GSA awards $2.8M contract for project management support, raising questions on value and competition

Contract Overview

Contract Amount: $2,805,049 ($2.8M)

Contractor: AFG Group Inc.

Awarding Agency: General Services Administration

Start Date: 2023-03-13

End Date: 2025-03-13

Contract Duration: 731 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT MANAGEMENT SUPPORT SERVICES FOR THE OFFICE OF DESIGN AND CONSTRUCTION LEASE PROJECTS DIVISION. PERIOD OF PERFORMANCE: MARCH 14, 2023 TO MARCH 13, 2025

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 $2.8 million to AFG GROUP INC. for work described as: PROJECT MANAGEMENT SUPPORT SERVICES FOR THE OFFICE OF DESIGN AND CONSTRUCTION LEASE PROJECTS DIVISION. PERIOD OF PERFORMANCE: MARCH 14, 2023 TO MARCH 13, 2025 Key points: 1. Contract value appears moderate for project management support services. 2. Competition dynamics suggest a potentially competitive bidding process. 3. Risk indicators are not immediately apparent from the provided data. 4. Performance context is limited to project management for lease projects. 5. Sector positioning is within engineering services for federal buildings.

Value Assessment

Rating: fair

The contract value of approximately $2.8 million over two years for project management support is within a typical range for such services. However, without specific benchmarks for similar GSA lease project support contracts, a definitive value-for-money assessment is challenging. The firm-fixed-price structure suggests a defined scope, which can aid in cost control, but the absence of detailed performance metrics or comparison data makes it difficult to ascertain if the pricing is competitive or represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. With three bidders participating, the competition level appears adequate, suggesting that price discovery was likely influenced by multiple proposals. This level of competition is generally favorable for achieving reasonable pricing and selecting a qualified contractor.

Taxpayer Impact: Full and open competition with multiple bidders generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality.

Public Impact

The Office of Design and Construction Lease Projects Division benefits from enhanced project management capabilities. Services delivered include support for the planning, execution, and oversight of lease-related construction and renovation projects. Geographic impact is primarily within the District of Columbia, where the services are being rendered. Workforce implications may include the utilization of specialized project management personnel by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess contractor effectiveness beyond contract completion.
Limited public information on the specific deliverables and outcomes of the project management support.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
Contract duration of two years allows for sustained support on lease projects.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting federal government real estate and construction projects. The market for these services is characterized by a mix of large engineering firms and specialized project management consultancies. Spending in this area is driven by the government's need to manage its vast portfolio of leased and owned properties, including renovations, new construction, and ongoing maintenance. Benchmarks for similar project management support contracts within federal agencies can vary significantly based on project complexity and duration.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. While the prime contractor, AFG GROUP INC., is not explicitly identified as a small business in the provided data, the contract's structure does not preclude subcontracting opportunities. The impact on the small business ecosystem would depend on whether AFG GROUP INC. utilizes small businesses for subcontracting roles, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the relevant program officials within the General Services Administration's Public Buildings Service. Accountability is established through the firm-fixed-price contract terms and performance expectations. Transparency is facilitated by the public nature of federal contract awards, though detailed project-specific oversight reports are not always publicly available.

Related Government Programs

GSA Lease Administration
Federal Building Construction Management
Public Buildings Service Projects
Engineering Consulting Services

Risk Flags

Potential for cost overruns if scope creep occurs despite fixed-price contract.
Dependence on contractor's expertise may limit internal GSA knowledge retention.
Performance variability among bidders could impact ultimate value realization.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.8 million to AFG GROUP INC.. PROJECT MANAGEMENT SUPPORT SERVICES FOR THE OFFICE OF DESIGN AND CONSTRUCTION LEASE PROJECTS DIVISION. PERIOD OF PERFORMANCE: MARCH 14, 2023 TO MARCH 13, 2025

Who is the contractor on this award?

The obligated recipient is AFG GROUP INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.8 million.

What is the period of performance?

Start: 2023-03-13. End: 2025-03-13.

What is the track record of AFG GROUP INC. in performing similar project management support services for federal agencies, particularly GSA?

Assessing AFG GROUP INC.'s track record requires a review of their past performance on federal contracts. This would involve examining contract databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) for awards and performance evaluations related to project management, construction support, or lease administration. Specifically, looking for contracts with the General Services Administration (GSA) and other agencies involved in managing real estate portfolios would provide the most relevant context. A history of successful contract completions, positive performance reviews, and minimal disputes or terminations would indicate a strong capability. Conversely, a pattern of underperformance, cost overruns, or unresolved issues on prior projects would raise concerns about their ability to deliver effectively on this current contract.

How does the awarded amount of $2.8 million compare to similar project management support contracts managed by GSA's Public Buildings Service?

To benchmark the $2.8 million award, one would need to analyze historical GSA contracts for project management support services, particularly those managed by the Public Buildings Service (PBS) for lease projects. This involves identifying contracts with similar scopes of work, durations (approximately two years), and geographic locations. Data from sources like FPDS can reveal the average and median award values for comparable services. If similar contracts typically range from $1.5 million to $2.5 million, then this $2.8 million award might be considered slightly higher, warranting further investigation into the specific complexities or requirements of this particular project. Conversely, if comparable contracts often exceed $3 million, then this award could represent good value.

What are the key performance indicators (KPIs) used to measure the success of this project management support contract?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided award data. However, typical KPIs for project management support services in construction and lease projects often include adherence to project schedules, budget management (tracking costs against allocated funds), quality of deliverables (e.g., reports, plans, oversight), stakeholder satisfaction (e.g., GSA project managers, building occupants), risk mitigation effectiveness, and compliance with safety and environmental regulations. The firm-fixed-price nature of the contract implies that meeting the defined scope within budget and schedule is paramount. Performance evaluations, often documented in CPARS, would reflect how well AFG GROUP INC. met these implicit or explicit KPIs.

What is the potential impact of this contract on the efficiency and cost-effectiveness of GSA's lease project management?

This contract aims to enhance the efficiency and cost-effectiveness of GSA's lease project management by providing dedicated expertise. Effective project management can lead to better-defined project scopes, more accurate cost estimations, optimized resource allocation, and proactive risk identification and mitigation. This can result in projects being completed on time and within budget, reducing potential cost overruns and delays that inflate overall project expenses. By ensuring projects are well-managed, GSA can potentially reduce the need for costly change orders and minimize disruptions to building operations, thereby contributing to the cost-effectiveness of its extensive lease portfolio.

Given the 'full and open competition' and three bidders, what does this suggest about the market for these specialized project management services?

The fact that this contract was awarded under 'full and open competition' with three bidders suggests a moderately competitive market for specialized project management support services within the GSA's Public Buildings Service. 'Full and open competition' indicates that the government actively sought proposals from all qualified sources, preventing undue restrictions. Three bidders represent a reasonable level of competition, sufficient to encourage competitive pricing and offer the government a choice among qualified firms. However, a larger number of bidders (e.g., five or more) might indicate an even more robust market with potentially greater price reductions. The presence of three bidders suggests that while the market is not saturated, there are multiple capable firms vying for this type of government work.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47PM0923Q0006

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 950 HERNDON PKWY, HERNDON, VA, 20170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,805,049

Exercised Options: $2,805,049

Current Obligation: $2,805,049

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA20D009J

IDV Type: FSS

Timeline