GSA Awards $43M Mechanical Maintenance Contract to ABM Industries Inc. for 6 Years

Contract Overview

Contract Amount: $42,972,264 ($43.0M)

Contractor: ABM Industries Inc

Awarding Agency: General Services Administration

Start Date: 2004-09-24

End Date: 2010-10-31

Contract Duration: 2,228 days

Daily Burn Rate: $19.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MECHANICAL MAINTENANCE SERVICES, 26 FEDERAL PLAZA, NY, NY

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10278

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $43.0 million to ABM INDUSTRIES INC for work described as: MECHANICAL MAINTENANCE SERVICES, 26 FEDERAL PLAZA, NY, NY Key points: 1. Contract Value: $42.97 million over 6 years. 2. Incumbent Contractor: ABM Industries Inc. has held this contract. 3. Risk: Potential for price creep due to long-term fixed-price contract. 4. Sector: Facilities Support Services, a critical operational area for government buildings.

Value Assessment

Rating: good

The contract's firm fixed-price structure provides cost certainty. However, the extended duration may limit flexibility in adapting to market price fluctuations for mechanical maintenance services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This was a competitive delivery order, suggesting a bidding process occurred. The competitive nature likely contributed to achieving a reasonable price, though specific benchmarks are unavailable.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at a fair market price over the contract's lifespan.

Public Impact

Ensures operational continuity of federal facilities in New York. Supports essential building systems, impacting employee safety and productivity. Provides stable employment for maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term fixed-price contract may not reflect market changes.
Potential for vendor lock-in if competition was limited in prior cycles.

Positive Signals

Competitive award process.
Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls under Facilities Support Services, a broad category encompassing building operations and maintenance. Spending in this sector is generally stable, driven by the need to maintain government infrastructure.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.

Oversight & Accountability

The General Services Administration (GSA) is responsible for managing federal real estate. Oversight would involve monitoring contract performance and ensuring compliance with terms and conditions.

Related Government Programs

Facilities Support Services
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Long contract duration.
Firm fixed-price contract.
No small business award noted.
Potential for price escalation or de-escalation mismatch with market.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $43.0 million to ABM INDUSTRIES INC. MECHANICAL MAINTENANCE SERVICES, 26 FEDERAL PLAZA, NY, NY

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 $43.0 million.

What is the period of performance?

Start: 2004-09-24. End: 2010-10-31.

What was the basis for the firm fixed price and how does it compare to industry benchmarks for similar services?

The firm fixed price was likely established during the competitive bidding process. Without access to the specific solicitation and bid details, a direct comparison to industry benchmarks is challenging. However, the contract's duration suggests a need for predictable costs, which a fixed price provides, though it may not always reflect the most current market rates.

What are the risks associated with a long-term fixed-price contract for mechanical maintenance services?

A primary risk is that the fixed price may become uncompetitive over time if market prices for labor, parts, and materials decrease. Conversely, if costs rise significantly, the contractor may face financial strain, potentially impacting service quality or leading to requests for modification. The long duration also reduces opportunities to leverage new technologies or service providers.

How effectively does this contract ensure the ongoing operational readiness of Federal Plaza facilities?

The contract's objective is to ensure operational readiness through consistent mechanical maintenance. The firm fixed-price structure and long duration suggest a commitment to sustained service. However, effectiveness hinges on the contractor's performance, the clarity of service level agreements, and the agency's oversight mechanisms to address any potential degradation in service quality over the contract period.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 160 PACIFIC AVE STE 222, SAN FRANCISCO, CA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $42,972,264

Exercised Options: $42,972,264

Current Obligation: $42,972,264

Parent Contract

Parent Award PIID: GS06F0069N

IDV Type: FSS

Timeline