GSA awards $20.5M contract for SMS and Room 445 refresh, highlighting construction needs

Contract Overview

Contract Amount: $20,472,602 ($20.5M)

Contractor: Romem Aqua Systems CO Inc

Awarding Agency: General Services Administration

Start Date: 2023-09-29

End Date: 2025-12-04

Contract Duration: 797 days

Daily Burn Rate: $25.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SMS AND ROOM 445 REFRESH

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20506

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $20.5 million to ROMEM AQUA SYSTEMS CO INC for work described as: SMS AND ROOM 445 REFRESH Key points: 1. The contract value of $20.5 million addresses a specific facility upgrade, indicating targeted investment in infrastructure. 2. The procurement method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggests a competitive process with initial source limitations. 3. The definitive contract type implies a single, established agreement for services. 4. The project duration of 797 days points to a substantial scope of work for the refresh. 5. The fixed-price contract structure aims to control costs for the government. 6. The award to ROMEM AQUA SYSTEMS CO INC signifies a specific contractor selected for this project.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the scope of the 'SMS AND ROOM 445 REFRESH.' However, the $20.5 million price tag for a construction and refresh project of nearly two years suggests a significant investment. Without comparable projects or detailed cost breakdowns, it's difficult to definitively assess value for money. The fixed-price nature provides cost certainty, but the overall efficiency depends on the contractor's execution and the accuracy of the initial cost estimates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources may have been excluded initially, possibly due to specific requirements or pre-qualification. The number of bidders is not specified, but the 'exclusion of sources' phrasing suggests a potentially narrower field than a truly unrestricted full and open competition. This could impact the degree of price discovery and potentially lead to higher prices than if all potential sources were considered.

Taxpayer Impact: Taxpayers may have received a competitive price, but the exclusion of certain sources could mean that a more aggressive bid was not possible, potentially leaving some taxpayer funds un-saved.

Public Impact

Federal employees working in or utilizing SMS and Room 445 will benefit from updated facilities. The services delivered include commercial and institutional building construction, focusing on refreshing specific spaces. The geographic impact is localized to the District of Columbia, where the project is situated. The project will likely involve construction workers and potentially impact the local workforce in the DC area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method warrants further investigation to ensure fair market access and optimal pricing.
Lack of detailed scope for 'SMS AND ROOM 445 REFRESH' makes independent value assessment challenging.
The long duration of the contract (797 days) increases the risk of cost overruns or scope creep if not managed tightly.

Positive Signals

The use of 'FULL AND OPEN COMPETITION' aims to leverage market forces for a better outcome.
The 'FIRM FIXED PRICE' contract type provides cost certainty for the government.
The project addresses necessary infrastructure upgrades, which can improve operational efficiency and employee well-being.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The General Services Administration (GSA) is a major procurer of construction and renovation services for federal buildings. The market for such services in the DC metropolitan area is robust, with numerous firms capable of undertaking projects of this scale. Benchmarking against similar GSA building refresh contracts would provide further context on the $20.5 million award value.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). This means the competition was not specifically targeted towards small businesses. While the prime contractor, ROMEM AQUA SYSTEMS CO INC, is not explicitly identified as small or large, the absence of set-asides suggests that subcontracting opportunities for small businesses would depend on the prime contractor's own subcontracting plan and the nature of the work required. There is no explicit indication of direct impact on the small business ecosystem from this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically its Public Buildings Service. As a definitive contract with a fixed price, oversight would focus on ensuring adherence to the contract terms, quality of work, and timely completion. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance or execution.

Related Government Programs

Federal Building Renovations
GSA Public Buildings Service Contracts
Commercial Construction Projects
Facility Modernization Programs

Risk Flags

Competition Level - Potential limitations due to 'exclusion of sources'
Scope Definition - Lack of detailed SOW for value assessment
Contract Duration - Extended timeline increases risk of delays and cost impacts

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $20.5 million to ROMEM AQUA SYSTEMS CO INC. SMS AND ROOM 445 REFRESH

Who is the contractor on this award?

The obligated recipient is ROMEM AQUA SYSTEMS CO INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.5 million.

What is the period of performance?

Start: 2023-09-29. End: 2025-12-04.

What is the specific scope of work for the 'SMS AND ROOM 445 REFRESH' and how does it justify the $20.5 million cost?

The provided data does not detail the specific scope of work for the 'SMS AND ROOM 445 REFRESH.' This refresh likely involves upgrades to systems (potentially related to security, communication, or building management - 'SMS') and a physical renovation of Room 445. The $20.5 million cost suggests significant work, possibly including structural changes, new HVAC, electrical, plumbing, finishes, and technology integration. Without a detailed SOW, it is impossible to independently verify if the cost is justified. Further analysis would require access to the contract's SOW, specifications, and potentially cost breakdowns to compare against industry standards for similar renovation projects in the DC area.

How many bids were received for this contract, and what was the range of pricing offered?

The provided data indicates the contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' and that there was 1 award (no: 1). However, the specific number of bids received is not disclosed in the summary data. The 'exclusion of sources' clause suggests that the initial pool of potential bidders might have been limited. Without knowing the number of bidders and their respective pricing, it's difficult to fully assess the competitiveness of the award and whether the government secured the best possible price. A more thorough analysis would require accessing the solicitation details and bid tabulation.

What is the track record of ROMEM AQUA SYSTEMS CO INC in performing similar federal construction contracts?

Information regarding the track record of ROMEM AQUA SYSTEMS CO INC on similar federal construction contracts is not provided in the summary data. To assess their suitability and past performance, one would need to consult federal procurement databases (like SAM.gov or FPDS) for their contract history, including past performance evaluations, any disputes or claims, and the types and values of projects they have successfully completed. A positive track record with similar projects would increase confidence in their ability to execute this $20.5 million refresh effectively.

How does the $20.5 million contract value compare to historical GSA spending on similar facility refreshes in the DC area?

Comparing this $20.5 million contract to historical GSA spending on similar facility refreshes in the DC area requires access to historical contract data. Without specific benchmarks, it's challenging to determine if this award is within the expected range. GSA's Public Buildings Service manages a vast portfolio, and project costs can vary significantly based on building age, scope of renovation, and market conditions. Analyzing past GSA contracts for building refreshes, renovations, or construction projects of comparable size and complexity within the DC region would be necessary to establish a relevant spending benchmark.

What are the potential risks associated with a 797-day contract duration for a facility refresh?

A 797-day (approximately 2.2 years) duration for a facility refresh presents several potential risks. Firstly, there's an increased risk of cost escalation due to inflation or unforeseen market changes in material and labor costs, even with a fixed-price contract, if contingency planning was inadequate. Secondly, extended project timelines can lead to delays in realizing the intended benefits of the refresh, such as improved operational efficiency or enhanced workspace. Thirdly, prolonged construction can cause disruption to ongoing building operations and occupants. Finally, the longer the project, the greater the chance of scope creep or changes in requirements, which can complicate management and potentially lead to disputes if not handled through formal change order processes.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 47PM1023R0016

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1635 WOODSIDE DR, WOODBRIDGE, VA, 22191

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

Financial Breakdown

Contract Ceiling: $20,472,602

Exercised Options: $20,472,602

Current Obligation: $20,472,602

Actual Outlays: $18,894,652

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline