GSA's $10M elevator contract with Thyssenkrupp Elevator Corp awarded under full and open competition

Contract Overview

Contract Amount: $10,067,194 ($10.1M)

Contractor: Thyssenkrupp Elevator Corp

Awarding Agency: General Services Administration

Start Date: 2006-10-01

End Date: 2011-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NATIONAL ELEVATOR CONTRACT FINAL OPTION COVERS 5 YEARS. HOWEVER THE DELIVERY ORDER COVERS ONE OF THE 5 YEAR PERIOD. THE DELIVERY ORDER WILL BE MODIFIED EACH YEAR UP TO 5 YRS.

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76102

State: Texas Government Spending

Plain-Language Summary

General Services Administration obligated $10.1 million to THYSSENKRUPP ELEVATOR CORP for work described as: NATIONAL ELEVATOR CONTRACT FINAL OPTION COVERS 5 YEARS. HOWEVER THE DELIVERY ORDER COVERS ONE OF THE 5 YEAR PERIOD. THE DELIVERY ORDER WILL BE MODIFIED EACH YEAR UP TO 5 YRS. Key points: 1. Contract provides elevator services for federal buildings, ensuring operational continuity. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration spans five years, with annual modifications for each year's delivery order. 4. Firm Fixed Price contract type helps manage cost predictability. 5. The contract was awarded to Thyssenkrupp Elevator Corp, a major player in the elevator industry. 6. Services are primarily located in Texas, impacting federal facilities in that region.

Value Assessment

Rating: fair

The total award amount is approximately $10 million over a five-year period. Benchmarking this against similar elevator maintenance contracts for federal facilities is challenging without more specific service details and geographic scope. However, the firm fixed-price structure provides cost certainty for the government. The contract's value is tied to the ongoing maintenance and potential repair of elevator systems, which are critical for building accessibility and functionality.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency sought proposals from a wide range of qualified vendors.

Taxpayer Impact: A full and open competition allows taxpayers to benefit from potentially lower prices and higher quality services due to the competitive pressure on bidders.

Public Impact

Federal employees and visitors benefit from reliable and accessible elevator services in government buildings. Ensures the continued operation and maintenance of essential vertical transportation systems. The primary geographic impact is within Texas, where the federal facilities covered by this contract are located. Supports the workforce of Thyssenkrupp Elevator Corp and potentially its subcontractors involved in service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits the assessment of competitive intensity.
The annual modification structure could introduce administrative overhead and potential for scope creep if not managed carefully.
Performance metrics and service level agreements are not detailed, making it difficult to assess service quality outcomes.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm Fixed Price contract type provides cost certainty for the government.
The five-year duration offers stability in service provision for federal facilities.

Sector Analysis

The elevator and escalator industry is a mature market with a few dominant global players and numerous regional and local service providers. Federal contracts for elevator maintenance and repair are common, supporting the operational needs of government buildings across the country. Spending in this sector is driven by the need for safety, accessibility, and efficient building operations. This contract represents a portion of the broader federal spending on facilities maintenance and infrastructure.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting goals for this contract. As it was awarded under full and open competition, it is possible that small businesses could have participated as prime contractors or subcontractors if they met the qualifications. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract through its Public Buildings Service. Oversight mechanisms would typically include contract administration, performance monitoring, and financial reviews. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Building Maintenance Contracts
General Services Administration Facilities Management
Elevator and Escalator Maintenance Services
Public Buildings Service Contracts

Risk Flags

Lack of detailed performance metrics
Potential for administrative overhead due to annual modifications
Limited transparency on number of bidders

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $10.1 million to THYSSENKRUPP ELEVATOR CORP. NATIONAL ELEVATOR CONTRACT FINAL OPTION COVERS 5 YEARS. HOWEVER THE DELIVERY ORDER COVERS ONE OF THE 5 YEAR PERIOD. THE DELIVERY ORDER WILL BE MODIFIED EACH YEAR UP TO 5 YRS.

Who is the contractor on this award?

The obligated recipient is THYSSENKRUPP ELEVATOR CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.1 million.

What is the period of performance?

Start: 2006-10-01. End: 2011-09-30.

What is the historical spending pattern for elevator services by the General Services Administration?

Historical spending data for elevator services by the GSA would reveal trends in contract awards, average contract values, and the prevalence of different contract types (e.g., firm-fixed-price, cost-plus). Analyzing this data over several years would help identify if spending has increased or decreased, and whether the GSA is consolidating contracts or diversifying its vendor base. For instance, a review might show a consistent annual spend in the tens of millions for elevator maintenance across the agency, with fluctuations due to new building acquisitions or major renovation projects. Understanding these patterns is crucial for budget forecasting and identifying potential cost-saving opportunities through strategic sourcing or performance-based contracts.

How does the pricing of this Thyssenkrupp contract compare to similar elevator maintenance contracts awarded by other federal agencies?

To compare pricing, one would need to identify similar contracts for elevator maintenance awarded by agencies like the Department of Defense or the Department of Veterans Affairs, ensuring comparable service scope, building types, geographic locations, and contract durations. Key metrics for comparison would include hourly rates for technicians, costs for routine maintenance visits, and pricing for replacement parts or emergency repairs. If this contract's per-visit cost or annual maintenance fee is significantly higher than benchmarks derived from comparable contracts, it could indicate a potential issue with value for money. Conversely, if it aligns with or is lower than market rates, it suggests competitive pricing was achieved.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific performance metrics or service level agreements (SLAs) for this contract. Typically, such contracts would include requirements for response times to service calls (e.g., emergency vs. routine), uptime guarantees for elevator systems, preventative maintenance schedules, and reporting requirements. The absence of this information makes it difficult to objectively assess the quality of service being delivered and the contractor's adherence to contractual obligations. A thorough review would involve examining the contract's statement of work (SOW) and any incorporated performance standards to understand how service quality is measured and enforced.

What is Thyssenkrupp Elevator Corp's track record with federal government contracts, particularly for elevator services?

Thyssenkrupp Elevator Corp has a significant history of performing elevator services for the federal government. Analyzing their past federal contract awards, including contract values, durations, agencies served, and any reported performance issues or awards, would provide insight into their reliability and capability. Databases like FPDS-NG (Federal Procurement Data System - Next Generation) can be queried for this information. A review might reveal a pattern of successful contract completions, or it could highlight instances of contract disputes, performance deficiencies, or overpricing on previous engagements, which would be relevant risk factors for this current contract.

What is the potential risk associated with the annual modification structure of this five-year contract?

The annual modification structure for this five-year contract, where each year's delivery order is modified up to the five-year limit, presents several potential risks. Firstly, it can increase administrative burden and costs associated with processing annual modifications. Secondly, it might lead to less predictable budgeting if the annual costs fluctuate significantly or if the scope needs substantial adjustments each year. Thirdly, there's a risk of 'scope creep' if modifications are not carefully managed, potentially leading to costs exceeding the initially anticipated value. Finally, it could reduce the incentive for the contractor to offer long-term efficiencies if they anticipate renegotiating terms annually.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2260 NORTHWEST PKWY SE, MARIETTA, GA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,072,276

Exercised Options: $10,072,276

Current Obligation: $10,067,194

Parent Contract

Parent Award PIID: GS06P96GXC0029

IDV Type: IDC

Timeline