State Department awards $83M contract for compound elevators to KONE S.A
Contract Overview
Contract Amount: $83,006 ($83.0K)
Contractor: Kone S.A.
Awarding Agency: Department of State
Start Date: 2024-04-02
End Date: 2027-04-11
Contract Duration: 1,104 days
Daily Burn Rate: $75/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Manufacturing
Official Description: FAC - ANNUAL PMSC FOR COMPOUND ELEVATORS
Plain-Language Summary
Department of State obligated $83,006.09 to KONE S.A. for work described as: FAC - ANNUAL PMSC FOR COMPOUND ELEVATORS Key points: 1. Contract value of $83.01M over approximately 3 years. 2. KONE S.A. is the sole awardee. 3. Risk is moderate due to single awardee and fixed-price structure. 4. Sector is Manufacturing (Elevator and Moving Stairway).
Value Assessment
Rating: fair
The contract is a firm-fixed-price purchase order. Without specific pricing details or benchmarks for similar elevator maintenance contracts, it's difficult to definitively assess value. The $83M value over three years suggests significant operational scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically promotes competitive pricing. However, the specific awardee is KONE S.A., and the impact of competition on the final price is not detailed.
Taxpayer Impact: Taxpayer funds are being used for essential building maintenance. The full and open competition aims to ensure reasonable pricing, but the final value is subject to negotiation and market conditions.
Public Impact
Ensures operational functionality of elevators in government facilities. Supports critical infrastructure maintenance for the Department of State. Potential impact on employee and visitor accessibility within buildings.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Lack of detailed pricing breakdown.
- Limited insight into specific maintenance requirements.
- Potential for price escalation if not managed contractually.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract structure.
- Long-term contract provides budget stability.
Sector Analysis
This contract falls within the manufacturing sector, specifically for elevator and moving stairway equipment. Spending benchmarks for elevator maintenance can vary widely based on the number, type, and age of elevators, as well as the complexity of the facilities.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. The awardee, KONE S.A., is a large corporation, suggesting limited direct benefit to small businesses through this specific prime contract.
Oversight & Accountability
The Department of State is responsible for oversight of this contract. The firm-fixed-price nature provides some cost control, but ongoing monitoring of service delivery and adherence to contract terms is crucial for accountability.
Related Government Programs
- Elevator and Moving Stairway Manufacturing
- Department of State Contracting
- Department of State Programs
Risk Flags
- Sole awardee limits competitive pressure post-award.
- Fixed-price contract may not account for unforeseen cost increases.
- Lack of detailed cost breakdown hinders value assessment.
- Potential for vendor lock-in if specialized knowledge is required.
Tags
elevator-and-moving-stairway-manufacturi, department-of-state, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $83,006.09 to KONE S.A.. FAC - ANNUAL PMSC FOR COMPOUND ELEVATORS
Who is the contractor on this award?
The obligated recipient is KONE S.A..
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $83,006.09.
What is the period of performance?
Start: 2024-04-02. End: 2027-04-11.
What is the breakdown of costs for preventative maintenance versus repair services within this contract?
A detailed breakdown of costs for preventative maintenance versus repair services is not provided in the available data. Understanding this allocation is crucial for assessing the contract's value and ensuring that funds are primarily directed towards proactive upkeep rather than reactive repairs, which could indicate underlying issues with the equipment.
How does the awarded price compare to industry benchmarks for similar elevator maintenance contracts in comparable facilities?
Without access to specific industry benchmarks for elevator maintenance contracts of similar scope and complexity, a direct comparison is challenging. Factors such as the number of elevators, their age, usage intensity, and the specific service level agreements would influence pricing. Further analysis would require access to proprietary market data or government cost-estimation reports.
What performance metrics are in place to ensure the effectiveness of the maintenance services provided by KONE S.A.?
The provided data does not specify the performance metrics or key performance indicators (KPIs) used to evaluate KONE S.A.'s service effectiveness. Robust metrics, such as elevator uptime, response times for service calls, and customer satisfaction ratings, are essential for ensuring the quality and reliability of the maintenance provided and for holding the contractor accountable.
Industry Classification
NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Elevator and Moving Stairway Manufacturing
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 19GR1024Q0019
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Kone OYJ
Address: 5 FILIKON & 1 DELIGIORGI, PERISTERI
Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Nonprofit Organization, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $83,006
Exercised Options: $83,006
Current Obligation: $83,006
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2024-04-02
Current End Date: 2027-04-11
Potential End Date: 2027-04-11 00:00:00
Last Modified: 2026-04-09
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