GSA awards $13.4M facilities support contract to DAE SUNG LLC for Virginia field offices

Contract Overview

Contract Amount: $13,447,942 ($13.4M)

Contractor: DAE Sung LLC

Awarding Agency: General Services Administration

Start Date: 2023-04-01

End Date: 2027-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATIONS MAINTENANCE SERVICES RICHMOND FIELD OFFICES

Place of Performance

Location: RICHMOND, RICHMOND CITY County, VIRGINIA, 23219

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $13.4 million to DAE SUNG LLC for work described as: OPERATIONS MAINTENANCE SERVICES RICHMOND FIELD OFFICES Key points: 1. Contract focuses on essential facilities support services, ensuring operational continuity. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. Performance period spans four years, indicating a need for sustained services. 5. The contract is a BPA Call, suggesting it's part of a larger pre-competed agreement. 6. No small business set-aside was utilized, potentially limiting direct opportunities for smaller firms.

Value Assessment

Rating: good

The contract value of $13.4 million over four years for facilities support services appears reasonable given the scope. Benchmarking against similar GSA contracts for facilities maintenance in the region would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for controlling costs. Without specific performance metrics or detailed service breakdowns, a definitive value assessment is challenging, but the competitive nature of the award suggests a degree of price efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which should lead to more favorable pricing and better service offerings for the government. The use of a BPA Call suggests that the underlying framework was already competed, and this call represents a specific task order.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and encouraging a wider range of potential contractors to vie for the work, leading to potentially better value.

Public Impact

Federal employees in GSA field offices in Virginia will benefit from maintained and operational facilities. Services include facilities support, likely encompassing maintenance, cleaning, and operational upkeep. The geographic impact is concentrated within GSA field offices located in Virginia. The contract supports the operational infrastructure for federal agencies utilizing these offices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency on the number of bidders in the full and open competition.
Absence of specific performance metrics makes it difficult to assess service quality proactively.
No small business subcontracting plan mentioned, which could limit opportunities for smaller businesses.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm-fixed-price contract type helps control costs and provides budget certainty.
The contract duration of four years suggests a stable, long-term need for these services.
BPA Call award mechanism implies efficiency in task ordering from a pre-competed vehicle.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of buildings and grounds. This sector is crucial for government operations, ensuring that federal facilities are functional, safe, and well-maintained. Spending in this area is consistent across many federal agencies, with GSA being a primary facilitator for such services. Comparable spending benchmarks would involve analyzing other GSA contracts for similar services across different regions or other agencies' facilities management contracts.

Small Business Impact

The contract was not awarded as a small business set-aside, and the data indicates the prime contractor is not a small business. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This suggests that opportunities for small businesses may be limited to potential subcontracting roles, if any are established by the prime contractor, rather than direct prime contract awards.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Public Buildings Service. As a federal contract, it is subject to standard government oversight mechanisms, including contract performance monitoring and compliance checks. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Buildings Maintenance
Government Facilities Management
GSA Operations and Maintenance Contracts
Public Buildings Service Contracts
Facilities Support Services

Risk Flags

Potential for service quality issues if contractor performance is subpar.
Risk of unforeseen maintenance needs impacting budget if scope is not comprehensive.
Limited visibility into specific number of bidders for full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $13.4 million to DAE SUNG LLC. OPERATIONS MAINTENANCE SERVICES RICHMOND FIELD OFFICES

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 $13.4 million.

What is the period of performance?

Start: 2023-04-01. End: 2027-03-31.

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

A review of federal procurement data indicates that DAE SUNG LLC has been awarded multiple federal contracts, primarily in the facilities support and maintenance domain. While specific details on past performance quality are not readily available in summary data, the company's consistent awards suggest a capacity to meet government requirements. Further investigation into past performance evaluations, if publicly accessible, or any past performance issues reported by agencies would be necessary for a comprehensive assessment of their track record. The current award by GSA, a major federal agency, implies a level of confidence in their capabilities.

How does the awarded price compare to market rates for similar facilities support services in Virginia?

Benchmarking the $13.4 million contract value against market rates requires detailed analysis of the specific services included (e.g., janitorial, HVAC maintenance, groundskeeping) and their prevailing rates in the Richmond, Virginia area. Without a breakdown of labor hours, material costs, and specific service deliverables, a precise comparison is difficult. However, the firm-fixed-price nature and the full and open competition award suggest that GSA aimed to secure competitive pricing. Industry reports on facilities management costs in the region, alongside data from similar government contracts, would be needed for a robust comparison.

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

Key risks include potential underperformance by the contractor in delivering essential maintenance and support, leading to disruptions in office operations. Cost escalation is mitigated by the firm-fixed-price structure, but scope creep or unforeseen maintenance issues could still pose challenges. There's also a risk related to contractor personnel availability and turnover, which can impact service quality. Ensuring consistent compliance with federal regulations and security protocols for government facilities represents another area of risk that requires diligent oversight.

How effective is the firm-fixed-price contract type in ensuring value for this type of service?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for predictable services like facilities support because it shifts the risk of cost overruns to the contractor. This provides budget certainty for the government. For services with well-defined scopes, FFP encourages efficiency from the contractor to maximize profit. However, if unforeseen complexities arise that are not clearly excluded from the scope, the contractor may resist necessary work, or the government might need to issue change orders, potentially increasing costs. For routine maintenance, FFP is typically a strong choice for value.

What is the historical spending trend for facilities support services by GSA in Virginia?

Analyzing historical spending trends for GSA facilities support services in Virginia requires access to comprehensive procurement data over several fiscal years. General trends indicate a consistent need for such services to maintain federal buildings. Spending levels can fluctuate based on infrastructure upgrades, new facility acquisitions, or changes in service requirements. Without specific historical data for GSA's Virginia operations, it's difficult to pinpoint precise trends, but the ongoing nature of facilities management suggests sustained, significant investment in this area.

What are the implications of this contract being a BPA Call?

A BPA Call signifies that this contract is a task order issued under a previously established Blanket Purchase Agreement (BPA). BPAs are typically used to streamline the procurement process for recurring needs by pre-competing a range of potential services or supplies. This means the underlying terms and conditions, and potentially pricing structures, were already negotiated and competed. Awarding via a BPA Call can lead to faster ordering and delivery times compared to a new full and open competition for each requirement, potentially offering efficiencies and cost savings.

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: $63,808,239

Exercised Options: $13,447,942

Current Obligation: $13,447,942

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,091,583

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47PN0323A0001

IDV Type: BPA

Timeline