Forest Service awards $435,600 janitorial contract for Nebraska National Grasslands Visitor Center

Contract Overview

Contract Amount: $43,560 ($43.6K)

Contractor: Reliance Contractors Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-06-01

End Date: 2027-05-31

Contract Duration: 1,094 days

Daily Burn Rate: $40/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NATIONAL GRASSLANDS VISITOR CENTER, NEBRASKA NATIONAL GRASSLAND --- JANITORIAL SERVICES

Place of Performance

Location: WALL, PENNINGTON County, SOUTH DAKOTA, 57790

State: South Dakota Government Spending

Plain-Language Summary

Department of Agriculture obligated $43,560 to RELIANCE CONTRACTORS INC for work described as: NATIONAL GRASSLANDS VISITOR CENTER, NEBRASKA NATIONAL GRASSLAND --- JANITORIAL SERVICES Key points: 1. Contract awarded to Reliance Contractors Inc. for janitorial services. 2. The contract duration is approximately three years, ending May 31, 2027. 3. Services are for the National Grasslands Visitor Center in Nebraska. 4. The contract type is Firm Fixed Price, indicating predictable costs. 5. This is a small purchase, suggesting a focus on essential services. 6. The award was made under Simplified Acquisition Procedures (SAP).

Value Assessment

Rating: good

The contract value of $435,600 over three years averages to $145,200 annually for janitorial services at a visitor center. This appears to be a reasonable rate for maintaining a federal facility, especially considering the scope of services typically required for such a contract. Benchmarking against similar janitorial contracts for federal buildings of comparable size and complexity would provide a more precise value assessment, but initial indications suggest fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders for purchases below a certain threshold. While the exact number of bids received isn't specified, SAP aims for fair competition among qualified vendors. The limited competition under SAP might result in slightly higher prices compared to full and open competition, but it also allows for quicker procurement of essential services.

Taxpayer Impact: Taxpayers benefit from efficient procurement of necessary services, with the SAP process balancing cost-effectiveness and timely service delivery.

Public Impact

The primary beneficiaries are visitors and staff of the National Grasslands Visitor Center, who will experience a cleaner and more well-maintained facility. Essential janitorial services, including cleaning, sanitation, and waste removal, will be consistently delivered. The geographic impact is localized to the National Grasslands Visitor Center in Nebraska. The contract supports local employment through Reliance Contractors Inc., contributing to the regional economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition under SAP could impact price optimization.
Reliance on a single contractor for essential services carries inherent performance risk.
Scope creep in janitorial services could lead to cost overruns if not managed.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Award to an established contractor suggests a degree of reliability.
Clear service period (3 years) allows for consistent service delivery.

Sector Analysis

The janitorial services sector is a mature and competitive market. Federal contracts for these services are common across various agencies and facilities. The market size for federal janitorial contracts is substantial, with numerous small and large businesses capable of providing these essential services. This contract fits within the broader category of facility maintenance and support services, a critical component of government operations.

Small Business Impact

The provided data does not indicate if this contract was specifically set aside for small businesses, nor does it detail subcontracting plans. However, given the nature of janitorial services and the typical size of companies performing them, it is plausible that small businesses could be involved either as the prime contractor or as subcontractors. Further analysis would be needed to determine the specific impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would likely fall under the U.S. Forest Service's facility management and contracting officers. Performance would be monitored through regular inspections and adherence to the terms of the purchase order. Transparency is generally maintained through federal procurement databases, though specific performance metrics are not publicly detailed.

Related Government Programs

Federal Building Maintenance Contracts
National Park Service Janitorial Services
General Services Administration (GSA) Facility Support Contracts

Risk Flags

Potential for performance issues due to limited competition.
Risk of service quality degradation if contractor prioritizes profit over standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $43,560 to RELIANCE CONTRACTORS INC. NATIONAL GRASSLANDS VISITOR CENTER, NEBRASKA NATIONAL GRASSLAND --- JANITORIAL SERVICES

Who is the contractor on this award?

The obligated recipient is RELIANCE CONTRACTORS INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $43,560.

What is the period of performance?

Start: 2024-06-01. End: 2027-05-31.

What is the track record of Reliance Contractors Inc. with federal contracts?

Reliance Contractors Inc. has been awarded this purchase order for janitorial services. To assess their track record, a review of their past federal contract history would be necessary. This would involve examining previous awards, performance evaluations (if available), and any history of contract disputes or terminations. Without this specific data, it's difficult to definitively gauge their reliability and past performance on similar federal engagements. However, being awarded a contract suggests they met the basic qualifications and requirements set forth by the Forest Service for this procurement.

How does the annual cost of $145,200 compare to similar federal janitorial contracts?

The annual cost of approximately $145,200 for janitorial services at the National Grasslands Visitor Center appears reasonable when considering the average costs for maintaining federal facilities. Benchmarking against contracts for similar-sized visitor centers or administrative buildings managed by agencies like the National Park Service or the Bureau of Land Management would provide a more precise comparison. Factors such as geographic location, specific service requirements (e.g., frequency of cleaning, specialized services), and prevailing local labor rates can influence costs. Generally, firm-fixed-price contracts for janitorial services in this range are common for facilities of this nature.

What are the potential risks associated with a firm-fixed-price contract for janitorial services?

A firm-fixed-price (FFP) contract for janitorial services offers cost certainty to the government, as the price is set regardless of the contractor's actual costs. However, the primary risk lies in potential underperformance if the contractor attempts to cut corners to maximize profit. This could manifest as reduced quality of cleaning, missed service days, or inadequate staffing. Conversely, if the contractor underestimates costs, they may struggle to maintain service quality or could face financial difficulties. Effective government oversight and clear performance standards are crucial to mitigate these risks and ensure consistent service delivery under an FFP arrangement.

What is the typical duration and value range for janitorial contracts of this nature?

Janitorial contracts for federal facilities can vary significantly in duration and value based on the size and complexity of the facility. Contracts often range from one to five years, with options for extension. The value can span from tens of thousands to millions of dollars annually. For a visitor center, a three-year contract with a total value of $435,600 (averaging $145,200 annually) falls within a common range for such services. Smaller facilities might have contracts valued in the tens of thousands, while larger federal buildings or complexes could command significantly higher contract values.

How does competition under Simplified Acquisition Procedures (SAP) typically affect pricing?

Simplified Acquisition Procedures (SAP) are designed for purchases below a certain dollar threshold (currently $250,000) to streamline the procurement process. Competition under SAP is generally more limited than under full and open competition, often involving fewer bidders. While this can lead to quicker award times and reduced administrative burden, it may also result in prices that are not as aggressively bid as they might be in a broader competitive environment. However, for smaller procurements like this janitorial service contract, SAP aims to achieve fair and reasonable pricing through a reasonable number of quotes or proposals from qualified vendors.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Janitorial Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 1240LP24Q0039

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Reliance Contractors Inc.

Address: 1800 SW 1ST AVE STE 601, MIAMI, FL, 33129

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

Financial Breakdown

Contract Ceiling: $72,600

Exercised Options: $43,560

Current Obligation: $43,560

Actual Outlays: $16,253

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline