GSA Awards $2.56M Contract for Elevator Modernization at Federal Courthouse
Contract Overview
Contract Amount: $2,551,884 ($2.6M)
Contractor: TK Elevator Corporation
Awarding Agency: General Services Administration
Start Date: 2024-10-24
End Date: 2027-01-25
Contract Duration: 823 days
Daily Burn Rate: $3.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION PROJECT FOR THE MODERNIZATION OF 4 EXISTING JUDGES ELEVATORS AT THE HALE BOGGS FEDERAL COURTHOUSE 500 POYDRAS STREET, NEW ORLEANS, LA 70130.
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70130
Plain-Language Summary
General Services Administration obligated $2.6 million to TK ELEVATOR CORPORATION for work described as: CONSTRUCTION PROJECT FOR THE MODERNIZATION OF 4 EXISTING JUDGES ELEVATORS AT THE HALE BOGGS FEDERAL COURTHOUSE 500 POYDRAS STREET, NEW ORLEANS, LA 70130. Key points: 1. The contract focuses on modernizing four elevators in a federal courthouse. 2. TK Elevator Corporation is the sole awardee, raising questions about competition. 3. The project's risk is moderate, involving specialized elevator systems. 4. Spending falls within the 'Other Building Equipment Contractors' sector.
Value Assessment
Rating: fair
The $2.56 million price for modernizing four elevators appears reasonable given the specialized nature of the work and the need for compliance with federal building standards. Benchmarking against similar federal courthouse elevator modernization projects would provide a clearer assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive bidding process.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if multiple vendors had vied for the contract.
Public Impact
Ensures continued accessibility and safety for judges, staff, and visitors at the Hale Boggs Federal Courthouse. Modernization addresses potential system failures and reduces long-term maintenance costs. Supports the operational efficiency of a key federal facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns in sole-source contracts
Positive Signals
- Addresses critical infrastructure needs
- Ensures facility accessibility and safety
Sector Analysis
This contract falls under the 'Other Building Equipment Contractors' sector, specifically related to building systems. Federal spending in this area often involves maintenance, repair, and upgrades to ensure the functionality and safety of government facilities.
Small Business Impact
The awardee, TK Elevator Corporation, is a large corporation. There is no indication that small businesses were involved as subcontractors or prime contractors in this specific award, which is common for specialized equipment contracts.
Oversight & Accountability
The General Services Administration (GSA), through its Public Buildings Service, is responsible for managing federal building infrastructure. Oversight would involve ensuring project milestones are met and the final product aligns with contract specifications.
Related Government Programs
- Other Building Equipment Contractors
- General Services Administration Contracting
- Public Buildings Service Programs
Risk Flags
- Sole-source award limits competition.
- Potential for cost escalation in sole-source contracts.
- Project duration extends over multiple fiscal years.
- Contract involves critical infrastructure with potential for disruption.
Tags
other-building-equipment-contractors, general-services-administration, la, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $2.6 million to TK ELEVATOR CORPORATION. CONSTRUCTION PROJECT FOR THE MODERNIZATION OF 4 EXISTING JUDGES ELEVATORS AT THE HALE BOGGS FEDERAL COURTHOUSE 500 POYDRAS STREET, NEW ORLEANS, LA 70130.
Who is the contractor on this award?
The obligated recipient is TK ELEVATOR CORPORATION.
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: 2024-10-24. End: 2027-01-25.
What is the justification for the sole-source award, and were any attempts made to explore competitive options?
The provided data indicates the contract was 'NOT COMPETED'. A sole-source justification would typically be required by federal acquisition regulations, detailing why only one vendor could meet the requirement. Without this justification, it's difficult to assess if competition was truly impossible or if it was simply bypassed, potentially impacting value for money.
What are the specific risks associated with elevator modernization in a federal courthouse, and how are they being mitigated?
Risks include potential disruptions to court operations, unforeseen structural issues during modernization, and ensuring compliance with stringent federal building codes and accessibility standards. Mitigation strategies likely involve detailed planning, phased implementation to minimize downtime, and rigorous inspection protocols by the GSA.
How does the firm fixed price contract structure impact the overall value and risk for the government?
A firm fixed price contract shifts most of the risk to the contractor, TK Elevator Corporation. This provides cost certainty for the government, assuming the initial price accurately reflects the scope of work. However, if unforeseen issues arise that are not covered by contract clauses, the government might face change orders or disputes.
Industry Classification
NAICS: Construction › Building Equipment Contractors › Other Building Equipment Contractors
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 47PH0524R0113
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: $2,551,884
Exercised Options: $2,551,884
Current Obligation: $2,551,884
Actual Outlays: $673,113
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-10-24
Current End Date: 2027-01-25
Potential End Date: 2027-01-25 00:00:00
Last Modified: 2026-01-15
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