GSA awards $1M+ for facilities support services in New York, with potential for multi-year expansion

Contract Overview

Contract Amount: $9,986,914 ($10.0M)

Contractor: Action Facilities Management Inc

Awarding Agency: General Services Administration

Start Date: 2023-10-01

End Date: 2027-03-31

Contract Duration: 1,277 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: O&M AND VERTICAL TRANSPORATION SERVICES 799 UNITED NATIONS PLAZA, NY, NY 6 MONTH BASE YEAR CONTRACT, EFFECTIVE 10/1/23 - 3/31/24.

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10017

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $10.0 million to ACTION FACILITIES MANAGEMENT INC for work described as: O&M AND VERTICAL TRANSPORATION SERVICES 799 UNITED NATIONS PLAZA, NY, NY 6 MONTH BASE YEAR CONTRACT, EFFECTIVE 10/1/23 - 3/31/24. Key points: 1. The contract's base year value is substantial, indicating significant demand for these services. 2. The fixed-price structure with economic price adjustment offers some cost certainty while allowing for market fluctuations. 3. The contract was awarded through full and open competition, suggesting a competitive bidding process. 4. The duration of the contract, including potential option periods, points to a long-term need for these services. 5. The services fall under facilities support, a critical but often overlooked area of government operations. 6. The award to Action Facilities Management Inc. suggests they are a capable provider in this space.

Value Assessment

Rating: good

The base year award of approximately $1 million for six months of services appears reasonable given the scope of facilities support. Benchmarking against similar contracts for O&M and vertical transportation services in major metropolitan areas like New York would provide a clearer picture of value. The fixed-price with economic price adjustment (FPEPA) contract type is common for services where input costs can fluctuate, aiming to balance contractor risk with government cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that all responsible sources were permitted to submit offers. This method typically fosters a competitive environment, encouraging multiple bidders to vie for the contract. The number of bidders is not specified, but the process itself suggests that the General Services Administration (GSA) sought the best value through a competitive solicitation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring that the government receives competitive offers, leading to better value for money.

Public Impact

Federal employees and visitors at 799 United Nations Plaza, NY, NY, will benefit from maintained and operational facilities. Essential services including operations and maintenance, and potentially vertical transportation (elevators), will be delivered. The geographic impact is localized to New York City, specifically the building at 799 United Nations Plaza. The contract supports jobs within the facilities management and maintenance sector in the New York area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases due to the economic price adjustment clause if market conditions rise significantly.
Reliance on a single contractor for critical building operations could pose a risk if performance issues arise.
The base year is relatively short, which might lead to frequent re-competition or contract modifications if not managed effectively.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contract type (FPEPA) allows for adjustments, which can help maintain service quality by accounting for inflation.
The potential for multiple option periods indicates a desire for continuity of service, suggesting satisfaction with the contractor's capabilities.

Sector Analysis

Facilities support services, including operations and maintenance (O&M) and vertical transportation, are a critical component of the real estate and facilities management sector. This contract falls under the broader category of commercial and industrial machinery and equipment (NAICS 561210). Government spending in this area is substantial, supporting the upkeep of federal buildings nationwide. Comparable spending benchmarks would involve analyzing other GSA contracts for similar services in high-cost urban areas.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Action Facilities Management Inc., will be responsible for fulfilling the contract requirements. Any subcontracting would be at their discretion, and the impact on the small business ecosystem would depend on their procurement practices.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract through its Public Buildings Service. Oversight mechanisms would include performance monitoring, contract administration, and potentially site inspections to ensure compliance with service level agreements. Accountability measures are embedded in the contract terms, including payment based on satisfactory performance. Transparency is generally maintained through contract databases, though specific performance metrics may not always be publicly detailed.

Related Government Programs

General Services Administration (GSA) Building Operations and Maintenance Contracts
Federal Facilities Management Services
Vertical Transportation Services Contracts
Operations and Maintenance (O&M) Services

Risk Flags

Potential for cost escalation due to economic price adjustment.
Contract duration requires careful monitoring of option periods.
Performance risk associated with critical facilities operations.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $10.0 million to ACTION FACILITIES MANAGEMENT INC. O&M AND VERTICAL TRANSPORATION SERVICES 799 UNITED NATIONS PLAZA, NY, NY 6 MONTH BASE YEAR CONTRACT, EFFECTIVE 10/1/23 - 3/31/24.

Who is the contractor on this award?

The obligated recipient is ACTION FACILITIES MANAGEMENT INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.0 million.

What is the period of performance?

Start: 2023-10-01. End: 2027-03-31.

What is the historical spending pattern for facilities support services at 799 United Nations Plaza, NY, NY?

The provided data only details the current base year contract effective from October 1, 2023, to March 31, 2024, with a value of $998,691.40. To understand historical spending patterns, one would need to access contract award data for this specific location and service type over previous years. This would involve searching federal procurement databases for prior contracts awarded to any entity for O&M and vertical transportation services at this address. Analyzing this historical data would reveal trends in contract values, durations, and the number of awarded contractors, providing context for the current award's scale and duration.

How does the awarded amount compare to similar facilities support contracts in New York City?

The base year award of approximately $1 million for six months of operations and maintenance and vertical transportation services at 799 United Nations Plaza, NY, NY, needs to be benchmarked against similar contracts in New York City. Facilities support services in a high-cost-of-living area like New York are generally more expensive than in other regions. To assess value, one would compare this contract's per-month cost or annualized value to other GSA or federal contracts for similar services in Manhattan or the broader NYC metropolitan area. Factors such as building size, complexity of systems, and specific service requirements would need to be considered for a precise comparison.

What are the specific risks associated with the 'Fixed Price with Economic Price Adjustment' contract type for this service?

The 'Fixed Price with Economic Price Adjustment' (FPEPA) contract type for facilities support services carries specific risks for both the government and the contractor. For the government, the primary risk is potential cost escalation if economic indicators used for adjustment (e.g., inflation indices) rise significantly, leading to higher-than-anticipated expenditures. For the contractor, the risk is mitigated by the adjustment clause, but they still bear the risk of costs exceeding the adjusted price if the economic indicators do not fully capture their actual cost increases. Additionally, the administrative burden of tracking and applying economic adjustments can be complex.

What is the track record of Action Facilities Management Inc. in performing similar government contracts?

To assess the track record of Action Facilities Management Inc. (AFM), a review of their past performance on federal contracts is necessary. This would involve searching federal procurement databases (like SAM.gov or FPDS) for previous awards to AFM, particularly for facilities support, operations, and maintenance services. Key aspects to examine would include the types and values of contracts awarded, their duration, performance ratings (if publicly available), and any history of contract disputes or terminations. A strong performance history on comparable contracts would indicate a lower risk for this new award.

What is the potential impact of the option periods on the total contract value and duration?

The provided data indicates a base period from 10/1/23 to 3/31/24, and an end date of 3/31/27. This suggests that there are potential option periods extending the contract beyond the initial six months. If the contract includes multiple option periods, the total potential value and duration could be significantly higher than the base year. For example, if there are three one-year option periods, the contract could extend for nearly four years in total. The exercise of these options is typically at the government's discretion, based on continued need and satisfactory performance.

How does the 'Public Buildings Service' designation influence the oversight and execution of this contract?

The designation of the awarding agency as the General Services Administration's (GSA) 'Public Buildings Service' (PBS) is significant. PBS is responsible for managing, operating, and maintaining federal buildings across the United States. This means the contract is subject to PBS's specific standards, policies, and oversight procedures for facilities management. PBS often has robust performance metrics and quality assurance processes in place to ensure federal properties are well-maintained and secure. The contract's execution will align with PBS's mission to provide cost-effective, sustainable, and high-quality workspace solutions for federal agencies.

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: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 115 MALONE DR, MORGANTOWN, WV, 26501

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $29,524,494

Exercised Options: $9,986,914

Current Obligation: $9,986,914

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PC0623A0002

IDV Type: BPA

Timeline