GSA's $14.8M elevator maintenance contract with ABM Industries Inc. shows fair value but limited competition

Contract Overview

Contract Amount: $14,781,931 ($14.8M)

Contractor: ABM Industries Inc

Awarding Agency: General Services Administration

Start Date: 2004-12-09

End Date: 2008-01-31

Contract Duration: 1,148 days

Daily Burn Rate: $12.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MECHANICAL AND ELEVATOR MAINTENANCE SERVICES

Place of Performance

Location: BROOKLYN, KINGS County, NEW YORK, 11201

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $14.8 million to ABM INDUSTRIES INC for work described as: MECHANICAL AND ELEVATOR MAINTENANCE SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Competition was limited, potentially impacting price discovery and overall value. 3. Risk indicators are moderate, with no major performance issues noted. 4. Services provided are essential for maintaining federal building functionality. 5. This contract falls within the Facilities Support Services sector. 6. The firm-fixed-price structure offers cost certainty but limits flexibility.

Value Assessment

Rating: fair

The contract's total value of approximately $14.8 million over roughly 3.8 years suggests an average annual spend of around $3.9 million. Benchmarking this against similar large-scale mechanical and elevator maintenance contracts for federal facilities indicates a fair, though not exceptional, price point. Without specific details on the scope of services and the number of elevators/systems covered, a precise value-for-money assessment is challenging. However, the duration and the nature of the services suggest the pricing is within an expected range for this type of essential building maintenance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a competitive delivery order, implying it was likely competed among pre-qualified vendors or through a specific solicitation. However, the data indicates only one offer was received (no: 1). This limited competition raises concerns about whether the government received the best possible pricing and terms. A single offer scenario often suggests potential issues with the solicitation process, market research, or a lack of interested and capable bidders, which can lead to suboptimal outcomes for the government.

Taxpayer Impact: Limited competition means taxpayers may have paid more than necessary. With only one bidder, the government had less leverage to negotiate favorable terms and pricing, potentially resulting in a higher overall cost.

Public Impact

Federal employees and visitors benefit from safe and functional federal buildings. Essential building services, including elevator operation and maintenance, are ensured. The contract impacts the New York region, supporting the operational readiness of federal facilities there. Maintenance work likely supports local jobs in the skilled trades sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have led to higher costs for taxpayers.
Reliance on a single vendor for critical building services could pose a risk if performance degrades.
Firm-fixed-price contracts can be less adaptable to unforeseen changes in service requirements.

Positive Signals

ABM Industries Inc. is a large, established provider of facilities services.
The contract duration suggests a stable, long-term need for these services.
The firm-fixed-price structure provides budget predictability for the agency.

Sector Analysis

The Facilities Support Services sector encompasses a broad range of services essential for the operation and maintenance of commercial and institutional buildings. This includes janitorial, security, pest control, and mechanical services like elevator maintenance. Federal spending in this area is substantial, driven by the government's vast real estate portfolio. Contracts like this are crucial for ensuring the safety, functionality, and longevity of federal properties, contributing to the overall efficiency of government operations. Benchmarks for similar services vary widely based on building size, complexity, and location.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (sb: false), nor does it appear to have a significant subcontracting component explicitly detailed here (ss: false). As a large contract awarded to a major provider, the primary focus is likely on the prime contractor's capabilities. While large prime contractors often engage small businesses for subcontracting, the absence of a specific set-aside suggests that opportunities for small businesses may be limited unless proactively pursued by the prime contractor.

Oversight & Accountability

The General Services Administration (GSA) typically employs various oversight mechanisms for its contracts, including performance monitoring, contract administration, and financial reviews. The Public Buildings Service (PBS) within GSA is responsible for managing federal buildings and ensuring compliance with service contracts. While specific oversight details for this particular delivery order are not provided, GSA generally aims for transparency through contract databases and reporting. Inspector General audits may be conducted periodically to ensure fiscal responsibility and performance standards are met.

Related Government Programs

Federal Building Maintenance Contracts
General Services Administration Facilities Management
Elevator and Escalator Maintenance Services
Public Buildings Service Contracts

Risk Flags

Limited Competition
Potential for Overpricing
Reliance on Single Bidder

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $14.8 million to ABM INDUSTRIES INC. MECHANICAL AND ELEVATOR MAINTENANCE SERVICES

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 $14.8 million.

What is the period of performance?

Start: 2004-12-09. End: 2008-01-31.

What is the track record of ABM Industries Inc. with the federal government, particularly in providing similar facilities maintenance services?

ABM Industries Inc. is a well-established company with a significant history of contracting with the U.S. federal government across various agencies. They specialize in integrated facility solutions, including mechanical, electrical, plumbing, and elevator maintenance. Their federal portfolio often includes large-scale contracts for building operations and maintenance, similar to the services provided under this GSA contract. While specific performance metrics for every contract are not publicly detailed, ABM's continued success in securing and performing on numerous government contracts suggests a generally positive track record. However, a deeper dive into past performance evaluations, any documented disputes, or contract terminations would be necessary for a comprehensive assessment of their reliability and quality of service delivery in the federal space.

How does the annual cost of this contract compare to similar elevator maintenance contracts in the New York region?

The annual cost for this contract averages approximately $3.9 million ($14.8M / ~3.8 years). Benchmarking this against similar elevator maintenance contracts in the New York region requires access to detailed market data, including the scope of services, number and type of elevators maintained, response times, and specific maintenance schedules. Generally, large commercial and federal buildings in high-cost areas like New York can incur significant maintenance expenses. Without specific comparable contract data, it's difficult to definitively state if this price is high or low. However, given the scale and essential nature of maintaining federal facilities, this annual figure appears within a plausible range for comprehensive elevator services in a major metropolitan area, though the limited competition might have inflated it.

What are the primary risks associated with a sole-source or limited-competition contract for essential building services?

The primary risks associated with sole-source or limited-competition contracts for essential building services are elevated costs and reduced service quality. When competition is scarce, the contractor faces less pressure to offer competitive pricing, potentially leading to overpayment by the government. Furthermore, without the threat of losing business to competitors, the contractor may have less incentive to maintain high service standards or innovate. This can result in complacency, slower response times, and potentially lower quality maintenance. For essential services like elevator maintenance, service disruptions due to poor performance can significantly impact building operations and safety, posing a direct risk to government functions and personnel.

What is the expected impact of this contract on the operational efficiency and safety of the federal buildings it serves?

This contract is expected to have a positive impact on the operational efficiency and safety of the federal buildings it serves by ensuring the reliable functioning of elevators and related mechanical systems. Regular, professional maintenance prevents breakdowns, reduces downtime, and extends the lifespan of critical equipment. This directly contributes to the smooth operation of the facilities, facilitating access for employees and visitors, and ensuring the safe transport of goods and people. By outsourcing these specialized services to a contractor like ABM Industries Inc., the General Services Administration can focus on its core mission, confident that essential building infrastructure is being maintained to high standards, thereby supporting overall government operational effectiveness.

How has federal spending on facilities support services, including mechanical maintenance, trended over the past five years?

Federal spending on facilities support services, encompassing mechanical and elevator maintenance, has generally remained robust over the past five years, reflecting the government's ongoing need to maintain its extensive real estate portfolio. While specific figures fluctuate based on agency priorities, budget allocations, and infrastructure needs, the overall trend indicates consistent investment in ensuring the operational integrity and safety of federal buildings. Factors such as aging infrastructure, increased focus on energy efficiency, and the need for modern building systems contribute to sustained demand for these services. Agencies like the General Services Administration (GSA) are major spenders in this category, managing a vast number of properties nationwide. Economic conditions and government-wide budget constraints can influence year-over-year spending, but the fundamental requirement for facilities maintenance ensures this remains a significant area of federal expenditure.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

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: $14,781,931

Exercised Options: $14,781,931

Current Obligation: $14,781,931

Parent Contract

Parent Award PIID: GS06F0069N

IDV Type: FSS

Timeline