Elcon Enterprises Inc. awarded $2.4M IDIQ for Smithsonian vertical transportation services

Contract Overview

Contract Amount: $2,421,530 ($2.4M)

Contractor: Elcon Enterprises Inc

Awarding Agency: Smithsonian Institution

Start Date: 2016-04-19

End Date: 2026-12-31

Contract Duration: 3,908 days

Daily Burn Rate: $620/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Construction

Official Description: IDIQ FUNDING FOR SI VERTICAL TRANSPORTATION CONTRACT FOR SPECIAL REQUESTS, EVENTS, REPAIRS, PURCHASES, ETC.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20560

State: District of Columbia Government Spending

Plain-Language Summary

Smithsonian Institution obligated $2.4 million to ELCON ENTERPRISES INC for work described as: IDIQ FUNDING FOR SI VERTICAL TRANSPORTATION CONTRACT FOR SPECIAL REQUESTS, EVENTS, REPAIRS, PURCHASES, ETC. Key points: 1. Contract provides flexible support for vertical transportation needs, including repairs and purchases. 2. Full and open competition suggests a competitive bidding process was utilized. 3. The contract duration extends through December 2026, indicating a long-term need. 4. Delivery orders under this IDIQ allow for task-specific procurement. 5. The contract is categorized under 'Other Building Equipment Contractors', highlighting its specialized nature. 6. Geographic focus is within the District of Columbia.

Value Assessment

Rating: fair

The total obligated amount is $2.42 million over a period potentially spanning from 2016 to 2026. Without specific details on individual delivery orders, it's challenging to benchmark the value for money precisely. However, the IDIQ structure allows for competitive pricing on individual task orders, which can lead to better value over time. The contract type is labor hours, which can be subject to cost overruns if not managed carefully.

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 bids. This typically fosters a competitive environment, potentially leading to more favorable pricing and better quality services for the government. The number of bidders is not specified, but the competition type suggests a robust process.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible pricing and service for vertical transportation needs at the Smithsonian Institution.

Public Impact

The Smithsonian Institution benefits from reliable vertical transportation services, ensuring accessibility and functionality across its facilities. Services include repairs, purchases, and special requests related to elevators, escalators, and other vertical transport systems. The primary geographic impact is within the District of Columbia, where the Smithsonian's main campuses are located. This contract supports the operational efficiency of the Smithsonian's public-facing and administrative buildings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hour contracts can sometimes lead to increased costs if work extends beyond initial estimates.
The long duration of the contract (potentially 10 years) requires ongoing monitoring to ensure continued value.
Reliance on a single contractor for a broad range of vertical transportation needs could pose risks if the contractor underperforms.

Positive Signals

Full and open competition suggests a fair and transparent procurement process.
The IDIQ structure allows flexibility to address diverse and evolving needs.
The contract's long-term nature provides stability for essential maintenance and upgrades.

Sector Analysis

This contract falls within the broader construction and facilities maintenance sector, specifically focusing on building equipment. The market for vertical transportation services, including installation, maintenance, and repair, is specialized and competitive. The Smithsonian Institution, as a major cultural and research institution, requires consistent and reliable infrastructure support, making such contracts essential for its operations. Benchmarking against similar contracts would require access to detailed delivery order data and specific service scopes.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed in the provided information. Without specific subcontracting plans or goals, it's difficult to assess the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Smithsonian Institution. The IDIQ structure allows for task-specific oversight through the review and approval of individual delivery orders. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Schedules for building maintenance and repair
National Park Service (NPS) facilities maintenance contracts
Architect of the Capitol (AOC) building operations and maintenance

Risk Flags

Potential for cost overruns due to labor hour contract type.
Long contract duration requires sustained oversight.
Lack of specific detail on competition level (number of bidders).

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $2.4 million to ELCON ENTERPRISES INC. IDIQ FUNDING FOR SI VERTICAL TRANSPORTATION CONTRACT FOR SPECIAL REQUESTS, EVENTS, REPAIRS, PURCHASES, ETC.

Who is the contractor on this award?

The obligated recipient is ELCON ENTERPRISES INC.

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2016-04-19. End: 2026-12-31.

What is the historical spending pattern for vertical transportation services at the Smithsonian Institution prior to this contract?

Analyzing historical spending patterns for vertical transportation services at the Smithsonian Institution prior to this IDIQ contract (awarded April 2016) would provide crucial context for evaluating its value and necessity. Without access to historical procurement data, it's difficult to ascertain if this $2.42 million IDIQ represents an increase, decrease, or stable level of investment in these services. Understanding past expenditures on maintenance, repairs, and new installations would help determine if the current contract is adequately funded, potentially overfunded, or underfunded relative to historical needs. It would also reveal if there were previous long-term contracts or a series of smaller, ad-hoc procurements, informing whether the IDIQ approach is a more efficient strategy for managing these ongoing operational requirements.

How does the pricing structure of individual delivery orders under this contract compare to market rates for similar vertical transportation services?

To assess the value for money, a detailed comparison of the pricing structure for individual delivery orders under this Elcon Enterprises Inc. contract against prevailing market rates for similar vertical transportation services is essential. This involves examining the labor rates (hourly wages for technicians, supervisors, etc.), material markups, and any fixed fees associated with specific tasks like emergency repairs, routine maintenance, or equipment purchases. Benchmarking against publicly available data from other federal agencies, state and local governments, or even private sector industry reports can reveal if Elcon's pricing is competitive. Deviations from market rates, whether significantly higher or lower, warrant further investigation into the specific scope of work, urgency, and any unique requirements stipulated in the delivery orders.

What is Elcon Enterprises Inc.'s track record with federal vertical transportation contracts?

Investigating Elcon Enterprises Inc.'s track record with federal vertical transportation contracts is crucial for assessing performance risk and reliability. This involves reviewing past contract performance evaluations (e.g., CPARS reports), any history of contract disputes, modifications, or terminations for default. Understanding their experience with similar IDIQ vehicles and delivery order structures provides insight into their operational capacity and management capabilities. Furthermore, examining the types and scale of previous federal contracts awarded to Elcon in this sector can indicate their level of expertise and suitability for the Smithsonian's needs. A history of successful, on-time, and within-budget performance would signal a lower risk, while past issues might suggest a need for closer monitoring.

What specific types of vertical transportation equipment are covered under this contract, and are there any planned upgrades or replacements?

The contract broadly covers 'vertical transportation' services, which typically includes elevators, escalators, and potentially other systems like dumbwaiters or lifts. However, the specific types of equipment covered under this IDIQ are not detailed in the provided summary. Understanding the exact scope is important for assessing the contract's relevance and potential future needs. Furthermore, determining if this contract is intended to fund planned upgrades or replacements of aging vertical transportation systems at the Smithsonian is key. If significant capital investments for new equipment or major overhauls are anticipated, the current funding level and contract structure should be evaluated against those projected costs to ensure adequate resources are available and the procurement approach is appropriate for major capital expenditures.

What are the key performance indicators (KPIs) used to measure the success of this contract and Elcon Enterprises Inc.'s performance?

Effective oversight of this contract relies on clearly defined Key Performance Indicators (KPIs) to measure the success of both the services provided and Elcon Enterprises Inc.'s performance. While not explicitly stated in the summary, typical KPIs for such a contract might include response times for emergency repairs, preventative maintenance completion rates, equipment uptime percentages, adherence to safety standards, and customer satisfaction ratings from Smithsonian facility managers. The Smithsonian Institution's contracting officer and relevant program managers would be responsible for establishing, tracking, and evaluating these KPIs throughout the contract's life. Regular performance reviews based on these metrics are essential for ensuring accountability and identifying any areas needing improvement or corrective action.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Other Building Equipment Contractors

Product/Service Code: MATERIALS HANDLING EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 8231 PENN RANDALL PL, UPPER MARLBORO, MD, 20772

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

Financial Breakdown

Contract Ceiling: $2,421,530

Exercised Options: $2,421,530

Current Obligation: $2,421,530

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F16CC10100

IDV Type: IDC

Timeline