GSA awards $3.5M contract for switchgear room repairs at DC headquarters, raising value-for-money questions

Contract Overview

Contract Amount: $3,553,633 ($3.6M)

Contractor: NS & Associates, LLC

Awarding Agency: General Services Administration

Start Date: 2025-06-04

End Date: 2027-01-05

Contract Duration: 580 days

Daily Burn Rate: $6.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REPAIRS IN SWITCHGEAR ROOM LOCATED AT THE GSA CENTRAL OFFICE BUILDING 1800 F STREET NW WASHINGTON, DC

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $3.6 million to NS & ASSOCIATES, LLC for work described as: REPAIRS IN SWITCHGEAR ROOM LOCATED AT THE GSA CENTRAL OFFICE BUILDING 1800 F STREET NW WASHINGTON, DC Key points: 1. Contract awarded for essential repairs to critical infrastructure at a high-profile federal building. 2. The contract's value is moderate, but the lack of competition warrants scrutiny. 3. Potential risks include cost overruns if unforeseen issues arise during repairs. 4. Performance will be key to ensuring the longevity and safety of the switchgear room. 5. This contract falls within the broader category of facilities maintenance and repair for federal buildings. 6. The fixed-price nature of the contract aims to control costs, but flexibility may be limited.

Value Assessment

Rating: fair

The contract value of approximately $3.56 million for switchgear room repairs appears within a reasonable range for specialized facility maintenance in a major metropolitan area. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or identify potential cost savings. The fixed-price structure provides some cost certainty, but the absence of competition limits the ability to assess if the government is receiving the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This significantly limits the number of potential bidders and raises concerns about whether the government explored all available options to secure competitive pricing. The justification for a sole-source award needs to be robust to ensure taxpayer funds are used efficiently. Without competition, there is a reduced incentive for the contractor to offer the most competitive price.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government may not benefit from the price reductions typically achieved through competitive bidding. This limits the government's ability to ensure it is obtaining the best value for public funds.

Public Impact

Federal employees and visitors at the GSA Central Office Building will benefit from improved safety and reliability of electrical systems. The services delivered will ensure the continued operation of essential building functions supported by the switchgear room. The geographic impact is localized to Washington, D.C., specifically the GSA headquarters. The contract may have implications for specialized electrical repair and maintenance workforce in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding raises concerns about potential overpricing and limited value for taxpayer money.
Sole-source award may indicate a lack of market research or an inability to find multiple qualified contractors.
The fixed-price contract might not adequately account for unforeseen complexities discovered during repairs, potentially leading to change orders.
The duration of the contract (over 1.5 years) for repairs could be lengthy, impacting operational continuity if not managed effectively.

Positive Signals

The contract addresses critical infrastructure maintenance, ensuring the operational integrity of a key federal facility.
The fixed-price contract type provides a degree of cost certainty for the government.
The award is to a specific contractor, NS & ASSOCIATES, LLC, indicating a known entity is performing the work.
The contract has a defined start and end date, providing a clear timeline for the project.

Sector Analysis

This contract falls within the facilities maintenance and repair sector, specifically focusing on electrical infrastructure. The market for such services is generally robust, with numerous providers capable of performing specialized repairs. However, the specific nature of switchgear maintenance within a high-security federal building may narrow the field of qualified contractors. Comparable spending benchmarks for similar federal building repair contracts can vary widely based on location, building size, and the complexity of the systems involved.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This means that opportunities for small business participation may be limited unless the prime contractor voluntarily engages them. The absence of a small business set-aside suggests that the procurement was either not targeted towards small businesses or that larger firms were deemed more suitable for this specific requirement.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA), specifically the Public Buildings Service. Mechanisms for oversight would typically include contract performance monitoring, regular progress reports from the contractor, and site inspections. Accountability measures are inherent in the fixed-price contract structure, which incentivizes the contractor to complete the work within the agreed-upon scope and cost. Transparency may be enhanced through public contract databases, but detailed oversight reports are not always publicly available.

Related Government Programs

Federal Building Maintenance Contracts
GSA Facilities Management
Electrical Infrastructure Repair
Critical Infrastructure Maintenance
Government Building Operations

Risk Flags

Sole-source award without clear justification
Potential for inflated pricing due to lack of competition
Limited transparency on contractor's past performance
Risk of scope creep and cost overruns despite fixed-price contract

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3.6 million to NS & ASSOCIATES, LLC. REPAIRS IN SWITCHGEAR ROOM LOCATED AT THE GSA CENTRAL OFFICE BUILDING 1800 F STREET NW WASHINGTON, DC

Who is the contractor on this award?

The obligated recipient is NS & ASSOCIATES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.6 million.

What is the period of performance?

Start: 2025-06-04. End: 2027-01-05.

What is the track record of NS & ASSOCIATES, LLC in performing similar federal contracts, particularly those involving critical infrastructure repairs?

A review of federal contract databases would be necessary to fully assess the track record of NS & ASSOCIATES, LLC. Information regarding past performance, including successful completion of similar projects, adherence to schedules and budgets, and any history of disputes or contract terminations, is crucial. For a contract involving switchgear repairs at a GSA headquarters, it is important to verify if the company has experience with the specific types of equipment and the security requirements associated with federal facilities. Without readily available data on their past performance, it is difficult to definitively assess their capability and reliability for this specific task.

How does the awarded amount of $3.56 million compare to similar switchgear repair contracts awarded by the GSA or other federal agencies?

Benchmarking this $3.56 million contract against similar federal switchgear repair projects is challenging without access to a comprehensive database of comparable contracts. Factors such as the size and complexity of the switchgear, the age and condition of the existing infrastructure, the specific location (which impacts labor and material costs), and the duration of the repair work all influence pricing. Given that this was a sole-source award, a direct price comparison is difficult. However, a general market analysis for specialized electrical infrastructure repairs in the Washington D.C. area would suggest that this amount is substantial, underscoring the need for robust justification for the sole-source nature of the award to ensure value for money.

What specific risks are associated with performing repairs in a switchgear room at a federal headquarters, and how are these risks mitigated by the contract terms?

Performing repairs in a switchgear room at a federal headquarters presents several risks, including potential disruption to essential building operations, safety hazards for personnel working on or near live electrical equipment, and security vulnerabilities. The contract's fixed-price nature aims to mitigate cost overrun risks for the government, provided the scope is well-defined. However, unforeseen issues discovered during the repair process could lead to change orders, increasing the total cost. Mitigation strategies likely include strict safety protocols, phased repair schedules to minimize operational impact, and robust security clearances for personnel. The contract's duration of over 1.5 years also implies a need for careful project management to avoid prolonged disruptions.

What is the expected impact of these repairs on the operational effectiveness and reliability of the GSA Central Office Building?

The repairs to the switchgear room are critical for ensuring the operational effectiveness and reliability of the GSA Central Office Building. Switchgear is a fundamental component of the building's electrical distribution system, controlling and protecting electrical equipment. Aging or malfunctioning switchgear can lead to power outages, equipment damage, and safety hazards. By addressing these repairs, the contract aims to prevent such disruptions, ensuring uninterrupted power supply to the building's essential functions, including lighting, HVAC, IT systems, and security. This directly contributes to a safe and productive working environment for federal employees and visitors.

How has federal spending on facilities maintenance and repair, particularly for electrical systems, trended in recent years, and does this contract align with those trends?

Federal spending on facilities maintenance and repair, including electrical systems, has generally remained a significant budget item as agencies strive to maintain aging infrastructure. Trends often show consistent or increasing investment in critical infrastructure upkeep due to the need to extend the lifespan of existing buildings and systems. This $3.56 million contract for switchgear repairs aligns with this trend by addressing a specific, critical component of a federal facility's electrical system. While specific year-over-year spending trends for electrical repairs would require detailed analysis, the ongoing need for such maintenance suggests this type of contract is a recurring necessity for agencies like the GSA.

Industry Classification

NAICS: Utilities › Water, Sewage and Other Systems › Steam and Air-Conditioning Supply

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47PM0424R0030

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 19512 CAMERON MILL RD, PARKTON, MD, 21120

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,553,633

Exercised Options: $3,553,633

Current Obligation: $3,553,633

Actual Outlays: $110,712

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline