GSA awards $10.5M for building automation, with 2 bidders competing for a firm-fixed-price contract

Contract Overview

Contract Amount: $10,535,046 ($10.5M)

Contractor: Spec, LLC

Awarding Agency: General Services Administration

Start Date: 2020-10-15

End Date: 2026-05-29

Contract Duration: 2,052 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BUILDING AUTOMATION SYSTEM INSTALLATION AND MAINTENANCE SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $10.5 million to SPEC, LLC for work described as: BUILDING AUTOMATION SYSTEM INSTALLATION AND MAINTENANCE SERVICES Key points: 1. The contract value of $10.5M over its period of performance suggests a moderate investment in building automation infrastructure. 2. With only two bidders, the competition dynamics may have limited price discovery, potentially impacting overall value for money. 3. The firm-fixed-price contract type shifts performance risk to the contractor, providing cost certainty for the government. 4. This contract falls within the Computer Facilities Management Services NAICS code, indicating a focus on IT-enabled building operations. 5. The General Services Administration (GSA) is the awarding agency, suggesting this service supports federal facilities management. 6. The contract duration of approximately 5.6 years allows for long-term planning and implementation of building automation solutions.

Value Assessment

Rating: fair

Benchmarking the $10.5M contract value against similar building automation system installations and maintenance services is challenging without more specific contract details. However, the relatively low number of bidders (2) in a full and open competition might suggest that the pricing achieved could be higher than if there were more robust competition. The firm-fixed-price nature of the contract provides cost predictability, but the ultimate value for money depends on the quality of services delivered and the efficiency of the system implemented.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, which is the preferred method for maximizing competition. However, with only two bidders submitting proposals, the level of competition was limited. This could indicate potential barriers to entry for other qualified contractors or a specialized market segment. The reduced number of bidders may have constrained the government's ability to secure the most competitive pricing.

Taxpayer Impact: While full and open competition was sought, the low number of actual bidders means taxpayers may not have benefited from the full potential of a highly competitive bidding process, potentially leading to a less optimal price.

Public Impact

Federal facilities managed by the GSA will benefit from modernized building automation systems, leading to improved energy efficiency and operational control. The services delivered will encompass the installation and ongoing maintenance of these critical building systems. The geographic impact is likely concentrated within the regions where GSA-managed facilities are located, primarily in Virginia. The contract supports jobs in the IT and facilities management sectors, requiring skilled technicians and system administrators.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have resulted in a higher price than a more robustly competed contract.
The specific performance metrics and service level agreements are not detailed, making it difficult to assess the contractor's performance potential.
The long contract duration could lead to vendor lock-in if not managed carefully.

Positive Signals

Firm-fixed-price contract type effectively transfers cost overrun risk to the contractor.
Full and open competition was the chosen procurement strategy, aiming for broad market participation.
The contract is awarded to SPEC, LLC, a known entity in federal contracting.

Sector Analysis

The building automation systems market is a significant segment within the broader facilities management and IT services sector. This contract aligns with the increasing government focus on smart buildings, energy efficiency, and operational resilience. Comparable spending benchmarks for similar GSA contracts would provide a clearer picture of the market rate for these services, but the $10.5M value suggests a substantial project.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary awardee, SPEC, LLC, is likely a larger entity, and the contract's direct impact on the small business ecosystem may be minimal unless SPEC, LLC voluntarily engages small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract will be managed by the General Services Administration (GSA), likely through its Federal Acquisition Service. Accountability measures will be embedded in the contract's terms and conditions, including performance standards and payment schedules. Transparency is facilitated by the contract's public availability, but detailed operational oversight mechanisms are not specified.

Related Government Programs

Federal Buildings Fund
Energy Efficiency and Conservation Block Grant Program
Smart Buildings Initiatives

Risk Flags

Limited competition
Potential for cost overruns if scope is not well-defined
Contractor performance risk under FFP

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $10.5 million to SPEC, LLC. BUILDING AUTOMATION SYSTEM INSTALLATION AND MAINTENANCE SERVICES

Who is the contractor on this award?

The obligated recipient is SPEC, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $10.5 million.

What is the period of performance?

Start: 2020-10-15. End: 2026-05-29.

What is the track record of SPEC, LLC in delivering building automation systems and maintenance services to the federal government?

SPEC, LLC has a history of federal contracting, including work related to IT and facilities management. To assess their track record specifically for building automation systems and maintenance, a deeper dive into their past performance on similar contracts would be necessary. This would involve reviewing past performance evaluations, any contract modifications, and the scope of services previously rendered. Without this detailed historical data, it's difficult to definitively gauge their expertise and reliability in this specific domain. However, their presence as an awardee by GSA suggests they meet certain baseline qualifications.

How does the $10.5M contract value compare to similar building automation contracts awarded by GSA or other agencies?

Comparing the $10.5M contract value requires access to a database of similar federal contracts for building automation systems and maintenance. Factors such as contract duration, scope of services (installation vs. maintenance, specific technologies), facility size, and geographic location significantly influence pricing. Given the contract's duration of over 5 years, the annual value is approximately $1.8M. This figure needs to be benchmarked against contracts with comparable characteristics. The limited competition (2 bidders) might suggest the price is not as competitive as it could be in a more crowded field, but without direct comparisons, it's hard to quantify the deviation from market rates.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. These are critical components that define the expected quality, timeliness, and effectiveness of the building automation system installation and maintenance services. Typically, KPIs might include system uptime, response times for maintenance requests, energy savings achieved, and adherence to safety protocols. SLAs would outline the specific remedies or penalties if these standards are not met. The absence of this information in the summary data limits a thorough assessment of performance risk and value.

What is the potential impact of the firm-fixed-price contract type on cost overruns and contractor performance?

A firm-fixed-price (FFP) contract type places the primary responsibility for cost overruns on the contractor, SPEC, LLC. This means that unless there are contract modifications due to unforeseen circumstances or changes in scope initiated by the government, the contractor is obligated to complete the work for the agreed-upon price. This provides significant cost certainty for the General Services Administration (GSA). However, contractors under FFP agreements may sometimes be incentivized to cut corners on quality or service to protect their profit margins, especially if they underestimated costs. Therefore, robust government oversight and clearly defined performance standards are crucial to ensure quality is maintained.

What is the historical spending trend for building automation systems and maintenance services by the General Services Administration?

Analyzing the historical spending trend for building automation systems and maintenance by the GSA would require access to historical contract data over several fiscal years. This would involve identifying all contracts within the relevant NAICS codes (e.g., 541513) and PSC codes related to building automation and facilities management. By aggregating this data, one could identify patterns in spending levels, identify major contract vehicles, and observe any shifts in procurement strategies or technology adoption. Without this historical context, it's difficult to determine if the $10.5M award represents an increase, decrease, or stable level of investment in these services by the GSA.

What specific technologies or systems are included in the 'Building Automation System Installation and Maintenance Services' scope?

The provided data summary for the contract does not specify the exact technologies or systems encompassed by the 'Building Automation System Installation and Maintenance Services.' Building automation systems can range widely, including HVAC control, lighting management, security systems integration, energy monitoring, and occupancy sensors. The specific scope would dictate the complexity of the installation, the required expertise for maintenance, and the potential for energy savings and operational efficiencies. Understanding the specific technologies (e.g., proprietary vs. open-platform systems, specific vendor equipment) is crucial for assessing the long-term maintainability and interoperability of the solution.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: ID08200028

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5305 N SANTA FE AVE, OKLAHOMA CITY, OK, 73118

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,453,489

Exercised Options: $11,009,326

Current Obligation: $10,535,046

Actual Outlays: $7,280,568

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline