GSA awards $9.19M facilities management contract to Jones Lang LaSalle for Wisconsin federal buildings

Contract Overview

Contract Amount: $9,187,081 ($9.2M)

Contractor: Jones Lang Lasalle Americas, Inc.

Awarding Agency: General Services Administration

Start Date: 2021-05-01

End Date: 2026-04-30

Contract Duration: 1,825 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS AWARD IS FOR THE BASE YEAR STANDARD SERVICES FOR THE CONSOLIDATED FACILITIES MANAGEMENT SERVICES AT THE MILWAUKEE FEDERAL BUILDING IN MILWAUKEE, WI AND THE SSA BUILDING IN RACINE, WI.

Place of Performance

Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53202

State: Wisconsin Government Spending

Plain-Language Summary

General Services Administration obligated $9.2 million to JONES LANG LASALLE AMERICAS, INC. for work described as: THIS AWARD IS FOR THE BASE YEAR STANDARD SERVICES FOR THE CONSOLIDATED FACILITIES MANAGEMENT SERVICES AT THE MILWAUKEE FEDERAL BUILDING IN MILWAUKEE, WI AND THE SSA BUILDING IN RACINE, WI. Key points: 1. Contract focuses on essential facilities support services for federal buildings in Milwaukee and Racine. 2. Awarded under a Blanket Purchase Agreement (BPA) Call, indicating a pre-competed framework. 3. The contract is a Firm Fixed Price type, providing cost certainty for the government. 4. Duration of 5 years (1825 days) suggests a need for stable, long-term service provision. 5. No small business set-aside was utilized, with the contractor being a large business. 6. The North American Industry Classification System (NAICS) code 561210 points to facilities support services.

Value Assessment

Rating: good

The contract value of $9.19 million over five years averages to approximately $1.84 million annually. Benchmarking this against similar facilities management contracts for federal buildings of comparable size and scope would be necessary for a precise value-for-money assessment. However, the firm fixed-price structure suggests a degree of cost control. The award to a single, established contractor implies a potentially competitive bidding process that resulted in a favorable price for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment. This approach is designed to foster price discovery and ensure the government receives the best possible value by considering a wide range of potential providers.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging a broad base of contractors to vie for government work, leading to potentially lower overall spending.

Public Impact

Federal agencies housed within the Milwaukee Federal Building and the SSA Building in Racine benefit from uninterrupted facilities management. Ensures the operational readiness and maintenance of critical federal infrastructure. Supports the daily functions of government operations by providing a safe and functional working environment. Potential for local job creation and economic activity in Wisconsin through the contractor's operations and supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders in the full and open competition limits a deeper assessment of price competitiveness.
The duration of the contract (5 years) could lead to vendor lock-in if not managed effectively, potentially reducing future competitive pressure.
Reliance on a single large business contractor may limit opportunities for smaller, specialized service providers in the long term.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
Firm Fixed Price contract type provides budget certainty and limits the government's exposure to cost overruns.
The contractor, Jones Lang LaSalle, is a well-established entity in facilities management, suggesting a degree of reliability and expertise.
The contract supports essential government operations, ensuring continuity of services for federal agencies.

Sector Analysis

The facilities management sector is a significant component of government spending, encompassing a wide range of services from maintenance and repair to security and janitorial support. This contract falls within the broader professional, scientific, and technical services industry, specifically under facilities support services. The market is characterized by both large, diversified providers like Jones Lang LaSalle and numerous smaller, specialized firms. Government contracts in this space often represent a substantial portion of a firm's revenue, driving competition among established players.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Jones Lang LaSalle Americas, Inc., is a large corporation. This means that opportunities for small businesses would primarily arise through subcontracting, if Jones Lang LaSalle chooses to utilize them. The absence of a small business set-aside or specific subcontracting goals in the provided data suggests that the primary focus was on securing services from the most capable provider identified through the competitive process, rather than specifically promoting small business participation.

Oversight & Accountability

The General Services Administration (GSA) typically has robust oversight mechanisms for its contracts, including performance monitoring and quality assurance. As this is a BPA Call, the underlying BPA likely established general oversight procedures. Specific oversight for this call would involve contract officers and potentially contracting specialists monitoring performance against the Statement of Work. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Building Maintenance Contracts
Government Facilities Operations
Public Buildings Service Contracts
General Services Administration Service Contracts

Risk Flags

Potential for cost overruns if scope creep occurs despite fixed-price contract.
Risk of service quality degradation over the contract term.
Dependence on a single large contractor may limit future competitive options.
Ensuring compliance with evolving federal regulations and sustainability standards.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $9.2 million to JONES LANG LASALLE AMERICAS, INC.. THIS AWARD IS FOR THE BASE YEAR STANDARD SERVICES FOR THE CONSOLIDATED FACILITIES MANAGEMENT SERVICES AT THE MILWAUKEE FEDERAL BUILDING IN MILWAUKEE, WI AND THE SSA BUILDING IN RACINE, WI.

Who is the contractor on this award?

The obligated recipient is JONES LANG LASALLE AMERICAS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.2 million.

What is the period of performance?

Start: 2021-05-01. End: 2026-04-30.

What is the track record of Jones Lang LaSalle Americas, Inc. in performing similar federal facilities management contracts?

Jones Lang LaSalle Americas, Inc. has a significant history of performing federal facilities management contracts. As a large, established global real estate services firm, they possess extensive experience in managing complex building operations, maintenance, and related services for government and commercial clients. Their portfolio often includes large-scale federal installations, requiring adherence to stringent security, environmental, and operational standards. While specific performance metrics for past federal contracts are not detailed here, their continued success in securing such awards suggests a generally positive track record. Further analysis would involve reviewing past performance evaluations and any documented issues or commendations on federal contract databases.

How does the awarded price compare to market rates for similar facilities management services?

The awarded contract value of $9.19 million over five years equates to an average annual cost of approximately $1.84 million. To benchmark this against market rates, one would need to compare it with similar facilities management contracts awarded by federal agencies or large commercial entities for properties of comparable size, location, and service complexity. Factors such as the specific services included (e.g., HVAC, janitorial, security, groundskeeping), the age and condition of the facilities, and local labor costs in Milwaukee and Racine would influence the market rate. Without access to a comprehensive database of comparable contract pricing and detailed service scopes, a precise market rate comparison is challenging. However, the firm fixed-price nature and full and open competition suggest an effort to secure competitive pricing.

What are the primary risks associated with this facilities management contract?

Key risks for this facilities management contract include potential service disruptions due to contractor performance issues, unforeseen maintenance emergencies exceeding the scope of routine services, and fluctuations in labor or material costs that could strain the fixed-price budget if not managed effectively by the contractor. There's also a risk related to the transition of services at the end of the contract period, ensuring continuity. Given the nature of facilities management, ensuring compliance with all federal regulations, safety standards, and security protocols is paramount, and failure in these areas poses significant risk. The reliance on a single contractor also presents a risk if their performance degrades or if they face financial instability.

How effective is the current facilities management approach for these specific federal buildings?

The effectiveness of the current facilities management approach cannot be definitively assessed solely from the award data. However, the General Services Administration (GSA), responsible for managing federal buildings, generally aims for high standards of operational efficiency, safety, and sustainability. The award of a five-year contract suggests a perceived need for stable, long-term management. Effectiveness would be measured by metrics such as building uptime, energy efficiency, tenant satisfaction, response times to maintenance requests, and adherence to preventative maintenance schedules. Ongoing performance monitoring by GSA contract officers is crucial to ensure the contractor is meeting these objectives and delivering value.

What are the historical spending patterns for facilities management at the Milwaukee Federal Building and the SSA Building in Racine?

Historical spending data for facilities management at these specific buildings is not provided in the award details. To analyze historical spending patterns, one would need to access GSA's historical contract databases (like FPDS) and filter for contracts related to these addresses or the specific facilities management services provided. This would reveal trends in contract values, duration, awardees, and types of services procured over time. Understanding past spending can help identify cost trends, potential inefficiencies, or shifts in service requirements, providing context for the current $9.19 million award and its five-year duration.

What is the potential impact of this contract on the local Wisconsin economy and workforce?

This contract is likely to have a positive impact on the local Wisconsin economy and workforce. Jones Lang LaSalle, as the prime contractor, will need to employ personnel for the day-to-day operations of facilities management, including maintenance technicians, janitorial staff, security personnel, and administrative support. These positions would likely be filled by local residents, contributing to employment. Furthermore, the company may engage local subcontractors and suppliers for materials, repairs, and specialized services, further stimulating economic activity within Wisconsin. The consistent funding stream from this federal contract also provides a degree of economic stability for the jobs it supports.

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 E RANDOLPH ST, CHICAGO, IL, 60601

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

Financial Breakdown

Contract Ceiling: $16,862,836

Exercised Options: $9,187,081

Current Obligation: $9,187,081

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47PF0021A0005

IDV Type: BPA

Timeline