GSA's $41.1M Facilities Services Contract for Reagan Building Awarded to Centerra Integrated Facilities Services

Contract Overview

Contract Amount: $41,115,204 ($41.1M)

Contractor: Centerra Integrated Facilities Services, LLC

Awarding Agency: General Services Administration

Start Date: 2014-01-01

End Date: 2019-09-30

Contract Duration: 2,098 days

Daily Burn Rate: $19.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF OPERATIONS AND MAINTENANCE FACILITIES SERVICES FOR THE RONALD REAGAN BUILDING AND THE INTERNATIONAL TRADE CENTER, LOCATED AT 1300 PENNSYLVANIA AVENUE, N.W., WASHINGTON, D.C.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $41.1 million to CENTERRA INTEGRATED FACILITIES SERVICES, LLC for work described as: IGF::CT::IGF OPERATIONS AND MAINTENANCE FACILITIES SERVICES FOR THE RONALD REAGAN BUILDING AND THE INTERNATIONAL TRADE CENTER, LOCATED AT 1300 PENNSYLVANIA AVENUE, N.W., WASHINGTON, D.C. Key points: 1. Contract provides essential operations and maintenance for a prominent federal building. 2. Awarded through full and open competition, suggesting a robust bidding process. 3. Firm-fixed-price contract type helps manage cost certainty for the government. 4. Contract duration of nearly 6 years indicates a significant, long-term service requirement. 5. The services are critical for the functionality and security of a major public facility. 6. Performance period spans across multiple fiscal years, requiring sustained oversight.

Value Assessment

Rating: good

The contract value of $41.1 million over approximately 5.8 years (2098 days) for facilities support services at a major federal building appears reasonable. Benchmarking against similar large-scale facilities management contracts for federal properties of comparable size and complexity would provide a more precise value assessment. The firm-fixed-price structure generally offers good value by shifting cost overrun risks to the contractor, provided the initial pricing was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids suggests a healthy level of competition for this significant facilities services requirement. A competitive bidding process typically leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by driving down prices through market forces, leading to a better value outcome.

Public Impact

The primary beneficiaries are federal agencies and the public utilizing the Ronald Reagan Building and International Trade Center. Services delivered include essential operations and maintenance, ensuring the building's functionality, safety, and security. The geographic impact is concentrated in Washington, D.C., specifically at the 1300 Pennsylvania Avenue NW location. The contract supports jobs within the facilities management and maintenance sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues impacting building operations if not adequately managed.
Reliance on a single contractor for critical infrastructure services requires diligent oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
Firm-fixed-price contract type provides cost predictability.
Long-term contract duration suggests a stable and ongoing need for these essential services.

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 commercial and institutional buildings. The market for these services is substantial, with numerous private sector providers ranging from small businesses to large corporations. Federal spending in this area is significant, driven by the government's extensive real estate portfolio. This specific contract supports a high-profile, large-scale federal building, requiring comprehensive management of its physical infrastructure.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate specific subcontracting requirements for small businesses. The award to Centerra Integrated Facilities Services, LLC suggests a prime contractor capable of handling large-scale operations. Further analysis would be needed to determine if subcontracting opportunities were pursued or mandated.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA), specifically the Public Buildings Service. Mechanisms likely include contract performance reviews, site inspections, and financial audits. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Building Operations and Maintenance
Government Facilities Management Contracts
Public Buildings Service Contracts
GSA Operations Support

Risk Flags

Contract Duration
Performance Monitoring
Cost Overruns Risk

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $41.1 million to CENTERRA INTEGRATED FACILITIES SERVICES, LLC. IGF::CT::IGF OPERATIONS AND MAINTENANCE FACILITIES SERVICES FOR THE RONALD REAGAN BUILDING AND THE INTERNATIONAL TRADE CENTER, LOCATED AT 1300 PENNSYLVANIA AVENUE, N.W., WASHINGTON, D.C.

Who is the contractor on this award?

The obligated recipient is CENTERRA INTEGRATED FACILITIES SERVICES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $41.1 million.

What is the period of performance?

Start: 2014-01-01. End: 2019-09-30.

What is the historical spending trend for facilities support services at the Ronald Reagan Building and International Trade Center?

Analyzing historical spending for facilities support at the Ronald Reagan Building requires accessing GSA's procurement data over multiple contract periods. Prior to this $41.1 million contract (2014-2019), previous contracts for similar services would likely show a pattern of sustained investment in building operations. Factors influencing spending trends include building age, occupancy levels, energy efficiency upgrades, and security enhancements. Comparing the average annual cost of this contract ($41.1M / ~5.8 years ≈ $7.1M/year) to previous periods can reveal if costs have increased, decreased, or remained stable, adjusted for inflation and scope changes. Without specific prior contract data, it's difficult to establish a precise trend, but the consistent need for such services suggests a recurring and significant budget allocation.

How does the awarded price compare to industry benchmarks for similar facilities management contracts?

Benchmarking this $41.1 million contract against industry standards requires detailed comparison metrics such as cost per square foot, cost per occupant, or specific service line item costs. The Ronald Reagan Building is a large, complex facility, and its management costs would likely be higher than smaller, simpler buildings. Industry benchmarks for large commercial properties often range from $15 to $50 per square foot annually for comprehensive facilities management, depending on location, services included, and building class. Given the building's prominence and likely high security requirements, costs could be at the higher end of this spectrum. A precise comparison would necessitate access to detailed service scopes and building specifications for both this contract and comparable benchmarked facilities.

What are the key performance indicators (KPIs) used to evaluate Centerra Integrated Facilities Services' performance under this contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for facilities management contracts include response times for maintenance requests, preventative maintenance completion rates, energy consumption efficiency, occupant satisfaction surveys, safety incident rates, and compliance with building codes and regulations. The GSA would likely have established service level agreements (SLAs) with measurable targets for these areas. Performance would be monitored through regular reporting, site visits, and potentially independent audits. Failure to meet KPIs could result in penalties or impact future contract awards.

What is the potential impact of contract consolidation or fragmentation on service delivery and cost-effectiveness for this facility?

This contract represents a consolidated approach, awarding a single entity responsibility for a broad range of facilities operations and maintenance. Consolidation can lead to economies of scale, streamlined communication, and a single point of accountability, potentially improving efficiency and cost-effectiveness. However, it also concentrates risk; a single contractor's failure could have widespread impact. Fragmentation, conversely, would involve multiple smaller contracts for different services, potentially allowing for specialized expertise but increasing administrative overhead and coordination challenges. For a large facility like the Reagan Building, a consolidated contract like this is often preferred for managing complexity, provided the contractor is capable and performance is well-managed.

Are there any known issues or disputes related to Centerra Integrated Facilities Services' past performance on federal contracts?

Assessing Centerra Integrated Facilities Services' track record requires reviewing past performance evaluations and any documented disputes or contract terminations on federal contracts. Databases like the Federal Awardee Performance and Integrity Information System (FAPIIS) contain such information. Without direct access to these records for Centerra, it's impossible to definitively state their past performance. However, the fact that they were awarded this significant, full-and-open competitive contract suggests they met the government's responsibility criteria at the time of award. Continued monitoring of performance throughout the contract lifecycle is crucial regardless of past history.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: GS-11P-13-MA-D-0186

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Constellis Holdings, LLC (UEI: 966133477)

Address: 13530 DULLES TECHNOLOGY DR SUITE 500,, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $52,373,824

Exercised Options: $47,109,903

Current Obligation: $41,115,204

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS06F0009S

IDV Type: FSS

Timeline