GSA's $7.5M administrative action establishes a new PIIN for Los Angeles ESPC, impacting financial system interface

Contract Overview

Contract Amount: $7,565,617 ($7.6M)

Contractor: ABM Industries Inc

Awarding Agency: General Services Administration

Start Date: 2024-06-04

End Date: 2038-05-01

Contract Duration: 5,079 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS IS AN ADMINISTRATIVE ACTION ONLY TO ESTABLISH A NEW PROCUREMENT INSTRUMENT IDENTIFIER FOR THE LOS ANGELES ESPC. THIS ACTION IS NECESSARY TO ALLOW GSA'S CONTRACTING SYSTEM TO INTERFACE WITH GSA'S FINANCIAL SYSTEM.

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90012

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $7.6 million to ABM INDUSTRIES INC for work described as: THIS IS AN ADMINISTRATIVE ACTION ONLY TO ESTABLISH A NEW PROCUREMENT INSTRUMENT IDENTIFIER FOR THE LOS ANGELES ESPC. THIS ACTION IS NECESSARY TO ALLOW GSA'S CONTRACTING SYSTEM TO INTERFACE WITH GSA'S FINANCIAL SYSTEM. Key points: 1. This is an administrative action to establish a new procurement instrument identifier (PIIN), not a new service award. 2. The action is necessary for GSA's contracting system to interface with its financial system. 3. The contract is for Engineering Services (NAICS 541330) with an estimated value of $7.57 million. 4. The contract has a long duration of 5079 days (approximately 13.9 years). 5. It is a Firm Fixed Price contract awarded to ABM INDUSTRIES INC. 6. The contract was awarded under Full and Open Competition. 7. The contract is for the Public Buildings Service in California. 8. No small business set-aside was involved.

Value Assessment

Rating: fair

This contract represents an administrative action to establish a new PIIN, rather than a direct award for services. The stated value of $7.57 million is for the establishment of this identifier and likely covers future obligations under the ESPC. Benchmarking value is difficult without knowing the specific scope of the ESPC it enables. However, the long duration suggests a significant underlying project. The firm fixed price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit offers. The data does not specify the number of bidders, but this method generally promotes a competitive environment, which can lead to better pricing and terms for the government. The establishment of a new PIIN through this mechanism suggests a structured procurement process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of potential contractors to bid, potentially driving down costs and improving the quality of services offered.

Public Impact

The primary beneficiaries are likely federal agencies or facilities managed by GSA in the Los Angeles area that will utilize the ESPC. The services delivered are related to engineering, specifically supporting an Energy Savings Performance Contract (ESPC). The geographic impact is focused on Los Angeles, California. The contract supports the federal government's infrastructure and energy efficiency goals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration of nearly 14 years could lead to potential scope creep or evolving technology obsolescence if not managed carefully.
Administrative nature of the action means the true value and impact depend on the underlying ESPC it supports, which is not detailed here.
Lack of specific details on the number of bidders in the full and open competition makes it hard to fully assess the competitive pressure on pricing.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
Firm Fixed Price contract provides cost certainty for the government over the contract's life.
Establishes a necessary financial interface for GSA's contracting and financial systems, improving administrative efficiency.
Supports energy efficiency initiatives through an ESPC framework.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a critical component of federal infrastructure development and management. Energy Savings Performance Contracts (ESPCs) are a key mechanism for federal agencies to improve energy efficiency and reduce utility costs, often involving significant capital investments and long-term performance guarantees. The market for such services is substantial, with numerous firms specializing in energy efficiency solutions and project financing. This contract's value of $7.57 million is moderate for an ESPC administrative action, but the underlying project could be much larger.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This means the competition was open to all responsible sources, including large businesses. While there's no explicit subcontracting requirement mentioned for small businesses in this administrative action, the underlying ESPC project may involve opportunities for small businesses as subcontractors, depending on the prime contractor's strategy and GSA's broader goals for small business utilization in its projects.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Public Buildings Service. As an administrative action establishing a PIIN, the direct oversight is focused on ensuring the financial systems interface correctly. The actual performance and value of the ESPC will be subject to ongoing monitoring and reporting requirements defined in the underlying contract documents. Transparency is facilitated by the contract award being publicly available, but detailed project performance metrics would require access to specific ESPC reporting.

Related Government Programs

Energy Savings Performance Contracts (ESPCs)
GSA Public Buildings Service Contracts
Federal Energy Management Program (FEMP)
Engineering Services Contracts
Definitive Contracts

Risk Flags

Long contract duration may increase risk of obsolescence or changing needs.
Administrative action; true scope and value depend on underlying ESPC.
Lack of specific bidder count limits assessment of competitive intensity.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $7.6 million to ABM INDUSTRIES INC. THIS IS AN ADMINISTRATIVE ACTION ONLY TO ESTABLISH A NEW PROCUREMENT INSTRUMENT IDENTIFIER FOR THE LOS ANGELES ESPC. THIS ACTION IS NECESSARY TO ALLOW GSA'S CONTRACTING SYSTEM TO INTERFACE WITH GSA'S FINANCIAL SYSTEM.

Who is the contractor on this award?

The obligated recipient is ABM INDUSTRIES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.6 million.

What is the period of performance?

Start: 2024-06-04. End: 2038-05-01.

What is the specific purpose of establishing a new Procurement Instrument Identifier (PIIN) for this Los Angeles ESPC?

The primary purpose of establishing a new PIIN is administrative and technical. It is necessary to ensure that GSA's contracting system can properly interface with GSA's financial system. This action does not represent a new award of services but rather an update or creation of a financial tracking mechanism for an existing or future Energy Savings Performance Contract (ESPC) in the Los Angeles area. This ensures accurate financial reporting, obligation management, and payment processing within GSA's systems.

How does the long contract duration of over 13 years impact the value proposition for the government?

The extensive duration of 5079 days (approximately 13.9 years) for this contract, which is an administrative action for a PIIN, suggests that the underlying ESPC it supports is intended for long-term energy savings and infrastructure improvements. For the government, a long duration can offer stability and ensure that the benefits of energy efficiency measures are realized over an extended period, potentially leading to significant cumulative cost savings. However, it also introduces risks such as technological obsolescence, changes in energy prices, and the need for sustained contract management and oversight to ensure performance targets are met throughout the contract's life.

What are the potential risks associated with a Firm Fixed Price (FFP) contract of this nature?

While a Firm Fixed Price (FFP) contract provides cost certainty for the government, it can present risks for the contractor if the scope of work is not precisely defined or if unforeseen issues arise. For this administrative action establishing a PIIN, the FFP nature ensures the cost of setting up this identifier is fixed. However, for the underlying ESPC, if the scope of energy conservation measures is not well-defined or if external factors (like unexpected facility changes or utility rate fluctuations beyond projections) impact project costs, the contractor bears the risk of cost overruns. Conversely, the government benefits from predictable spending.

Can the $7.57 million value be considered a benchmark for similar administrative PIIN establishment actions?

The $7.57 million value associated with this administrative action is not a direct benchmark for the cost of services rendered, as its primary purpose is to establish a new PIIN for financial system integration. The actual cost of the services delivered under the ESPC will be determined by the underlying contract's scope and performance. Therefore, this figure is more indicative of the administrative overhead or the initial financial framework set up for a potentially larger ESPC project, rather than a comparable cost for engineering services themselves. Benchmarking would require analyzing the specific scope and deliverables of the ESPC.

What does the 'Public Buildings Service' designation imply about the scope of this contract?

The 'Public Buildings Service' (PBS) designation indicates that this contract, and the ESPC it supports, is managed by GSA's division responsible for operating, managing, and maintaining government-owned and leased buildings. This implies that the energy savings performance measures and engineering services will likely be implemented within federal buildings or facilities under PBS jurisdiction in the Los Angeles area. PBS focuses on providing cost-effective, sustainable, and secure workspace solutions for federal agencies, so the ESPC likely aims to improve the energy efficiency and operational performance of these government-occupied facilities.

Given this is an administrative action, what are the implications for contractor track record assessment?

Assessing the track record of ABM INDUSTRIES INC. based solely on this administrative action is limited. This action primarily signifies the establishment of a financial identifier. A thorough assessment of the contractor's track record would require examining their performance on previous ESPCs or similar engineering service contracts, particularly those managed by GSA or other federal agencies. Key factors to evaluate would include their ability to deliver energy savings as promised, manage complex projects on time and within budget, and maintain positive client relationships. This PIIN action itself doesn't provide performance data.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GS-09P-12-KS-C-0023

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7TH FLOOR, NEW YORK, NY, 10006

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

Financial Breakdown

Contract Ceiling: $143,903,595

Exercised Options: $7,565,617

Current Obligation: $7,565,617

Actual Outlays: $6,625,789

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline