GSA Awards $13.76M for Lafayette Elevator Modernization to TK Elevator Corp
Contract Overview
Contract Amount: $13,762,381 ($13.8M)
Contractor: TK Elevator Corporation
Awarding Agency: General Services Administration
Start Date: 2024-09-24
End Date: 2028-03-05
Contract Duration: 1,258 days
Daily Burn Rate: $10.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ELEVATOR MODERNIZATION LAFAYETTE, 811 VERMONT AVE. N.W. WASHINGTON D.C
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20009
Plain-Language Summary
General Services Administration obligated $13.8 million to TK ELEVATOR CORPORATION for work described as: ELEVATOR MODERNIZATION LAFAYETTE, 811 VERMONT AVE. N.W. WASHINGTON D.C Key points: 1. Contract awarded to TK Elevator Corporation for elevator modernization. 2. Project located at 811 Vermont Ave. N.W., Washington D.C. 3. Duration of the contract is 1258 days. 4. Firm Fixed Price contract type. 5. No small business participation noted.
Value Assessment
Rating: fair
The award amount of $13.76 million for elevator modernization appears to be within a reasonable range for a project of this scale and complexity in a major metropolitan area. Benchmarking against similar large-scale building equipment upgrades would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair market prices, though specific bid details are not provided.
Taxpayer Impact: Taxpayer funds are being used for essential building infrastructure upgrades, aiming for long-term operational efficiency and safety.
Public Impact
Ensures continued accessibility and functionality of a federal building. Modernization will likely improve safety and reliability of elevators. Potential for reduced maintenance costs and energy efficiency post-modernization. Impacts federal employees and visitors using the facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration may indicate potential for scope creep or delays.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls under the 'Other Building Equipment Contractors' sector, specifically for elevator modernization. Spending in this sector is driven by infrastructure maintenance and upgrades in federal buildings, with benchmarks varying significantly based on building size, age, and complexity.
Small Business Impact
The contract data indicates no small business participation (sb: false). This suggests that small businesses were either not involved in the bidding process or were not awarded any portion of this contract, which could be a missed opportunity for economic inclusion.
Oversight & Accountability
The General Services Administration (GSA), through its Public Buildings Service, is responsible for managing federal real estate. Oversight would involve ensuring the contractor meets performance standards, adheres to the schedule, and delivers the modernization within the fixed price.
Related Government Programs
- Other Building Equipment Contractors
- General Services Administration Contracting
- Public Buildings Service Programs
Risk Flags
- No small business participation.
- Long contract duration.
- Potential for unforeseen site conditions impacting modernization.
- Reliance on a single vendor for a critical building system.
Tags
other-building-equipment-contractors, general-services-administration, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $13.8 million to TK ELEVATOR CORPORATION. ELEVATOR MODERNIZATION LAFAYETTE, 811 VERMONT AVE. N.W. WASHINGTON D.C
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 $13.8 million.
What is the period of performance?
Start: 2024-09-24. End: 2028-03-05.
What is the expected return on investment for this modernization in terms of energy savings and reduced maintenance?
The return on investment for this elevator modernization is not explicitly detailed in the provided data. However, modern elevator systems typically offer significant energy efficiency improvements over older models, potentially reducing electricity consumption. Furthermore, updated components generally require less frequent and less costly maintenance, leading to long-term operational cost savings for the GSA.
What are the specific risks associated with a long-duration contract for elevator modernization?
A long-duration contract, like this 1258-day project, carries risks such as potential for scope creep if requirements are not clearly defined upfront, increased likelihood of material price fluctuations impacting the fixed price, and potential for contractor performance degradation over an extended period. Delays in one phase could cascade, impacting the overall project timeline and potentially increasing costs if not managed proactively.
How does the firm fixed price structure impact the government's risk in this elevator modernization project?
The firm fixed price (FFP) structure shifts most of the cost risk to the contractor, TK Elevator Corporation. The government is obligated to pay the agreed-upon price regardless of the contractor's actual costs. This provides budget certainty for the GSA, but it also means the contractor must meticulously manage their expenses to maintain profitability, potentially leading them to seek efficiencies or, conversely, to cut corners if not closely monitored.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
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: $13,762,381
Exercised Options: $13,762,381
Current Obligation: $13,762,381
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47PM0024D0003
IDV Type: IDC
Timeline
Start Date: 2024-09-24
Current End Date: 2028-03-05
Potential End Date: 2028-04-04 00:00:00
Last Modified: 2025-09-03
More Contracts from TK Elevator Corporation
- TAS::17 1106::TAS Elevator Maintenance and Repair AT Various Locations in Southern California — $18.4M (Department of Defense)
- BPA Call NO. 47PN1123F0018 Re-Established BPA Call NO. 47PD0321F0017, Against Elevator Maintenance Services BPA NO. 47PD0321A0006 AT NCR Group 1 in Washington, DC — $2.7M (General Services Administration)
- Construction Project for the Modernization of 4 Existing Judges Elevators AT the Hale Boggs Federal Courthouse 500 Poydras Street, NEW Orleans, LA 70130 — $2.6M (General Services Administration)
- This Award Re-Establishes BPA Call 47PD0321F0019 Against BPA 47PD0321A0008 for Maintenance Service AT NCR Group 1 in Washington, DC — $2.3M (General Services Administration)
- General Services Administration's Elevator Modernization Albuquerque Federal Building and Courthouse, 421 Gold AVE SW, Albuquerque, NM — $1.0M (General Services Administration)
Other General Services Administration Contracts
- Software Life Cycle Development — $1.4B (Science Applications International Corporation)
- Task Order (TO) 47qfca21f0018 IS Hereby Awarded to Booz Allen Hamilton, Inc. (BAH) to Provide Enterprise Level Data to the Ousd(c), and ITS Strategic Partners (I.E., DOD Fourth Estate, DOD Departments, and IC Community) — $1.4B (Booz Allen Hamilton Inc)
- Federal Contract — $1.2B (Booz Allen Hamilton Inc)
- THE Scope of the to IS to Provide Enterprise IT Services for the Usace — $1.1B (Science Applications International Corporation)
- Task Order Award — $1.1B (Booz Allen Hamilton Inc)