GSA awards $2.6M for Fort Lauderdale courthouse elevator modernization to KONE Inc

Contract Overview

Contract Amount: $2,612,706 ($2.6M)

Contractor: Kone Inc

Awarding Agency: General Services Administration

Start Date: 2023-06-16

End Date: 2026-04-30

Contract Duration: 1,049 days

Daily Burn Rate: $2.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ELEVATOR MODERNIZATION OF PASSENGER ELEVATORS AT THE FORT LAUDERDALE FEDERAL COURTHOUSE IN FORT LAUDERDALE FL

Place of Performance

Location: FORT LAUDERDALE, BROWARD County, FLORIDA, 33301

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $2.6 million to KONE INC for work described as: ELEVATOR MODERNIZATION OF PASSENGER ELEVATORS AT THE FORT LAUDERDALE FEDERAL COURTHOUSE IN FORT LAUDERDALE FL Key points: 1. Contract value appears reasonable for elevator modernization services. 2. Full and open competition suggests potential for competitive pricing. 3. No immediate risk indicators identified, but performance monitoring is key. 4. Project duration of nearly three years is typical for complex building upgrades. 5. This contract falls within the 'Other Building Equipment Contractors' sector. 6. The award is a delivery order under a larger contract vehicle.

Value Assessment

Rating: good

The contract value of $2.6 million for elevator modernization at the Fort Lauderdale Federal Courthouse seems aligned with industry standards for such projects. Benchmarking against similar federal courthouse modernization projects would provide a more precise value-for-money assessment. However, given the scope of modernizing passenger elevators, the price appears fair, assuming quality components and installation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive offers. The number of bidders is not specified, but the method itself suggests a robust competitive environment.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, leading to a more efficient use of federal funds.

Public Impact

Federal court operations in Fort Lauderdale will benefit from improved accessibility and reliability. The modernization will enhance the user experience for judges, staff, and the public. The project's geographic impact is localized to the Fort Lauderdale Federal Courthouse. Workforce implications include skilled labor for installation and maintenance, potentially supporting local jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded through full and open competition, suggesting a fair market approach.
Firm Fixed Price contract type helps control costs and budget certainty.
Contract awarded to a known entity (KONE Inc.) with experience in the sector.

Sector Analysis

The elevator and moving stairways manufacturing and installation industry is a significant segment of the broader construction and building equipment sector. Federal agencies, particularly those managing large public facilities like courthouses, frequently require maintenance and modernization services for essential building systems. Spending in this area is driven by the need to maintain safety, accessibility, and operational efficiency in federal buildings.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements for this specific delivery order. Therefore, the direct impact on the small business ecosystem is likely minimal unless KONE Inc. utilizes small businesses in its supply chain or as subcontractors, which is not explicitly detailed.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA), specifically the Public Buildings Service. Accountability measures are embedded in the firm-fixed-price contract structure, requiring KONE Inc. to deliver specified services within the agreed budget. Transparency is generally maintained through federal contract databases, and the Inspector General's office can investigate any potential fraud, waste, or abuse.

Related Government Programs

Federal Courthouse Maintenance
Building Modernization Projects
Elevator Services Contracts
General Services Administration Procurement

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.6 million to KONE INC. ELEVATOR MODERNIZATION OF PASSENGER ELEVATORS AT THE FORT LAUDERDALE FEDERAL COURTHOUSE IN FORT LAUDERDALE FL

Who is the contractor on this award?

The obligated recipient is KONE INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2023-06-16. End: 2026-04-30.

What is KONE Inc.'s track record with the General Services Administration for similar elevator modernization projects?

KONE Inc. is a major global player in the elevator and escalator industry and has a history of securing contracts with various government agencies, including the GSA. While specific details on past performance for identical projects are not provided in this data snippet, KONE's established presence suggests they possess the necessary experience and capacity. A deeper dive into GSA's contract award history and performance evaluations for KONE would reveal their specific track record, including on-time delivery, budget adherence, and quality of work on comparable federal building modernization efforts.

How does the $2.6 million contract value compare to market rates for elevator modernization in South Florida?

The $2.6 million contract value for modernizing passenger elevators at the Fort Lauderdale Federal Courthouse needs to be benchmarked against similar projects in the South Florida region to definitively assess value for money. Factors such as the number of elevators, complexity of the modernization (e.g., controls, mechanics, safety features), building accessibility challenges, and prevailing labor costs in the area will influence the price. Without specific comparable project data from the region, it's difficult to provide a precise market rate comparison. However, for a federal courthouse, which often has stringent security and operational requirements, the cost may be within a reasonable range for comprehensive upgrades.

Are there any identified risks associated with KONE Inc. as a contractor for this project?

Based solely on the provided data, there are no explicit risk flags associated with KONE Inc. The award through full and open competition suggests a standard procurement process. However, potential risks in any construction or modernization project include delays, cost overruns (though mitigated by fixed-price), unforeseen site conditions, or performance issues. A comprehensive risk assessment would involve reviewing KONE's past performance ratings, financial stability, and any history of disputes or litigation with government agencies. The duration of the contract (nearly three years) also presents a longer window for potential issues to arise.

What is the expected impact of this modernization on the operational effectiveness of the Fort Lauderdale Federal Courthouse?

The modernization of passenger elevators is expected to significantly improve the operational effectiveness of the Fort Lauderdale Federal Courthouse. Modern elevators offer enhanced reliability, reducing downtime and potential disruptions to court proceedings, staff movements, and public access. Improved accessibility is crucial for individuals with disabilities, ensuring compliance with the Americans with Disabilities Act (ADA) and facilitating equitable access to justice. Furthermore, updated systems often incorporate energy-efficient technologies and advanced safety features, contributing to a more secure and sustainable facility.

How does this $2.6 million award fit into the GSA's historical spending patterns for building equipment modernization?

The General Services Administration (GSA) manages a vast portfolio of federal buildings and consistently invests in maintenance and modernization. A $2.6 million award for elevator modernization at a single federal courthouse is a substantial but not extraordinary expenditure within the GSA's overall budget for facilities management. Historical spending patterns would show that GSA allocates significant funds annually towards infrastructure upgrades, repairs, and modernizations across its inventory. This specific contract represents a targeted investment in critical building systems at one location, aligning with the agency's mandate to provide safe, efficient, and accessible federal workspaces.

What are the key performance indicators (KPIs) likely being used to measure the success of this elevator modernization project?

Key performance indicators for this elevator modernization project would likely include: 1) On-time completion of project milestones and final delivery by the contract end date (April 30, 2026). 2) Adherence to the firm-fixed-price budget of $2.6 million, with minimal or no change orders. 3) Successful system testing and commissioning, meeting all specified performance standards for speed, reliability, and safety. 4) Minimal disruption to courthouse operations during the modernization period. 5) Post-completion reliability metrics, such as mean time between failures (MTBF) for the new elevators. 6) Compliance with all relevant building codes, safety regulations, and accessibility standards (e.g., ADA).

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47PE0523R0004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Kone OYJ

Address: ONE KONE COURT, MOLINE, IL, 61265

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,656,714

Exercised Options: $2,612,706

Current Obligation: $2,612,706

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06P11GXD0056

IDV Type: IDC

Timeline