GSA awards $20.1M contract for building modifications, raising questions about competition and value

Contract Overview

Contract Amount: $20,104 ($20.1K)

Contractor: Capitol United Solutions Inc

Awarding Agency: General Services Administration

Start Date: 2026-03-18

End Date: 2026-06-30

Contract Duration: 104 days

Daily Burn Rate: $193/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BUILDING 75 CAGES MODIFICATIONS - RWA #N3756898

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20903

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $20,103.85 to CAPITOL UNITED SOLUTIONS INC for work described as: BUILDING 75 CAGES MODIFICATIONS - RWA #N3756898 Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery and potentially increasing costs. 2. The fixed-price contract structure shifts risk to the contractor, but the lack of competition hinders benchmarking. 3. Performance period of 104 days suggests a focused scope, but the overall value needs further scrutiny. 4. The contract falls under commercial building construction, a sector with established market rates for comparison. 5. Small business participation is not explicitly mandated, warranting an assessment of subcontracting opportunities. 6. Geographic location in Maryland is noted, but the specific impact on local workforce is unclear.

Value Assessment

Rating: fair

The contract value of $20.1 million for building modifications over approximately 3.5 months appears substantial. Without detailed scope of work and comparable project data, it's difficult to definitively benchmark the value. However, the absence of competitive bidding means there's no direct market validation of the pricing. The fixed-price nature is positive for budget certainty, but the lack of competition raises concerns about whether the government secured the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating a sole-source procurement. This means only one contractor, Capitol United Solutions Inc., was solicited. The lack of open competition limits the government's ability to explore multiple proposals and negotiate the most favorable terms. It suggests potential reasons for non-competition, such as urgency, unique capabilities, or prior relationships, which require further investigation.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without multiple bids, it's harder to ensure the price reflects true market value and efficiency.

Public Impact

The General Services Administration (GSA) is the primary beneficiary, receiving modifications to federal building infrastructure. The contract delivers construction services for building modifications, enhancing federal property. The project is geographically located in Maryland (MD), potentially impacting the local construction labor market. The specific workforce implications, such as job creation or skill utilization, are not detailed in the provided data.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding raises concerns about potential overpayment and reduced value for taxpayer funds.
The sole-source award necessitates a thorough review of the justification for non-competition.
Limited transparency on the specific scope of work makes it challenging to assess the necessity and efficiency of the modifications.
No explicit small business set-aside or subcontracting plan is indicated, potentially limiting opportunities for smaller firms.

Positive Signals

The contract is a firm-fixed-price award, providing cost certainty for the government.
The contractor, Capitol United Solutions Inc., is performing the work, indicating an active award.
The project duration is defined, allowing for clear performance expectations and timelines.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector (NAICS 236220). This sector encompasses establishments primarily engaged in the construction or remodeling of nonresidential buildings. The market is typically characterized by a mix of large general contractors and smaller specialized firms. Federal spending in this sector is substantial, supporting infrastructure maintenance and upgrades across government agencies. Benchmarking would involve comparing the cost per square foot or per modification type against similar GSA or other federal agency projects.

Small Business Impact

The provided data indicates that small business participation was not a primary consideration, as the 'sb' (small business) flag is false and there is no mention of a small business set-aside. This suggests the contract was not specifically targeted towards small businesses. Consequently, the potential for small business subcontracting opportunities needs to be assessed. Without a set-aside, larger prime contractors may not be incentivized to engage small businesses, potentially impacting the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration's Public Buildings Service. Accountability measures are typically managed through contract performance monitoring, milestone reviews, and final acceptance of work. Transparency is dependent on GSA's internal reporting and public contract databases. The Inspector General for GSA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award.

Related Government Programs

Federal Building Maintenance and Repair
Government Facilities Modernization
Public Infrastructure Projects
Construction Services for Federal Agencies

Risk Flags

Sole-source award requires justification review.
Lack of competition may lead to suboptimal pricing.
Scope of work details are missing for value assessment.
Small business impact requires further investigation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $20,103.85 to CAPITOL UNITED SOLUTIONS INC. BUILDING 75 CAGES MODIFICATIONS - RWA #N3756898

Who is the contractor on this award?

The obligated recipient is CAPITOL UNITED SOLUTIONS INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $20,103.85.

What is the period of performance?

Start: 2026-03-18. End: 2026-06-30.

What is the specific scope of work for the 'BUILDING 75 CAGES MODIFICATIONS' and how does it justify the $20.1 million cost?

The provided data does not detail the specific scope of work for 'BUILDING 75 CAGES MODIFICATIONS.' The $20.1 million cost is for the overall contract award. To justify this cost, a detailed breakdown of the modifications, including materials, labor hours, specialized equipment, and any unique requirements for 'cages' within Building 75, would be necessary. Without this granular information, it is impossible to assess the cost-effectiveness or necessity of the modifications. Further analysis would require access to the contract's statement of work (SOW) and any associated technical documentation.

Why was this contract awarded on a sole-source basis, and what alternatives were considered?

The contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source procurement. The specific justification for this determination is not provided in the summary data. Typically, sole-source awards are made when only one responsible source can satisfy the agency's needs, such as when there is a unique capability, an urgent requirement, or a critical need for compatibility with existing systems. The General Services Administration (GSA) would have a documented justification for this decision, which would outline the market research conducted and the reasons why other potential contractors were excluded. Without this justification, it's difficult to assess if competition was genuinely impossible or if it was simply not pursued.

How does the $20.1 million contract value compare to similar building modification projects undertaken by GSA or other federal agencies?

Benchmarking the $20.1 million contract value requires comparing it to similar projects in terms of scope, scale, location, and complexity. As this is a sole-source award for 'BUILDING 75 CAGES MODIFICATIONS,' direct comparisons are challenging without knowing the specifics of the modifications. However, general construction and renovation projects for federal buildings can range widely. For instance, major renovations of federal office buildings can cost tens or hundreds of millions. Smaller modification projects might be in the low millions. To provide a meaningful comparison, one would need to identify GSA or other agency contracts for similar types of modifications (e.g., security enhancements, specialized facility upgrades) within a comparable timeframe and geographic region, adjusting for inflation and project scope differences.

What are the potential risks associated with a sole-source contract of this magnitude, and what mitigation strategies are in place?

The primary risks associated with a sole-source contract of $20.1 million include the potential for inflated pricing due to lack of competition, reduced innovation, and less incentive for the contractor to be highly efficient. There's also a risk that the chosen contractor may not be the best fit or possess all necessary capabilities, despite being the only solicited source. Mitigation strategies typically involve rigorous government oversight, detailed contract performance metrics, and potentially independent cost analysis if available. The GSA's contracting officers are responsible for ensuring the contractor meets all requirements and that the government receives fair value, even in a non-competitive scenario. The fixed-price nature also mitigates cost overrun risk for the government, provided the scope is well-defined.

What is the track record of Capitol United Solutions Inc. in performing similar federal construction contracts?

Information regarding the specific track record of Capitol United Solutions Inc. for similar federal construction contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance ratings on federal contracts, the types and values of previous projects they have completed, and any history of contract disputes or performance issues. Federal procurement databases (like SAM.gov or FPDS) often contain contractor performance information. Understanding their experience with modifications, particularly those involving specialized 'cages' or security-related infrastructure, would be crucial for evaluating their capability to successfully execute this contract.

What is the expected impact of these modifications on the functionality and security of Building 75?

The provided data does not specify the expected impact of the 'BUILDING 75 CAGES MODIFICATIONS' on the building's functionality and security. The term 'cages' could imply modifications related to secure holding areas, specialized containment, or enhanced physical security measures. The impact would depend entirely on the nature and extent of these modifications. For example, if they are related to detention or secure evidence storage, the impact would be on operational security and compliance. If they are for laboratory containment, the impact would be on safety and research integrity. A detailed understanding of the SOW is required to assess the specific functional and security outcomes.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47PC5426R0012

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9007 BUSH CREEK CIR, FREDERICK, MD, 21704

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $20,104

Exercised Options: $20,104

Current Obligation: $20,104

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline