DOE awards $4.5M direct contract for property management services to Strativia LLC
Contract Overview
Contract Amount: $3,652,390 ($3.7M)
Contractor: Strativia LLC
Awarding Agency: Department of Energy
Start Date: 2024-02-27
End Date: 2027-02-28
Contract Duration: 1,097 days
Daily Burn Rate: $3.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: REQUISITION 24MA000063 WAS ISSUED TO CREATE AN 8A DIRECT AWARD FOR PROPERTY MANAGEMENT SERVICES AT THE DOE HEADQUARTERS FACILITY FOR THE AMOUNT OF $4,484,563.20. THE PERIOD OF PERFORMANCE IS: BASE YEAR 03/01/2024 TO 02/28/2025 OPTION YEAR
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $3.7 million to STRATIVIA LLC for work described as: REQUISITION 24MA000063 WAS ISSUED TO CREATE AN 8A DIRECT AWARD FOR PROPERTY MANAGEMENT SERVICES AT THE DOE HEADQUARTERS FACILITY FOR THE AMOUNT OF $4,484,563.20. THE PERIOD OF PERFORMANCE IS: BASE YEAR 03/01/2024 TO 02/28/2025 OPTION YEAR Key points: 1. This contract represents a direct award, bypassing competitive bidding, which may limit price discovery. 2. The services are categorized under 'Process, Physical Distribution, and Logistics Consulting Services,' suggesting a focus on operational efficiency. 3. The contract duration extends over three years, indicating a need for sustained property management support. 4. The award is a definitive contract, typically used for complex or specialized services. 5. The small business status of the contractor, Strativia LLC, is not explicitly stated as a set-aside, but the award mechanism (8a direct award) implies a focus on small, disadvantaged businesses. 6. The contract is for property management at the Department of Energy headquarters, a critical facility.
Value Assessment
Rating: questionable
The contract value of approximately $4.5 million over three years for property management at a single headquarters facility needs further benchmarking against similar government contracts. Without comparative data on per-square-foot costs or service scope, it is difficult to definitively assess value for money. The direct award nature also raises questions about whether the government secured the most competitive pricing possible. However, the 8a direct award mechanism is intended to support small, disadvantaged businesses, which can be a strategic objective even if it doesn't always yield the lowest price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded directly to Strativia LLC under the 8(a) program, which allows for sole-source awards to eligible small disadvantaged businesses. This means the contract was not competed among multiple vendors. While the 8(a) program aims to provide opportunities for these businesses, it bypasses the open market competition that typically drives down prices and fosters innovation.
Taxpayer Impact: Taxpayers may not benefit from the cost savings that could arise from a competitive bidding process. However, the award supports federal goals of promoting small business participation in government contracting.
Public Impact
The Department of Energy headquarters facility will receive essential property management services, ensuring operational continuity and facility upkeep. Employees and visitors at the DOE headquarters will benefit from a well-maintained and secure working environment. The contract supports the operational needs of a key federal agency, contributing to its overall mission effectiveness. The award provides business and revenue to Strativia LLC, a small business, potentially impacting its growth and workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs for taxpayers.
- Direct award mechanism limits transparency in pricing.
- Performance metrics and oversight details are not fully detailed in the provided data.
Positive Signals
- Supports a small disadvantaged business through the 8(a) program.
- Ensures critical property management services for a federal agency.
- Contract duration provides stability for service delivery.
Sector Analysis
Property management services within the federal government encompass a broad range of activities, from facility maintenance and repair to space utilization and security. This contract falls within the professional services sector, specifically logistics and consulting. Federal spending on facility operations and maintenance is substantial, with agencies like the Department of Energy requiring consistent support to manage their physical assets. Benchmarking this contract would involve comparing its cost per square foot or per service provided against similar contracts for federal buildings in the Washington D.C. metropolitan area.
Small Business Impact
This contract is an 8(a) direct award, specifically targeting small disadvantaged businesses. While the data indicates the awardee is Strativia LLC, it does not explicitly state if it was a formal small business set-aside. The 8(a) program aims to help small disadvantaged businesses compete in the federal marketplace. This award provides a significant contract opportunity for Strativia LLC, potentially enabling business growth and job creation. It aligns with federal objectives to increase small business participation in contracting.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. As a definitive contract, it is subject to standard federal procurement regulations and oversight. The Inspector General's office for the Department of Energy may also conduct audits or investigations related to contract performance and financial management. Transparency is enhanced through contract databases like FPDS, though the specifics of performance monitoring are not detailed here.
Related Government Programs
- Federal Building Operations and Maintenance
- Department of Energy Facilities Management
- 8(a) Small Business Contracting Program
- Logistics and Consulting Services
Risk Flags
- Sole-source award may limit cost efficiency.
- Lack of detailed service scope in summary data.
- Performance metrics not specified in summary.
Tags
department-of-energy, property-management, direct-award, 8a-contract, logistics-consulting, district-of-columbia, definitive-contract, time-and-materials, small-business, federal-agency
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $3.7 million to STRATIVIA LLC. REQUISITION 24MA000063 WAS ISSUED TO CREATE AN 8A DIRECT AWARD FOR PROPERTY MANAGEMENT SERVICES AT THE DOE HEADQUARTERS FACILITY FOR THE AMOUNT OF $4,484,563.20. THE PERIOD OF PERFORMANCE IS: BASE YEAR 03/01/2024 TO 02/28/2025 OPTION YEAR
Who is the contractor on this award?
The obligated recipient is STRATIVIA LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $3.7 million.
What is the period of performance?
Start: 2024-02-27. End: 2027-02-28.
What is the typical cost range for property management services for federal headquarters facilities of similar size and scope in the Washington D.C. area?
Determining the typical cost range for property management services for federal headquarters facilities requires detailed analysis of contract databases, considering factors like square footage, types of services included (e.g., janitorial, security, HVAC maintenance, landscaping), and specific security requirements. For a facility like the Department of Energy headquarters, costs can vary significantly. However, general benchmarks for large commercial or government buildings in the D.C. area often range from $15 to $50 per square foot annually for comprehensive property management. Without knowing the exact size of the DOE headquarters and the specific services contracted, a precise comparison is difficult. The $4.5 million contract over three years suggests an average annual cost of $1.5 million. If the facility is substantial (e.g., several hundred thousand square feet), this figure might fall within a reasonable range, but a detailed breakdown of services and facility size is necessary for a definitive assessment.
How does the 8(a) direct award process impact the potential for cost savings compared to a full and open competition?
An 8(a) direct award, while serving the important goal of supporting small disadvantaged businesses, generally offers less potential for cost savings compared to a full and open competitive process. In a full and open competition, numerous vendors, including large and small businesses, can bid, leading to a highly competitive environment where price is often a significant factor. This competition can drive down prices as vendors vie for the contract. With an 8(a) direct award, the government negotiates directly with a single, pre-selected 8(a) firm. While the government is expected to negotiate a fair and reasonable price, the absence of multiple competing bids means the inherent price-driving pressure of open competition is not present. Therefore, while the 8(a) program fulfills strategic objectives, it may not always result in the lowest possible cost to the taxpayer.
What are the specific property management services included in this $4.5 million contract?
The provided data indicates the contract is for 'Property Management Services' at the Department of Energy headquarters and falls under the NAICS code 541614 ('Process, Physical Distribution, and Logistics Consulting Services'). However, the specific breakdown of services included within this broad description is not detailed. Typically, property management for a federal facility of this nature would encompass a wide array of tasks, potentially including but not limited to: routine maintenance and repair of building systems (HVAC, electrical, plumbing), janitorial services, groundskeeping, pest control, security system monitoring and maintenance, space management, minor renovations, and ensuring compliance with safety and environmental regulations. The 'Logistics Consulting' aspect might also imply services related to optimizing the use of space, managing inventory of facility assets, or improving the flow of people and resources within the building.
What is Strativia LLC's track record with federal government contracts, particularly in property management?
Information regarding Strativia LLC's specific track record with federal government contracts, especially in property management, is not detailed in the provided data snippet. As an 8(a) direct award recipient, it is implied that Strativia LLC is an eligible small disadvantaged business. To assess their track record, one would typically consult the Federal Procurement Data System (FPDS) or the General Services Administration's (GSA) contract databases. These systems would reveal past awards, contract types, performance history (if available), and the agencies they have served. Without access to this detailed historical data, it's challenging to evaluate their experience, past performance, and capacity to successfully execute a contract of this magnitude and scope for the Department of Energy.
Are there any specific performance metrics or Key Performance Indicators (KPIs) associated with this contract to ensure service quality?
The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) associated with this contract. For federal contracts, especially those involving essential services like property management for a critical facility, performance standards are crucial. These KPIs would typically be outlined in the contract's statement of work (SOW) or performance work statement (PWS). They might include metrics related to response times for maintenance requests, uptime of critical building systems, cleanliness standards, security incident response, energy efficiency targets, and overall client satisfaction. The Department of Energy's contracting officers are responsible for monitoring Strativia LLC's performance against these standards and taking corrective action if necessary. The absence of this information in the summary data suggests it would be found within the full contract documentation.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1401 MERCANTILE LANE, LARGO, MD, 20774
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,901,073
Exercised Options: $3,901,073
Current Obligation: $3,652,390
Actual Outlays: $1,913,194
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-02-27
Current End Date: 2027-02-28
Potential End Date: 2027-02-28 00:00:00
Last Modified: 2026-02-26
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