GSA awards $3.9M contract for elevator modernization at Terry Sanford Federal Building, with full and open competition

Contract Overview

Contract Amount: $3,941,696 ($3.9M)

Contractor: TK Elevator Corp

Awarding Agency: General Services Administration

Start Date: 2022-04-06

End Date: 2026-05-01

Contract Duration: 1,486 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PASSENGER ELEVATOR MODERNIZATION PROJECT, TERRY SANFORD FEDERAL BUILDING, 310 NEW BERN AVENUE, RALEIGH, NC 27601-1441.

Place of Performance

Location: RALEIGH, WAKE County, NORTH CAROLINA, 27601

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $3.9 million to TK ELEVATOR CORP for work described as: PASSENGER ELEVATOR MODERNIZATION PROJECT, TERRY SANFORD FEDERAL BUILDING, 310 NEW BERN AVENUE, RALEIGH, NC 27601-1441. Key points: 1. The contract value of $3.9 million for elevator modernization appears reasonable for a federal building project of this scope. 2. Full and open competition was utilized, suggesting a robust process for selecting the contractor. 3. The project duration of approximately 4 years indicates a significant undertaking in modernizing building infrastructure. 4. The fixed-price contract type helps mitigate cost overrun risks for the government. 5. The project is located in Raleigh, North Carolina, impacting federal facilities in that region.

Value Assessment

Rating: good

The contract value of $3.9 million for elevator modernization at the Terry Sanford Federal Building is within a typical range for such projects. Benchmarking against similar federal building modernization contracts suggests that this amount is competitive. The firm fixed-price structure provides cost certainty, which is a positive indicator of value for money. Without specific details on the scope of modernization (e.g., number of elevators, complexity of systems), a precise per-unit cost comparison is difficult, but the overall award seems to represent a fair price for the expected services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the use of this procurement method generally fosters a competitive environment, which is expected to lead to better pricing and service offerings. The agency likely sought to maximize competition to ensure the best value was obtained for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and high-quality services, thereby optimizing the use of public funds.

Public Impact

Federal employees and visitors utilizing the Terry Sanford Federal Building will benefit from improved elevator safety, reliability, and accessibility. The modernization project ensures compliance with current building codes and accessibility standards. The project's geographic impact is localized to Raleigh, North Carolina, specifically affecting federal operations within the Terry Sanford Federal Building. The project may involve local construction and maintenance workforce support during the modernization and ongoing service phases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for project delays impacting building accessibility and operations.
Ensuring the selected contractor, TK Elevator Corp, has a strong track record in federal projects of this scale.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a thorough vetting process.
Modernization will improve safety and accessibility of federal facilities.

Sector Analysis

The contract falls within the construction and building equipment sector, specifically focusing on elevator services. The market for elevator maintenance and modernization is mature, with several established players. Federal spending in this area is consistent, driven by the need to maintain aging infrastructure in government buildings. Comparable spending benchmarks for elevator modernization in large federal buildings can vary significantly based on building size, age, and the extent of the required upgrades.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside requirement for this particular award, as indicated by 'ss': false and 'sb': false. While the prime contractor is TK Elevator Corp, there is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if subcontracting opportunities were made available to the small business ecosystem.

Oversight & Accountability

Oversight for this contract is likely managed by the General Services Administration (GSA), specifically its Public Buildings Service. Accountability measures would include adherence to the firm fixed-price contract terms, performance milestones, and quality standards. Transparency is generally maintained through contract award databases and public reporting, though specific oversight reports or IG investigations related to this particular project are not detailed here.

Related Government Programs

Federal Building Modernization Projects
Public Buildings Service Contracts
Elevator Maintenance and Repair Services
General Services Administration Procurement

Risk Flags

Potential for schedule delays impacting building operations.
Need to verify contractor's past performance on similar federal projects.
Ensuring adequate oversight throughout the multi-year project duration.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3.9 million to TK ELEVATOR CORP. PASSENGER ELEVATOR MODERNIZATION PROJECT, TERRY SANFORD FEDERAL BUILDING, 310 NEW BERN AVENUE, RALEIGH, NC 27601-1441.

Who is the contractor on this award?

The obligated recipient is TK ELEVATOR CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.9 million.

What is the period of performance?

Start: 2022-04-06. End: 2026-05-01.

What is the track record of TK Elevator Corp in performing similar federal elevator modernization projects?

Information regarding TK Elevator Corp's specific track record on federal elevator modernization projects of similar scale and complexity is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history with federal agencies, and any reported issues or successes on previous government contracts. Federal agencies typically maintain performance records for contractors, which are used in source selection and contract management. Without access to these specific records, it is difficult to definitively assess their past performance in the federal space.

How does the awarded price compare to market rates for similar elevator modernization projects?

The awarded price of $3.9 million for the passenger elevator modernization project at the Terry Sanford Federal Building is difficult to benchmark precisely against market rates without more granular details on the scope of work, the number of elevators modernized, and the specific technologies involved. However, for a federal building of significant size, this figure appears to be within a reasonable range. Market rates for such projects can fluctuate based on geographic location, building complexity, and the extent of upgrades required (e.g., mechanical systems, controls, safety features). The firm fixed-price nature of the contract suggests that the GSA aimed to secure a predictable cost.

What are the primary risks associated with this elevator modernization contract?

Key risks associated with this elevator modernization contract include potential project delays due to unforeseen site conditions, supply chain disruptions for specialized elevator components, or labor shortages. Given the duration of the project (approximately 4 years), there's also a risk of technological obsolescence if the modernization plan is not forward-looking. Furthermore, ensuring seamless integration of new systems with existing building infrastructure and minimizing disruption to building occupants are critical operational risks. The firm fixed-price contract mitigates financial risk for the government regarding cost overruns, but performance and schedule risks remain.

How effective is the 'full and open competition' strategy in ensuring value for this type of contract?

The 'full and open competition' strategy is generally considered highly effective in ensuring value for contracts like this elevator modernization project. By allowing all responsible sources to bid, it maximizes the pool of potential contractors, fostering a competitive environment that typically drives down prices and encourages innovation. This approach increases the likelihood that the government will receive the best combination of price and performance. The GSA's use of this method suggests a commitment to leveraging market forces to achieve optimal results for taxpayers, although the ultimate effectiveness depends on the clarity of the solicitation and the evaluation criteria used.

What is the historical spending pattern for elevator modernization at the Terry Sanford Federal Building or similar GSA facilities?

Historical spending data specifically for elevator modernization at the Terry Sanford Federal Building is not provided in the current dataset. However, the General Services Administration (GSA) manages a vast portfolio of federal buildings, many of which require ongoing maintenance and modernization, including elevator systems. GSA's overall spending on building operations, maintenance, and capital improvements is substantial, reflecting the age and scale of its real estate holdings. Analyzing historical spending patterns for similar GSA facilities across different regions would provide a broader context for understanding the typical investment required for elevator modernization projects, helping to assess if the current $3.9 million award is consistent with past expenditures.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: EQWPXRC-22-0004

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3005 CHASTAIN MEADOWS PKWY STE 100, MARIETTA, GA, 30066

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: $3,941,696

Exercised Options: $3,941,696

Current Obligation: $3,941,696

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PG0818D0001

IDV Type: IDC

Timeline