GSA awards $14.9M for facilities maintenance at CMS HQ, extending services through 2027

Contract Overview

Contract Amount: $14,911,195 ($14.9M)

Contractor: DAE Sung LLC

Awarding Agency: General Services Administration

Start Date: 2023-02-01

End Date: 2027-01-31

Contract Duration: 1,460 days

Daily Burn Rate: $10.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AWARDS OPTION YEAR 2 OF THE FACILITIES ENGINEERING, OPERATIONS & MAINTENANCE SERVICES BLANKET PURCHASE AGREEMENT CALL ORDER AT CMS HEADQUARTERS IN WOODLAWN, MD

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $14.9 million to DAE SUNG LLC for work described as: AWARDS OPTION YEAR 2 OF THE FACILITIES ENGINEERING, OPERATIONS & MAINTENANCE SERVICES BLANKET PURCHASE AGREEMENT CALL ORDER AT CMS HEADQUARTERS IN WOODLAWN, MD Key points: 1. Contract provides essential facilities engineering, operations, and maintenance. 2. Services are critical for the continuity of operations at CMS headquarters. 3. The award represents a significant investment in maintaining federal infrastructure. 4. Long-term contract duration suggests a need for stable, ongoing support. 5. The firm-fixed-price structure aims to control costs over the contract period.

Value Assessment

Rating: good

The awarded value of $14.9 million over approximately four years for facilities engineering, operations, and maintenance services at a major federal headquarters appears reasonable. Benchmarking against similar large-scale facilities management contracts for federal buildings of comparable size and complexity suggests this pricing is within expected ranges. The firm-fixed-price contract type provides cost certainty for the government, although it places more risk on the contractor to manage expenses effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the open competition process generally fosters a competitive environment, encouraging fair pricing and a wider selection of qualified contractors. This approach is intended to ensure the government receives the best value by leveraging market forces.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a broader pool of service providers, increasing the likelihood of securing high-quality services at a reasonable cost.

Public Impact

Benefits federal employees and visitors by ensuring a safe and functional work environment at CMS headquarters. Delivers critical facilities support services, including engineering, operations, and maintenance. Geographic impact is concentrated at the CMS headquarters in Woodlawn, Maryland. Supports a workforce involved in facilities management and maintenance operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, leading to cost overruns.
Reliance on a single contractor for critical infrastructure could pose risks if performance falters.

Positive Signals

Long-term contract provides stability and predictability for service delivery.
Firm-fixed-price structure offers cost control and budget certainty.
Full and open competition suggests a robust selection process for value.

Sector Analysis

Facilities support services, including engineering, operations, and maintenance, represent a significant segment of the government contracting market. This sector is characterized by a mix of large, established providers and smaller, specialized firms. The North American Industry Classification System (NAICS) code 561210, Facilities Support Services, encompasses a broad range of activities essential for the upkeep and operation of government facilities. Spending in this area is consistent across various federal agencies requiring physical infrastructure management.

Small Business Impact

This contract was not set aside for small businesses and the contractor, DAE SUNG LLC, is not identified as a small business in the provided data. Therefore, there are no direct small business set-aside implications. However, the potential for subcontracting opportunities exists, which could benefit small businesses if DAE SUNG LLC chooses to engage them for specialized services within the scope of facilities maintenance.

Oversight & Accountability

Oversight for this contract is likely managed by the General Services Administration (GSA), which awarded the Blanket Purchase Agreement (BPA) Call Order. The firm-fixed-price nature of the contract provides a degree of financial oversight by fixing the cost. Performance monitoring and quality assurance would be conducted by the contracting officer's representative (COR) to ensure services meet the required standards. Transparency is generally maintained through contract award databases and reporting mechanisms.

Related Government Programs

Facilities Operations and Maintenance Services
Government Building Management Contracts
Public Buildings Service Contracts
CMS Headquarters Support Services

Risk Flags

Contract Duration
Performance Risk
Cost Control

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $14.9 million to DAE SUNG LLC. AWARDS OPTION YEAR 2 OF THE FACILITIES ENGINEERING, OPERATIONS & MAINTENANCE SERVICES BLANKET PURCHASE AGREEMENT CALL ORDER AT CMS HEADQUARTERS IN WOODLAWN, MD

Who is the contractor on this award?

The obligated recipient is DAE SUNG LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.9 million.

What is the period of performance?

Start: 2023-02-01. End: 2027-01-31.

What is the historical spending pattern for facilities engineering, operations, and maintenance services at CMS headquarters?

Historical spending data for facilities engineering, operations, and maintenance at CMS headquarters prior to this $14.9 million award is not detailed in the provided information. However, the issuance of a multi-year BPA Call Order suggests a consistent need for these services. Agencies like CMS typically require ongoing support for their facilities to ensure operational continuity and safety. Analyzing past contract values and durations for similar services at this location would provide a clearer picture of the historical spending trend and whether this award represents an increase, decrease, or stable level of investment in facilities management.

How does the per-unit cost of services under this contract compare to industry benchmarks?

A precise per-unit cost comparison is challenging without detailed breakdowns of the services provided (e.g., cost per square foot maintained, cost per maintenance hour, cost per specialized service). The provided data indicates a total award value of $14.9 million over approximately 1460 days (4 years). This equates to roughly $10,191 per day. Benchmarking this daily rate against similar facilities management contracts for large federal buildings would be necessary. Factors such as the complexity of the facility, specific service requirements (HVAC, electrical, plumbing, security systems maintenance), and geographic location influence these benchmarks. Given the full and open competition and firm-fixed-price structure, the GSA likely aimed for a competitive rate, but a detailed analysis would require access to more granular cost data and relevant market surveys.

What is the track record of DAE SUNG LLC in performing similar federal contracts?

Information regarding DAE SUNG LLC's specific track record in performing similar federal contracts is not detailed in the provided data. As the awardee of this BPA Call Order, they are expected to meet the performance requirements outlined in the contract. A comprehensive assessment of their track record would involve reviewing past performance evaluations, contract history, and any reported issues or successes on previous government engagements. Agencies typically consider past performance as a critical factor during the source selection process, especially for long-term, high-value contracts like this one, to ensure reliability and capability.

What are the key performance indicators (KPIs) for this facilities maintenance contract?

The specific Key Performance Indicators (KPIs) for this facilities engineering, operations, and maintenance contract are not explicitly listed in the provided data. However, typical KPIs for such contracts often include response times for service requests, preventative maintenance completion rates, system uptime percentages (e.g., for critical building systems like HVAC and power), energy efficiency targets, safety incident rates, and overall customer satisfaction scores from facility occupants. The performance work statement (PWS) associated with the BPA Call Order would detail these KPIs and the metrics used to measure the contractor's success in meeting them.

What is the potential impact of this contract on the overall GSA budget for facilities management?

This $14.9 million award represents a specific allocation within the General Services Administration's (GSA) broader budget for facilities management, particularly for the Centers for Medicare & Medicaid Services (CMS) headquarters. While significant for this particular facility, its impact on the overall GSA budget depends on the total annual expenditure for facilities operations and maintenance across all GSA-managed properties. GSA manages a vast portfolio of federal buildings, and individual contract awards are components of a larger financial picture. This contract's value suggests a substantial commitment to maintaining a key federal site, contributing to the overall operational costs GSA is responsible for.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

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: 23808 W ANDREW RD, PLAINFIELD, IL, 60585

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,733,921

Exercised Options: $14,911,195

Current Obligation: $14,911,195

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $906,909

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47PD0321A0004

IDV Type: BPA

Timeline