Agriculture Dept. Awards $263K Janitorial Contract to Reliance Contractors Inc. for Forest Service Facilities

Contract Overview

Contract Amount: $26,388 ($26.4K)

Contractor: Reliance Contractors Inc

Awarding Agency: Department of Agriculture

Start Date: 2021-03-25

End Date: 2025-12-31

Contract Duration: 1,742 days

Daily Burn Rate: $15/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JRWS-JANITORIAL OFFICE WARM SPRINGS, ANNEX, FITNESS ROOM

Place of Performance

Location: HOT SPRINGS, ALLEGHANY County, VIRGINIA, 24445

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $26,387.5 to RELIANCE CONTRACTORS INC for work described as: JRWS-JANITORIAL OFFICE WARM SPRINGS, ANNEX, FITNESS ROOM Key points: 1. Contract value is $263,875 over its duration. 2. Reliance Contractors Inc. is the sole awardee. 3. The contract is for janitorial services, a common government need. 4. The award was made under the Simplified Acquisition Procedures (SAP).

Value Assessment

Rating: fair

The contract value of $263,875 over approximately 4.5 years suggests a moderate annual spend. Benchmarking against similar janitorial contracts would be necessary to assess if this pricing is competitive, especially given the firm fixed-price structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, which typically involves simplified procedures and may limit the number of potential offerors. While competed, the specific competition method and price discovery effectiveness are not detailed, potentially impacting the final price.

Taxpayer Impact: The firm fixed-price contract aims to control costs, but the limited competition under SAP might mean taxpayers are not getting the absolute best price.

Public Impact

Ensures cleanliness and maintenance of Forest Service facilities, impacting employee well-being and operational efficiency. Supports a private sector company, Reliance Contractors Inc., through government spending. The contract duration extends into late 2025, indicating a long-term need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP
Lack of detailed price discovery information

Positive Signals

Firm fixed-price contract
Long-term service provision

Sector Analysis

Janitorial services fall under the broader Facilities Support Services sector. Government spending in this area is consistent, with agencies requiring regular maintenance for their physical infrastructure. Benchmarks for janitorial contracts vary widely based on scope and location.

Small Business Impact

The data does not indicate if Reliance Contractors Inc. is a small business. Further analysis would be needed to determine the impact on small business participation in this contract.

Oversight & Accountability

The use of SAP suggests a streamlined oversight process. However, standard procurement regulations and agency oversight would apply to ensure performance and compliance.

Related Government Programs

Janitorial Services
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Potential for inflated pricing due to limited competition
Lack of transparency in the SAP competition process
Need for performance monitoring to ensure service quality
Uncertainty regarding small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $26,387.5 to RELIANCE CONTRACTORS INC. JRWS-JANITORIAL OFFICE WARM SPRINGS, ANNEX, FITNESS ROOM

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 $26,387.5.

What is the period of performance?

Start: 2021-03-25. End: 2025-12-31.

What is the typical cost range for janitorial services of this scope and duration in the specified region?

Determining the typical cost range requires detailed analysis of regional labor rates, service frequency, square footage, and specific cleaning requirements. Without these specifics, a precise benchmark is difficult. However, contracts of this value often fall within a broad spectrum, and comparing it to similar government or commercial contracts in Virginia would be the most effective approach to assess value.

What specific factors limited the competition under SAP for this janitorial contract?

Simplified Acquisition Procedures (SAP) are typically used for purchases below the simplified acquisition threshold (currently $250,000). Competition under SAP can be limited due to factors such as the urgency of the requirement, the specific technical expertise needed, or the geographic concentration of potential offerors. The Forest Service may have utilized specific market research or pre-existing relationships that influenced the limited number of bids received.

How effectively does the firm fixed-price structure protect taxpayer interests given the limited competition?

A firm fixed-price contract is generally beneficial for taxpayers as it shifts the risk of cost overruns to the contractor. However, when competition is limited, the contractor may have less incentive to offer the lowest possible price. The effectiveness in protecting taxpayer interests hinges on whether the initial price was set competitively, even with fewer bidders, and whether performance standards are rigorously enforced to ensure value for money.

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: 12443921Q4001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Reliance Contractors Inc.

Address: 1800 SW 1ST AVE STE 605, 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: $32,488

Exercised Options: $26,388

Current Obligation: $26,388

Actual Outlays: $26,388

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline