DOJ's $3.6M Elevator Service Contract for Federal Prisons Awarded to TK Elevator Corporation

Contract Overview

Contract Amount: $36,288 ($36.3K)

Contractor: TK Elevator Corporation

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-05-31

Contract Duration: 242 days

Daily Burn Rate: $150/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FAC THYSSEN KRUPP ELEVATOR SERVICE - PERIOD OF PERF. OCT. 1, 2025 - MAY 31, 2026

Place of Performance

Location: CORAL SPRINGS, BROWARD County, FLORIDA, 33071

State: Florida Government Spending

Plain-Language Summary

Department of Justice obligated $36,288 to TK ELEVATOR CORPORATION for work described as: FAC THYSSEN KRUPP ELEVATOR SERVICE - PERIOD OF PERF. OCT. 1, 2025 - MAY 31, 2026 Key points: 1. Value for money assessed against market rates for similar services. 2. Competition dynamics indicate a full and open process. 3. Risk indicators include potential for service disruptions if performance falters. 4. Performance context is tied to maintaining critical infrastructure in federal facilities. 5. Sector positioning within building equipment maintenance for government facilities.

Value Assessment

Rating: good

The contract value of $3.63 million for an 8-month period appears reasonable for elevator maintenance services in a federal prison setting, considering the critical nature of the infrastructure and the specialized requirements. Benchmarking against similar contracts for large-scale facilities or government buildings would provide a more precise value assessment. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the process implies a competitive environment that should drive pricing towards market norms. The open competition is a positive indicator for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of securing services at the most competitive prices available in the market.

Public Impact

Federal inmates and staff benefit from reliable elevator operations, crucial for movement within correctional facilities. Services delivered include maintenance and repair of elevator systems within federal prisons. Geographic impact is concentrated in Florida, where the specified federal prisons are located. Workforce implications include potential employment for technicians and support staff by TK Elevator Corporation in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service interruptions impacting facility operations if contractor performance is subpar.
Reliance on a single contractor for critical infrastructure maintenance could pose a risk if specialized parts or expertise become scarce.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract structure shifts cost overrun risk to the contractor.
Contract duration is relatively short, allowing for periodic reassessment of performance and market conditions.

Sector Analysis

The elevator and escalator industry is a significant segment of the building equipment and maintenance sector. This contract falls within the scope of facility maintenance and repair services for government infrastructure. Spending on such services is consistent across federal agencies responsible for maintaining physical assets. Comparable spending benchmarks would involve analyzing maintenance contracts for similar large institutional facilities, such as hospitals, universities, or other government buildings.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be indirect, potentially through subcontracting opportunities if TK Elevator Corporation chooses to engage them. Without specific subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Federal Prison System / Bureau of Prisons within the Department of Justice. Accountability measures are usually embedded in the contract terms, including performance standards and payment schedules tied to satisfactory service delivery. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly accessible. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Federal Prison System Maintenance Contracts
Department of Justice Facilities Management
Building Equipment Maintenance Services
Elevator and Escalator Repair Contracts

Risk Flags

Potential for performance issues impacting critical facility operations.
Reliance on a single vendor for essential maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $36,288 to TK ELEVATOR CORPORATION. FAC THYSSEN KRUPP ELEVATOR SERVICE - PERIOD OF PERF. OCT. 1, 2025 - MAY 31, 2026

Who is the contractor on this award?

The obligated recipient is TK ELEVATOR CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $36,288.

What is the period of performance?

Start: 2025-10-01. End: 2026-05-31.

What is the track record of TK Elevator Corporation with federal government contracts, particularly for maintenance services?

TK Elevator Corporation, a major player in the elevator and escalator industry, has a history of engaging with government entities. While specific details on their federal contract performance history require deeper database analysis, their market presence suggests experience in fulfilling large-scale service agreements. For this specific contract with the Department of Justice's Federal Prison System, a review of past performance evaluations, if available through federal procurement data systems (like CPARS), would be crucial. This would reveal their reliability, responsiveness, and adherence to contract terms in similar settings. Without direct access to these performance records, we assume a baseline level of competence based on their industry standing, but a thorough risk assessment would necessitate examining their federal performance history.

How does the awarded price compare to market rates for similar elevator maintenance services in Florida?

Benchmarking the $3.63 million contract value against market rates for similar elevator maintenance services in Florida requires detailed analysis of service scope, equipment types, and service level agreements. Given the 8-month duration and the context of federal prison facilities, which often have stringent security and operational requirements, direct comparisons can be complex. However, industry reports and data from commercial facility maintenance providers can offer a general range. If this price falls within or below the typical range for comparable large-scale, high-security facilities in Florida, it suggests good value. Conversely, if it significantly exceeds market averages without clear justification (e.g., specialized equipment, extended response times), it might indicate a less favorable price. The firm-fixed-price nature helps control costs for the government, but the initial price point's competitiveness is key.

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

The primary risks associated with this elevator maintenance contract include potential service disruptions due to equipment failure or contractor underperformance, which could impact the critical operations of federal prisons. Another risk is the potential for cost escalation if unforeseen maintenance issues arise, although the firm-fixed-price structure mitigates this for the government. Mitigation strategies typically involve clearly defined performance standards, service level agreements (SLAs) with response time requirements, and penalties for non-compliance. The Department of Justice would likely have contract officers and technical representatives monitoring performance closely. Regular inspections and performance reviews are standard practices to ensure the contractor meets their obligations and to identify and address any emerging issues proactively.

What is the historical spending pattern for elevator maintenance services by the Federal Prison System?

Analyzing historical spending patterns for elevator maintenance by the Federal Prison System (FPS) is crucial for understanding the context of this $3.63 million award. A review of past FPS contracts would reveal the typical duration, value, and frequency of such awards. It would also indicate whether spending has been consistent, increasing, or decreasing over time, and whether there have been shifts in awarded contractors. Understanding these patterns helps in assessing whether the current contract represents a typical expenditure or an outlier. For instance, if FPS historically spends significantly more on similar services, this contract might represent cost savings. Conversely, if spending has been lower, it warrants closer examination of the scope and pricing. This historical data provides a baseline for evaluating the current contract's financial implications.

How does the contract's duration (242 days) influence the assessment of value and risk?

The relatively short duration of this contract (242 days, approximately 8 months) has several implications for value and risk assessment. For value, a shorter term allows the government to re-evaluate pricing and performance more frequently, potentially capitalizing on market shifts or competitive pressures in subsequent contract periods. It reduces the long-term commitment risk associated with potentially unfavorable pricing or performance. From a risk perspective, a shorter duration might mean less incentive for the contractor to invest in long-term preventative maintenance if they are not assured of contract renewal. However, it also means the government can more easily transition to a different provider if performance is unsatisfactory. This short term is often used for specific projects or when a longer-term strategy is still being developed, balancing flexibility with the need for continuous service.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Other Building Equipment Contractors

Product/Service Code: MATERIALS HANDLING EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4355 EXCEL PKWY STE 800, ADDISON, TX, 75001

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

Financial Breakdown

Contract Ceiling: $36,288

Exercised Options: $36,288

Current Obligation: $36,288

Actual Outlays: $13,628

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSHA19D005H

IDV Type: FSS

Timeline