GSA's $9.9M Elevator Maintenance Contract for J. Edgar Hoover Building Awarded to Elcon Enterprises Inc

Contract Overview

Contract Amount: $9,912,032 ($9.9M)

Contractor: Elcon Enterprises Inc

Awarding Agency: General Services Administration

Start Date: 2005-01-13

End Date: 2012-01-29

Contract Duration: 2,572 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELEVATOR UPGRADE AND OPERATION AND MAINTENANCE OF ELEVATORS AT THE J. EDGAR HOOVER BUILDING, 935 PENNSYLVANIA AVENUE, NW., WASHINGTON, DC.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $9.9 million to ELCON ENTERPRISES INC for work described as: ELEVATOR UPGRADE AND OPERATION AND MAINTENANCE OF ELEVATORS AT THE J. EDGAR HOOVER BUILDING, 935 PENNSYLVANIA AVENUE, NW., WASHINGTON, DC. Key points: 1. Contract value of $9.9 million over its duration. 2. Procured via full and open competition, suggesting a broad market solicitation. 3. Firm-fixed-price contract type indicates price certainty for the government. 4. Contract duration of approximately 7 years (2572 days). 5. Specialty trade contractor in the elevator services sector. 6. Awarded by the General Services Administration (GSA), Public Buildings Service. 7. Geographic focus on Washington, D.C.

Value Assessment

Rating: fair

The contract value of $9.9 million for elevator upgrades and maintenance over nearly 7 years appears to be within a reasonable range for a large federal building in Washington D.C. However, without specific details on the scope of work (e.g., number of elevators, complexity of upgrades, service level agreements), a precise value-for-money assessment is challenging. Benchmarking against similar GSA contracts for elevator services in comparable facilities would provide a clearer picture of whether this price reflects competitive market rates and efficient spending.

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 offers. The presence of 4 bidders suggests a moderate level of competition for this specialized service. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access to government contracts, the specific number of bidders (4) might suggest that the market for such specialized elevator services in the D.C. area is not exceptionally crowded, or that other factors limited participation.

Taxpayer Impact: A competitive process, even with a moderate number of bidders, generally benefits taxpayers by driving down prices and encouraging efficient service delivery compared to sole-source or limited competition scenarios.

Public Impact

Federal employees and visitors utilizing the J. Edgar Hoover Building benefit from reliable elevator operations. Ensures the continued functionality and safety of critical vertical transportation systems within a major federal facility. Supports the operational continuity of agencies housed within the J. Edgar Hoover Building. The contract supports specialized labor within the elevator maintenance and repair industry in the Washington D.C. metropolitan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition remains limited.
Dependence on a single contractor for critical building infrastructure maintenance.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Firm-fixed-price contract provides cost certainty for the government.
Long-term contract allows for consistent service and maintenance planning.

Sector Analysis

This contract falls within the Specialty Trade Contractors sector, specifically focusing on elevator maintenance and repair services. The market for elevator services is characterized by specialized technical expertise and often involves long-term service agreements. Federal spending in this area is driven by the need to maintain the safety and operational efficiency of government buildings. Comparable spending benchmarks would involve analyzing other GSA or agency contracts for similar elevator services in large federal office buildings across major metropolitan areas.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses were eligible to compete and likely won the contract. There is no explicit information on subcontracting requirements or performance in this data. The lack of a small business set-aside means that opportunities for small businesses to directly participate in this specific contract may be limited, though they could potentially be involved as subcontractors if Elcon Enterprises Inc. utilizes them.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Oversight mechanisms would typically include contract performance monitoring, regular progress reports from the contractor, and quality assurance checks to ensure services meet specified standards. As a firm-fixed-price contract, financial oversight focuses on ensuring deliverables are met within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting, though specific performance details may be internal.

Related Government Programs

Federal Building Maintenance Contracts
GSA Elevator Services
Specialty Trade Contractor Services
Facilities Management Contracts
J. Edgar Hoover Building Operations

Risk Flags

Long-term contract duration may expose government to uncompetitive pricing if market conditions change.
Lack of detailed performance metrics in summary data makes value assessment difficult.
No explicit mention of small business subcontracting goals or performance.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $9.9 million to ELCON ENTERPRISES INC. ELEVATOR UPGRADE AND OPERATION AND MAINTENANCE OF ELEVATORS AT THE J. EDGAR HOOVER BUILDING, 935 PENNSYLVANIA AVENUE, NW., WASHINGTON, DC.

Who is the contractor on this award?

The obligated recipient is ELCON ENTERPRISES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.9 million.

What is the period of performance?

Start: 2005-01-13. End: 2012-01-29.

What was the specific scope of work included in the elevator upgrade and maintenance services?

The provided data does not detail the specific scope of work for the elevator upgrade and maintenance. Typically, such contracts would encompass routine inspections, preventative maintenance, emergency repairs, lubrication, cleaning of elevator components, and potentially modernization or upgrade of elevator systems. For the J. Edgar Hoover Building, given its age and size, upgrades could involve replacing control systems, improving safety features, or enhancing energy efficiency. A comprehensive understanding of the scope is crucial for accurately benchmarking the contract's value and assessing performance.

How does the $9.9 million contract value compare to similar elevator maintenance contracts for federal buildings of comparable size and age?

Benchmarking this $9.9 million contract requires comparison with similar contracts for elevator services in large federal buildings, ideally within the Washington D.C. area or other major metropolitan centers. Factors such as the number of elevators, their type (e.g., passenger, freight), the complexity of the building's infrastructure, and the required service levels (e.g., 24/7 response) significantly influence cost. Without access to a database of comparable contracts and their specific details, it's difficult to definitively state if $9.9 million represents excellent, fair, or questionable value. However, for a contract spanning nearly seven years covering a major building, it suggests a substantial but potentially reasonable investment.

What is Elcon Enterprises Inc.'s track record with GSA and other federal agencies for similar services?

The provided data identifies Elcon Enterprises Inc. as the contractor but does not offer details on their performance history or track record with GSA or other federal agencies. A thorough analysis would require examining past performance evaluations, any documented issues or commendations, and the company's experience with contracts of similar size and scope. Federal procurement systems often contain past performance information, which is critical for assessing contractor reliability and capability beyond just the award of a single contract.

What were 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 elevator maintenance contract. In a typical federal contract of this nature, SLAs would define critical metrics such as elevator uptime percentage, response times for service calls (especially emergency calls), and preventative maintenance schedules. KPIs would measure the contractor's adherence to these SLAs and the overall quality of service. The effectiveness of the contract in ensuring reliable elevator operation hinges on these defined performance standards and the GSA's methods for monitoring compliance.

How has federal spending on elevator maintenance and upgrades evolved over the past decade, and where does this contract fit in?

Federal spending on elevator maintenance and upgrades is generally consistent, driven by the ongoing need to maintain the safety and functionality of the federal building portfolio. While this specific contract represents a $9.9 million expenditure over its term, broader trends might show increases due to aging infrastructure, modernization initiatives, or shifts towards more energy-efficient systems. Analyzing historical spending patterns across GSA and other agencies for similar services would reveal whether this contract aligns with or deviates from established spending levels and priorities. Factors like budget allocations for facility maintenance and capital investments influence overall spending.

What are the potential risks associated with a long-term (approx. 7 years) firm-fixed-price contract for elevator services?

A primary risk with a long-term, firm-fixed-price contract is that the fixed price may become uncompetitive if market rates for labor, parts, or materials increase significantly over the contract duration. This could lead to the contractor experiencing reduced profit margins or potentially seeking contract modifications. Conversely, if costs decrease, the government might be overpaying. Another risk is contractor performance degradation over time if incentives for quality are not robustly monitored, or if the contractor becomes complacent due to the long-term nature of the agreement. Ensuring strong oversight and clear performance standards are crucial to mitigate these risks.

Industry Classification

NAICS: Construction › Other Specialty Trade Contractors › All Other Specialty Trade Contractors

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 8231 PENN RANDALL PL, UPPER MARLBORO, MD, 05

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

Financial Breakdown

Contract Ceiling: $9,912,032

Exercised Options: $9,912,032

Current Obligation: $9,912,032

Timeline