GSA awards $34M bridge contract for Trade Center Management Services to Trade Center Management Associates L.L.C

Contract Overview

Contract Amount: $34,085,153 ($34.1M)

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

Awarding Agency: General Services Administration

Start Date: 2022-09-08

End Date: 2023-12-07

Contract Duration: 455 days

Daily Burn Rate: $74.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRADE CENTER MANAGEMENT SERVICES BRIDGE CONTRACT

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 $34.1 million to TRADE CENTER MANAGEMENT ASSOCIATES L.L.C. for work described as: TRADE CENTER MANAGEMENT SERVICES BRIDGE CONTRACT Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract duration of 455 days suggests a need for sustained services. 3. Awarded by the General Services Administration (GSA), a key federal property manager. 4. The contract is for nonresidential property management services. 5. The contract was not competitively procured, raising questions about potential cost savings. 6. The small business status of the contractor is not specified, impacting set-aside analysis.

Value Assessment

Rating: fair

The contract value of $34 million over approximately 15 months represents a significant investment in property management. Without comparable contract data for similar trade center management services, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure provides cost certainty. The benchmark of $74,912 for the base award suggests a substantial scope of work, but further analysis would be needed to compare this to industry standards for managing large trade centers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, or in urgent situations. The lack of competition means that the government did not benefit from the price discovery and potential cost reductions that can arise from a competitive bidding process.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. This could lead to higher costs than if multiple firms had vied for the contract.

Public Impact

The primary beneficiaries are likely federal agencies and personnel utilizing the trade center facilities. Services delivered include the management and operation of trade center facilities. The geographic impact is localized to the District of Columbia, where the trade center is located. Workforce implications may include the retention of existing staff or the hiring of new personnel by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Sole-source awards can limit opportunities for new or smaller businesses to enter the federal market.
The absence of a competitive process makes it difficult to benchmark pricing against market rates.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
The contract duration suggests a stable and ongoing need for these services.
Awarded by GSA, an agency with extensive experience in property management.

Sector Analysis

This contract falls within the broader category of facilities management and real estate services, a significant sector within government contracting. The General Services Administration (GSA) is a primary player in managing federal real estate. Benchmarking this contract's value against other GSA property management contracts or similar large-scale facility operations would provide further context on its scale and potential cost-effectiveness.

Small Business Impact

The provided data does not indicate whether this contract included a small business set-aside or if the contractor is a small business. If the contractor is not a small business, there are no direct subcontracting opportunities for small businesses mandated by this award. Further investigation would be needed to determine if any subcontracting plans were part of the award or if the contractor has a history of engaging small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration's Public Buildings Service. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though the specifics of performance monitoring and any Inspector General involvement would require deeper examination of the contract file.

Related Government Programs

Federal Building Operations
Government Property Management
Facilities Support Services
Trade Center Operations

Risk Flags

Sole-source award may lead to higher costs.
Lack of competition limits price discovery.
Potential for contractor complacency.
Limited opportunities for new market entrants.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $34.1 million to TRADE CENTER MANAGEMENT ASSOCIATES L.L.C.. TRADE CENTER MANAGEMENT SERVICES BRIDGE CONTRACT

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 $34.1 million.

What is the period of performance?

Start: 2022-09-08. End: 2023-12-07.

What is the track record of Trade Center Management Associates L.L.C. with federal contracts?

A review of federal contract databases indicates that Trade Center Management Associates L.L.C. has been awarded federal contracts primarily by the General Services Administration. The nature of these contracts appears to be focused on facility management and related services. Specific details regarding past performance, including on-time delivery, quality of service, and adherence to budget on previous contracts, would require a more in-depth analysis of contract performance reports and any associated award or termination data. Understanding their history with sole-source awards versus competitive bids would also provide valuable insight into their market positioning and the government's reliance on their services.

How does the value of this contract compare to similar trade center management services?

Direct comparison of this $34 million contract for Trade Center Management Services is challenging without access to a database of similar, competitively awarded contracts. The base award of $74,912 suggests a significant scope of work, but the total value over the contract's duration is substantial. To benchmark effectively, one would need to identify contracts for managing comparable large-scale public venues or trade centers, considering factors like square footage, amenities, security requirements, and operational complexity. The sole-source nature of this award further complicates direct value comparisons, as competitive pressures are absent.

What are the primary risks associated with this sole-source award?

The primary risk associated with this sole-source award is the potential for inflated costs due to the lack of competition. Without multiple bidders vying for the contract, the government may not be achieving the most favorable pricing. Another risk is the potential for complacency from the contractor, as there is no immediate competitive threat to incentivize superior performance or cost efficiency. Furthermore, sole-source awards can limit opportunities for innovation and the introduction of new service providers into the federal market, potentially hindering long-term cost savings and service improvements.

What is the expected effectiveness of Trade Center Management Associates L.L.C. in fulfilling this contract?

The effectiveness of Trade Center Management Associates L.L.C. in fulfilling this contract hinges on their past performance and the specific requirements outlined in the contract statement of work. As this is a bridge contract, it implies an ongoing need for services that were likely being provided previously. The General Services Administration's decision to award a sole-source contract suggests a belief in the contractor's ability to continue providing these essential services without interruption. However, without detailed performance metrics from previous engagements or a competitive evaluation, a definitive assessment of expected effectiveness remains speculative.

What are the historical spending patterns for Trade Center Management Services by the GSA?

Analyzing historical spending patterns for Trade Center Management Services by the GSA would involve examining contract awards over several fiscal years. This would reveal trends in contract values, durations, and the number of competitive versus sole-source awards. Understanding if this $34 million contract represents an increase or decrease in spending for these services, and whether the GSA typically relies on sole-source providers for this function, would provide crucial context. Such analysis could highlight shifts in procurement strategies or identify potential areas for cost savings through increased competition.

Are there any specific performance metrics or KPIs tied to this contract?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) associated with this contract. Typically, federal contracts, especially those for services, include detailed requirements and performance standards that the contractor must meet. These might include response times for maintenance issues, cleanliness standards, security protocols, and customer satisfaction ratings. The effectiveness of the contract is measured against these KPIs, and failure to meet them can result in penalties or contract termination. A thorough review of the contract's statement of work and any associated performance-based clauses would be necessary to identify these specific metrics.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47PM0622R0019

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, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,085,153

Exercised Options: $34,085,153

Current Obligation: $34,085,153

Actual Outlays: $34,085,153

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $3,000,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline