GSA's $43.8M contract for building maintenance services awarded to LB & B Associates Inc. over 10 years

Contract Overview

Contract Amount: $43,859,681 ($43.9M)

Contractor: LB & B Associates Inc

Awarding Agency: General Services Administration

Start Date: 2010-10-25

End Date: 2021-11-30

Contract Duration: 4,054 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE MECHANICAL MAINTENANCE SERVICES FOR THE FEDRAL BUILDING AT 201 VARICK STREET IN ACCORDANCE WITH THE SOW AND ALL SOLICITATION AMENDMENTS FOR THE PERIOD OF: 12/01/2010 - 12/31/2010.

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10014

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $43.9 million to LB & B ASSOCIATES INC for work described as: PROVIDE MECHANICAL MAINTENANCE SERVICES FOR THE FEDRAL BUILDING AT 201 VARICK STREET IN ACCORDANCE WITH THE SOW AND ALL SOLICITATION AMENDMENTS FOR THE PERIOD OF: 12/01/2010 - 12/31/2010. Key points: 1. The contract value of $43.8 million over a decade suggests a significant investment in maintaining federal facilities. 2. The duration of the contract, spanning over 10 years, indicates a long-term need for these services. 3. Awarded under full and open competition, this contract likely benefited from a competitive bidding process. 4. The services provided are essential for the operational integrity and safety of the federal building. 5. The firm-fixed-price contract type shifts cost risk to the contractor, potentially stabilizing costs for the government. 6. The contract's primary focus on facilities support services aligns with a critical government function.

Value Assessment

Rating: fair

The total contract value of $43.8 million over approximately 10 years averages to about $4.38 million per year. Without specific details on the scope of services or the size and complexity of the federal building at 201 Varick Street, a direct comparison to similar contracts is challenging. However, the extended duration suggests that the annual cost was deemed reasonable for the services rendered. The firm-fixed-price nature of the award provides cost certainty, but it's crucial to assess if the final price reflects competitive market rates for comprehensive facilities support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and service proposals. The specific number of bidders is not provided, but the open competition suggests a robust process aimed at achieving value for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to lower prices and higher quality services through market forces, ensuring the government receives the best possible value.

Public Impact

Federal employees and the public benefit from a well-maintained and safe federal building. Essential facilities support services, including mechanical maintenance, are delivered to ensure building functionality. The geographic impact is localized to New York City, specifically the federal building at 201 Varick Street. The contract supports jobs within the facilities maintenance and support services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work significantly expands beyond initial estimates, despite the firm-fixed-price structure.
Reliance on a single contractor for over a decade could lead to complacency or reduced innovation if not actively managed.
The long duration might not adapt well to rapidly changing building technologies or maintenance best practices without contract modifications.

Positive Signals

The firm-fixed-price contract provides budget certainty for the General Services Administration.
Awarding under full and open competition suggests a thorough vetting process and competitive pricing.
The extended contract period allows for stable service delivery and relationship building with the contractor.

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. This sector is critical for government operations, ensuring that federal properties are functional, safe, and presentable. Spending in this area is consistent across various federal agencies that manage physical infrastructure. Comparable spending benchmarks would involve analyzing other large-scale facilities maintenance contracts awarded by the GSA or other agencies for similar types of federal buildings.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. The total value of the contract suggests it is likely too large to be exclusively set aside for small businesses. There is no information provided regarding subcontracting plans or performance related to small businesses. Therefore, the direct impact on the small business ecosystem is unclear, though large prime contractors are often encouraged or required to subcontract with small businesses.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Oversight mechanisms would typically include regular performance reviews, site inspections, and contract management personnel to ensure compliance with the Statement of Work (SOW). Accountability measures are inherent in the firm-fixed-price contract, where the contractor is responsible for delivering services within the agreed-upon price. Transparency would be facilitated through contract databases and reporting, though specific details of ongoing oversight are not publicly detailed.

Related Government Programs

Federal Building Maintenance Contracts
Facilities Management Services
General Services Administration Contracts
Public Buildings Service Contracts
Mechanical Maintenance Services

Risk Flags

Long contract duration may limit flexibility for adopting new technologies.
Lack of specific performance metrics makes objective assessment difficult.
Potential for scope creep in long-term maintenance contracts.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $43.9 million to LB & B ASSOCIATES INC. PROVIDE MECHANICAL MAINTENANCE SERVICES FOR THE FEDRAL BUILDING AT 201 VARICK STREET IN ACCORDANCE WITH THE SOW AND ALL SOLICITATION AMENDMENTS FOR THE PERIOD OF: 12/01/2010 - 12/31/2010.

Who is the contractor on this award?

The obligated recipient is LB & B ASSOCIATES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $43.9 million.

What is the period of performance?

Start: 2010-10-25. End: 2021-11-30.

What was the specific scope of 'mechanical maintenance services' included in this contract?

The provided data indicates the contract was for 'MECHANICAL MAINTENANCE SERVICES FOR THE FEDRAL BUILDING AT 201 VARICK STREET IN ACCORDANCE WITH THE SOW AND ALL SOLICITATION AMENDMENTS'. While the Statement of Work (SOW) is not detailed here, mechanical maintenance typically encompasses the upkeep, repair, and servicing of a building's essential mechanical systems. This often includes HVAC (heating, ventilation, and air conditioning) systems, plumbing, elevators, escalators, and other machinery critical to a building's operation. The specific details within the SOW would define the exact components covered, the frequency of inspections and preventative maintenance, and the response times for emergency repairs. Without the SOW, the precise scope remains general.

How does the total contract value of $43.8 million compare to similar facilities maintenance contracts for federal buildings of comparable size and complexity?

Comparing the $43.8 million total contract value over approximately 10 years (from Oct 2010 to Nov 2021) requires context on the size and specific needs of the federal building at 201 Varick Street. This averages to roughly $4.38 million annually. Facilities maintenance costs can vary significantly based on building age, square footage, types of systems (e.g., advanced HVAC, security), and geographic location (labor costs). For large, complex federal buildings in major metropolitan areas like New York City, this annual average might be within a reasonable range. However, without specific benchmarks for buildings of similar scale and system complexity managed by the GSA or other agencies, a definitive value-for-money assessment is difficult. Further analysis would involve comparing this contract's cost per square foot or cost per system component to industry standards and other government contracts.

What were the key performance indicators (KPIs) used to evaluate LB & B Associates Inc.'s performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate LB & B Associates Inc.'s performance. Typically, for facilities maintenance contracts, KPIs would focus on aspects such as response times for service calls (routine and emergency), completion rates for preventative maintenance tasks, system uptime (e.g., HVAC availability), adherence to safety protocols, and overall client satisfaction. Performance evaluations often involve regular reporting by the contractor and reviews by government contracting officers. The success of the contract would hinge on meeting or exceeding these undefined performance metrics throughout the contract's duration.

What is the historical spending pattern for mechanical maintenance services at the federal building located at 201 Varick Street?

The provided data represents a single contract awarded on October 25, 2010, with an end date of November 30, 2021, totaling $43,859,681.49. This contract covers the period from December 1, 2010, to December 31, 2010, and extends through the end date, indicating a long-term service agreement. To understand the historical spending pattern, one would need to examine contracts preceding this award for the same building and services, as well as any subsequent contracts. This current contract appears to consolidate or represent the primary spending for mechanical maintenance over its extensive duration. Without prior contract data for this specific building, a trend analysis is not possible from the given information.

Were there any significant contract modifications or change orders issued during the life of this contract, and what was their impact?

The provided data does not include information on contract modifications or change orders. The contract was awarded on October 25, 2010, with an end date of November 30, 2021, spanning over 11 years. It is common for long-term contracts, especially those involving facilities maintenance, to undergo modifications due to changes in building needs, regulatory requirements, or unforeseen circumstances. Such modifications could have impacted the total cost, scope of work, or duration. Without access to the contract's modification history, it's impossible to assess their nature or impact on the overall value and performance of the contract.

What is the significance of the 'BPA CALL' award type in the context of this contract?

The award type is listed as 'BPA CALL'. A Blanket Purchase Agreement (BPA) is a simplified way to fill anticipated repetitive needs for supplies or services. A BPA Call is an individual order issued under an existing BPA. This suggests that LB & B Associates Inc. likely had an existing BPA with the General Services Administration (GSA) for facilities support services, and this contract represents a specific call or order placed against that BPA for the mechanical maintenance services at 201 Varick Street. BPAs are often used to streamline the procurement process for recurring needs, potentially leading to faster service delivery and negotiated pricing advantages.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9891 BROKEN LAND PKWY STE 400, COLUMBIA, MD, 21046

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $51,305,490

Exercised Options: $47,939,340

Current Obligation: $43,859,681

Parent Contract

Parent Award PIID: GS02P10PVD0032

IDV Type: BPA

Timeline