FEMA awards $3.2M for oven maintenance, raising questions about competition and value

Contract Overview

Contract Amount: $3,282 ($3.3K)

Contractor: Jones-Mcleod, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-08-30

End Date: 2024-09-30

Contract Duration: 31 days

Daily Burn Rate: $106/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ON-SITE MAINTENANCE OF OVENS AT CDP

Place of Performance

Location: ANNISTON, CALHOUN County, ALABAMA, 36205

State: Alabama Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3,281.69 to JONES-MCLEOD, INC. for work described as: ON-SITE MAINTENANCE OF OVENS AT CDP Key points: 1. The contract's value appears high for a one-month service period. 2. Limited competition raises concerns about potential overpayment. 3. The short duration may indicate an urgent or temporary need. 4. The firm-fixed-price structure offers some cost certainty. 5. The specific type of ovens and maintenance required are not detailed. 6. The award was made under simplified acquisition procedures, suggesting a smaller procurement.

Value Assessment

Rating: questionable

The $3.2 million award for a single month of on-site oven maintenance seems exceptionally high, especially given the contract was not competed. Without more information on the scope of work, the number and type of ovens, or the specific maintenance required, it is difficult to benchmark effectively. However, comparing this to typical industrial equipment maintenance contracts, the per-day cost is significantly elevated. This suggests a potential lack of value for money unless extraordinary circumstances justify the price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under simplified acquisition procedures (SAP), indicating it was likely awarded through a limited solicitation or directly to a known vendor. The data explicitly states 'NOT COMPETED UNDER SAP,' which implies a lack of broad market outreach. Without details on the solicitation process, it's impossible to determine the number of bidders or the extent of competition. This limited competition environment can lead to higher prices and reduced innovation.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive bidding. The absence of a competitive process limits the government's ability to secure the best possible price and service.

Public Impact

The primary beneficiaries are the facilities managed by FEMA that utilize these ovens. The service delivered is on-site maintenance for specific ovens. The geographic impact is limited to the location where the ovens are situated within Alabama. There are no immediate workforce implications indicated by this contract alone.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High cost for a short-term service contract.
Lack of competitive bidding raises concerns about price justification.
Limited transparency regarding the specific services and equipment involved.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
The contract is for a defined, short period, limiting long-term financial exposure.

Sector Analysis

The Commercial and Industrial Machinery and Equipment Repair and Maintenance sector is broad, encompassing services for a wide range of equipment. This contract falls under the repair and maintenance sub-sector. While specific benchmarks for oven maintenance are not readily available, the overall market for industrial equipment repair is competitive. However, government procurements, especially those with limited competition, can deviate significantly from market norms. The value of this contract appears disproportionately high for the stated duration and procurement method.

Small Business Impact

The contract data indicates that small business participation was not a factor, as the award was not set aside for small businesses and the contractor is not explicitly identified as a small business. There is no information provided regarding subcontracting plans. This suggests that the procurement did not prioritize small business engagement, potentially missing opportunities to leverage the small business industrial base.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Emergency Management Agency (FEMA) within the Department of Homeland Security. As a purchase order awarded under simplified acquisition procedures, it may receive less intensive oversight than larger, more complex contracts. Transparency is limited due to the lack of detailed public information on the scope of work and the competitive process. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

FEMA Facility Maintenance Contracts
Department of Homeland Security Equipment Repair
Commercial and Industrial Machinery Maintenance

Risk Flags

High contract value for short duration
Lack of competitive bidding
Insufficient detail on scope of work

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3,281.69 to JONES-MCLEOD, INC.. ON-SITE MAINTENANCE OF OVENS AT CDP

Who is the contractor on this award?

The obligated recipient is JONES-MCLEOD, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $3,281.69.

What is the period of performance?

Start: 2024-08-30. End: 2024-09-30.

What is the specific nature of the 'ovens' requiring maintenance, and what type of maintenance is being performed?

The provided data only specifies 'ON-SITE MAINTENANCE OF OVENS.' Without further details, it is impossible to determine the type of ovens (e.g., industrial, commercial, specialized scientific equipment) or the scope of maintenance (e.g., routine servicing, emergency repairs, calibration, parts replacement). This lack of specificity makes it challenging to assess the reasonableness of the cost. For instance, maintenance on highly specialized, large-scale industrial ovens could be significantly more expensive than for standard commercial units. The high contract value suggests the ovens might be critical, complex, or numerous, but this remains speculative without explicit information.

How does the $3.2 million cost for one month of service compare to industry benchmarks for similar oven maintenance?

Benchmarking this contract is difficult without precise details on the oven type, quantity, and specific maintenance tasks. However, $3.2 million for one month of maintenance, averaging over $100,000 per day, is exceptionally high for standard industrial or commercial oven maintenance. Typical service contracts for complex industrial machinery often involve hourly rates for technicians, plus parts and travel. Even for extensive, multi-oven facilities, a monthly cost of this magnitude would likely only be justifiable for highly specialized, critical equipment requiring 24/7 on-call support with extensive parts inventory and highly skilled technicians. The lack of competition further exacerbates concerns about whether this price reflects fair market value.

What are the risks associated with awarding a contract of this value without full and open competition?

Awarding a contract valued at $3.2 million without full and open competition significantly increases several risks. Primarily, there is a heightened risk of paying an inflated price, as the government foregoes the opportunity to solicit bids from multiple vendors who would compete to offer the best value. This lack of competition can also lead to reduced service quality, as the awarded contractor may face less pressure to perform. Furthermore, it raises concerns about potential impropriety or favoritism, even if unintentional. Without a competitive process, it's harder to ensure the contractor possesses the necessary expertise and capacity, increasing the risk of performance failures or delays.

What is the track record of Jones-McLeod, Inc. in performing similar maintenance services for federal agencies?

Information regarding the specific track record of Jones-McLeod, Inc. in performing similar oven maintenance services for federal agencies is not provided in the data. As the contract was awarded via a method other than full and open competition ('NOT COMPETED UNDER SAP'), a detailed review of past performance might not have been as rigorous or publicly documented as it would be in a competitive scenario. To assess their reliability and capability, one would typically look at past performance evaluations, contract history databases (like the Federal Procurement Data System - FPDS), and any reported issues or successes on previous government contracts. Without this information, it's difficult to gauge their suitability beyond the immediate award.

What is the justification for awarding this contract as 'NOT COMPETED UNDER SAP' given its substantial value?

The data states the contract was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures). SAP is typically used for purchases below the threshold for full and open competition (currently $250,000, with some exceptions). A $3.2 million contract significantly exceeds this threshold. Therefore, 'NOT COMPETED UNDER SAP' likely implies it was procured using other non-competitive methods, such as other transaction authorities, emergency procurements, or sole-source justifications, or potentially it was improperly categorized. A substantial justification would be required to bypass competitive procedures for a contract of this magnitude, typically involving urgent and compelling needs that preclude competition, or if only one source is capable of performing the work. The specific justification is not provided.

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, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

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

Parent Company: Jones-Mcleod Inc.

Address: 1530 ALTON RD, BIRMINGHAM, AL, 35210

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

Financial Breakdown

Contract Ceiling: $3,282

Exercised Options: $3,282

Current Obligation: $3,282

Actual Outlays: $3,282

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline