HHS awards $7.6M BPA for facilities management to Gardner Metals, Inc

Contract Overview

Contract Amount: $7,613 ($7.6K)

Contractor: Gardner Metals, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2022-01-04

End Date: 2023-04-30

Contract Duration: 481 days

Daily Burn Rate: $16/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: KAYENTA HEALTH CENTER FACILITIES MANAGEMENT DEPARTMENT BPA.

Place of Performance

Location: KAYENTA, NAVAJO County, ARIZONA, 86033

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $7,613.42 to GARDNER METALS, INC for work described as: KAYENTA HEALTH CENTER FACILITIES MANAGEMENT DEPARTMENT BPA. Key points: 1. Value for money appears fair given the fixed-price nature and duration. 2. Competition dynamics indicate a potentially competitive bidding process. 3. Risk indicators are moderate, with a fixed-price contract mitigating cost overrun risks. 4. Performance context is within facilities management for a health center. 5. Sector positioning is within healthcare support services.

Value Assessment

Rating: fair

The contract value of $7.6 million over approximately 16 months (481 days) for facilities management services at the Kayenta Health Center appears within a reasonable range for such services. Benchmarking against similar facilities management contracts is challenging without more specific service details, but the fixed-price structure suggests a predictable cost outcome. The number of bids received (16) also provides some context for pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), suggesting a competitive process. Sixteen bids were received, indicating a healthy level of interest and competition for this requirement. The use of SAP generally aims to maximize competition for procurements below certain thresholds.

Taxpayer Impact: A competitive process with multiple bidders generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source awards.

Public Impact

The Kayenta Health Center benefits from essential facilities management services. Services include maintenance and upkeep of the health center's infrastructure. The geographic impact is localized to the Kayenta, Arizona area. Workforce implications may include local employment opportunities for maintenance and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not clearly defined in the BPA.
Reliance on a single contractor for critical facilities maintenance.
Ensuring consistent service quality throughout the contract duration.

Positive Signals

Fixed-price contract structure limits cost uncertainty.
Competitive bidding process suggests fair market pricing.
Contract duration provides stability for service delivery.

Sector Analysis

This contract falls within the broader facilities management and support services sector, which is a significant component of government spending. The market for these services is diverse, encompassing a wide range of specialized providers. This specific award to Gardner Metals, Inc. for a Blanket Purchase Agreement (BPA) with the Indian Health Service highlights the need for specialized support within healthcare facilities, particularly in remote or underserved areas.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Further analysis would be needed to determine the extent of small business participation, either as the prime contractor or through subcontracting opportunities.

Oversight & Accountability

As a Purchase Order issued under a BPA, oversight would typically be managed by the contracting officer and the program office within the Indian Health Service. Transparency is generally facilitated through contract databases, but specific performance monitoring and accountability measures would be detailed in the BPA's terms and conditions. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Indian Health Service Facilities Maintenance Contracts
HHS Blanket Purchase Agreements
Federal Facilities Management Services

Risk Flags

Potential for service disruption
Contractor performance variability
Budgetary constraints for unforeseen maintenance

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $7,613.42 to GARDNER METALS, INC. KAYENTA HEALTH CENTER FACILITIES MANAGEMENT DEPARTMENT BPA.

Who is the contractor on this award?

The obligated recipient is GARDNER METALS, INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $7,613.42.

What is the period of performance?

Start: 2022-01-04. End: 2023-04-30.

What is the track record of Gardner Metals, Inc. in performing federal facilities management contracts?

Information regarding Gardner Metals, Inc.'s specific track record in federal facilities management contracts is not detailed in the provided data. A comprehensive review would require examining past performance evaluations, contract history, and any reported issues or successes on similar government procurements. Without this, it's difficult to assess their experience and reliability for this specific BPA. Further research into federal procurement databases like SAM.gov or FPDS would be necessary to build a complete picture of their performance history and suitability for this role.

How does the awarded price compare to market rates for similar facilities management services?

The provided data does not include specific line-item costs or detailed service descriptions necessary for a direct comparison to market rates. The total award of $7.6 million over approximately 16 months for facilities management at a health center is a broad figure. To benchmark effectively, one would need to break down the services (e.g., HVAC maintenance, janitorial, groundskeeping, electrical) and compare the unit costs or hourly rates to industry standards and other government contracts for comparable facilities and geographic locations. The fact that 16 bids were received suggests competitive pricing, but actual value requires granular analysis.

What are the primary risks associated with this facilities management contract?

Key risks include potential service quality issues if performance standards are not rigorously monitored, and the possibility of unforeseen maintenance needs that could strain the fixed-price budget if not managed proactively. There's also a risk related to contractor performance and responsiveness, especially for critical systems within a health center environment. Ensuring continuity of essential services during any transition periods or if the contractor faces operational challenges is another consideration. The geographic location might also present logistical challenges for service delivery and emergency response.

How effective is the current contract in ensuring the operational readiness of the Kayenta Health Center?

The effectiveness of this contract in ensuring operational readiness is contingent upon the contractor's performance and the clarity of the service level agreements within the BPA. While the contract provides a framework for essential facilities management, its success depends on diligent oversight, adherence to maintenance schedules, and prompt resolution of issues by Gardner Metals, Inc. The fixed-price nature aims for cost predictability, but operational readiness ultimately relies on the quality and timeliness of the services rendered. Ongoing performance monitoring and user feedback from the health center staff are crucial indicators of effectiveness.

What is the historical spending pattern for facilities management at the Kayenta Health Center or similar IHS facilities?

The provided data only details this specific $7.6 million BPA awarded in January 2022. To understand historical spending patterns, one would need to access broader contract databases to identify previous facilities management contracts for the Kayenta Health Center, as well as similar facilities managed by the Indian Health Service (IHS) or other agencies. Analyzing spending trends over multiple years would reveal patterns in contract values, types of services procured, and contractor choices, providing context for the current award's scale and duration.

Industry Classification

NAICS: Retail Trade › Building Material and Supplies Dealers › Home Centers

Product/Service Code: CONSTRUCTION AND BUILDING MATERIAL

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 655 S LAKE POWELL BLVD, PAGE, AZ, 86040

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

Financial Breakdown

Contract Ceiling: $7,613

Exercised Options: $7,613

Current Obligation: $7,613

Actual Outlays: $7,613

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline