GSA awards $42.7M for facilities management in Chicago, with Jones Lang LaSalle as prime contractor

Contract Overview

Contract Amount: $42,688,897 ($42.7M)

Contractor: Jones Lang Lasalle Americas, Inc.

Awarding Agency: General Services Administration

Start Date: 2022-12-01

End Date: 2026-05-31

Contract Duration: 1,277 days

Daily Burn Rate: $33.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BPA CALL 47PF0022F1079 - STANDARD SERVICES FOR 6 MONTH BASE PERIOD FOR CONSOLIDATED FACILITIES MANAGEMENT SERVICES AT 16 LOCATIONS IN CHICAGO, IL 60604.

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60604

State: Illinois Government Spending

Plain-Language Summary

General Services Administration obligated $42.7 million to JONES LANG LASALLE AMERICAS, INC. for work described as: BPA CALL 47PF0022F1079 - STANDARD SERVICES FOR 6 MONTH BASE PERIOD FOR CONSOLIDATED FACILITIES MANAGEMENT SERVICES AT 16 LOCATIONS IN CHICAGO, IL 60604. Key points: 1. The contract covers consolidated facilities management services across 16 locations in Chicago. 2. A firm-fixed-price contract type suggests predictable costs for the government. 3. The contract duration spans over three years, indicating a long-term need for these services. 4. The award was made under a Blanket Purchase Agreement (BPA) Call, suggesting a pre-competed framework. 5. The prime contractor, Jones Lang LaSalle, has a significant presence in facilities management. 6. The contract value is substantial, reflecting the scale of services required. 7. No small business set-aside was utilized for this specific call. 8. The North American Industry Classification System (NAICS) code 561210 points to facilities support services.

Value Assessment

Rating: good

The contract value of $42.7 million over approximately 3.5 years for consolidated facilities management across 16 locations in Chicago appears reasonable given the scope. Benchmarking against similar large-scale facilities management contracts for federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but detailed performance metrics and service level agreements are crucial to ensure efficiency and prevent scope creep. Without specific performance data or comparable contract pricing, a definitive assessment of cost-effectiveness is challenging, but the scale suggests a competitive bidding process likely yielded a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The use of a BPA Call suggests that the underlying BPA was also competed. While the number of bidders for this specific call is not provided, full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings. The GSA's procurement processes aim to maximize competition, ensuring a wide range of potential contractors can participate.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and encourages innovation from a broad base of contractors, ultimately leading to better value for public funds.

Public Impact

Federal employees and visitors at 16 GSA-managed facilities in Chicago benefit from maintained and operational buildings. The contract ensures the continuity of essential facilities management services, including maintenance, operations, and potentially other support functions. The geographic impact is concentrated within the Chicago metropolitan area, specifically at the designated 16 locations. The contract supports jobs within the facilities management sector, likely benefiting a workforce skilled in building operations and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single large contractor for critical infrastructure management.
Risk of service quality degradation if performance monitoring is not rigorous.
Challenges in adapting to evolving facility needs or technological advancements without contract modifications.
Dependency on the contractor's financial stability and operational capacity throughout the contract term.

Positive Signals

Consolidation of services across multiple locations can lead to economies of scale and streamlined operations.
The firm-fixed-price contract type provides cost certainty for the government.
Awarding to a known entity like Jones Lang LaSalle may indicate a level of confidence in their past performance.
The use of a BPA Call suggests a pre-vetted and potentially more efficient procurement process.

Sector Analysis

The facilities support services sector is a significant component of the broader commercial real estate and government contracting industries. This contract falls under NAICS code 561210, which encompasses establishments primarily engaged in operating and maintaining buildings and other facilities, on a contract or fee basis. The market for federal facilities management is substantial, with agencies like GSA managing vast portfolios of buildings. Benchmarks for similar contracts often vary widely based on geographic location, building type, and scope of services, but large-scale consolidated contracts like this represent a significant portion of government spending in this sector.

Small Business Impact

This contract was not awarded as a small business set-aside. The prime contractor, Jones Lang LaSalle Americas, Inc., is a large business. While there is no direct set-aside for small businesses on this specific BPA call, large federal contracts often include subcontracting requirements. The extent to which Jones Lang LaSalle will utilize small business subcontractors for specialized services or support functions will determine the indirect impact on the small business ecosystem. GSA generally encourages prime contractors to maximize small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Public Buildings Service. GSA employs contract officers and contracting specialists to monitor performance, ensure compliance with contract terms, and manage payments. Performance metrics and service level agreements outlined in the contract are key tools for oversight. Transparency is facilitated through contract award databases and reporting requirements. While specific Inspector General (IG) jurisdiction for this particular BPA call isn't detailed, the GSA OIG has broad authority to investigate waste, fraud, and abuse within GSA contracts.

Related Government Programs

GSA Federal Buildings Fund
Facilities Maintenance and Operations Contracts
Consolidated Service Contracts
Building Operations and Maintenance Services

Risk Flags

Potential for service gaps if consolidation is not managed effectively.
Risk of cost overruns if scope creep is not controlled.
Dependency on contractor performance for critical facility operations.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $42.7 million to JONES LANG LASALLE AMERICAS, INC.. BPA CALL 47PF0022F1079 - STANDARD SERVICES FOR 6 MONTH BASE PERIOD FOR CONSOLIDATED FACILITIES MANAGEMENT SERVICES AT 16 LOCATIONS IN CHICAGO, IL 60604.

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 $42.7 million.

What is the period of performance?

Start: 2022-12-01. End: 2026-05-31.

What is the historical spending pattern for facilities management services at these 16 Chicago locations prior to this award?

Analyzing historical spending for facilities management at these specific 16 locations would provide crucial context for the $42.7 million award. Without access to prior contract data for these sites, it's difficult to determine if this represents an increase, decrease, or stable level of investment. Understanding past expenditures, including the number and types of contracts awarded, the contractors involved, and the services rendered, would allow for a more accurate assessment of the current contract's value and efficiency. It would also help identify any trends in service delivery or cost fluctuations over time, informing whether the consolidation under Jones Lang LaSalle is a strategic cost-saving measure or a response to previous service gaps.

How does the per-square-foot cost of this contract compare to industry benchmarks for similar federal facilities in major metropolitan areas?

To assess the value for money, a comparison of the per-square-foot cost against industry benchmarks for similar federal facilities in major metropolitan areas is essential. This contract covers 16 locations in Chicago, and if the square footage of these facilities is known, a cost-per-square-foot metric can be calculated. This metric should then be benchmarked against data from organizations like BOMA International, IFMA, or government cost-estimating guides. Factors such as the age and type of buildings, the specific services included (e.g., janitorial, HVAC, security, landscaping), and the level of service required will influence this comparison. A significantly higher per-square-foot cost could indicate potential inefficiencies or a less competitive pricing structure, while a lower cost might suggest strong value.

What are the specific performance metrics and service level agreements (SLAs) tied to this contract, and how are they monitored?

The effectiveness and value of this facilities management contract are heavily dependent on the specific performance metrics and Service Level Agreements (SLAs) established and how rigorously they are monitored. Key metrics might include response times for maintenance requests, preventative maintenance completion rates, energy efficiency targets, occupant satisfaction scores, and compliance with safety regulations. The contract documents should detail these SLAs, along with remedies or incentives for meeting or failing to meet them. The GSA's contract administration team is responsible for monitoring these metrics through regular reporting, site inspections, and potentially independent audits. Robust monitoring ensures accountability and helps guarantee that the government receives the quality of services paid for, mitigating risks associated with service delivery.

What is Jones Lang LaSalle's track record with similar large-scale federal facilities management contracts?

Jones Lang LaSalle Americas, Inc. has a significant track record in providing facilities management services, including for large commercial and government clients. Assessing their past performance on similar federal contracts is crucial. This involves reviewing their history with GSA and other agencies, looking at contract performance evaluations (e.g., Past Performance Information Retrieval System - PPIRS), and examining any documented instances of outstanding performance or contract disputes. A history of successful delivery on comparable contracts suggests a lower risk profile and a higher likelihood of successful execution for this Chicago-based BPA call. Conversely, a pattern of performance issues or contract terminations would raise concerns about their capability to meet the requirements.

What is the potential impact of consolidating facilities management services across 16 locations on operational efficiency and cost savings?

Consolidating facilities management services across 16 locations under a single contract, such as this BPA call awarded to Jones Lang LaSalle, has the potential to yield significant operational efficiencies and cost savings. Economies of scale can be realized through bulk purchasing of supplies, optimized staffing, and streamlined administrative processes. Centralized management can lead to standardized procedures, improved coordination, and better resource allocation. However, the actual realization of these benefits depends on effective contract management and the contractor's ability to implement integrated solutions. Potential challenges include managing diverse facility needs and ensuring consistent service quality across all sites. A thorough analysis would compare the consolidated contract's cost and performance against the sum of previous individual contracts or service arrangements.

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

Solicitation ID: 47PF0022Q0103

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: $126,602,260

Exercised Options: $42,688,897

Current Obligation: $42,688,897

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47PF0022A0012

IDV Type: BPA

Timeline