GAO awards $675K for VAV control upgrade, highlighting facilities support services

Contract Overview

Contract Amount: $675,548 ($675.5K)

Contractor: Emcor Government Services, Inc

Awarding Agency: Government Accountability Office

Start Date: 2021-07-09

End Date: 2022-06-08

Contract Duration: 334 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: BACKGROUND: THE GOVERNMENT ACCOUNTABILITY OFFICE (GAO) HEADQUARTERS LOCATION: IS ISSUING CALL ORDER, 05GA0A21K0063 AGAINST BLANKET PURCHASE AGREEMENT 05GA0A19A0005, CLIN #18 FOR: 2ND FLOOR VAV CONTROL UPGRADE, IN THE AMOUNT OF $689,933.35.

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310

State: Virginia Government Spending

Plain-Language Summary

Government Accountability Office obligated $675,548.09 to EMCOR GOVERNMENT SERVICES, INC for work described as: BACKGROUND: THE GOVERNMENT ACCOUNTABILITY OFFICE (GAO) HEADQUARTERS LOCATION: IS ISSUING CALL ORDER, 05GA0A21K0063 AGAINST BLANKET PURCHASE AGREEMENT 05GA0A19A0005, CLIN #18 FOR: 2ND FLOOR VAV CONTROL UPGRADE, IN THE AMOUNT OF $689,933.35. Key points: 1. Contract focuses on essential building infrastructure upgrades, ensuring operational efficiency. 2. The award falls under a broader Blanket Purchase Agreement, suggesting ongoing facility needs. 3. Competition was full and open, indicating a potentially competitive bidding process. 4. The contract type is Time and Materials, which can pose cost control challenges. 5. This expenditure supports the Government Accountability Office's operational readiness. 6. The duration of the contract is approximately one year, aligning with project scope.

Value Assessment

Rating: fair

The awarded amount of $675,548.09 for a VAV control upgrade appears reasonable for a federal facility of this nature. Without specific benchmarks for VAV upgrades in similar government buildings, a direct comparison is difficult. However, the Time and Materials (T&M) contract type introduces inherent risk for cost overruns, as the final price is dependent on actual labor and material costs incurred. This contrasts with fixed-price contracts which offer greater cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more favorable terms for the government. The specific number of bidders is not provided, but the open competition framework is a positive indicator for value.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from contractors.

Public Impact

The primary beneficiary is the Government Accountability Office (GAO), which will experience improved environmental controls and potentially reduced energy costs. The service delivered is a critical upgrade to the building's Heating, Ventilation, and Air Conditioning (HVAC) system, specifically the Variable Air Volume (VAV) controls. The geographic impact is localized to the GAO headquarters in Virginia. Workforce implications include the employment of skilled technicians for installation and maintenance of the upgraded VAV system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost escalation if not closely monitored.
Lack of specific details on the number of bidders limits a full assessment of competition intensity.
The scope of 'upgrade' could be broad, requiring careful oversight to ensure all work is necessary and efficient.

Positive Signals

Awarded under a Blanket Purchase Agreement, suggesting a pre-vetted and potentially streamlined process.
Full and open competition was utilized, indicating an effort to maximize market participation.
The contract addresses essential facility maintenance and modernization, contributing to long-term operational stability.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of government buildings. The market for these services is substantial, with numerous providers ranging from large corporations to specialized small businesses. The GAO's spending on facility upgrades like this is typical for federal agencies seeking to maintain aging infrastructure and improve energy efficiency in line with federal mandates.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The competition was full and open, meaning small businesses were eligible to bid, but no specific set-aside was applied.

Oversight & Accountability

Oversight for this contract would typically fall under the Government Accountability Office's own internal contracting and facilities management departments. As the agency awarding the contract, GAO is responsible for monitoring performance, ensuring compliance with contract terms, and managing payments. Transparency is facilitated through public contract databases, though detailed performance metrics are not always publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Maintenance Contracts
HVAC System Upgrades
Government Facilities Management Services
Energy Efficiency Projects in Federal Buildings

Risk Flags

Time and Materials Contract Type
Potential for Cost Overruns
Scope Definition Uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Government Accountability Office awarded $675,548.09 to EMCOR GOVERNMENT SERVICES, INC. BACKGROUND: THE GOVERNMENT ACCOUNTABILITY OFFICE (GAO) HEADQUARTERS LOCATION: IS ISSUING CALL ORDER, 05GA0A21K0063 AGAINST BLANKET PURCHASE AGREEMENT 05GA0A19A0005, CLIN #18 FOR: 2ND FLOOR VAV CONTROL UPGRADE, IN THE AMOUNT OF $689,933.35.

Who is the contractor on this award?

The obligated recipient is EMCOR GOVERNMENT SERVICES, INC.

Which agency awarded this contract?

Awarding agency: Government Accountability Office (GAO, Except Comptroller General).

What is the total obligated amount?

The obligated amount is $675,548.09.

What is the period of performance?

Start: 2021-07-09. End: 2022-06-08.

What is the track record of EMCOR Government Services, Inc. with federal contracts, particularly for HVAC upgrades?

EMCOR Government Services, Inc. has a significant history of performing federal contracts, including those related to facilities maintenance and infrastructure upgrades. Their experience often spans a wide range of services, from routine maintenance to complex system modernizations. For HVAC upgrades specifically, their track record would likely include numerous projects involving systems like Variable Air Volume (VAV) controls, boiler and chiller plant operations, and energy management systems. A detailed review of their contract history, available through federal procurement data systems, would reveal the volume, value, and performance ratings of their past federal awards. This would allow for an assessment of their demonstrated capability and reliability in executing similar projects, providing context for the current award to GAO.

How does the Time and Materials (T&M) contract type compare to fixed-price options for this type of VAV control upgrade?

The Time and Materials (T&M) contract type, used here, obligates the government to pay the contractor for the actual labor hours expended and the cost of materials used, plus a fixed fee or profit. This offers flexibility, especially when the scope of work is not fully defined or is expected to change. However, it carries a higher risk of cost overruns for the government, as there is no ceiling on the total expenditure unless specific limitations are imposed. In contrast, a fixed-price contract establishes a set price for the entire scope of work, providing cost certainty for the government. For a VAV control upgrade, where the scope might be relatively well-defined, a fixed-price contract could have offered better cost control. The T&M approach suggests that either the scope was uncertain, or the government opted for flexibility, necessitating robust oversight to manage costs effectively.

What are the potential risks associated with a VAV control upgrade, and how might they be mitigated?

Potential risks associated with a VAV control upgrade include scope creep, where additional work beyond the original agreement is requested or required, leading to increased costs. Technical risks involve compatibility issues with existing building systems, unforeseen complexities during installation, or system performance not meeting expectations. Contractor performance risks include delays, subpar workmanship, or failure to adhere to schedules. Mitigation strategies involve clearly defining the scope of work in the contract, establishing firm not-to-exceed limits on T&M contracts, requiring detailed project plans and progress reports, conducting thorough site assessments prior to award, and implementing rigorous quality assurance checks throughout the project lifecycle. Strong government oversight and communication with the contractor are crucial for managing these risks.

What is the typical lifecycle cost of VAV control systems, and how does this upgrade fit into that?

The typical lifecycle cost of VAV control systems includes initial purchase and installation, ongoing maintenance, energy consumption, and eventual replacement or upgrade. Initial installation costs can vary significantly based on the size of the facility and the complexity of the system. Maintenance costs are generally moderate but essential for optimal performance and longevity, often involving regular calibration, filter changes, and component checks. Energy consumption is a key factor, as efficient VAV systems can lead to substantial savings compared to older or less sophisticated controls. This upgrade aims to enhance the efficiency and potentially extend the useful life of the VAV system, thereby reducing long-term operational and energy costs for the GAO headquarters. It represents an investment to improve performance and potentially defer larger capital expenditures for a complete system replacement.

How does spending on facility upgrades like this compare to overall GAO IT or other operational budgets?

Spending on facility upgrades, such as this VAV control system enhancement, typically represents a smaller portion of an agency's overall budget compared to core operational expenses like personnel, IT systems, or program-specific activities. For the Government Accountability Office (GAO), which has a significant focus on auditing and oversight, its IT budget is likely substantial to support its analytical functions. Facility maintenance and upgrades are essential but often fall under administrative or general services budgets. The $675,548.09 allocated here is a specific investment in physical infrastructure. To compare it accurately, one would need to examine GAO's total annual budget, its allocation for facilities management versus IT, and the proportion this single contract represents. Generally, such facility projects are discrete capital investments rather than recurring operational expenditures.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Miller Electric Company

Address: 6363 WALKER LN, ALEXANDRIA, VA, 22310

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

Financial Breakdown

Contract Ceiling: $675,548

Exercised Options: $675,548

Current Obligation: $675,548

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Parent Contract

Parent Award PIID: 05GA0A19A0005

IDV Type: BPA

Timeline