GSA awards $9.27M contract for downtown business improvement services, raising questions about competition

Contract Overview

Contract Amount: $9,271,921 ($9.3M)

Contractor: Downtown Business Improvement District Corp

Awarding Agency: General Services Administration

Start Date: 2022-07-07

End Date: 2026-10-06

Contract Duration: 1,552 days

Daily Burn Rate: $6.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BUSINESS IMPROVEMENT DISTRICT CONTRACT FOR DOWNTOWN

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $9.3 million to DOWNTOWN BUSINESS IMPROVEMENT DISTRICT CORP for work described as: BUSINESS IMPROVEMENT DISTRICT CONTRACT FOR DOWNTOWN Key points: 1. Contract value of $9.27 million over approximately 4 years. 2. Services are categorized under 'All Other Support Services'. 3. Awarded as a definitive contract with a firm fixed price. 4. The contract was not competed, raising potential value concerns. 5. The contractor, Downtown Business Improvement District Corp, is based in Washington D.C. 6. This contract represents a significant investment in local business improvement.

Value Assessment

Rating: questionable

The contract's value of $9.27 million for business improvement services warrants scrutiny due to the lack of competition. Without competitive bidding, it is difficult to benchmark the pricing against market rates or similar contracts. The firm fixed-price structure provides cost certainty but does not inherently guarantee value for money in the absence of a competitive process. Further analysis would be needed to determine if the services provided align with industry standards and if the price is reasonable.

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 limits the opportunity for price discovery and potentially higher quality solutions that might emerge from a competitive environment. The rationale for a sole-source award, if any, is not provided, which is a key factor in assessing the procurement's fairness and efficiency.

Taxpayer Impact: Taxpayers may not be receiving the best possible value for their money when contracts are awarded without competition, as it removes the incentive for vendors to offer competitive pricing.

Public Impact

The primary beneficiaries are businesses and residents within the downtown area of Washington D.C., which will receive improved services. Services likely include sanitation, security, beautification, and economic development initiatives. The geographic impact is concentrated in the downtown district of Washington D.C. The contract supports the operational workforce of the Downtown Business Improvement District Corp.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and suboptimal service delivery.
Sole-source awards can limit innovation and the introduction of new service providers.
Transparency regarding the justification for the sole-source award is not readily available.

Positive Signals

The contract aims to improve a specific geographic area, potentially leading to tangible local benefits.
A firm fixed-price contract provides budget certainty for the awarding agency.
The contractor is an established entity focused on downtown improvement.

Sector Analysis

This contract falls within the broader 'Support Services' sector, specifically focusing on business improvement districts. These entities often manage public spaces, enhance local economies, and provide essential services to businesses and residents in designated urban areas. Benchmarking this contract's value is challenging without more specific details on the scope of services and comparable district management contracts.

Small Business Impact

The contract data indicates that small business participation (ss and sb fields) is false, suggesting no specific set-aside for small businesses or subcontracting requirements were mandated in this award. This means opportunities for small businesses to participate in delivering these services are likely limited unless they are part of the prime contractor's operations.

Oversight & Accountability

Oversight for this contract would typically fall under the General Services Administration (GSA), specifically the Public Buildings Service. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed budget. Transparency is limited by the sole-source nature of the award and the lack of publicly available justification.

Related Government Programs

Municipal Services Contracts
Urban Development Grants
Public Space Management
Economic Development Initiatives

Risk Flags

Sole-source award
Lack of competition
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $9.3 million to DOWNTOWN BUSINESS IMPROVEMENT DISTRICT CORP. BUSINESS IMPROVEMENT DISTRICT CONTRACT FOR DOWNTOWN

Who is the contractor on this award?

The obligated recipient is DOWNTOWN BUSINESS IMPROVEMENT DISTRICT CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.3 million.

What is the period of performance?

Start: 2022-07-07. End: 2026-10-06.

What specific services are included under this 'All Other Support Services' contract?

The provided data classifies the contract under NAICS code 561990, 'All Other Support Services.' While the contract title mentions 'BUSINESS IMPROVEMENT DISTRICT CONTRACT FOR DOWNTOWN,' the specific deliverables are not detailed. Typically, business improvement district services can encompass a wide range of activities such as sanitation, security, street cleaning, beautification, marketing, economic development support, and advocacy for businesses within a defined geographic area. Without a detailed statement of work, it is difficult to ascertain the precise scope and nature of the services being procured.

What is the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. Government contracts are typically competed to ensure fair pricing and maximize value for taxpayers. A sole-source award implies that only one vendor was considered capable of fulfilling the requirement, or that specific circumstances justified bypassing the competitive process (e.g., urgent need, unique capabilities, or existing long-term relationships where competition is deemed impractical). The specific justification for this sole-source award by the General Services Administration (GSA) is not detailed in the provided data and would require further investigation into GSA's procurement records.

How does the contract duration and value compare to similar business improvement district contracts?

The contract has a duration of 1552 days (approximately 4.25 years) and a total value of $9,271,920.66. Comparing this to similar contracts is challenging without more granular data on the scope of services, geographic area covered, and the specific needs addressed. Business improvement district contracts can vary significantly in size and duration depending on the city, the size of the district, and the services provided. The lack of competition for this contract also makes direct value-for-money comparisons difficult, as there is no benchmark from a competitive bidding process.

What is the track record of Downtown Business Improvement District Corp in managing similar contracts?

The provided data identifies 'DOWNTOWN BUSINESS IMPROVEMENT DISTRICT CORP' as the contractor. While the data confirms this entity is the awardee, it does not offer details on its past performance, track record, or experience in managing government contracts or similar business improvement initiatives. To assess the contractor's reliability and capability, a review of their past performance history, client references, and any previous government contract awards or terminations would be necessary.

What are the potential risks associated with a sole-source contract of this magnitude?

Sole-source contracts, especially those of significant value like $9.27 million, carry inherent risks. The primary risk is the potential for inflated pricing due to the absence of competitive pressure, meaning taxpayers may be overpaying for the services. Another risk is the lack of innovation, as the incumbent contractor may have less incentive to improve services or adopt more efficient methods. Furthermore, it can create a barrier to entry for other qualified vendors who could potentially offer better value or specialized expertise. Transparency and accountability can also be diminished without the scrutiny inherent in a competitive bidding process.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47PM0822R0009

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1250 H ST NW STE 1000, WASHINGTON, DC, 20005

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,271,921

Exercised Options: $9,271,921

Current Obligation: $9,271,921

Actual Outlays: $6,909,193

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline