GSA awards $2.58M contract to Highland Engineering for machinery manufacturing services, with a 2-year duration

Contract Overview

Contract Amount: $2,579,215 ($2.6M)

Contractor: Highland Engineering, Inc.

Awarding Agency: General Services Administration

Start Date: 2026-02-03

End Date: 2026-10-01

Contract Duration: 240 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BPA CALL ORDER SOURCE RUN

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098

State: Georgia Government Spending

Plain-Language Summary

General Services Administration obligated $2.6 million to HIGHLAND ENGINEERING, INC. for work described as: BPA CALL ORDER SOURCE RUN Key points: 1. The contract value of $2.58 million over two years suggests a moderate annual spend. 2. Competition dynamics for this 'Other Commercial and Service Industry Machinery Manufacturing' category are not detailed but the award was full and open. 3. The fixed-price contract type may limit cost overruns but could also disincentivize cost savings. 4. Performance is expected to be in Georgia, indicating a specific geographic focus. 5. The contract's duration of 240 days (approximately 8 months) is relatively short for a machinery manufacturing service. 6. The absence of small business set-aside flags warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

The contract value of $2.58 million over 240 days (approximately 8 months) represents a significant daily expenditure. Without specific deliverables or service details, benchmarking against similar contracts is challenging. However, the firm fixed-price nature suggests a defined scope and expected outcome. The price appears reasonable for specialized machinery manufacturing services, assuming the scope is substantial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The number of bidders is not specified, but this approach generally fosters competitive pricing and allows the government to select the best value. The open competition suggests a healthy market for these services.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the most advantageous offer through an open process.

Public Impact

The primary beneficiaries are likely government agencies requiring specialized machinery manufacturing services. The contract will deliver services related to 'Other Commercial and Service Industry Machinery Manufacturing'. Services are geographically focused within Georgia. Workforce implications may include skilled labor in manufacturing and engineering within the specified region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detail on specific deliverables makes it hard to assess true value for money.
The short contract duration might indicate a specific, limited-scope project rather than ongoing support.
No indication of small business participation or subcontracting goals.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type provides cost certainty for the government.
Contractor, Highland Engineering, Inc., is established, though their specific track record on similar government contracts needs further review.

Sector Analysis

The 'Other Commercial and Service Industry Machinery Manufacturing' sector encompasses a wide range of specialized equipment production. This contract likely falls within a niche segment of this broad industry. Benchmarking spending in this specific sub-sector is difficult without more granular data on the exact type of machinery or services procured. However, the overall machinery manufacturing sector is a significant contributor to the U.S. economy.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). This suggests that the procurement was not specifically targeted towards small businesses. Further analysis would be needed to determine if Highland Engineering, Inc. has a history of subcontracting with small businesses or if opportunities exist within the scope of this contract for small business involvement.

Oversight & Accountability

The General Services Administration (GSA) typically has robust oversight mechanisms for its contracts, managed through its Federal Acquisition Service. Accountability is usually ensured through performance metrics, payment schedules tied to deliverables, and contract close-out procedures. Transparency is generally maintained through contract databases like FPDS. Inspector General oversight would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Machinery Manufacturing Services
Commercial and Service Industry Equipment
Federal Acquisition Service Contracts
General Services Administration Procurements

Risk Flags

Potential for cost overruns if scope is not well-defined in FFP contract.
Limited visibility into small business subcontracting opportunities.
Short contract duration may indicate a project with inherent limitations or a need for rapid deployment.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.6 million to HIGHLAND ENGINEERING, INC.. BPA CALL ORDER SOURCE RUN

Who is the contractor on this award?

The obligated recipient is HIGHLAND ENGINEERING, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2026-02-03. End: 2026-10-01.

What is the specific nature of the 'Other Commercial and Service Industry Machinery Manufacturing' services being procured under this contract?

The provided data classifies the service under NAICS code 333319, which pertains to 'Other Commercial and Service Industry Machinery Manufacturing.' This broad category includes establishments primarily engaged in manufacturing machinery, except agricultural, construction, mining, metalworking, and general industrial machinery, that are not specified elsewhere. Examples could include manufacturing of commercial laundry equipment, photographic equipment, coin-operated amusement devices, and other specialized commercial machinery. Without further details on the specific deliverables or Statement of Work, the exact nature of the services remains general.

How does the contract value of $2.58 million compare to similar machinery manufacturing contracts awarded by GSA or other agencies?

Benchmarking the $2.58 million contract value requires comparing it to contracts for similar 'Other Commercial and Service Industry Machinery Manufacturing' services, ideally with comparable durations and scopes. Given the limited information, a direct comparison is difficult. However, for a contract spanning approximately 8 months (240 days), this represents a substantial investment. Larger, multi-year contracts in machinery manufacturing can range from tens to hundreds of millions of dollars, depending on the complexity and scale of the machinery. This particular award appears to be of moderate size for a specialized, potentially short-term requirement.

What is Highland Engineering, Inc.'s track record with federal contracts, particularly in machinery manufacturing?

Highland Engineering, Inc. has been awarded this BPA Call Order. To assess their track record, a deeper dive into their contract history with the federal government would be necessary. This would involve reviewing past awards, performance evaluations (if publicly available), and any history of contract modifications or disputes. Their experience in the specific sub-sector of 'Other Commercial and Service Industry Machinery Manufacturing' is crucial. Without access to a comprehensive contract database search for Highland Engineering, Inc., their specific performance and reliability in this domain cannot be definitively assessed.

What are the potential risks associated with a firm fixed-price contract for machinery manufacturing services?

Firm fixed-price (FFP) contracts offer cost certainty to the government, as the price is set regardless of the contractor's actual costs. However, risks can arise if the scope of work is not precisely defined. If the contractor underestimates costs or encounters unforeseen complexities, they may incur losses, potentially impacting their motivation or ability to complete the work satisfactorily. Conversely, if the contractor significantly overestimates costs, the government may end up paying more than necessary. For complex machinery manufacturing, scope creep or unforeseen technical challenges are key risks that need careful management within an FFP structure.

What is the historical spending pattern for NAICS code 333319 by the General Services Administration?

Analyzing historical spending for NAICS code 333319 by the General Services Administration (GSA) would require accessing detailed federal procurement data over several fiscal years. GSA's primary mission involves providing workspace, technology, and procurement solutions for other federal agencies. While GSA procures a vast array of goods and services, direct spending on 'Other Commercial and Service Industry Machinery Manufacturing' might be less frequent compared to its core services. A review of historical data would reveal the volume and frequency of such procurements, identifying trends and potential fluctuations in demand for these specialized manufacturing services through GSA channels.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing

Product/Service Code: WATER PURIFICATION/SEWAGE TREATMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QSWC26Q0040

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1153 GRAND OAKS DR, HOWELL, MI, 48843

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business

Financial Breakdown

Contract Ceiling: $2,579,215

Exercised Options: $2,579,215

Current Obligation: $2,579,215

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSWC25A0004

IDV Type: BPA

Timeline