GSA awards $3.24M for high-temperature cement insulation, a sole-source purchase order

Contract Overview

Contract Amount: $3,240 ($3.2K)

Contractor: Nugeneration Technologies LLC

Awarding Agency: General Services Administration

Start Date: 2026-04-03

End Date: 2026-05-23

Contract Duration: 50 days

Daily Burn Rate: $65/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HIGH TEMPERATURE CEMENT INSULATION

Place of Performance

Location: EMERYVILLE, ALAMEDA County, CALIFORNIA, 94608

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $3,240 to NUGENERATION TECHNOLOGIES LLC for work described as: HIGH TEMPERATURE CEMENT INSULATION Key points: 1. The contract value of $3.24 million for insulation materials appears to be a significant investment for a relatively short duration. 2. The 'NOT COMPETED UNDER SAP' designation suggests a lack of broad market solicitation, potentially impacting price competitiveness. 3. The sole-source nature of this award warrants scrutiny regarding the justification for not seeking multiple bids. 4. The fixed-firm price contract type offers cost certainty but relies heavily on the initial pricing being fair. 5. The specific application of 'HIGH TEMPERATURE CEMENT INSULATION' suggests a specialized need, potentially limiting the pool of qualified vendors. 6. The award to NUGENERATION TECHNOLOGIES LLC is for a short period, indicating a potential for future re-competition or contract modification.

Value Assessment

Rating: fair

The contract value of $3.24 million for a 50-day period (estimated duration) for insulation materials is substantial. Without specific details on the quantity and type of insulation, it's difficult to benchmark against similar contracts. However, the 'NOT COMPETED UNDER SAP' and sole-source nature raise concerns about whether this price represents the best value achievable through a competitive process. The firm fixed-price structure provides cost certainty, but the initial price point needs validation against market rates for specialized high-temperature insulation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and is designated as a sole-source award. This means that the General Services Administration (GSA) did not solicit offers from multiple potential suppliers. The justification for this sole-source award is not provided, but it typically implies that only one vendor was capable of meeting the requirement, or that there was an urgent need that precluded full and open competition. The lack of competition limits price discovery and may result in a higher cost to the government.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of securing the lowest possible price, as competitive pressures that drive down costs are absent. This could lead to a less efficient use of public funds.

Public Impact

The primary beneficiaries of this contract are likely government facilities or projects requiring specialized high-temperature cement insulation. The service delivered is the provision of specific insulation materials, crucial for maintaining temperature integrity in certain industrial or construction applications. The geographic impact is specified as California (SN: CALIFORNIA), indicating the materials will be used or delivered within this state. Workforce implications are minimal for this specific award, as it focuses on material procurement rather than labor-intensive services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source justification needs thorough review to ensure necessity.
Short contract duration could indicate a temporary need or potential for future contract issues.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Specific material designation suggests a targeted solution for a known requirement.

Sector Analysis

The procurement of specialized construction materials like high-temperature cement insulation falls within the broader construction and industrial supplies sector. This sector is characterized by a wide range of suppliers, from large manufacturers to specialized distributors. The market size for such niche insulation can vary significantly depending on industrial development and infrastructure projects. Comparable spending benchmarks would typically involve analyzing prices for similar insulation materials across various government agencies or large private sector projects, considering factors like volume, performance specifications, and delivery terms.

Small Business Impact

This contract does not appear to have a small business set-aside (SS: false, SB: false). Therefore, there are no direct implications for small business subcontracting goals related to this specific award. The award was made to NUGENERATION TECHNOLOGIES LLC, and without further information, it's unclear if they are a small or large business. The absence of a set-aside means the opportunity was not specifically reserved for small businesses.

Oversight & Accountability

The General Services Administration (GSA) generally has robust oversight mechanisms for its procurements. However, for sole-source awards, the justification and approval process are critical points of oversight. Transparency would be enhanced by publicly available documentation detailing the rationale for the sole-source designation. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement process or contract execution.

Related Government Programs

Federal Building and Fire Envelope Materials
Industrial Construction Supplies
Specialty Building Materials Procurement
GSA Schedule Contracts (if applicable)
Department of Defense Construction Materials

Risk Flags

Sole-source justification requires verification.
Potential for non-competitive pricing.
NAICS code appears mismatched with the product description.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3,240 to NUGENERATION TECHNOLOGIES LLC. HIGH TEMPERATURE CEMENT INSULATION

Who is the contractor on this award?

The obligated recipient is NUGENERATION TECHNOLOGIES LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $3,240.

What is the period of performance?

Start: 2026-04-03. End: 2026-05-23.

What is the specific type and quantity of 'HIGH TEMPERATURE CEMENT INSULATION' being procured, and what are its technical specifications?

The provided data does not specify the exact type, quantity, or detailed technical specifications of the 'HIGH TEMPERATURE CEMENT INSULATION.' The NationalНаименование (NAICS) code 332216, 'Saw Blade and Handtool Manufacturing,' appears to be a misclassification or an error in the data, as it does not align with insulation materials. To properly assess the value and appropriateness of this contract, detailed product specifications, including temperature resistance ratings, material composition, R-value, and quantity (e.g., square footage, volume), are essential. This information would allow for a more accurate comparison with market prices and similar government procurements.

What is the justification for awarding this contract on a sole-source basis?

The contract is explicitly designated as 'sole-source,' meaning it was not competed. The justification for this determination is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without the official justification document, it is impossible to verify the validity of the sole-source determination. This lack of transparency raises concerns about potential missed opportunities for cost savings through competition and requires further investigation into the necessity of this procurement approach.

How does the price of $3.24 million compare to market rates for similar high-temperature cement insulation, considering the short duration?

Benchmarking the $3.24 million price against market rates for high-temperature cement insulation is challenging without specific product details and quantities. The contract duration is also very short (50 days estimated). If this amount is for a large quantity of specialized material, it might be reasonable. However, if it represents a smaller volume or less specialized product, it could be high, especially given the sole-source nature. A thorough market research report or price analysis would be needed to determine if this represents fair and reasonable pricing. Comparing it to previous GSA awards for similar materials, if available, would also provide valuable context.

What is the historical spending pattern for this specific type of insulation by the General Services Administration or other federal agencies?

The provided data does not include historical spending patterns for this specific type of insulation. To understand the historical context, one would need to query federal procurement databases (like FPDS or USASpending) for similar contracts awarded by the GSA or other agencies for 'high-temperature cement insulation' or related terms. Analyzing past awards would reveal trends in pricing, competition levels, and the number of vendors typically involved. This historical data is crucial for assessing whether the current award represents an anomaly in terms of cost, duration, or procurement method.

What are the potential risks associated with a sole-source award for critical insulation materials?

The primary risk associated with a sole-source award for critical insulation materials is the potential for overpayment due to the absence of competitive bidding. Without competing offers, the government may not be securing the best possible price. Additionally, sole-source awards can sometimes indicate a lack of market research or an over-reliance on a single supplier, which could lead to supply chain vulnerabilities if that supplier faces issues. There's also a risk that the government's specific needs might not be as unique as initially determined, and other vendors could have provided suitable alternatives at a better value.

Industry Classification

NAICS: Manufacturing › Cutlery and Handtool Manufacturing › Saw Blade and Handtool Manufacturing

Product/Service Code: HAND TOOLS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1155 PARK AVE, EMERYVILLE, CA, 94608

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,240

Exercised Options: $3,240

Current Obligation: $3,240

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline