GSA Awards $2.3M for Miami Courthouse Elevator Modernization to KONE Inc

Contract Overview

Contract Amount: $2,311,958 ($2.3M)

Contractor: Kone Inc

Awarding Agency: General Services Administration

Start Date: 2024-08-01

End Date: 2027-09-02

Contract Duration: 1,127 days

Daily Burn Rate: $2.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ELEVATOR MODERNIZATIONS AT JAMES L KING CTHS, MIAMI, FL - FL0517ZZ

Place of Performance

Location: MIAMI, MIAMI-DADE County, FLORIDA, 33132

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $2.3 million to KONE INC for work described as: ELEVATOR MODERNIZATIONS AT JAMES L KING CTHS, MIAMI, FL - FL0517ZZ Key points: 1. Contract awarded for elevator modernization at James L King Courthouse. 2. KONE Inc. secured the contract through full and open competition. 3. The project aims to upgrade critical building infrastructure. 4. Spending is within typical ranges for similar modernization projects.

Value Assessment

Rating: good

The contract value of $2.3M appears reasonable for a comprehensive elevator modernization project of this scale. Benchmarking against similar federal or large commercial building upgrades suggests this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. This method allows multiple qualified contractors to bid, driving down costs and ensuring fair market value.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that likely secured a fair price for essential infrastructure upgrades.

Public Impact

Ensures continued accessibility and safety for court operations. Modernized elevators improve energy efficiency and reduce maintenance costs. Supports the longevity and functionality of a key federal facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen structural issues during modernization.
Reliance on a single vendor for specialized parts or services post-modernization.

Positive Signals

Clear scope of work for modernization.
Awarded through competitive bidding.
Long-term benefit of improved building infrastructure.

Sector Analysis

This contract falls under building equipment and maintenance services, a common area of federal spending. Benchmarks for similar modernization projects vary based on building size and complexity, but this award appears aligned with industry standards.

Small Business Impact

The contract was awarded through full and open competition, and there is no indication that small businesses were specifically targeted or excluded. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The General Services Administration (GSA) is responsible for managing federal buildings. Oversight would involve monitoring project progress, adherence to specifications, and budget management by the GSA's Public Buildings Service.

Related Government Programs

Other Building Equipment Contractors
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Dependency on a single manufacturer for specialized parts.
Extended project duration may impact building operations.
Lack of explicit small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.3 million to KONE INC. ELEVATOR MODERNIZATIONS AT JAMES L KING CTHS, MIAMI, FL - FL0517ZZ

Who is the contractor on this award?

The obligated recipient is KONE INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2024-08-01. End: 2027-09-02.

What is the expected impact of these modernization efforts on the building's overall energy efficiency and long-term operational costs?

Modernizing elevators typically incorporates energy-efficient components like LED lighting, regenerative drives that capture energy during braking, and optimized motor controls. These upgrades can significantly reduce electricity consumption compared to older systems. Furthermore, newer equipment generally requires less frequent and less costly maintenance, leading to lower operational expenditures over the lifespan of the modernized elevators.

Are there any specific risks associated with KONE Inc. as the sole awardee regarding future maintenance and parts availability?

While KONE Inc. is a major elevator manufacturer, sole reliance on them for future maintenance and parts could pose a risk if their pricing becomes uncompetitive or if parts become difficult to source. However, the initial contract award through full and open competition suggests a competitive market exists. It is advisable for the GSA to explore options for competitive maintenance contracts post-modernization.

How does the duration of the contract (1127 days) align with the typical timeline for such modernization projects, and what does this imply for service disruption?

A contract duration of over three years for elevator modernization suggests a phased approach or potential complexities in the project. While this allows for thorough execution, it also implies a longer period of potential disruption or phased service availability for building occupants. The GSA should ensure clear communication and mitigation strategies are in place to minimize inconvenience.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Other Building Equipment Contractors

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47PE0524R0004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Kone OYJ

Address: ONE KONE COURT, MOLINE, IL, 61265

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $2,863,198

Exercised Options: $2,311,958

Current Obligation: $2,311,958

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PJ0022D0004

IDV Type: IDC

Timeline