Department of Agriculture awards $7.2M custodial and waste removal contract to Integrity National Corporation

Contract Overview

Contract Amount: $7,211,939 ($7.2M)

Contractor: Integrity National Corporation

Awarding Agency: Department of Agriculture

Start Date: 2025-02-01

End Date: 2027-01-31

Contract Duration: 729 days

Daily Burn Rate: $9.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OO/OM CUSTODIAL SERVICES AND WASTE REMOVAL

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $7.2 million to INTEGRITY NATIONAL CORPORATION for work described as: OO/OM CUSTODIAL SERVICES AND WASTE REMOVAL Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract duration of 729 days suggests a need for consistent service delivery. 3. Awarded through full and open competition, implying a competitive bidding process. 4. The contract is for custodial services and waste removal, essential facility support functions. 5. The contractor, Integrity National Corporation, is a new awardee for this specific service category. 6. The contract is located in Washington D.C., a high-cost metropolitan area.

Value Assessment

Rating: fair

The contract value of $7.2 million over two years for custodial and waste removal services in Washington D.C. appears to be within a reasonable range for a major metropolitan area. Benchmarking against similar contracts for facilities support services in the region would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the absence of detailed performance metrics makes it difficult to fully assess efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that multiple bidders were likely considered. The presence of 5 bids indicates a moderate level of competition. While full and open competition is generally preferred for ensuring fair pricing and access for qualified vendors, the specific number of bidders (5) is not exceptionally high, which could suggest some limitations in the breadth of competition for this specialized service.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down prices and ensuring the government receives competitive offers for its money.

Public Impact

Federal employees and visitors to USDA facilities in Washington D.C. will benefit from maintained cleanliness and efficient waste management. The contract ensures the delivery of essential custodial services, including cleaning, sanitation, and waste removal. The geographic impact is concentrated in the District of Columbia, supporting federal operations in the capital. The contract supports jobs within the facilities management and janitorial services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep if contract scope expands without re-competition.
Reliance on a single contractor for essential services could pose a risk if performance issues arise.
Limited historical performance data for this contractor in this specific service area.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Firm-fixed-price contract type provides cost certainty for the government.
Contract duration of two years allows for stable service provision.

Sector Analysis

The Facilities Support Services sector is a significant component of the broader commercial services industry, encompassing a wide range of activities necessary for the operation and maintenance of buildings and grounds. This contract falls under the North American Industry Classification System (NAICS) code 561210, which includes establishments primarily engaged in operating and maintaining buildings with associated utilities. Spending in this sector is driven by government agencies' needs for clean, safe, and functional workspaces. Comparable spending benchmarks would typically be derived from aggregated contract data for similar services across various federal agencies and geographic locations.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Integrity National Corporation, without specific small business considerations, suggests that the primary focus was on securing the most competitive offer from the available bidders, regardless of business size. This may limit opportunities for small businesses to participate in this particular contract, either as prime contractors or subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Agriculture's Office of the Chief Financial Officer and the contracting officer's representative (COR) responsible for ensuring service delivery meets the contract's requirements. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to perform the specified services within the agreed-upon price. Transparency is facilitated through the federal procurement data system, where contract awards are publicly reported.

Related Government Programs

Federal Custodial Services Contracts
Government Waste Management Contracts
Facilities Maintenance and Support Services
Department of Agriculture Operations

Risk Flags

Potential for performance issues due to limited contractor history in this specific service area.
Moderate competition level may not guarantee the absolute lowest price.
Geographic concentration in a high-cost area could impact overall value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $7.2 million to INTEGRITY NATIONAL CORPORATION. OO/OM CUSTODIAL SERVICES AND WASTE REMOVAL

Who is the contractor on this award?

The obligated recipient is INTEGRITY NATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $7.2 million.

What is the period of performance?

Start: 2025-02-01. End: 2027-01-31.

What is the track record of Integrity National Corporation in providing custodial and waste removal services to the federal government?

Based on the provided data, this appears to be a new award for Integrity National Corporation in the area of custodial services and waste removal. Without access to a broader contract database or past performance reviews, it is difficult to ascertain their extensive track record specifically in this domain. Federal procurement systems often contain historical award data, which would be necessary to evaluate their performance on previous contracts, including their ability to meet deadlines, manage budgets, and satisfy client requirements. Further investigation into their contract history would be needed to provide a comprehensive assessment of their reliability and expertise in delivering these essential services.

How does the awarded price compare to market rates for similar custodial and waste removal services in Washington D.C.?

The contract value of $7.2 million over approximately two years for custodial and waste removal services in Washington D.C. needs to be benchmarked against prevailing market rates for similar services in that specific geographic area. Washington D.C. is known for its high cost of living and operating expenses, which typically translate to higher service costs compared to other regions. To assess value for money, one would compare this contract's per-square-foot cleaning costs, waste removal fees, and labor rates against industry averages and rates charged to other large commercial or government entities in the D.C. metropolitan area. Without this comparative data, it is challenging to definitively state whether the price is competitive or represents a premium.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential underperformance by the contractor, leading to inadequate cleaning or waste management, and the possibility of cost overruns if the firm-fixed-price contract contains poorly defined scope or escalation clauses. Another risk is the contractor's potential lack of experience in large-scale federal contracts, which could lead to administrative or operational challenges. Mitigation strategies typically involve robust contract oversight by a designated Contracting Officer's Representative (COR), clear performance standards and metrics within the contract, regular performance reviews, and the inclusion of remedies for non-performance. The firm-fixed-price nature itself mitigates some financial risk for the government, provided the scope is well-defined.

How effective is the competition level (5 bidders) in ensuring optimal value for taxpayers?

A competition level of 5 bidders for this custodial and waste removal contract suggests a moderate degree of market interest. While more bidders generally lead to greater price competition, five offers can still be sufficient to drive competitive pricing, especially if the bidders are well-qualified and understand the requirements. The effectiveness in ensuring optimal value for taxpayers depends on the quality and competitiveness of those five bids. If the bids were significantly varied in price and proposed approach, it indicates that the competition likely yielded a reasonable outcome. However, if the bids were very close or if there were concerns about collusion or limited market knowledge among bidders, the value proposition might be less certain. Further analysis of the bid prices and technical proposals would be needed for a definitive assessment.

What is the historical spending pattern for custodial and waste removal services by the Department of Agriculture?

To assess historical spending patterns for custodial and waste removal services by the Department of Agriculture (USDA), one would need to analyze procurement data over several fiscal years. This would involve identifying contracts awarded under relevant NAICS codes (like 561210) for facilities support services. Key metrics to examine would include the total annual spending on these services, the number and value of contracts awarded, the types of competition used (full and open vs. sole source), and the primary contractors receiving awards. Understanding these patterns can reveal trends in spending, identify periods of increased or decreased investment, and highlight any shifts in contracting strategies or contractor base over time.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12314424Q0166

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1734 ELTON RD STE 230, SILVER SPRING, MD, 20903

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,348,083

Exercised Options: $7,660,274

Current Obligation: $7,211,939

Actual Outlays: $4,584,749

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS21F163AA

IDV Type: FSS

Timeline