GSA's $12M Facilities Support Contract with EMCOR Government Services shows fair value over 7 years

Contract Overview

Contract Amount: $11,959,638 ($12.0M)

Contractor: Emcor Government Services, Inc

Awarding Agency: General Services Administration

Start Date: 2006-04-12

End Date: 2013-03-31

Contract Duration: 2,545 days

Daily Burn Rate: $4.7K/day

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATION AND MAINTENANCE SERVICES

Place of Performance

Location: SUITLAND, PRINCE GEORGE'S County, MARYLAND, 20746, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $12.0 million to EMCOR GOVERNMENT SERVICES, INC for work described as: OPERATION AND MAINTENANCE SERVICES Key points: 1. Contract awarded for facilities support services, indicating a need for ongoing operational maintenance. 2. The contract duration of approximately 7 years suggests a stable, long-term requirement. 3. Fixed-price contract type helps manage cost certainty for the government. 4. The number of bids (3) suggests moderate competition for this service. 5. The contract was awarded to EMCOR Government Services, Inc., a known entity in the facilities management space. 6. Geographic location in Maryland may indicate a focus on specific federal installations or regional needs.

Value Assessment

Rating: good

The total award amount of $11.96 million over roughly 7 years averages to approximately $1.7 million annually. This appears reasonable for comprehensive facilities support services, especially considering the scope likely includes maintenance, repair, and operational support for government buildings. Benchmarking against similar contracts for facilities management services of comparable scale and duration would provide a more precise value assessment, but the initial figures do not raise immediate red flags.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

With 3 bids received, the competition level for this contract appears to be moderate. While not a full and open competition, it suggests that multiple vendors were aware of and interested in the opportunity. The specific details of the solicitation process, such as the release of a Broad Agency Announcement or specific set-aside considerations, would further clarify the competition dynamics. A moderate level of competition can still lead to competitive pricing, but a higher number of bidders often drives prices down further.

Taxpayer Impact: A moderate level of competition indicates that taxpayers likely benefited from some price discovery, though potentially not to the fullest extent achievable with broader outreach.

Public Impact

Federal agencies operating in Maryland benefit from reliable facilities maintenance and operational support. The contract ensures the upkeep and functionality of public buildings, contributing to a safe and efficient working environment. The services provided support the continuity of government operations by maintaining critical infrastructure. Workforce implications include employment opportunities for skilled trades and facility management professionals employed by EMCOR Government Services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exact scope of 'Facilities Support Services' is broad and could encompass a wide range of activities, requiring careful monitoring to ensure all services are necessary and efficiently delivered.
Without knowing the specific performance metrics and Service Level Agreements (SLAs), it's difficult to fully assess the quality and efficiency of the services provided.
The fixed-price nature of the contract, while offering cost certainty, could incentivize cost-cutting measures that might impact service quality if not rigorously overseen.

Positive Signals

The contract's long duration suggests a successful working relationship and consistent performance by the contractor.
The fixed-price contract type provides budget predictability for the General Services Administration.
Awarding to a single vendor for a significant period can lead to specialized knowledge and efficiency in managing the specific facilities.

Sector Analysis

This contract falls within the Facilities Support Services sector, a critical component of the broader commercial real estate and government contracting industries. This sector encompasses a wide range of services including building operations, maintenance, repair, and custodial services. The market size for facilities management is substantial, with government contracts forming a significant portion. This specific contract with GSA represents spending on essential operational support for federal properties, aligning with broader trends in government outsourcing of non-core functions.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, EMCOR Government Services, Inc., is likely a large business. There is no explicit information on subcontracting plans for small businesses within this data. The impact on the small business ecosystem would depend on whether EMCOR actively seeks small business subcontractors for specialized services or supplies, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA), specifically the Public Buildings Service. GSA has established contract administration and oversight mechanisms to monitor performance, ensure compliance with contract terms, and manage payments. Transparency would be facilitated through contract databases like FPDS. Inspector General jurisdiction would typically reside with the GSA OIG, who could investigate allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Buildings Fund
Public Buildings Service Operations
Government Facilities Maintenance Contracts
General Services Administration Procurement

Risk Flags

Moderate competition level may limit optimal price discovery.
Lack of detailed performance metrics makes value-for-money assessment challenging.
Fixed-price contract risks associated with scope creep or unforeseen cost increases.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $12.0 million to EMCOR GOVERNMENT SERVICES, INC. OPERATION AND MAINTENANCE SERVICES

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 $12.0 million.

What is the period of performance?

Start: 2006-04-12. End: 2013-03-31.

What is the historical spending trend for Facilities Support Services by the General Services Administration?

Historical spending data for Facilities Support Services by the GSA reveals a consistent and significant investment in maintaining federal properties. Over the past decade, GSA's expenditure in this category has generally ranged from several hundred million to over a billion dollars annually, fluctuating based on infrastructure needs, modernization projects, and budget allocations. This specific contract, with its award value of approximately $12 million over seven years, represents a relatively small fraction of GSA's overall facilities support budget, indicating it addresses a specific regional or building-level requirement rather than a large-scale national program. Analyzing trends shows a steady demand for these services, driven by the government's vast real estate portfolio and the need for operational efficiency and safety.

How does EMCOR Government Services, Inc.'s performance on this contract compare to industry benchmarks for facilities management?

Assessing EMCOR Government Services, Inc.'s performance on this specific contract against industry benchmarks requires access to detailed performance metrics, such as uptime, response times for service calls, and client satisfaction scores, which are not publicly available in the provided data. However, EMCOR is a large, established government contractor with a significant presence in the facilities management sector. Their ability to secure and maintain contracts of this duration suggests a generally satisfactory performance history. Industry benchmarks for facilities management typically focus on key performance indicators (KPIs) like cost-effectiveness, energy efficiency improvements, preventative maintenance completion rates, and safety incident reduction. Without specific contract performance data, a direct comparison is speculative, but their continued engagement with government agencies implies they meet or exceed expected service levels.

What are the primary risks associated with a long-term, fixed-price contract for facilities support services?

Long-term, fixed-price contracts for facilities support services present several primary risks. For the government, the main risk is that the fixed price may become uncompetitive over time if market rates decrease or if the scope of work needs significant adjustment due to unforeseen circumstances. This can lead to paying above market value or facing costly change orders. Conversely, for the contractor, the risk lies in underestimating costs, leading to reduced profit margins or even losses, especially if operating expenses increase significantly or unexpected repairs are required. Additionally, a fixed price can sometimes disincentivize innovation or proactive improvements if they are not explicitly covered, and it may lead to a focus on meeting minimum requirements rather than exceeding them. Robust contract management and clear performance standards are crucial to mitigate these risks.

What is the typical cost range for facilities support services for federal buildings of similar size and complexity?

The typical cost range for facilities support services for federal buildings can vary widely based on factors such as building size, age, complexity of systems (e.g., HVAC, security, IT infrastructure), geographic location, and the specific services included (e.g., janitorial, landscaping, maintenance, repairs, energy management). For a contract valued at approximately $1.7 million annually, as this one averages, it suggests a medium-to-large facility or a complex of smaller facilities requiring comprehensive support. Industry reports and government cost estimation guides often place annual facilities management costs between $5 to $20 per square foot, depending on the service level and location. Therefore, a building or complex requiring this level of funding could range from 100,000 to over 300,000 square feet, assuming a mid-range service cost. Precise benchmarking requires detailed knowledge of the specific assets managed.

How does the number of bidders (3) impact the potential for cost savings for the government in this contract?

A competition with three bidders generally offers a moderate level of price discovery for the government. While three bids are sufficient to establish a competitive baseline and discourage excessively high pricing, it is less likely to yield the deepest cost savings compared to a scenario with a larger number of interested and capable vendors. With more bidders, the pressure to offer the most competitive price increases significantly as each vendor vies for the contract. In a three-bid scenario, the government might still receive a fair price, but there's a higher possibility that the winning bid reflects a price point that ensures profitability for the contractor without necessarily being the absolute lowest achievable market rate. Effective solicitation strategies and clear performance requirements are key to maximizing savings even with moderate competition.

Industry Classification

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

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

Contractor Details

Parent Company: Roberts Immigration LAW Group, LLC (UEI: 017106386)

Address: 2800 CRYSTAL DR STE 600, ARLINGTON, VA, 22202

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

Financial Breakdown

Contract Ceiling: $23,579,530

Exercised Options: $23,579,530

Current Obligation: $11,959,638

Parent Contract

Parent Award PIID: GS06F0035R

IDV Type: FSS

Timeline