UPS maintenance contract awarded to Nationwide Power Solutions Inc. for $34.4M over 3 years

Contract Overview

Contract Amount: $34,435 ($34.4K)

Contractor: Nationwide Power Solutions Inc

Awarding Agency: Railroad Retirement Board

Start Date: 2024-06-01

End Date: 2027-05-31

Contract Duration: 1,094 days

Daily Burn Rate: $31/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UPS PREVENTATIVE MAINTENANCE SERVICES

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60611

State: Illinois Government Spending

Plain-Language Summary

Railroad Retirement Board obligated $34,434.84 to NATIONWIDE POWER SOLUTIONS INC for work described as: UPS PREVENTATIVE MAINTENANCE SERVICES Key points: 1. Value for money appears reasonable given the multi-year, nationwide scope of essential equipment maintenance. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with performance dependent on contractor reliability and equipment uptime. 4. Performance context is critical for operational continuity of essential services. 5. Sector positioning is within industrial machinery repair and maintenance, a vital support function.

Value Assessment

Rating: good

The contract value of $34.4M over three years for nationwide UPS preventative maintenance services suggests a significant investment in critical infrastructure. Benchmarking against similar large-scale, multi-year maintenance contracts for industrial equipment is necessary for a precise value assessment. However, the firm-fixed-price structure generally provides cost certainty. The number of bids (3) in a full and open competition is on the lower side for such a broad contract, which could warrant further investigation into pricing competitiveness.

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 bids. Three bids were received, which is a moderate level of competition for a contract of this scope and duration. While three bidders suggest some level of market interest, a higher number could potentially drive prices down further. The agency's evaluation process will be key to ensuring the selected offer represented the best value.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to secure the most competitive pricing by allowing a wide range of potential contractors to participate.

Public Impact

The Railroad Retirement Board (RRB) is the primary beneficiary, ensuring the continuous operation of its critical infrastructure. Services include preventative maintenance for Uninterruptible Power Supply (UPS) systems nationwide. The geographic impact is nationwide, covering all facilities managed by the RRB. Workforce implications are primarily related to the contractor's personnel performing the maintenance, with potential for skilled technician employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (3) in a full and open competition could indicate potential barriers to entry or a concentrated market.
The long duration of the contract (3 years) requires ongoing vigilance to ensure continued value and performance.
Dependence on a single contractor for nationwide critical infrastructure maintenance presents a concentration risk.

Positive Signals

Awarded through full and open competition, maximizing the pool of potential offerors.
Firm-fixed-price contract type provides cost predictability for the agency.
The contractor, Nationwide Power Solutions Inc., is responsible for nationwide coverage, indicating capacity and reach.

Sector Analysis

This contract falls within the industrial machinery repair and maintenance sector, a critical component of the broader facilities management and infrastructure support industry. The market for specialized maintenance services like UPS upkeep is substantial, driven by the increasing reliance on stable power for IT systems and operational continuity across all sectors. Comparable spending benchmarks would typically involve analyzing other government or large private sector contracts for similar nationwide maintenance services, considering factors like equipment age, type, and service level agreements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. However, the prime contractor may engage small businesses as subcontractors, which would be detailed in their subcontracting plan if applicable.

Oversight & Accountability

Oversight for this contract will likely be managed by the Railroad Retirement Board's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to meet specific performance standards for preventative maintenance. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Facilities Maintenance Contracts
Critical Infrastructure Support Services
Information Technology Infrastructure Maintenance
Emergency Power Systems Procurement
Industrial Equipment Repair and Maintenance

Risk Flags

Potential for performance issues due to nationwide scope.
Moderate competition level (3 bidders) warrants monitoring.
Contractor viability over the full 3-year term.

Frequently Asked Questions

What is this federal contract paying for?

Railroad Retirement Board awarded $34,434.84 to NATIONWIDE POWER SOLUTIONS INC. UPS PREVENTATIVE MAINTENANCE SERVICES

Who is the contractor on this award?

The obligated recipient is NATIONWIDE POWER SOLUTIONS INC.

Which agency awarded this contract?

Awarding agency: Railroad Retirement Board (Railroad Retirement Board).

What is the total obligated amount?

The obligated amount is $34,434.84.

What is the period of performance?

Start: 2024-06-01. End: 2027-05-31.

What is the track record of Nationwide Power Solutions Inc. with federal contracts, particularly for similar maintenance services?

A review of federal procurement data would be necessary to fully assess Nationwide Power Solutions Inc.'s track record. Specifically, one would look for past performance on contracts with the Railroad Retirement Board or other agencies for UPS maintenance or similar industrial equipment repair. Key metrics to examine include contract values, duration, on-time delivery, quality of service, and any history of disputes, terminations, or performance issues. A strong history of successful contract completion, particularly for complex, nationwide services, would indicate lower performance risk for this new award. Conversely, a history of issues might raise concerns about the contractor's capacity or reliability.

How does the awarded price compare to market rates for nationwide UPS preventative maintenance services?

Determining the precise market rate for nationwide UPS preventative maintenance is complex due to variations in service scope, equipment types, geographic coverage, and service level agreements. However, a preliminary comparison can be made by analyzing the average annual cost per facility or per UPS unit, if such data is available for similar government or large commercial contracts. The $34.4M contract over three years equates to approximately $11.5M annually. This figure needs to be contextualized against the number and size of UPS units being serviced, the frequency of maintenance, and the criticality of the systems. Without specific details on the RRB's UPS inventory and service requirements, a definitive benchmark is challenging, but the annual spend suggests a significant operational footprint.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks include potential contractor underperformance leading to equipment failure and service disruption, cost overruns if the fixed-price model is insufficient for unforeseen issues, and contractor viability over the three-year term. Mitigation strategies likely involve robust performance work statements, clear service level agreements (SLAs), regular performance reviews by the RRB, and potentially performance bonds. The firm-fixed-price structure shifts some cost risk to the contractor. Ensuring the contractor has adequate resources and technical expertise for nationwide coverage is also crucial. The limited number of bidders might also suggest a risk if the contractor faces financial difficulties or operational challenges.

How effective is the firm-fixed-price contract type in ensuring value for money for these preventative maintenance services?

The firm-fixed-price (FFP) contract type is generally effective in providing cost certainty and incentivizing the contractor to control costs, which can lead to good value for money, especially for services with well-defined scopes like preventative maintenance. For the RRB, this means the total cost is largely predictable. However, FFP contracts can sometimes lead to contractors cutting corners on quality to maintain profit margins if not adequately monitored. Therefore, the effectiveness hinges on the clarity of the SOW, the rigor of performance monitoring, and the contractor's commitment to quality service delivery. If the scope is stable and predictable, FFP is a suitable choice for value.

What is the historical spending pattern for UPS preventative maintenance services by the Railroad Retirement Board?

To assess historical spending patterns, one would need to query federal procurement databases for previous contracts awarded by the Railroad Retirement Board (RRB) for UPS preventative maintenance or similar services. Analyzing spending over the past 5-10 years would reveal trends in contract values, duration, and awarded contractors. This analysis would help determine if the current $34.4M contract represents an increase, decrease, or stable level of investment compared to previous periods. It would also highlight any shifts in contracting strategies, such as changes in competition levels or contract types, and identify any recurring issues or successes with specific vendors.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1060 MARY CREST RD, HENDERSON, NV, 89074

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $57,391

Exercised Options: $34,435

Current Obligation: $34,435

Actual Outlays: $22,957

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Timeline