GSA's $10.45M Mechanical Maintenance Contract with CSI International, LLC awarded under full and open competition

Contract Overview

Contract Amount: $10,449,813 ($10.4M)

Contractor: CSI International, LLC

Awarding Agency: General Services Administration

Start Date: 2006-06-01

End Date: 2010-05-31

Contract Duration: 1,460 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MECHANICAL OPERATIONS & MAIINTENANCE SERVICE

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60604

State: Illinois Government Spending

Plain-Language Summary

General Services Administration obligated $10.4 million to CSI INTERNATIONAL, LLC for work described as: MECHANICAL OPERATIONS & MAIINTENANCE SERVICE Key points: 1. The contract value of $10.45 million over four years suggests a significant investment in maintaining federal building infrastructure. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process, potentially leading to better pricing. 3. The firm-fixed-price contract type shifts cost risk to the contractor, CSI International, LLC. 4. The North American Industry Classification System (NAICS) code 238220 indicates a focus on plumbing, heating, and air-conditioning contracting services. 5. The contract duration of 1460 days (4 years) provides a stable period for service delivery and performance evaluation. 6. The contract was awarded by the General Services Administration (GSA), a key agency for federal building management.

Value Assessment

Rating: good

The contract value of approximately $10.45 million over four years averages to about $2.61 million annually. Benchmarking this against similar large-scale mechanical maintenance contracts for federal facilities managed by GSA would provide a clearer picture of value for money. Without specific comparable contract data, it's difficult to definitively assess if the pricing is optimal, but the firm-fixed-price structure suggests a degree of cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 9 bidders suggests a healthy level of interest and competition for this type of service. A competitive environment generally fosters price discovery and encourages contractors to offer their best terms and pricing to win the award.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award. It ensures that taxpayer funds are used efficiently by leveraging market forces to secure the best possible value.

Public Impact

Federal buildings managed by the General Services Administration in Illinois will benefit from reliable mechanical operations and maintenance. This contract ensures the continued functionality of critical building systems such as plumbing, heating, and air conditioning. The services provided contribute to the safety, comfort, and operational efficiency of federal workspaces. The contract supports jobs within the mechanical contracting industry, potentially benefiting the local workforce in Illinois.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, given the long duration.
Reliance on a single contractor for critical building systems could pose a risk if performance falters.
Ensuring consistent quality of service across all maintenance tasks over four years requires diligent oversight.

Positive Signals

Firm-fixed-price contract structure provides cost predictability.
Awarded through full and open competition, indicating a competitive selection process.
Contractor CSI International, LLC has a track record with GSA, suggesting familiarity with agency requirements.

Sector Analysis

The mechanical operations and maintenance sector is crucial for the functioning of commercial and government buildings. This contract falls within the construction services sub-sector, specifically NAICS 238220. The market for federal building maintenance is substantial, with agencies like GSA managing vast portfolios of real estate. This contract represents a portion of that overall spending, focused on ensuring the operational integrity of facilities through specialized HVAC and plumbing services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false) and was awarded to CSI International, LLC. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely limited unless CSI International voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

The General Services Administration (GSA) typically employs various oversight mechanisms for its contracts, including performance monitoring, contract administration, and quality assurance. As this contract was awarded by GSA's Public Buildings Service, it would fall under their established oversight protocols. Transparency is generally maintained through contract award databases, and accountability is enforced through contract terms and potential remedies for non-performance. Inspector General oversight may also be applicable depending on the specific circumstances and any reported issues.

Related Government Programs

Federal Building Maintenance Services
General Services Administration Contracts
HVAC Services Contracts
Plumbing Services Contracts
Public Buildings Service Contracts

Risk Flags

Contract duration may lead to price inflexibility in changing economic conditions.
Potential for performance degradation over a long-term contract if not actively managed.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $10.4 million to CSI INTERNATIONAL, LLC. MECHANICAL OPERATIONS & MAIINTENANCE SERVICE

Who is the contractor on this award?

The obligated recipient is CSI INTERNATIONAL, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.4 million.

What is the period of performance?

Start: 2006-06-01. End: 2010-05-31.

What is the historical spending pattern for mechanical operations and maintenance services by the General Services Administration?

The General Services Administration (GSA) is a significant spender on facility maintenance and operations to manage its vast portfolio of federal buildings. Historical spending data reveals a consistent allocation of funds towards services like HVAC, plumbing, and general building upkeep. Analyzing GSA's budget justifications and contract award databases over the past decade would show fluctuations tied to infrastructure needs, modernization projects, and economic conditions. For instance, periods of increased infrastructure investment or aging building stock often correlate with higher spending on maintenance. The $10.45 million awarded to CSI International, LLC is one data point within this broader spending trend, reflecting the ongoing need for specialized mechanical services to ensure the operational integrity and safety of federal facilities.

How does the number of bidders (9) compare to similar GSA mechanical maintenance contracts?

A total of 9 bidders for a contract valued at $10.45 million, awarded under full and open competition, suggests a reasonably competitive market for this specific service and geographic region. To provide a precise comparison, one would need to analyze a dataset of similar GSA mechanical maintenance contracts (e.g., within the same NAICS code, similar dollar ranges, and awarded over a comparable timeframe). Generally, for large-scale federal contracts, a higher number of bidders (e.g., 5-10+) indicates robust competition. Fewer bidders might suggest market concentration, specialized requirements, or limited contractor capacity. The 9 bidders here indicate that CSI International, LLC likely faced meaningful competition, which is a positive sign for price discovery and value for taxpayers.

What are the potential risks associated with a 4-year firm-fixed-price contract for mechanical maintenance?

A 4-year firm-fixed-price (FFP) contract for mechanical maintenance presents several potential risks. For the government, the primary risk is that the fixed price might become uncompetitive over time if market rates for labor and materials increase significantly, especially in a volatile economic environment. If the contractor underbid to win the contract, they might face financial strain, potentially impacting service quality or leading to requests for equitable adjustments. For the contractor, the risk lies in underestimating the scope of work, unforeseen maintenance challenges, or significant cost escalations, which could erode profit margins. Diligent contract management, including performance monitoring and potentially incorporating mechanisms for price adjustments under specific, predefined conditions (though this deviates from pure FFP), is crucial to mitigate these risks and ensure sustained service delivery.

What is CSI International, LLC's track record with the General Services Administration?

CSI International, LLC has a history of contract awards with the General Services Administration (GSA). The provided data indicates this specific contract (ID: DCA) was awarded on June 1, 2006, and expired on May 31, 2010. This suggests a prior working relationship and experience with GSA's procurement processes and facility management requirements. Further analysis of GSA's contract database would reveal the full extent of their awards, including contract values, performance history, and any potential issues or commendations. A contractor's established relationship with an agency like GSA can indicate familiarity with operational standards and reporting requirements, potentially contributing to smoother contract execution.

How does the average annual value of this contract compare to industry benchmarks for similar services?

The average annual value of this contract is approximately $2.61 million ($10.45 million / 4 years). Comparing this to industry benchmarks requires access to proprietary market data or detailed analysis of comparable federal and commercial contracts. Factors influencing benchmarks include geographic location (Illinois), the specific mix of services (HVAC, plumbing, heating), the size and complexity of the facilities being serviced, and prevailing labor and material costs. Without specific benchmark data for mechanical maintenance services in the Illinois region for facilities of comparable size and type, it is challenging to definitively state whether this contract represents a superior or inferior value. However, the firm-fixed-price structure and competitive award process suggest an effort to achieve market-based pricing.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GS-05P-05-SIC-0048

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 328 NEWMAN SPRINGS RD STE 1, RED BANK, NJ, 90

Business Categories: Category Business, Not Designated a Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $10,449,813

Exercised Options: $10,449,813

Current Obligation: $10,449,813

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Timeline