GSA awards $74.7M for Trade Center Management, highlighting facilities support services

Contract Overview

Contract Amount: $74,706,300 ($74.7M)

Contractor: Trade Center Management Associates L.L.C.

Awarding Agency: General Services Administration

Start Date: 2018-09-08

End Date: 2021-12-31

Contract Duration: 1,210 days

Daily Burn Rate: $61.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE AWARD FEE

Sector: Other

Official Description: TRADE CENTER MANAGER

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 $74.7 million to TRADE CENTER MANAGEMENT ASSOCIATES L.L.C. for work described as: TRADE CENTER MANAGER Key points: 1. Contract value of $74.7 million for facilities support services. 2. Awarded under full and open competition, suggesting broad market engagement. 3. Fixed Price Award Fee contract type indicates performance-based incentives. 4. Long contract duration of 1210 days implies a need for stable, ongoing services. 5. Services provided are categorized under Facilities Support Services (NAICS 561210). 6. Contractor is TRADE CENTER MANAGEMENT ASSOCIATES L.L.C. 7. Geographic location of service is Washington D.C.

Value Assessment

Rating: good

The contract value of $74.7 million for facilities support services over approximately three years appears reasonable given the scope of managing a trade center. Benchmarking against similar large-scale facilities management contracts would provide a more precise value-for-money assessment. The Fixed Price Award Fee structure suggests that the government aims to incentivize performance and cost control, which can lead to better value if managed effectively. Without specific performance metrics and outcomes, a definitive assessment of cost efficiency is challenging, but the competitive award process provides a baseline for fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the General Services Administration (GSA) sought proposals from all responsible sources. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The fact that it was competed openly suggests that the market has sufficient capacity and interest in providing these specialized facilities support services. The number of bidders is not specified, but the open competition itself is a positive indicator for price discovery and potential cost savings for the government.

Taxpayer Impact: Full and open competition generally leads to more competitive pricing, which benefits taxpayers by ensuring the government obtains services at a fair market value. It also promotes innovation and efficiency as contractors vie for the contract.

Public Impact

The primary beneficiaries are likely government agencies and personnel utilizing the facilities managed under this contract. Services delivered include comprehensive facilities support, ensuring operational readiness and maintenance of the trade center. The geographic impact is concentrated in Washington D.C., where the trade center is located. Workforce implications include employment opportunities for individuals in facilities management, maintenance, and administrative roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if award fee targets are not met or if scope creep occurs.
Reliance on a single contractor for critical facilities management functions could pose a risk if performance degrades.
Ensuring consistent service quality across the entire contract duration requires robust oversight.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Fixed Price Award Fee structure incentivizes contractor performance and potentially cost savings.
Contractor has been awarded a definitive contract, implying a thorough vetting process.
Long contract duration suggests a stable and reliable service provider was selected.

Sector Analysis

This contract falls within the Facilities Support Services sector, a segment of the broader commercial real estate and government contracting industry. This sector encompasses a wide range of services including building operations, maintenance, security, and administrative support. The market for such services is substantial, driven by the need to maintain government and commercial properties efficiently. The $74.7 million award is significant and reflects the complexity and scale of managing a major trade center, likely involving multiple specialized functions. Comparable spending benchmarks would typically be found in large-scale property management contracts for commercial or government facilities of similar size and importance.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. However, the prime contractor, TRADE CENTER MANAGEMENT ASSOCIATES L.L.C., may still engage small businesses as subcontractors to fulfill certain aspects of the contract, depending on their own business strategy and the specific requirements of the work. The absence of a small business set-aside means the primary focus of competition was on larger, potentially more experienced firms capable of handling the full scope of services.

Oversight & Accountability

Oversight for this contract would primarily be managed by the contracting officer and the contract administration team within the General Services Administration (GSA), specifically the Public Buildings Service. The Fixed Price Award Fee structure implies that performance metrics will be monitored to determine award fee payouts, providing a direct accountability mechanism. Transparency is facilitated through the contract award process itself, which was competed openly. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Federal Buildings Fund
Government Facilities Management Contracts
Public Buildings Service Operations
Trade Center Operations Support

Risk Flags

Performance Risk: Potential for service quality degradation over the contract's long duration.
Cost Control Risk: Ensuring the fixed price remains competitive and award fees are justified.
Dependency Risk: Reliance on a single entity for critical facility operations.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $74.7 million to TRADE CENTER MANAGEMENT ASSOCIATES L.L.C.. TRADE CENTER MANAGER

Who is the contractor on this award?

The obligated recipient is TRADE CENTER MANAGEMENT ASSOCIATES L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $74.7 million.

What is the period of performance?

Start: 2018-09-08. End: 2021-12-31.

What is the track record of TRADE CENTER MANAGEMENT ASSOCIATES L.L.C. with federal contracts, particularly in facilities support?

A comprehensive review of TRADE CENTER MANAGEMENT ASSOCIATES L.L.C.'s federal contract history would be necessary to fully assess their track record. This would involve examining past performance evaluations, any contract disputes or terminations, and the types and values of previous awards. For this specific $74.7 million contract, the award itself suggests they met the government's criteria for responsibility and capability. However, without access to a detailed contract performance database or past performance questionnaires, it's difficult to provide a definitive assessment of their overall reliability and expertise in facilities support beyond what is implied by winning this competitive bid.

How does the $74.7 million contract value compare to similar facilities management contracts for trade centers or large government facilities?

The $74.7 million contract value for facilities support services over approximately three years (1210 days) is substantial. To benchmark this effectively, one would need to compare it against contracts for managing facilities of similar size, complexity, and function, such as other major trade centers, large federal office complexes, or convention centers. Factors like geographic location (cost of labor and services), specific services included (e.g., security, catering, specialized maintenance), and contract duration significantly influence pricing. A preliminary assessment suggests it is within a reasonable range for a large-scale, multi-faceted facilities management contract, especially given it was awarded through full and open competition.

What are the key performance indicators (KPIs) tied to the 'Award Fee' component of this contract?

The 'Award Fee' component of this Fixed Price Award Fee contract is designed to incentivize the contractor to exceed minimum performance standards. While the specific KPIs are not detailed in the provided data, they typically relate to critical aspects of facilities management. These could include metrics such as response times for maintenance requests, building system uptime (HVAC, electrical), cleanliness standards, energy efficiency targets, security incident response, customer satisfaction surveys from facility users, and adherence to safety protocols. The government would evaluate the contractor's performance against these KPIs to determine the amount of award fee earned, ensuring a direct link between performance and financial reward.

What is the potential risk associated with the long contract duration (1210 days)?

A long contract duration, such as 1210 days (over three years), can present several risks. Firstly, it increases the government's exposure to potential contractor underperformance over an extended period. If the contractor's quality of service declines or they fail to adapt to changing needs, correcting the issue might be more complex than with a shorter contract. Secondly, long-term contracts can sometimes lead to complacency on the part of the contractor, reducing the incentive for continuous improvement. Lastly, market conditions or technological advancements might shift significantly during the contract term, potentially making the contracted services or pricing less optimal compared to newer market offerings. Robust oversight and clear performance standards are crucial to mitigate these risks.

How does the 'Facilities Support Services' category (NAICS 561210) typically encompass the services provided under this contract?

The North American Industry Classification System (NAICS) code 561210, Facilities Support Services, broadly covers establishments that provide a variety of support services to other businesses and organizations on a contract or fee basis. This typically includes general building maintenance, cleaning, security, waste management, and other operational support. For a trade center, these services would likely be specialized to include managing the operational aspects of the facility, ensuring it is safe, functional, and presentable for its intended use, which could involve managing utilities, coordinating repairs, overseeing janitorial staff, and potentially managing visitor access and internal logistics.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 47PM0618R0010

Offers Received: 1

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Address: 1300 PENNSYLVANIA AVE NW STE 268, WASHINGTON, DC, 20004

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $74,706,300

Exercised Options: $74,706,300

Current Obligation: $74,706,300

Actual Outlays: $6,000,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline