along with a duration of 800 days. While this suggests defined deliverables and a fixed cost, the specific performance metrics or key performance indicators (KPIs) are not detailed. Typically, such contracts would include specifications for the quality of work, adherence to schedules, successful system testing, and final acceptance. The GSA contracting officer and project managers would be responsible for monitoring adherence to these implicit or explicit performance standards throughout the contract duration.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47PM0324R0003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 19512 CAMERON MILL RD, PARKTON, MD, 21120

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,023,793

Exercised Options: $2,023,793

Current Obligation: $2,023,793

Actual Outlays: $217,933

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline