Forest Service awards $156K janitorial contract to Reliance Contractors Inc. for 2 years

Contract Overview

Contract Amount: $15,600 ($15.6K)

Contractor: Reliance Contractors Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-09-22

End Date: 2027-08-31

Contract Duration: 708 days

Daily Burn Rate: $22/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PAO RD NEW JANITORIAL SERVICES - PROVIDE JANITORIAL SERVICES TO DISTRICT OFFICE.

Place of Performance

Location: PAONIA, DELTA County, COLORADO, 81428

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $15,600 to RELIANCE CONTRACTORS INC for work described as: PAO RD NEW JANITORIAL SERVICES - PROVIDE JANITORIAL SERVICES TO DISTRICT OFFICE. Key points: 1. Contract aims to ensure a clean and functional workspace for the District Office. 2. Reliance Contractors Inc. has secured this service contract. 3. The contract duration is approximately two years, ending August 2027. 4. This is a firm-fixed-price contract, indicating predictable costs. 5. The contract was competed under Simplified Acquisition Procedures (SAP). 6. The North American Industry Classification System (NAICS) code is 561720 for Janitorial Services.

Value Assessment

Rating: fair

The contract value of $156,000 over approximately two years for janitorial services appears to be within a reasonable range for a district office. Without specific details on the square footage or service frequency, a direct comparison is difficult. However, the firm-fixed-price structure suggests cost certainty for the agency. Benchmarking against similar-sized facilities or contracts would provide a clearer picture of value for money.

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 compared to full and open competition. While the specific number of bids received is not detailed, SAP is designed for smaller procurements where competition is expected to be sufficient to ensure fair pricing. The level of competition under SAP can vary, potentially leading to less aggressive pricing than a broader competition.

Taxpayer Impact: For taxpayers, competition under SAP generally offers a balance between efficient procurement for smaller needs and reasonable price discovery. It avoids the administrative overhead of large-scale competitions while still seeking multiple offers.

Public Impact

Employees at the Forest Service District Office in Colorado will benefit from a clean and well-maintained work environment. Essential janitorial services, including cleaning and maintenance, will be delivered. The geographic impact is localized to the specific Forest Service District Office in Colorado. The contract supports the janitorial services workforce employed by Reliance Contractors Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to SAP procurement method.
Reliance Contractors Inc.'s track record and performance history are not detailed here.
Scope creep could increase costs if not managed carefully under fixed-price contract.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Contract duration of nearly two years offers stability in service provision.
Procurement under SAP suggests an efficient process for this contract size.

Sector Analysis

The janitorial services sector is a mature and competitive market, with numerous providers ranging from small local businesses to large national corporations. Federal agencies procure janitorial services across various departments and locations to maintain facilities. This contract fits within the broader category of facilities maintenance and support services, which is a significant area of government spending. Benchmarks for janitorial services can vary widely based on facility size, location, and service level agreements.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. As a competed contract under SAP, it's possible small businesses participated in the bidding process. However, without explicit set-aside status or subcontracting requirements, the direct impact on the small business ecosystem is not guaranteed.

Oversight & Accountability

Oversight for this contract would typically be managed by the Forest Service contracting officer and the designated contract specialist. Performance monitoring would likely involve regular inspections and feedback mechanisms to ensure services meet the agreed-upon standards. Transparency is generally maintained through contract databases, though specific performance metrics are not publicly detailed.

Related Government Programs

Federal Facilities Maintenance Contracts
Government Janitorial Services
Forest Service Operations Support

Risk Flags

Potential for limited competition due to SAP.
Lack of detailed past performance data for the contractor.
Need for clear performance metrics and monitoring for FFP contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $15,600 to RELIANCE CONTRACTORS INC. PAO RD NEW JANITORIAL SERVICES - PROVIDE JANITORIAL SERVICES TO DISTRICT OFFICE.

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 $15,600.

What is the period of performance?

Start: 2025-09-22. End: 2027-08-31.

What is the specific scope of work included in the janitorial services for the District Office?

The provided data indicates the contract is for 'JANITORIAL SERVICES' for the 'PAO RD NEW DISTRICT OFFICE'. While the specific tasks are not itemized, typical janitorial services include cleaning restrooms, dusting surfaces, vacuuming or mopping floors, emptying trash receptacles, and maintaining common areas. The exact frequency of these services (daily, weekly, etc.) and any specialized cleaning requirements would be detailed in the contract's statement of work, which is not available in the provided summary data. Understanding the full scope is crucial for evaluating the contract's value and performance.

How does the $156,000 contract value compare to similar janitorial contracts for Forest Service district offices?

Directly comparing the $156,000 contract value without knowing the size and specific needs of the District Office is challenging. However, for a contract spanning nearly two years (708 days), this equates to roughly $22,000 per year, or approximately $1,833 per month. This figure would need to be benchmarked against the square footage of the facility, the number of employees served, and the frequency and type of janitorial services required. Larger or more complex facilities would naturally command higher contract values. Without these specifics, it's difficult to definitively assess if this represents excellent or questionable value.

What is Reliance Contractors Inc.'s past performance record with the federal government or similar clients?

Information regarding Reliance Contractors Inc.'s past performance record is not included in the provided data. A thorough analysis would require accessing federal procurement databases (like SAM.gov or FPDS) to review their performance history on previous contracts, including any reported issues, awards for excellence, or contractor performance assessment reports (CPARS). This information is critical for understanding the reliability and quality of services the contractor is likely to provide under this new agreement.

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

The primary risk with a firm-fixed-price (FFP) contract for janitorial services is that the contractor may cut corners on service quality to maximize profit if not adequately monitored. While FFP provides cost certainty for the government, it places the burden of managing costs and ensuring quality on the contractor. If the scope of work is not clearly defined or if unforeseen circumstances arise (e.g., increased usage of facilities), the contractor might be incentivized to reduce service levels. Robust performance monitoring and clear communication channels are essential to mitigate these risks.

How does the competition level under Simplified Acquisition Procedures (SAP) typically affect pricing for janitorial services?

Simplified Acquisition Procedures (SAP) are designed for purchases up to the SAT ($250,000, though higher for certain construction). While SAP encourages competition, it often involves fewer bidders than full and open competition. For janitorial services, this can mean that while prices are generally fair, they might not reach the lowest possible point achievable through a broader bidding process. The number of bids received (stated as 10 in the data) is a positive indicator, suggesting some level of competition, but the specific nature of the competition (e.g., local vs. national bidders) influences the price discovery outcome.

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: 1240LP25Q0085

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Reliance Contractors Inc.

Address: 200 SE 1ST ST STE 306, MIAMI, FL, 33131

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: $39,000

Exercised Options: $15,600

Current Obligation: $15,600

Actual Outlays: $1,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline