GSA awards $45.8M for engine requirements to Federal Resources Supply Company, LLC

Contract Overview

Contract Amount: $45,796,551 ($45.8M)

Contractor: Federal Resources Supply Company, LLC

Awarding Agency: General Services Administration

Start Date: 2020-03-18

End Date: 2024-03-31

Contract Duration: 1,474 days

Daily Burn Rate: $31.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENGINE REQUIREMENT

Place of Performance

Location: NIAGARA FALLS, NIAGARA County, NEW YORK, 14305

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $45.8 million to FEDERAL RESOURCES SUPPLY COMPANY, LLC for work described as: ENGINE REQUIREMENT Key points: 1. Contract value represents a significant investment in engine components. 2. Competition dynamics suggest a potentially competitive bidding process. 3. Performance period of over four years indicates a long-term need. 4. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. Fixed-price contract type shifts risk to the contractor. 6. Geographic location of the contractor in New York may influence logistics.

Value Assessment

Rating: fair

Benchmarking the value of this $45.8 million contract is challenging without specific details on the engine requirements and the scope of work. However, the duration of over four years suggests a substantial and ongoing need. The firm fixed-price nature of the contract implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the price is competitive. Further analysis would require comparing the unit prices or total cost against similar engine procurements or market rates for comparable components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This method is generally preferred as it fosters a competitive environment, potentially leading to better pricing and quality for the government. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition was intended.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a wider range of offers and encourages contractors to submit their most competitive pricing.

Public Impact

The primary beneficiaries are likely government agencies requiring specific engine components for their operations. Services delivered include the supply of engine requirements, crucial for maintaining operational readiness of various assets. The geographic impact is centered around New York, where the contractor is located, but the ultimate use of the engines could be nationwide. Workforce implications may include jobs related to the manufacturing, assembly, and distribution of engine components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the engine type and performance requirements makes it difficult to assess if the awarded price represents true value for money.
The duration of the contract (over 4 years) could lead to price escalation if not managed carefully, despite the fixed-price nature.
Without knowing the number of bidders, it's hard to confirm the extent of competition and its impact on price.
The contract is a delivery order, which might indicate it's part of a larger, potentially less competitive, IDIQ contract.

Positive Signals

Awarded under full and open competition, suggesting a broad market solicitation.
Firm fixed-price contract type transfers cost overrun risk to the contractor.
The contract duration implies a stable and predictable supply chain for essential engine components.
The General Services Administration (GSA) is a reputable agency known for managing federal procurement efficiently.

Sector Analysis

This contract falls within the manufacturing sector, specifically related to analytical laboratory instruments (NAICS 334516), though the description 'ENGINE REQUIREMENT' suggests it might be for components rather than complete instruments. The market for engine components is vast, serving defense, transportation, and industrial sectors. Federal spending in this area is often driven by the need to maintain aging fleets or equip new platforms. Benchmarking would involve comparing the cost of these specific engine parts against industry standards and other government procurements for similar items.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Federal Resources Supply Company, LLC engages them. Without specific subcontracting plans or goals outlined in the award, it's difficult to quantify the direct benefit to the small business ecosystem from this particular contract.

Oversight & Accountability

The General Services Administration (GSA) typically has robust oversight mechanisms for its contracts, including the Federal Acquisition Service. Accountability is maintained through contract performance monitoring and adherence to the terms and conditions of the delivery order. Transparency is generally facilitated through public contract databases like FPDS. Inspector General oversight would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Defense Logistics Agency (DLA) Engine Procurement
Department of Transportation Vehicle Maintenance Contracts
General Services Administration Fleet Management Contracts
NASA Propulsion System Development Contracts

Risk Flags

Ambiguous NAICS code classification relative to contract description.
Lack of specific details on engine type and quantity.
Potential for price volatility over the contract's four-year duration.
Uncertainty regarding the number of bidders in the full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $45.8 million to FEDERAL RESOURCES SUPPLY COMPANY, LLC. ENGINE REQUIREMENT

Who is the contractor on this award?

The obligated recipient is FEDERAL RESOURCES SUPPLY COMPANY, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $45.8 million.

What is the period of performance?

Start: 2020-03-18. End: 2024-03-31.

What specific types of engines or engine components are being procured under this contract?

The provided data indicates the contract is for 'ENGINE REQUIREMENT' and falls under NAICS code 334516 (Analytical Laboratory Instrument Manufacturing). This creates a potential ambiguity. If the NAICS code is accurate, the 'engine requirement' might pertain to specialized engines used within analytical laboratory instruments. However, it's more probable that the NAICS code is a general classification for the contractor's business, and the 'ENGINE REQUIREMENT' refers to components for larger engines used in vehicles, machinery, or other operational equipment. Without further details, the exact nature of the engines or components remains unclear, impacting the ability to assess the appropriateness of the price and the technical specifications.

How does the awarded price of $45.8 million compare to similar engine procurements by the government?

A direct comparison of the $45.8 million total award value to similar engine procurements is difficult without knowing the specific engine types, quantities, and performance specifications. Federal Resources Supply Company, LLC was awarded this through a delivery order under full and open competition. To perform a robust comparison, one would need to identify contracts with similar engine requirements, potentially across different agencies like the Department of Defense or Department of Transportation, and analyze their total values, unit costs, and contract durations. Benchmarking against industry price lists or historical data for comparable engine components would also be necessary to determine if this award represents good value for money.

What is the track record of Federal Resources Supply Company, LLC in fulfilling government contracts, particularly for engine components?

Information on the specific track record of Federal Resources Supply Company, LLC for fulfilling government contracts, especially for engine components, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance history, including on-time delivery rates, quality of goods provided, and any past performance issues or awards. Databases like the Contractor Performance Assessment Reporting System (CPARS) would be the primary source for such information. Understanding their experience with similar procurements and their overall reliability as a government supplier is crucial for evaluating the risk associated with this $45.8 million award.

What are the potential risks associated with a four-year contract for engine requirements?

A contract spanning over four years (1474 days duration) for engine requirements carries several potential risks. Firstly, market prices for raw materials or components could fluctuate significantly over this period, potentially impacting the contractor's profitability and, indirectly, the government's long-term value if the fixed price becomes uncompetitive. Secondly, technological advancements in engine design or efficiency could render the procured components obsolete or less effective before the contract term ends. Thirdly, there's a risk of contractor performance degradation over a long period. Finally, if the contract is a delivery order under an IDIQ, there's a risk that the underlying IDIQ contract itself may not have been competed as rigorously, or that the government's needs might evolve in ways not fully anticipated by the original IDIQ scope.

How does the 'full and open competition' designation translate into taxpayer benefit for this contract?

The 'full and open competition' designation is a significant benefit for taxpayers because it ensures that the government solicits bids from the widest possible pool of qualified vendors. This broad competition typically drives down prices as contractors vie to offer the most attractive terms. It also encourages innovation and quality, as companies strive to differentiate themselves. For this $45.8 million contract, taxpayers benefit from the increased likelihood that the government secured the engine requirements at the most competitive price achievable in the market, minimizing wasteful spending and maximizing the value derived from federal funds allocated to this procurement.

What is the significance of this contract being a 'Delivery Order'?

The fact that this award is a 'Delivery Order' (aw: DELIVERY ORDER) is significant because it implies that it is a task order issued under a pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract. IDIQ contracts establish terms and conditions for future purchases, but the specific quantities and delivery schedules are determined by individual delivery orders. This approach allows agencies to procure goods or services as needed over a period. For taxpayers, this can mean flexibility and potentially faster acquisition, but it also raises questions about the initial competition for the parent IDIQ contract and whether all potential needs were adequately considered during its award.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: FRS Holdings, Inc.

Address: 235-G LOG CANOE CIR, STEVENSVILLE, MD, 21666

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

Financial Breakdown

Contract Ceiling: $45,796,551

Exercised Options: $45,796,551

Current Obligation: $45,796,551

Actual Outlays: $1,244,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F9287S

IDV Type: FSS

Timeline