HHS awards $10.7M for roof replacements under existing contract, extending services for facilities support

Contract Overview

Contract Amount: $10,769,470 ($10.8M)

Contractor: Tremco CPG Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-12-19

End Date: 2010-09-30

Contract Duration: 1,016 days

Daily Burn Rate: $10.6K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE CONTRACTUAL SERVICE FOR A CHANGE ORDER UNDER EXISTING CONTRACT 292-FX-612429 FOR (11) PREVIOUSLY PROCURED ROOF REPLACEMENTS - HQC80151 - R&I - (BUZ ORRISON)

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.8 million to TREMCO CPG INC. for work described as: PROVIDE CONTRACTUAL SERVICE FOR A CHANGE ORDER UNDER EXISTING CONTRACT 292-FX-612429 FOR (11) PREVIOUSLY PROCURED ROOF REPLACEMENTS - HQC80151 - R&I - (BUZ ORRISON) Key points: 1. Contract focuses on essential facilities maintenance, specifically roof replacements, indicating a need for ongoing infrastructure upkeep. 2. The award was made via a non-competitive delivery order, suggesting a sole-source or limited competition scenario. 3. The contract duration spans nearly three years, implying a significant scope of work for the awarded services. 4. The services are categorized under Facilities Support Services, a broad area crucial for operational continuity. 5. The contractor, TREMCO CPG INC., has secured this order, highlighting their role in supporting federal facilities. 6. The fixed-price contract type suggests that costs were determined upfront, providing budget certainty for the agency.

Value Assessment

Rating: fair

The contract value of $10.7 million for roof replacements over approximately three years appears reasonable for a large-scale facilities maintenance project. Benchmarking against similar large-scale roof replacement contracts for federal facilities would provide a clearer picture of value for money. Without specific details on the scope of work per roof or the complexity of the replacements, a precise comparison is difficult. However, the fixed-price nature of the contract suggests an attempt to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a non-competitive delivery order under an existing contract. This indicates that the procurement was not openly competed. The specific reasons for the non-competitive award, such as a sole-source justification or a limited competition among pre-qualified vendors, are not detailed here. The lack of broad competition may limit the government's ability to secure the most favorable pricing and terms.

Taxpayer Impact: Taxpayers may not benefit from the competitive pricing that could have been achieved through a full and open competition. The absence of multiple bids could lead to higher costs than might otherwise be negotiated.

Public Impact

The primary beneficiaries are the facilities managed by the National Institutes of Health (NIH), ensuring their structural integrity and operational readiness. The services delivered include the replacement of eleven roofs, directly addressing critical infrastructure needs. The geographic impact is concentrated in Maryland, where the NIH facilities are located. The contract supports the maintenance workforce involved in facilities management and construction services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits price discovery and potential savings for taxpayers.
Lack of detailed scope per roof replacement makes it difficult to assess true value for money.
Contract duration and value suggest a significant undertaking where competitive bidding could yield better outcomes.

Positive Signals

Addresses critical infrastructure needs for federal facilities.
Fixed-price contract provides cost certainty for the agency.
Contract is under an existing framework, potentially streamlining administrative processes.

Sector Analysis

This contract falls within the Facilities Support Services sector, which is a critical component of government operations. This sector encompasses a wide range of services necessary to maintain and operate federal buildings and infrastructure. Spending in this area is often driven by the need to preserve aging assets and ensure compliance with safety and environmental standards. Comparable spending benchmarks would typically be found within broader facilities maintenance and repair categories for government agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting opportunities for small businesses. Therefore, the direct impact on the small business ecosystem appears limited based on the provided information. Further investigation into the prime contractor's subcontracting plans would be necessary to fully assess any indirect effects.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services' contracting and program management offices. Accountability measures are inherent in the fixed-price contract structure, requiring delivery of specified services. Transparency is facilitated through contract databases, though detailed justifications for non-competitive awards may require specific Freedom of Information Act requests. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Buildings Fund
General Services Administration (GSA) Public Buildings Service
Department of Defense Facilities Maintenance
National Science Foundation Facilities Support

Risk Flags

Non-competitive award
Potential for cost overruns due to lack of competition
Limited transparency on specific scope and justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.8 million to TREMCO CPG INC.. PROVIDE CONTRACTUAL SERVICE FOR A CHANGE ORDER UNDER EXISTING CONTRACT 292-FX-612429 FOR (11) PREVIOUSLY PROCURED ROOF REPLACEMENTS - HQC80151 - R&I - (BUZ ORRISON)

Who is the contractor on this award?

The obligated recipient is TREMCO CPG INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $10.8 million.

What is the period of performance?

Start: 2007-12-19. End: 2010-09-30.

What was the original contract under which this delivery order was issued, and what was its purpose?

The provided data indicates that this delivery order was issued under existing contract 292-FX-612429. The purpose of this delivery order is to procure services for (11) previously procured roof replacements. Without access to the details of the parent contract (292-FX-612429), its original scope, duration, and the initial justification for its award remain unknown. However, it is clear that this contract was established in a manner that allowed for subsequent delivery orders for specific needs, such as the roof replacements detailed here.

What specific criteria led to the non-competitive award of this delivery order?

The data explicitly states this was a 'NON-COMPETITIVE DELIVERY ORDER'. This classification implies that the award was made without soliciting offers from multiple potential sources. Common justifications for non-competitive awards include sole-source requirements where only one vendor can meet the need, urgent and compelling circumstances that preclude competition, or if the contract was awarded under specific statutory authorities that permit non-competitive procurement. The exact reason for this specific non-competitive award is not detailed in the provided data and would likely require reviewing the contract's justification for other than full and open competition (JOFOC).

How does the cost of these roof replacements compare to industry benchmarks for similar services?

The total award amount is $10,769,470 for eleven roof replacements over a period of approximately three years. To benchmark this cost, one would need to compare the average cost per roof replacement against industry standards, considering factors like roof size, material, complexity of the replacement, and geographic location. Without these specifics, a direct comparison is challenging. However, if we consider an average of roughly $980,000 per roof replacement, this figure would need to be evaluated against current market rates for commercial or institutional roofing projects of similar scale and quality in Maryland.

What is the track record of TREMCO CPG INC. with federal contracts, particularly in facilities support?

TREMCO CPG INC. is listed as the contractor for this delivery order. To assess their track record, one would typically examine their past performance on federal contracts, including timeliness of delivery, quality of work, and adherence to budget. Information on their history with the Department of Health and Human Services (HHS) and other agencies, especially for facilities support services and roofing projects, would be crucial. Databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would provide insights into their performance history, including any awards, past performance evaluations, and potential disputes or contract terminations.

What are the potential risks associated with awarding a significant contract like this on a non-competitive basis?

The primary risk of a non-competitive award is the potential for paying a higher price than could be achieved through competition. Without multiple bids, the government loses the leverage to negotiate the best possible terms and pricing. There's also a risk that the chosen contractor may not be the most innovative or efficient provider available. Furthermore, non-competitive awards can sometimes raise concerns about fairness and equal opportunity for other capable businesses. In this case, the risk is that taxpayers may be overpaying for the roof replacement services.

How does this spending align with overall federal spending trends in facilities support services?

This $10.7 million award for roof replacements is a component of broader federal spending on facilities support services. Federal agencies consistently allocate significant funds towards maintaining their vast real estate portfolios, which include buildings, grounds, and critical infrastructure like roofing. Spending in this category is influenced by the age of federal facilities, deferred maintenance backlogs, and requirements for upgrades or replacements. While this specific contract represents a notable investment, it should be viewed within the context of the total federal budget for facilities maintenance and repair, which can amount to billions of dollars annually across all agencies.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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

Competition & Pricing

Extent Competed: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RPM International Inc. (UEI: 004155651)

Address: 3735 GREEN RD, CLEVELAND, OH, 44122

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,769,470

Exercised Options: $10,769,470

Current Obligation: $10,769,470

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS07F8798D

IDV Type: FSS

Timeline