NASA awards $27.3M for custodial and waste removal services to Native Resource Development Co Inc

Contract Overview

Contract Amount: $27,302,798 ($27.3M)

Contractor: Native Resource Development CO Inc

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2016-10-01

End Date: 2022-02-28

Contract Duration: 1,976 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CUSTODIAL, HOUSEKEEPING, WASTE REMOVAL, AND PEST CONTROL SERVICES

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77058

State: Texas Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $27.3 million to NATIVE RESOURCE DEVELOPMENT CO INC for work described as: CUSTODIAL, HOUSEKEEPING, WASTE REMOVAL, AND PEST CONTROL SERVICES Key points: 1. Contract value represents a significant investment in essential facility support services. 2. Full and open competition was utilized, suggesting a robust bidding process. 3. The contract duration of nearly two years indicates a long-term need for these services. 4. Fixed-price contract type helps manage cost certainty for the agency. 5. Geographic focus on Texas highlights regional operational needs. 6. The award to a single contractor suggests a consolidation of services.

Value Assessment

Rating: good

The contract's total value of $27.3 million over its period of performance appears reasonable for comprehensive custodial, housekeeping, waste removal, and pest control services for a federal agency like NASA. Benchmarking against similar large-scale facility maintenance contracts across federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure offers cost predictability, which is a positive indicator for financial management. However, without detailed service level agreements and performance metrics, a definitive assessment of efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded based on predefined criteria. The presence of 7 bidders suggests a healthy level of competition for these essential services. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: The competitive bidding process likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. Multiple bidders ensure that the chosen contractor must offer competitive terms to win the contract.

Public Impact

Benefits NASA facilities by ensuring a clean, safe, and functional working environment for personnel. Provides essential janitorial services, waste removal, and pest control, contributing to public health and safety standards. Services are geographically focused within Texas, supporting local operations of the agency. Supports the workforce through the contractor's employment of personnel for service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for service quality variations across different NASA facilities if not managed uniformly.
  • Reliance on a single contractor for critical facility upkeep could pose risks if performance falters.

Positive Signals

  • The use of full and open competition suggests a commitment to leveraging market capabilities.
  • Firm fixed-price contract type provides budget certainty for the agency.
  • The award to a single entity may streamline service delivery and management.

Sector Analysis

This contract falls within the facilities support services sector, a critical component of government operations. The janitorial services industry is vast, with numerous providers ranging from small local businesses to large national corporations. NASA's spending on these services is typical for large federal agencies with extensive physical infrastructure. Benchmarks for custodial services can vary significantly based on facility size, type, and geographic location, but this award represents a substantial commitment to maintaining operational readiness.

Small Business Impact

The provided data indicates that small business participation was not a primary set-aside criterion for this contract (ss: false, sb: false). While the prime contractor is Native Resource Development Co Inc., further analysis would be needed to determine if they are a small business themselves or if subcontracting opportunities were mandated or utilized for small businesses. Without this information, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by NASA's contracting officers and program managers, ensuring adherence to the contract terms and service level agreements. Performance metrics and regular reporting would be key accountability measures. Transparency is generally maintained through contract award databases, though specific performance details may be internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

  • General Services Administration (GSA) Federal Supply Schedule contracts for facilities maintenance
  • Department of Defense custodial and base operations support contracts
  • Other agency-specific facility management contracts

Risk Flags

  • Potential for service quality degradation if performance is not closely monitored.
  • Contractor's ability to manage costs effectively under a firm fixed-price structure.

Tags

custodial-services, housekeeping, waste-removal, pest-control, nasa, national-aeronautics-and-space-administration, firm-fixed-price, full-and-open-competition, definitive-contract, facility-support, texas, janitorial-services

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $27.3 million to NATIVE RESOURCE DEVELOPMENT CO INC. CUSTODIAL, HOUSEKEEPING, WASTE REMOVAL, AND PEST CONTROL SERVICES

Who is the contractor on this award?

The obligated recipient is NATIVE RESOURCE DEVELOPMENT CO INC.

Which agency awarded this contract?

Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).

What is the total obligated amount?

The obligated amount is $27.3 million.

What is the period of performance?

Start: 2016-10-01. End: 2022-02-28.

What is the historical spending pattern for custodial and waste removal services by NASA?

Analyzing NASA's historical spending on custodial, housekeeping, waste removal, and pest control services reveals a consistent need for these essential functions. Prior to this $27.3 million contract (2016-2022), NASA likely awarded similar contracts, potentially with varying scopes and values, to maintain its numerous facilities. Federal procurement data indicates that agencies like NASA regularly allocate significant budgets to facility operations and maintenance. Understanding the trend in spending – whether it has increased, decreased, or remained stable over time – can provide context for the current award's value and indicate shifts in agency priorities or operational needs. For instance, an increasing trend might suggest expansion of facilities or a greater emphasis on hygiene standards, while a stable trend could point to consistent operational requirements.

How does the per-unit cost of this contract compare to industry benchmarks for janitorial services?

Determining the precise per-unit cost for this contract is challenging without a detailed breakdown of services rendered (e.g., cost per square foot cleaned, cost per waste removal event). However, the total award of $27.3 million over approximately 1.7 years (from Oct 2016 to Feb 2028, though the award ended Feb 2022) suggests a substantial annual expenditure. Industry benchmarks for janitorial services vary widely based on location, facility type, and service intensity. For large federal facilities, costs can range from $1.50 to $5.00 per square foot annually, depending on the level of service. Given the broad scope including housekeeping, waste removal, and pest control, the annual cost for NASA would need to be evaluated against the total square footage and specific service requirements to ascertain if it aligns with or deviates from typical market rates. The firm fixed-price nature implies that the contractor assumed the risk of cost overruns, which can sometimes lead to higher initial pricing to account for unforeseen expenses.

What is the track record of Native Resource Development Co Inc. in performing similar federal contracts?

Native Resource Development Co Inc. has a track record of performing federal contracts, including those for facility support services. Examining their past performance on similar contracts, particularly with agencies like NASA or other large federal entities, is crucial for assessing their capability and reliability. Key indicators include contract completion history, any instances of performance disputes or contract terminations, and client satisfaction feedback if available through federal databases like the Contractor Performance Assessment Reporting System (CPARS). A history of successful contract execution, timely delivery, and adherence to quality standards would indicate a lower risk associated with this award. Conversely, any significant performance issues in prior contracts could raise concerns about the agency's ability to meet its service requirements under this current agreement.

What are the potential risks associated with a firm fixed-price contract for these services?

While firm fixed-price (FFP) contracts offer cost certainty to the government, they can introduce risks for both the contractor and, indirectly, the agency. For the contractor, underestimating the scope, labor, or material costs can lead to reduced profit margins or even losses if performance issues arise. For the agency, the primary risk is that the contractor might cut corners on service quality to maintain profitability, especially if performance monitoring is not rigorous. This could manifest as less thorough cleaning, inadequate pest control, or delayed waste removal. Additionally, if unforeseen circumstances significantly increase costs beyond what was reasonably anticipated, the contractor might be less inclined to go above and beyond, potentially impacting service levels. Effective oversight and clear performance standards are critical to mitigating these risks in an FFP arrangement.

How does the competition level (7 bidders) impact the value received by NASA?

Having seven bidders for this contract is a positive indicator for value received by NASA. A higher number of bidders generally signifies a more competitive marketplace for the services required. This increased competition typically drives down prices as contractors vie for the award, forcing them to offer their best terms and pricing. It also provides the agency with a wider range of options and potentially innovative solutions. Furthermore, a robust competition reduces the risk of collusion and ensures that the selected contractor is likely to be one that offers a strong balance of price and performance. The 'Full and Open Competition After Exclusion of Sources' designation, while allowing for some exclusions, still points to a broad solicitation that attracted significant interest, benefiting NASA through potentially better pricing and service quality.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesServices to Buildings and DwellingsJanitorial Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NNJ15553635R

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 51 JEMEZ DAM RD STE 110, BERNALILLO, NM, 87004

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $28,642,407

Exercised Options: $27,302,798

Current Obligation: $27,302,798

Actual Outlays: $14,162,297

Contract Characteristics

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

Cost or Pricing Data: NO

Timeline

Start Date: 2016-10-01

Current End Date: 2022-02-28

Potential End Date: 2022-02-28 00:00:00

Last Modified: 2023-04-12

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