GSA's $36.8M contract for building operations at NYC's Ted Weiss Federal Building awarded via full and open competition

Contract Overview

Contract Amount: $36,824,202 ($36.8M)

Contractor: Lcor Asset Management Limited Partnership

Awarding Agency: General Services Administration

Start Date: 2010-11-22

End Date: 2021-06-30

Contract Duration: 3,873 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BUILDING OPERATIONS, MECHANICAL MAINTENANCE AND ELEVATOR MAINTENANCE SERVICES FOR THE TED WEISS FEDERAL BUILDING LOCATED AT 290 BROADWAY, NEW YORK, NY 10278

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10017

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $36.8 million to LCOR ASSET MANAGEMENT LIMITED PARTNERSHIP for work described as: BUILDING OPERATIONS, MECHANICAL MAINTENANCE AND ELEVATOR MAINTENANCE SERVICES FOR THE TED WEISS FEDERAL BUILDING LOCATED AT 290 BROADWAY, NEW YORK, NY 10278 Key points: 1. Contract value of $36.8M over its period of performance suggests significant investment in facility upkeep. 2. The use of firm-fixed-price contract type indicates a clear understanding of service scope and cost expectations. 3. Awarded through full and open competition, this contract likely benefited from a competitive bidding process. 4. The duration of the contract (approx. 10.6 years) points to a long-term need for these essential building services. 5. The North American Industry Classification System (NAICS) code 561210 categorizes this as Facilities Support Services. 6. The contract's focus on mechanical maintenance and elevator services highlights critical infrastructure support.

Value Assessment

Rating: good

The contract's total value of $36.8M over nearly 11 years averages around $3.3M annually for building operations and maintenance. Benchmarking this against similar large federal building operations contracts is challenging without more specific service breakdowns. However, the firm-fixed-price structure suggests that the General Services Administration (GSA) sought predictable costs. The awarded amount appears reasonable given the scope of services (mechanical, elevator maintenance) for a significant federal building in a high-cost urban area like New York City.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' procurement strategy, meaning all responsible sources were permitted to submit bids. The presence of 3 bids indicates a moderate level of competition for this service contract. While not an exceptionally high number of bidders, it suggests that the market for these specialized facilities support services is not overly concentrated, allowing for some price discovery and selection of qualified offerors.

Taxpayer Impact: A competitive bidding process generally leads to better pricing for taxpayers by encouraging contractors to offer their best value proposals to win the contract.

Public Impact

Federal employees and visitors utilizing the Ted Weiss Federal Building in New York City benefit from safe and functional facilities. Essential building operations, including mechanical systems and elevator maintenance, are ensured, preventing service disruptions. The contract supports the physical infrastructure of a key federal property in New York City. Jobs are likely supported within the facilities management and maintenance sectors in the New York metropolitan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen major repairs arise beyond the scope of routine maintenance.
Dependence on a single contractor for critical building systems could lead to service disruptions if performance falters.
The long contract duration might limit opportunities to leverage newer technologies or more cost-effective solutions introduced later.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, suggesting a competitive market and potentially good value.
Contract covers essential services ensuring the continuous operation of a federal building.
The contractor has a track record of performing services for the government, indicated by the contract award.

Sector Analysis

This contract falls within the Facilities Support Services sector, a significant segment of the commercial and government real estate market. This sector encompasses a wide range of services including building operations, maintenance, cleaning, and security. The market is characterized by both large, diversified service providers and smaller, specialized firms. Federal spending in this area is substantial, driven by the need to maintain a vast portfolio of government-owned and leased properties across the country. This specific contract for mechanical and elevator maintenance is crucial for ensuring the safety, functionality, and longevity of a major federal building.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses were likely the primary bidders and recipients of this award. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem for this particular contract is likely minimal, though the prime contractor may engage small businesses opportunistically.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract through its Public Buildings Service. Oversight mechanisms would typically include regular performance reviews, site inspections, and adherence to contract terms and conditions. Accountability is ensured through the firm-fixed-price structure, which incentivizes the contractor to manage costs effectively. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for the GSA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Building Operations and Maintenance
Government Real Estate Management
Facilities Support Services Contracts
Mechanical Systems Maintenance
Elevator Maintenance Services

Risk Flags

Long contract duration may limit flexibility for adopting newer technologies.
Dependence on a single contractor for critical infrastructure.
Potential for scope creep or unforeseen maintenance issues impacting final cost.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $36.8 million to LCOR ASSET MANAGEMENT LIMITED PARTNERSHIP. BUILDING OPERATIONS, MECHANICAL MAINTENANCE AND ELEVATOR MAINTENANCE SERVICES FOR THE TED WEISS FEDERAL BUILDING LOCATED AT 290 BROADWAY, NEW YORK, NY 10278

Who is the contractor on this award?

The obligated recipient is LCOR ASSET MANAGEMENT LIMITED PARTNERSHIP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $36.8 million.

What is the period of performance?

Start: 2010-11-22. End: 2021-06-30.

What is the historical spending trend for building operations and maintenance at the Ted Weiss Federal Building?

The provided data reflects a single contract award for building operations, mechanical maintenance, and elevator maintenance services for the Ted Weiss Federal Building, totaling $36,824,202.20 from November 22, 2010, to June 30, 2021. This represents the total obligated amount over the contract's lifespan. To understand historical spending trends, one would need to examine previous contracts for similar services at this specific building or analyze GSA's overall spending patterns for facilities management in the New York region. Without prior contract data for this location, it's impossible to establish a trend solely from this award. However, the duration and value suggest a consistent need for these services over the nearly 11-year period.

How does the awarded amount compare to the estimated value or budget for these services?

The provided data does not include the original estimated value or budget set by the General Services Administration (GSA) for these building operations and maintenance services. The data only shows the final awarded amount of $36,824,202.20. To assess how the awarded amount compares to the budget, we would need access to the initial solicitation documents or GSA's internal cost estimates. The fact that it was awarded under full and open competition with 3 bidders suggests that the final price was likely competitive within the market's expectations. However, without the baseline budget, a direct comparison to determine if it was significantly over or under budget is not possible.

What are the specific performance metrics or KPIs used to evaluate the contractor's performance?

The provided contract data does not detail the specific performance metrics or Key Performance Indicators (KPIs) used to evaluate LCOR Asset Management Limited Partnership's performance. Typically, federal contracts for facilities management include requirements related to response times for maintenance requests, uptime for critical systems (like elevators), quality of repairs, adherence to safety standards, and customer satisfaction. Performance evaluations are usually conducted periodically throughout the contract's life, often documented in contract performance reports. These reports inform decisions regarding contract modifications, renewals, or termination and are crucial for assessing value for money.

What is the contractor's track record with the GSA or other federal agencies for similar services?

The data indicates that LCOR Asset Management Limited Partnership was awarded this specific contract by the General Services Administration (GSA) for building operations and maintenance. The fact that they secured this contract, especially under full and open competition, suggests they met the qualifications and requirements set forth by the GSA. To fully assess their track record, one would need to review their past performance history with GSA and potentially other federal agencies, looking at previous contract awards, performance evaluations, and any history of disputes or contract terminations. This single award provides limited insight into their broader federal contracting history.

What is the potential impact of this contract on the local New York City economy and workforce?

This contract, valued at approximately $36.8 million over nearly 11 years for building operations and maintenance at the Ted Weiss Federal Building, likely has a positive impact on the local New York City economy and workforce. It directly supports jobs in facilities management, mechanical engineering, elevator repair, and general building maintenance. The spending associated with the contract also benefits local suppliers and service providers engaged by the prime contractor. Furthermore, ensuring the proper functioning of a federal building contributes to the operational efficiency of government services located within it, indirectly supporting the broader economic activity in the city.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: GS-02P-10-PV-D-0016

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: State of California Controllers Office

Address: 850 CASSATT RD STE 300, BERWYN, PA, 19312

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,314,070

Exercised Options: $40,459,416

Current Obligation: $36,824,202

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS06F0026R

IDV Type: FSS

Timeline