GSA awards $2.3M administrative management contract to The Building People LLC for 3.5 years

Contract Overview

Contract Amount: $2,373,837 ($2.4M)

Contractor: THE Building People LLC

Awarding Agency: General Services Administration

Start Date: 2023-08-01

End Date: 2027-02-28

Contract Duration: 1,307 days

Daily Burn Rate: $1.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OBLIGATION TO OY1 CLINS

Place of Performance

Location: TACOMA, PIERCE County, WASHINGTON, 98402

State: Washington Government Spending

Plain-Language Summary

General Services Administration obligated $2.4 million to THE BUILDING PEOPLE LLC for work described as: OBLIGATION TO OY1 CLINS Key points: 1. Contract awarded via BPA Call under SAP, indicating a streamlined procurement process. 2. The Building People LLC is the sole awardee for this specific BPA Call. 3. Contract duration of 1307 days suggests a need for sustained support. 4. The fixed-price contract type aims to control costs and provide budget certainty. 5. Administrative Management and General Management Consulting Services (NAICS 541611) is a broad category. 6. The contract is not set aside for small businesses, nor does it appear to have specific subcontracting goals mentioned.

Value Assessment

Rating: fair

The contract's value of $2.3M over approximately 3.5 years averages around $650K annually. Benchmarking this against similar administrative management contracts is challenging without more specific service details. However, the firm fixed-price structure suggests an attempt to manage costs effectively. The award was made under a Blanket Purchase Agreement (BPA) Call, which can sometimes offer better pricing than individual task orders, but the specific value proposition relative to market rates requires further analysis of the BPA's overall terms.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP) via a BPA Call. While the data indicates it was competed, the limited nature of SAP and BPA Calls often implies a restricted number of bidders compared to full and open competition. The specific number of bidders for this BPA Call is not provided, but the 'COMPETED UNDER SAP' designation suggests a less extensive outreach than a full solicitation.

Taxpayer Impact: Competition under SAP and BPA Calls can lead to faster awards but may not always yield the lowest possible prices due to a potentially smaller pool of interested and capable contractors.

Public Impact

Federal agencies requiring administrative and general management consulting services benefit from this contract. The services delivered are expected to support the operational efficiency of the General Services Administration (GSA). The contract is geographically focused on Washington (WA), indicating local or regional support. The workforce implications are primarily for The Building People LLC and its employees, who will provide the consulting services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency on the number of bidders for the BPA Call limits assessment of true competition.
The broad NAICS code (541611) makes it difficult to ascertain the specific value and necessity of the services procured.
No explicit small business subcontracting goals are mentioned, potentially limiting opportunities for smaller firms.

Positive Signals

The use of a BPA Call suggests an existing framework for efficient procurement.
Firm Fixed Price contract type provides cost certainty for the government.
The contract duration of over three years indicates a recognized need for ongoing support.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. This is a significant market within the federal government, with agencies frequently procuring services to improve efficiency, strategy, and operations. The total federal spending on management consulting services is substantial, and this contract represents a small portion of that overall expenditure. The GSA's Public Buildings Service often requires such support for its vast real estate and facilities management operations.

Small Business Impact

The contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements or goals. This means that opportunities for small businesses to participate in this contract are not explicitly mandated through set-asides or subcontracting plans. The primary awardee, The Building People LLC, will determine any subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the General Services Administration (GSA), specifically the Public Buildings Service contracting officers and program managers. As a BPA Call award, the underlying BPA likely has established oversight mechanisms. Transparency is moderate, as the award is publicly visible, but detailed performance metrics and specific service delivery oversight are typically managed internally by the agency.

Related Government Programs

GSA Federal Supply Schedule Contracts
Management and Consulting Services
Administrative Support Services
Professional Services Schedule (PSS)

Risk Flags

Limited competition due to SAP/BPA Call
Broad NAICS code may obscure specific service value
No explicit small business subcontracting goals

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.4 million to THE BUILDING PEOPLE LLC. OBLIGATION TO OY1 CLINS

Who is the contractor on this award?

The obligated recipient is THE BUILDING PEOPLE LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2023-08-01. End: 2027-02-28.

What is the track record of The Building People LLC with the federal government, particularly in administrative management consulting?

A review of federal procurement data indicates that The Building People LLC has received federal contracts primarily through GSA schedules and other contract vehicles. Their awarded services often align with management and administrative consulting, facilities support, and project management. While specific performance details for individual contracts are not always publicly available, their consistent receipt of awards suggests a satisfactory performance history with various federal agencies. Further investigation into past performance evaluations or client feedback, if accessible, would provide a more comprehensive understanding of their track record in delivering administrative management and general management consulting services.

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

Benchmarking the awarded price of $2.3M over approximately 3.5 years (averaging ~$650K annually) against market rates for administrative management consulting is challenging without granular details on the specific services rendered. The contract is a Firm Fixed Price (FFP) award made via a BPA Call under Simplified Acquisition Procedures (SAP). FFP contracts aim for price certainty. However, SAP and BPA Calls may not always achieve the same level of price competition as larger, full-and-open solicitations. To accurately assess value-for-money, one would need to compare the specific labor categories, hours, and deliverables against industry benchmarks for similar consulting engagements within the Washington D.C. metropolitan area or comparable federal markets.

What are the key risks associated with this contract, and how are they being mitigated?

Key risks include potential scope creep if the administrative management needs are not clearly defined, contractor performance issues, and the possibility that the competition level (under SAP via BPA Call) may not have yielded the most cost-effective solution. Mitigation strategies likely involve robust contract management by the GSA, including clear performance work statements, regular progress reviews, and adherence to the FFP structure to control costs. The agency's oversight mechanisms and the contractor's incentive to maintain a good performance record for future work also serve as risk mitigators. The limited competition aspect is a potential risk to optimal pricing, which is inherent in SAP procurements.

How effective is the GSA's Public Buildings Service in leveraging contracts like this for operational efficiency?

The effectiveness of the GSA's Public Buildings Service (PBS) in leveraging contracts for administrative management and consulting is generally considered moderate to high, given their extensive portfolio and reliance on such services. Contracts like this aim to enhance efficiency by providing specialized expertise that may not be available in-house or by streamlining complex management processes. The PBS manages a vast inventory of federal buildings, and effective administrative support is crucial for operations, maintenance, and strategic planning. The success of this specific contract would depend on the clarity of its objectives, the performance of The Building People LLC, and the GSA's ability to integrate the consulting services into its operational framework.

What are the historical spending patterns for administrative management consulting services by the GSA?

The General Services Administration (GSA) consistently spends significant amounts on administrative management and general management consulting services. This spending is distributed across various bureaus and services, including the Public Buildings Service (PBS). Historical data shows a recurring need for these services to support strategic planning, process improvement, IT management, and operational efficiency within the agency. Spending levels can fluctuate based on agency priorities, budget allocations, and specific project requirements. The use of contract vehicles like BPA Calls and GSA Schedules is common for procuring these types of services, indicating a reliance on external expertise to supplement internal capabilities.

What is the potential impact of this contract on the broader market for administrative management consulting services?

This contract, valued at $2.3M over 3.5 years, contributes to the overall market for administrative management consulting services. While not a mega-contract, it represents a notable award to The Building People LLC. Its impact on the broader market is likely localized, primarily influencing firms competing for similar GSA contracts. The fact that it was competed under SAP via a BPA Call suggests a focus on efficiency and potentially smaller-scale procurements within the GSA's framework. The award reinforces the demand for these services within the federal sector and highlights the role of GSA's contracting vehicles in facilitating such engagements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 47PL0223Q0016

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 215 DEPOT CT SE, LEESBURG, VA, 20175

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,325,416

Exercised Options: $2,373,837

Current Obligation: $2,373,837

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47PL0223A0011

IDV Type: BPA

Timeline