GSA's $18.7M Facilities Maintenance Contract for DC Buildings Awarded to EMCOR Government Services

Contract Overview

Contract Amount: $18,727,113 ($18.7M)

Contractor: Emcor Government Services, Inc

Awarding Agency: General Services Administration

Start Date: 2023-06-01

End Date: 2026-05-31

Contract Duration: 1,095 days

Daily Burn Rate: $17.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BLANKET PURCHASE AGREEMENT CALL ORDER FOR OPTION YEAR 2 STANDARD SERVICES FOR FACILITIES ENGINEERING, OPERATIONS, & MAINTENANCE SERVICES AT FIVE FEDERAL BUILDINGS IN WASHINGTON, D.C.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $18.7 million to EMCOR GOVERNMENT SERVICES, INC for work described as: BLANKET PURCHASE AGREEMENT CALL ORDER FOR OPTION YEAR 2 STANDARD SERVICES FOR FACILITIES ENGINEERING, OPERATIONS, & MAINTENANCE SERVICES AT FIVE FEDERAL BUILDINGS IN WASHINGTON, D.C. Key points: 1. The contract represents a significant investment in maintaining federal infrastructure in the nation's capital. 2. Value for money is assessed by comparing unit costs and service levels against industry benchmarks. 3. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 4. Risk indicators include the potential for cost overruns if unforeseen maintenance issues arise. 5. Performance context is crucial, as the quality of facilities engineering and maintenance directly impacts federal operations. 6. Sector positioning places this contract within the broader facilities support services market, a critical component of government operations.

Value Assessment

Rating: good

The contract's value of $18.7 million over three years for facilities engineering, operations, and maintenance services across five federal buildings in Washington, D.C. appears reasonable given the scope. Benchmarking against similar large-scale facilities management contracts for federal properties suggests that the pricing is competitive, especially considering the firm-fixed-price nature of the award. The General Services Administration (GSA) typically leverages its purchasing power to secure favorable rates, and the duration of the contract allows for economies of scale.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but a full and open competition generally fosters a competitive environment, which is expected to drive down prices and improve service quality. The GSA's procurement processes aim to ensure a fair and transparent selection of contractors.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it maximizes the potential for receiving the best value through competitive bidding, ensuring that government funds are used efficiently.

Public Impact

Federal employees and visitors benefit from safe, functional, and well-maintained federal buildings. Essential services include facilities engineering, operations, and maintenance, ensuring the continuity of government functions. The geographic impact is concentrated in Washington, D.C., affecting five specific federal buildings. Workforce implications include the potential for job creation and retention within the facilities management sector in the D.C. metropolitan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if additional services are required beyond the initial BPA call order.
Dependence on contractor performance for critical building operations.
Risk of price increases in future option years if not adequately managed.

Positive Signals

Award to an established contractor with experience in government facilities management.
Firm-fixed-price contract type helps control costs.
Full and open competition suggests a robust selection process.

Sector Analysis

The facilities support services sector is a vital part of the commercial and government real estate ecosystem. This contract falls under the broad category of facilities support services, which includes a wide range of activities from routine maintenance to complex engineering operations. The market for these services is substantial, with government agencies being significant consumers due to their extensive real estate holdings. Comparable spending benchmarks for similar-sized federal buildings in major metropolitan areas indicate that contracts of this magnitude are common for ensuring operational readiness and occupant comfort.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. The award to a large government contractor like EMCOR Government Services suggests that the primary focus was on securing comprehensive facilities management capabilities. This may limit direct opportunities for small businesses to participate in this specific contract, although they may be involved in the broader facilities support ecosystem.

Oversight & Accountability

The General Services Administration (GSA) oversees this contract through its Public Buildings Service. Oversight mechanisms likely include regular performance reviews, site inspections, and adherence to service level agreements. Accountability is ensured through the contract terms and conditions, with potential penalties for non-performance. Transparency is generally maintained through GSA's public contract databases, although specific performance metrics may not always be publicly disclosed.

Related Government Programs

Federal Building Operations and Maintenance
Government Facilities Management Services
Public Buildings Service Contracts
General Services Administration Procurement

Risk Flags

Potential for cost overruns if scope is not clearly defined.
Contractor performance risk impacting federal operations.
Dependence on a single contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $18.7 million to EMCOR GOVERNMENT SERVICES, INC. BLANKET PURCHASE AGREEMENT CALL ORDER FOR OPTION YEAR 2 STANDARD SERVICES FOR FACILITIES ENGINEERING, OPERATIONS, & MAINTENANCE SERVICES AT FIVE FEDERAL BUILDINGS IN WASHINGTON, D.C.

Who is the contractor on this award?

The obligated recipient is EMCOR GOVERNMENT SERVICES, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.7 million.

What is the period of performance?

Start: 2023-06-01. End: 2026-05-31.

What is EMCOR Government Services' track record with similar federal facilities maintenance contracts?

EMCOR Government Services, Inc. has a substantial track record of performing facilities engineering, operations, and maintenance services for various federal agencies. They are a frequent awardee of large-scale government contracts in this domain, often involving complex building systems and large square footage. Their experience typically includes managing HVAC, electrical, plumbing, and general building upkeep. Analyzing their past performance on similar contracts, including any reported issues or successes, would provide further insight into their capability to meet the requirements of this BPA call order. Past performance evaluations, often available through federal procurement databases, are key to assessing their reliability and effectiveness in delivering these critical services.

How does the $18.7 million cost compare to the market rate for similar services in Washington, D.C.?

Benchmarking the $18.7 million cost against market rates for similar facilities engineering, operations, and maintenance services in Washington, D.C. requires a detailed breakdown of the services included and the square footage of the five federal buildings. However, given the firm-fixed-price nature and the scope covering three years, the average annual cost of approximately $6.2 million for five buildings suggests a competitive rate. Major metropolitan areas like D.C. typically have higher labor and operational costs. The General Services Administration (GSA) leverages its significant purchasing power and established procurement processes to negotiate favorable terms, which likely contributes to achieving a value proposition that aligns with or is better than prevailing market rates for comparable government facilities.

What are the primary risks associated with this facilities maintenance contract?

The primary risks associated with this facilities maintenance contract include potential unforeseen maintenance issues that could exceed the scope of the base contract, leading to change orders and increased costs. Contractor performance is a significant risk; any lapse in essential services like HVAC, electrical, or plumbing could disrupt federal operations and impact employee safety and productivity. Furthermore, the long-term nature of the contract (three years) introduces risks related to inflation and potential increases in material and labor costs, which, if not adequately managed through contract clauses, could affect the overall value. Ensuring robust oversight and clear communication channels with EMCOR Government Services is crucial to mitigating these risks.

How effective is the firm-fixed-price contract type in managing costs for these services?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for services like facilities maintenance because it shifts the risk of cost overruns to the contractor. EMCOR Government Services is obligated to perform the specified services for the agreed-upon price, regardless of their actual costs. This provides budget certainty for the General Services Administration (GSA) and taxpayers. However, the effectiveness of FFP in this context also depends on the thoroughness of the initial scope definition. If unforeseen issues arise that are clearly outside the defined scope, change orders may be necessary, potentially increasing the total cost. The FFP structure incentivizes the contractor to be efficient and manage their resources effectively to maintain profitability.

What is the historical spending pattern for facilities maintenance at these specific federal buildings?

The provided data does not include historical spending patterns for facilities maintenance at these specific five federal buildings. To assess historical spending, one would need to access GSA's historical contract awards and expenditure data for these properties. Analyzing past contracts, their values, durations, and the contractors involved would reveal trends in maintenance costs, identify any significant increases or decreases in spending over time, and highlight recurring maintenance needs. Understanding this historical context is crucial for evaluating whether the current $18.7 million award represents a continuation of established spending levels, a potential increase due to expanded services or inflation, or a decrease achieved through competitive bidding and efficiency.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Miller Electric Company

Address: 6363 WALKER LN, ALEXANDRIA, VA, 22310

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

Financial Breakdown

Contract Ceiling: $80,497,423

Exercised Options: $18,727,113

Current Obligation: $18,727,113

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $484,208

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47PD0121A0002

IDV Type: BPA

Timeline