Trade Center Management Associates L.L.C. awarded $37.8M for Ronald Reagan Building operations, a sole-source contract

Contract Overview

Contract Amount: $37,863,834 ($37.9M)

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

Awarding Agency: General Services Administration

Start Date: 2021-03-08

End Date: 2022-09-07

Contract Duration: 548 days

Daily Burn Rate: $69.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRADE CENTER MANAGER BRIDGE CONTRACT AT THE RONALD REAGAN BUILDING AND INTERNATIONAL TRADE CENTER

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 $37.9 million to TRADE CENTER MANAGEMENT ASSOCIATES L.L.C. for work described as: TRADE CENTER MANAGER BRIDGE CONTRACT AT THE RONALD REAGAN BUILDING AND INTERNATIONAL TRADE CENTER Key points: 1. Contract value of $37.8M for 548 days of service. 2. Sole-source award indicates limited competition. 3. Contract covers property management services for a major federal building. 4. Performance period spans from March 2021 to September 2022. 5. Firm-fixed-price contract type aims to control costs. 6. Awarded by the General Services Administration (GSA).

Value Assessment

Rating: fair

The contract value of $37.8 million for approximately 18 months of service for the Ronald Reagan Building and International Trade Center appears to be within a reasonable range for managing such a large and complex facility. However, without specific benchmarks for comparable large-scale property management contracts for federal buildings of this size and scope, a precise value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty, but the lack of competition limits the opportunity for price discovery and potential savings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one vendor, Trade Center Management Associates L.L.C., was solicited and awarded the contract. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they typically result in less price competition and may not yield the best value for taxpayers compared to fully competed contracts.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have benefited from the cost savings that could arise from a competitive bidding process, where multiple firms vie for the contract.

Public Impact

The primary beneficiaries are the federal agencies and the public utilizing the Ronald Reagan Building and International Trade Center. Services delivered include the comprehensive management and operation of a major federal property. The geographic impact is concentrated in Washington D.C., where the building is located. The contract supports the operational workforce required for property management, maintenance, and security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
Sole-source awards can limit innovation and service improvements that might come from a competitive market.
Transparency in the justification for a sole-source award is crucial for public trust.

Positive Signals

The firm-fixed-price contract type provides budget predictability for the government.
The contract duration of 548 days ensures continuity of essential building operations.
The contractor is responsible for managing a significant federal asset, implying a level of trust and capability.

Sector Analysis

This contract falls within the broader facilities management and commercial real estate services sector. The market for managing large, high-profile government buildings is specialized, often involving significant security, operational, and logistical requirements. While specific benchmarks for managing international trade centers are scarce, the overall commercial property management market is substantial. This contract represents a significant portion of spending for a single, high-visibility asset within the federal real estate portfolio.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific set-aside goals or subcontracting requirements, the direct impact on the small business ecosystem for this particular contract is likely minimal, though the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the General Services Administration's Public Buildings Service. Accountability measures are embedded in the contract's performance standards and payment terms. Transparency is generally facilitated through contract award databases, though the specifics of sole-source justifications may have varying levels of public disclosure. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Operations and Maintenance
Government Property Management Services
International Trade Center Operations
GSA Real Estate Management
Public Building Operations

Risk Flags

Sole-source award limits competitive pricing.
Lack of transparency in sole-source justification.
Potential for higher costs due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $37.9 million to TRADE CENTER MANAGEMENT ASSOCIATES L.L.C.. TRADE CENTER MANAGER BRIDGE CONTRACT AT THE RONALD REAGAN BUILDING AND INTERNATIONAL TRADE CENTER

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 $37.9 million.

What is the period of performance?

Start: 2021-03-08. End: 2022-09-07.

What is the track record of Trade Center Management Associates L.L.C. in managing similar federal properties?

Information regarding the specific track record of Trade Center Management Associates L.L.C. in managing federal properties is not detailed in the provided data. However, their award for the Ronald Reagan Building and International Trade Center suggests they possess the necessary qualifications and experience for such a significant undertaking. Further investigation into their past performance on government contracts, client references, and any performance evaluations would be required for a comprehensive assessment of their track record. The GSA's contract award database and performance rating systems (like CPARS) would be primary sources for this information.

How does the cost per square foot for managing the Ronald Reagan Building compare to similar federal properties?

Calculating a precise cost per square foot requires the total square footage of the Ronald Reagan Building, which is not provided. Assuming the building's size, the total contract value of $37.8 million over 548 days (approximately 1.5 years) would need to be divided by the square footage and the contract duration to derive a comparable metric. Without this data, direct comparison is impossible. However, federal buildings of this scale and complexity, housing international trade functions, typically incur higher management costs due to enhanced security, maintenance, and specialized services compared to standard office buildings. Benchmarking against GSA's own portfolio data for similar-sized, high-security federal properties would be the most relevant approach.

What are the specific risks associated with a sole-source contract for property management?

The primary risk associated with a sole-source contract for property management is the lack of competitive pressure, which can lead to inflated prices and reduced incentive for the contractor to optimize service delivery or innovate. Taxpayers may not receive the best possible value for their money. Additionally, sole-source awards can create a perception of favoritism or a lack of transparency if the justification for not competing the contract is not robust and publicly accessible. This can also limit opportunities for new or smaller businesses to enter the market and demonstrate their capabilities.

How effective are the firm-fixed-price contracts in ensuring value for money in property management services?

Firm-fixed-price (FFP) contracts are generally effective in providing cost certainty to the government, as the price is set upfront and does not change unless the contract scope is modified. This shifts the risk of cost overruns to the contractor. For property management services, FFP contracts can be beneficial in ensuring predictable budgeting. However, the value-for-money aspect depends heavily on the initial price negotiation and the contractor's efficiency. If the initial price is too high due to a lack of competition or poor negotiation, the FFP structure may lock in that higher cost, potentially diminishing the overall value despite cost certainty.

What is the historical spending trend for managing the Ronald Reagan Building and International Trade Center?

The provided data only details one contract award ($37.8M from March 2021 to September 2022). To understand historical spending trends, data on previous contracts for the management of the Ronald Reagan Building and International Trade Center would be necessary. This would involve examining contract awards over several preceding years to identify patterns in contract values, durations, types of services procured, and whether those contracts were competed or sole-sourced. Without this historical context, it is impossible to determine if current spending represents an increase, decrease, or stable trend compared to past expenditures.

What are the performance metrics and service level agreements (SLAs) tied to this contract?

The provided data does not specify the performance metrics or service level agreements (SLAs) associated with this contract. Typically, contracts of this nature include detailed requirements for building operations, maintenance, security, janitorial services, and emergency response, each with defined performance standards. These metrics are crucial for evaluating the contractor's effectiveness and ensuring the facility is managed to the required standards. The contracting officer's representative (COR) would be responsible for monitoring adherence to these SLAs, and contract payments would likely be contingent upon meeting them.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Nonresidential Property Managers

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47PM0621Q0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $37,863,834

Exercised Options: $37,863,834

Current Obligation: $37,863,834

Actual Outlays: $37,724,793

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $499,445

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline