GSA's $20M Facilities Maintenance Contract for LA Building Shows Long-Term Commitment

Contract Overview

Contract Amount: $20,023,692 ($20.0M)

Contractor: Onesource Energy Services, Inc.

Awarding Agency: General Services Administration

Start Date: 2003-10-01

End Date: 2013-03-31

Contract Duration: 3,469 days

Daily Burn Rate: $5.8K/day

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATION AND MAINTENANANCE SERVICES AT 300 NO. LOS ANGELES ST., LOS ANGELES, CA

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90012

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $20.0 million to ONESOURCE ENERGY SERVICES, INC. for work described as: OPERATION AND MAINTENANANCE SERVICES AT 300 NO. LOS ANGELES ST., LOS ANGELES, CA Key points: 1. Contract awarded for over a decade, indicating a stable, long-term need for services. 2. The firm-fixed-price structure suggests predictable costs for the government. 3. A single award for a significant duration may limit competitive pressure on pricing over time. 4. The contract value of $20M over 10 years suggests substantial operational requirements. 5. Services are essential for maintaining a key federal facility in a major metropolitan area. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

The contract value of approximately $2 million annually for facilities maintenance is within a reasonable range for a large federal building in a high-cost area like Los Angeles. However, without specific details on the scope of services and comparable contracts for similar facilities, a precise value-for-money assessment is difficult. The long duration of the contract (over 10 years) means that the initial pricing may not reflect current market conditions or potential efficiencies gained over time. Benchmarking against other GSA-managed properties of similar size and function would provide a clearer picture of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded to ONESOURCE ENERGY SERVICES, INC. without a competitive bidding process, as indicated by the 'sole-source' classification. This suggests that either the government determined there was only one responsible source capable of providing the required services, or the contract was awarded under specific circumstances that precluded full and open competition. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs than if multiple bids had been solicited.

Taxpayer Impact: For taxpayers, a sole-source award means that the government did not benefit from the potential cost savings that can arise from a competitive bidding process. This could result in a higher overall expenditure for the services provided.

Public Impact

Federal employees and visitors benefit from a well-maintained and functional workspace at 300 North Los Angeles Street. Ensures the continuous operation and upkeep of critical infrastructure within a significant federal building. The services provided support the daily operations of federal agencies housed in the building. Geographic impact is concentrated in Los Angeles, California, supporting local federal presence. Potential for local job creation and economic activity through the contractor's operations and potential subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing over the contract's long duration.
The sole-source nature raises questions about whether all available qualified vendors were considered.
Long contract term without clear performance review triggers could reduce incentives for continuous improvement.
Absence of explicit small business subcontracting goals could limit opportunities for smaller enterprises.

Positive Signals

Consistent service delivery over a decade suggests a reliable contractor relationship.
Firm-fixed-price contract provides budget certainty for the agency.
Long-term award indicates a stable and ongoing need for these essential facility services.
The contract supports the operational integrity of a key federal building.

Sector Analysis

This contract falls within the Facilities Support Services sector, which encompasses a wide range of services necessary for the operation and maintenance of buildings and grounds. The market for these services is substantial, driven by government agencies, commercial enterprises, and institutions requiring upkeep of their physical assets. The General Services Administration (GSA) is a major procurer of such services for federal buildings. Benchmarking this contract's value against similar GSA contracts for buildings of comparable size and age in major metropolitan areas would be necessary for a precise comparison.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit information regarding subcontracting plans or goals. This suggests that the primary contractor, ONESOURCE ENERGY SERVICES, INC., is likely a larger entity. The absence of a small business set-aside means that opportunities for small businesses to directly participate in this contract may be limited, unless the prime contractor voluntarily engages them for subcontracting work. Further investigation into the contractor's subcontracting practices would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA), specifically the Public Buildings Service. As a long-term contract, regular performance reviews and financial audits are expected to be in place to ensure compliance with the terms and conditions. Transparency regarding contract performance and any modifications would be managed through GSA's procurement and contract management systems. The Inspector General for the GSA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Building Maintenance Contracts
GSA Operations and Maintenance Services
Public Buildings Service Contracts
Facilities Management Services
Government Property Management

Risk Flags

Sole-source award may limit price competition.
Long contract duration without clear review points could reduce efficiency incentives.
Lack of explicit small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $20.0 million to ONESOURCE ENERGY SERVICES, INC.. OPERATION AND MAINTENANANCE SERVICES AT 300 NO. LOS ANGELES ST., LOS ANGELES, CA

Who is the contractor on this award?

The obligated recipient is ONESOURCE ENERGY 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 $20.0 million.

What is the period of performance?

Start: 2003-10-01. End: 2013-03-31.

What is the specific scope of 'Operation and Maintenance Services' covered under this contract?

The provided data does not detail the specific scope of 'Operation and Maintenance Services.' Typically, such services for a federal building encompass a broad range of activities including, but not limited to, HVAC system maintenance, electrical and plumbing repairs, janitorial services, pest control, landscaping, security system upkeep, and general building repairs. For this specific contract, the exact deliverables would be outlined in the Statement of Work (SOW) attached to the contract award. Without access to the SOW, the precise nature and extent of the services remain undefined, making a granular assessment of value and performance challenging.

How does the annual cost of this contract compare to similar facilities maintenance contracts managed by GSA in other major California cities?

A direct comparison of the annual cost ($~2 million) to similar GSA contracts in other major California cities requires access to a database of comparable contracts with detailed service scopes and facility characteristics. Factors such as building size, age, specific systems (e.g., LEED certification, advanced HVAC), and local labor costs significantly influence pricing. Given this contract's sole-source nature and long duration, it's difficult to benchmark without more data. However, for a large federal building in a high-cost-of-living area like Los Angeles, an annual expenditure in the low millions for comprehensive maintenance is not inherently unreasonable, but its true value-for-money can only be assessed through detailed benchmarking against facilities with similar profiles and competitive procurement histories.

What were the justifications for awarding this contract on a sole-source basis?

The justification for a sole-source award typically falls under specific exceptions to full and open competition, as defined by federal acquisition regulations (e.g., FAR Part 6). Common reasons include the unique capability or specialized nature of the service provider, the need for compatibility with existing systems, or urgent and compelling circumstances where only one source can meet the requirement. For this contract, the General Services Administration (GSA) would have documented the specific rationale, potentially related to specialized expertise in maintaining the particular systems within the 300 North Los Angeles Street building, or perhaps a prior relationship that made a sole-source award deemed most efficient. Without the official justification documentation, the precise reasons remain speculative.

What are the potential risks associated with a sole-source contract lasting over 10 years?

A sole-source contract lasting over 10 years carries several potential risks. Firstly, the lack of competition throughout the contract's life can lead to price escalation or a lack of incentive for the contractor to innovate or improve efficiency, as they face no market pressure. Secondly, the government may be locked into a relationship with a contractor whose performance or capabilities may not remain optimal over such an extended period. Thirdly, if the contractor's circumstances change (e.g., financial instability, changes in ownership), it could disrupt service delivery. Finally, the absence of regular competitive re-evaluation means the government might miss opportunities to secure better terms or services from alternative providers that emerge over time.

Has ONESOURCE ENERGY SERVICES, INC. had any past performance issues or disputes on federal contracts?

The provided summary data does not include information on the past performance record or any disputes involving ONESOURCE ENERGY SERVICES, INC. Assessing contractor track record typically requires reviewing performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), contract histories, and any documented disputes or litigation. Without access to these records, it is impossible to determine if the contractor has a history of issues. A thorough review would involve examining their performance on this specific contract and any other federal awards they may have received.

What is the historical spending trend for facilities maintenance at 300 North Los Angeles Street prior to this contract?

The provided data only includes details for this specific contract (Award ID: DO, starting 2003-10-01, ending 2013-03-31). It does not offer historical spending trends for facilities maintenance at the 300 North Los Angeles Street building before or during this contract period, nor does it provide data on previous contracts for these services at this location. To analyze historical spending patterns, one would need to access GSA's historical contract databases and search for all prior awards related to the maintenance of this specific property.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Contractor Details

Address: 6510 GLENRIDGE PARK PL #, LOUISVILLE, KY, 03

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,742,257

Exercised Options: $20,023,692

Current Obligation: $20,023,692

Parent Contract

Parent Award PIID: GS09P98KSD0048

IDV Type: IDC

Timeline