GSA's $27.5M Facilities Management Contract with LB & B Associates Inc. Awarded in 2001

Contract Overview

Contract Amount: $27,551,388 ($27.6M)

Contractor: LB & B Associates Inc

Awarding Agency: General Services Administration

Start Date: 2001-10-01

End Date: 2011-02-28

Contract Duration: 3,437 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMPLETE FACILITIES MANAGEMENT

Place of Performance

Location: DES MOINES, POLK County, IOWA, 50309

State: Iowa Government Spending

Plain-Language Summary

General Services Administration obligated $27.6 million to LB & B ASSOCIATES INC for work described as: COMPLETE FACILITIES MANAGEMENT Key points: 1. Contract value of $27.5 million over its life suggests a significant scope of facilities management services. 2. The contract was awarded under full and open competition, indicating a broad market solicitation. 3. The duration of the contract (over 10 years) allowed for long-term service delivery and potential for economies of scale. 4. The firm-fixed-price contract type shifts performance risk to the contractor, LB & B Associates Inc. 5. Services provided fall under Facilities Support Services, a critical component of government operations. 6. The contract was awarded by the Public Buildings Service of the General Services Administration, a key agency for federal real estate management.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details and performance metrics. However, a $27.5 million expenditure over more than a decade for comprehensive facilities management suggests a substantial investment. The firm-fixed-price structure implies that the contractor bore the risk of cost overruns, which can be a positive indicator for value if services were delivered effectively. Without comparative data on similar contracts or detailed performance reviews, a definitive value assessment is difficult, but the long duration and significant total value point to a substantial, ongoing service requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' meaning that all responsible sources were permitted to submit bids. This approach is generally favored for maximizing competition and potentially achieving better pricing and service quality. The fact that it was competed broadly suggests that multiple firms likely vied for this significant facilities management requirement. The presence of two bids (no: 2) indicates a moderate level of competition for this specific award, which is typical for large, complex service contracts.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of providers to offer their best pricing and service proposals, leading to more cost-effective outcomes.

Public Impact

Federal agencies occupying facilities managed under this contract benefited from consistent and reliable support services. The contract supported the operational readiness and maintenance of government buildings, ensuring a safe and functional environment for federal employees and the public. Geographic impact is likely localized to the areas where LB & B Associates Inc. provided services, potentially across multiple federal sites. The contract supported a workforce employed by LB & B Associates Inc. to deliver facilities management services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have restricted price discovery.
Long contract duration could lead to complacency or reduced incentive for innovation if not managed proactively.
Firm-fixed-price contracts can sometimes lead to contractors cutting corners on quality if not closely monitored.
Lack of specific performance data makes it difficult to assess the true value for money achieved.

Positive Signals

Awarded under full and open competition, maximizing potential provider pool.
Firm-fixed-price structure shifts risk to the contractor.
Long duration allows for stable service delivery and potential for contractor expertise development.
Contract supports essential government facility operations.

Sector Analysis

Facilities management is a broad sector encompassing a wide range of services necessary for the operation and maintenance of buildings and infrastructure. This contract falls within the professional, scientific, and technical services industry, specifically focusing on facilities support. The market for facilities management is substantial, with numerous private sector companies offering specialized services. Government contracts in this area are significant due to the vast real estate holdings of federal agencies. Benchmarking against similar large-scale facilities management contracts would provide further context on pricing and scope.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting goals. Therefore, the direct impact on the small business ecosystem through this specific award appears limited. However, the prime contractor, LB & B Associates Inc., may have utilized small businesses as subcontractors, which would be a positive indirect impact. Without further details on subcontracting plans or performance, the extent of small business involvement remains unclear.

Oversight & Accountability

Oversight for this contract would primarily reside with the General Services Administration (GSA), specifically the Public Buildings Service. Mechanisms likely included contract performance reviews, site inspections, and adherence to service level agreements defined in the contract. Accountability would be enforced through contractual remedies, including potential penalties or termination for non-performance. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arose.

Related Government Programs

Federal Buildings Fund
Government Real Property Management
Public Buildings Service Contracts
Facilities Maintenance and Operations
Government Contracting Services

Risk Flags

Limited competition (2 bidders)
Long contract duration
Potential for price escalation over time
Lack of detailed performance metrics in summary data

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $27.6 million to LB & B ASSOCIATES INC. COMPLETE FACILITIES MANAGEMENT

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 $27.6 million.

What is the period of performance?

Start: 2001-10-01. End: 2011-02-28.

What was the specific scope of services provided under this facilities management contract?

The contract falls under the Facilities Support Services NAICS code (561210), which typically includes general building management and operational services. This can encompass a wide range of activities such as routine maintenance, repairs, janitorial services, groundskeeping, security, pest control, and potentially specialized systems management (HVAC, electrical, plumbing). The 'COMPLETE FACILITIES MANAGEMENT' description suggests a comprehensive approach. However, the precise deliverables, service level agreements (SLAs), and specific tasks would have been detailed in the contract's Statement of Work (SOW). Without access to the SOW, the exact scope remains generalized, but it implies end-to-end responsibility for maintaining government facilities.

How does the $27.5 million contract value compare to similar facilities management contracts awarded by GSA?

Comparing the $27.5 million value requires context on the size and type of facilities managed. GSA manages a vast portfolio of federal buildings, and contract values can range significantly based on square footage, geographic location, and the complexity of services required. For large, multi-year contracts covering comprehensive management of significant federal properties, $27.5 million over approximately 10 years is substantial but not necessarily extraordinary. GSA often awards large IDIQ (Indefinite Delivery/Indefinite Quantity) contracts that can reach hundreds of millions or billions over their lifespan. This specific contract's value suggests it covered a significant facility or a portfolio of facilities requiring extensive support services.

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

While the specific KPIs are not detailed in the provided data, typical performance indicators for facilities management contracts include response times for service requests, completion rates for scheduled maintenance, adherence to safety protocols, energy efficiency targets, cleanliness standards, and overall client satisfaction. For a firm-fixed-price contract, meeting these KPIs would be crucial for the contractor to achieve profitability. GSA's Public Buildings Service would have established these metrics in the contract's SOW and monitored them through regular reporting, site visits, and potentially user feedback mechanisms. Failure to meet KPIs could result in contractual remedies.

What is the historical spending trend for facilities management services by the General Services Administration?

The General Services Administration (GSA) is a major federal entity responsible for managing a significant portion of the U.S. government's real estate portfolio. Consequently, its spending on facilities management services is substantial and has historically been a significant part of its budget. GSA's spending on facilities operations and maintenance fluctuates based on agency needs, infrastructure investments, and overall federal budget allocations. Over the years, GSA has increasingly focused on sustainability, energy efficiency, and modernizing its facilities, which influences the types of services procured and their associated costs. Analyzing GSA's annual budget reports and contract spending data would reveal trends in facilities management expenditures.

What risks are associated with a long-duration, firm-fixed-price facilities management contract?

Long-duration, firm-fixed-price contracts present several risks. For the government, there's a risk that the fixed price may become uncompetitive over time if market rates decrease or if the scope of work evolves significantly, requiring costly modifications. Contractor complacency is another risk; with a guaranteed price, the incentive to innovate or improve efficiency might diminish over a decade. For the contractor, the primary risk is underestimating costs or facing unforeseen price increases (labor, materials) that erode profit margins, especially if the contract doesn't include robust escalation clauses. Poorly defined scopes of work can lead to disputes over what is included in the fixed price. Effective oversight is critical to mitigate these risks.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 9891 BROKENLAND PKWY, COLUMBIA, MD, 03

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $27,551,388

Exercised Options: $27,551,388

Current Obligation: $27,551,388

Contract Characteristics

Multi-Year Contract: Yes

Timeline