GSA awards $3.3M for water systems, highlighting potential for efficient procurement through BPA call orders

Contract Overview

Contract Amount: $3,319,579 ($3.3M)

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: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BPA CALL ORDER BEAR 550 INITIAL WATER SYSTEMS

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098

State: Georgia Government Spending

Plain-Language Summary

General Services Administration obligated $3.3 million to HIGHLAND ENGINEERING, INC. for work described as: BPA CALL ORDER BEAR 550 INITIAL WATER SYSTEMS Key points: 1. The contract leverages an existing Blanket Purchase Agreement (BPA), suggesting a streamlined procurement process. 2. The fixed-price contract type aims to control costs and provide predictable spending. 3. The award to Highland Engineering, Inc. indicates a specific market player for these services. 4. The duration of 240 days suggests a focused scope of work for the water systems. 5. The contract falls under the 'Other Commercial and Service Industry Machinery Manufacturing' NAICS code, providing sector context.

Value Assessment

Rating: good

The contract value of approximately $3.3 million for water systems is within a reasonable range for specialized industrial equipment and services. Benchmarking against similar BPA call orders for water system components or maintenance would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for cost control, assuming the scope was well-defined to avoid change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific competition dynamics for this BPA call order are not detailed, but the 'full and open' designation suggests a healthy level of market engagement. This approach is intended to foster price discovery and ensure the government receives competitive offers.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down prices through market forces, ensuring federal dollars are used efficiently.

Public Impact

Federal facilities requiring essential water system maintenance or upgrades are the primary beneficiaries. The services delivered will ensure the operational integrity and safety of critical water infrastructure. The contract's geographic impact is likely tied to the locations of the federal facilities served by the General Services Administration (GSA). The contract supports specialized labor within the water systems and industrial machinery sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not precisely defined, impacting cost and schedule.
Reliance on a single BPA call order may limit long-term strategic sourcing options if not managed effectively.
Ensuring adequate technical expertise for oversight of specialized water systems is crucial.

Positive Signals

Leveraging an existing BPA streamlines the acquisition process, potentially reducing administrative burden and time-to-award.
The firm fixed-price contract type provides cost certainty for the government.
Awarding under full and open competition suggests a competitive marketplace was accessed.

Sector Analysis

This contract falls within the broader industrial machinery manufacturing and services sector, specifically related to water systems. The market for such specialized equipment and maintenance is often characterized by a mix of large manufacturers and smaller, specialized service providers. Benchmarking against similar procurements for water treatment, distribution, or purification systems within the federal government or large industrial clients would provide context on the scale and pricing.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Highland Engineering, Inc. may be a small business, the award itself does not reflect a small business set-aside. There is no explicit information on subcontracting plans, but the nature of the work might involve opportunities for specialized small businesses in areas like component supply or specific technical services.

Oversight & Accountability

Oversight for this BPA call order would typically reside within the GSA's Federal Acquisition Service, which manages the underlying BPA. Accountability is established through the firm fixed-price contract terms and performance metrics. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

GSA Federal Supply Schedule Contracts
Water Infrastructure Improvement Projects
Industrial Machinery Maintenance Services
Public Building Service Contracts

Risk Flags

Potential for undefined scope impacting cost and schedule.
Reliance on BPA call order structure requires careful management.
Need for robust technical oversight of specialized systems.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3.3 million to HIGHLAND ENGINEERING, INC.. BPA CALL ORDER BEAR 550 INITIAL WATER SYSTEMS

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 $3.3 million.

What is the period of performance?

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

What is the historical spending pattern for similar water system contracts awarded by GSA under BPAs?

Analyzing historical spending for similar water system contracts under GSA BPAs would reveal trends in contract values, durations, and the types of services procured. For instance, a review might show an increasing trend in spending due to aging infrastructure or specific federal mandates for water quality. It would also highlight which contractors have been historically successful in securing these types of awards and whether pricing has remained competitive over time. Understanding these patterns helps in assessing whether the current $3.3 million award is consistent with past investments or represents a significant deviation, potentially indicating a change in scope, market conditions, or urgency.

How does the pricing of this contract compare to industry benchmarks for water system services?

To assess the pricing of this $3.3 million contract against industry benchmarks, one would need to identify comparable services. This includes the specific type of water systems (e.g., treatment, distribution, purification), the scope of work (e.g., installation, maintenance, repair), and the geographic location. Benchmarking could involve comparing the estimated cost per unit (if applicable and calculable) or the overall contract value against similar projects procured by other federal agencies, state governments, or large private sector entities. Factors like the firm fixed-price nature of the contract, the duration, and the specific requirements outlined in the BPA call order would need to be considered to ensure a fair comparison. A significant deviation from benchmarks could signal either exceptional value or potential overpricing.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this BPA call order are not publicly detailed in the award abstract. However, for a contract involving water systems, typical KPIs might include system uptime percentages, response times for maintenance requests, water quality compliance metrics, and adherence to safety protocols. SLAs would define the expected standards for these metrics, including penalties for non-performance and potentially incentives for exceeding targets. The General Services Administration (GSA) would likely have established performance standards within the overarching BPA, which are then tailored for individual call orders. Effective monitoring of these KPIs and SLAs is crucial for ensuring the contractor delivers the required services effectively and taxpayers receive value.

What is the track record of Highland Engineering, Inc. in performing similar federal contracts?

Assessing the track record of Highland Engineering, Inc. requires examining their past performance on federal contracts, particularly those involving water systems or similar industrial machinery. Databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would provide insights into their history, including contract awards, performance ratings, and any past issues or disputes. A review of their portfolio would indicate their experience with firm fixed-price contracts, full and open competition, and the scale of projects they have successfully managed. Positive past performance, especially on comparable contracts, suggests a lower risk for this current award and a higher likelihood of successful execution.

What is the potential impact of this contract on the broader market for water system services?

This $3.3 million contract awarded under full and open competition to Highland Engineering, Inc. contributes to the overall activity within the federal market for water system services. While it represents a specific procurement, its impact on the broader market depends on several factors. If Highland Engineering is a significant player, this award could bolster their position. The competitive nature of the award suggests that other firms were also vying for the work, indicating a dynamic market. Furthermore, the use of a BPA call order highlights a procurement strategy that agencies may increasingly adopt, potentially influencing how other firms position themselves to compete for future task orders. The contract's success could also set a benchmark for future similar procurements.

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: 47QSWC26Q0041

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: $3,319,579

Exercised Options: $3,319,579

Current Obligation: $3,319,579

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSWC25A0004

IDV Type: BPA

Timeline