Commerce Department awards $4.47M janitorial contract to Rauch, Inc. via AbilityOne program
Contract Overview
Contract Amount: $4,472,206 ($4.5M)
Contractor: Rauch, Inc
Awarding Agency: Department of Commerce
Start Date: 2023-06-01
End Date: 2026-05-31
Contract Duration: 1,095 days
Daily Burn Rate: $4.1K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CONTRACT FOR JANITORAIL AND GROUNDSKEEPING SERVICES VIA SOURCE AMERCIA/ABILITYONE
Place of Performance
Location: JEFFERSONVILLE, CLARK County, INDIANA, 47130
State: Indiana Government Spending
Plain-Language Summary
Department of Commerce obligated $4.5 million to RAUCH, INC for work described as: CONTRACT FOR JANITORAIL AND GROUNDSKEEPING SERVICES VIA SOURCE AMERCIA/ABILITYONE Key points: 1. Contract leverages the AbilityOne program, a mandatory source for federal agencies, potentially limiting price competition. 2. The firm fixed-price contract type provides cost certainty for the government. 3. Performance is concentrated in Indiana, suggesting a localized service delivery. 4. The contract duration of three years allows for stable service provision. 5. The award was made via a purchase order, a common mechanism for smaller value procurements.
Value Assessment
Rating: fair
Benchmarking janitorial services is challenging due to variations in scope, location, and service levels. However, the contract value of approximately $1.5M annually for janitorial and groundskeeping services appears within a reasonable range for a federal facility of significant size. The use of the AbilityOne program, while ensuring employment for individuals with disabilities, may not always yield the most competitive pricing compared to open market procurements. Further analysis would require detailed service requirements and local market wage data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed under simplified acquisition procedures and was awarded via the AbilityOne program. The AbilityOne program is a mandatory source for federal agencies, meaning that agencies are required to purchase products and services from participating non-profit agencies that employ individuals with disabilities before seeking them on the open market. This limits the scope of competition to entities approved under this program.
Taxpayer Impact: Taxpayers benefit from supporting employment opportunities for individuals with disabilities. However, the mandatory nature of the program may result in higher costs than if the services were procured through full and open competition.
Public Impact
Individuals with disabilities employed by Rauch, Inc. will benefit from sustained employment. The U.S. Census Bureau facility in Indiana will receive janitorial and groundskeeping services. The geographic impact is localized to Indiana, where the services will be performed. The contract supports jobs within the janitorial and groundskeeping services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for higher costs due to mandatory source procurement under AbilityOne.
- Limited transparency into the specific service requirements and performance metrics.
- Reliance on a single contractor for essential facility maintenance.
Positive Signals
- Supports the AbilityOne program's mission of employing individuals with disabilities.
- Firm fixed-price contract provides budget predictability.
- Long-term contract duration ensures continuity of services.
Sector Analysis
The janitorial services industry is a significant component of the broader facilities management sector. Federal agencies are major consumers of these services, often procuring them through various contract vehicles. The AbilityOne program is a key mechanism for federal procurement of services that employ individuals with disabilities, representing a substantial portion of federal spending in this area. This contract fits within the government's broader strategy to support social programs while meeting operational needs.
Small Business Impact
This contract was awarded through the AbilityOne program, which prioritizes the employment of individuals with disabilities through participating non-profit agencies. While Rauch, Inc. is the prime contractor, the structure of AbilityOne contracts often involves subcontracting opportunities, though the primary focus is on the employment mission. Small businesses may not directly benefit from this specific award as a prime contractor, but the program's success can indirectly support the ecosystem of service providers and suppliers.
Oversight & Accountability
The U.S. Census Bureau, as the contracting agency, is responsible for overseeing the performance of Rauch, Inc. The purchase order mechanism typically includes terms and conditions that outline performance expectations and remedies for non-performance. Transparency is generally provided through contract award databases. Specific oversight details would be outlined in the purchase order itself and agency internal procedures.
Related Government Programs
- AbilityOne Program
- Janitorial Services
- Facilities Maintenance Contracts
- Mandatory Source Procurements
Risk Flags
- Limited Competition
- Mandatory Source Procurement
Tags
janitorial-services, groundskeeping-services, abilityone-program, department-of-commerce, u-s-census-bureau, indiana, purchase-order, firm-fixed-price, limited-competition, mandatory-source
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $4.5 million to RAUCH, INC. CONTRACT FOR JANITORAIL AND GROUNDSKEEPING SERVICES VIA SOURCE AMERCIA/ABILITYONE
Who is the contractor on this award?
The obligated recipient is RAUCH, INC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (U.S. Census Bureau).
What is the total obligated amount?
The obligated amount is $4.5 million.
What is the period of performance?
Start: 2023-06-01. End: 2026-05-31.
What is the track record of Rauch, Inc. in performing federal janitorial contracts?
Information regarding Rauch, Inc.'s specific track record with federal janitorial contracts is not detailed in the provided data. As a contractor operating under the AbilityOne program, Rauch, Inc. is likely a designated non-profit agency focused on employing individuals with disabilities. Federal agencies typically assess contractor past performance, but this data is not publicly available for this specific award. Further investigation into federal procurement databases and agency performance reviews would be necessary to ascertain their detailed performance history and client satisfaction across various contracts.
How does the pricing of this contract compare to similar janitorial services procured through full and open competition?
Direct price comparison is difficult due to the mandatory source nature of the AbilityOne program. Contracts under AbilityOne are designed to fulfill a social mission, which can influence pricing. While the firm fixed-price structure provides cost certainty, the absence of open market competition means that the price may not reflect the lowest possible market rate. To conduct a true benchmark, one would need to compare the specific service requirements, labor hours, and overhead costs against similar contracts awarded through full and open competition in the same geographic region, adjusting for any differences in scope and quality.
What are the primary risks associated with this contract award?
The primary risks associated with this contract include potential cost inefficiencies due to the limited competition inherent in the AbilityOne program, which is a mandatory source. There is also a risk of service quality variations if performance standards are not rigorously monitored. Furthermore, reliance on a single contractor for essential services like janitorial and groundskeeping could pose a disruption risk if the contractor experiences operational issues. The long-term nature of the contract also means that the government is committed for the duration, potentially limiting flexibility if needs change significantly.
How effective is the AbilityOne program in delivering value for money for federal janitorial services?
The effectiveness of the AbilityOne program in delivering value for money for federal janitorial services is a complex question with both social and economic dimensions. While the program successfully creates employment opportunities for individuals with disabilities, which is a significant social value, it does not always guarantee the lowest possible price compared to open market competition. The mandatory source requirement can lead to higher costs for agencies. Therefore, 'value for money' must be assessed not only on price but also on the social return on investment, including employment generation and the fulfillment of federal social policy objectives.
What are the historical spending patterns for janitorial services at the U.S. Census Bureau?
Historical spending patterns for janitorial services at the U.S. Census Bureau are not detailed in the provided data. This award represents a specific contract for services at a particular facility. To understand historical spending, one would need to analyze procurement data over several fiscal years, identifying all contracts for janitorial and related services awarded by the Census Bureau, their values, durations, and contracting mechanisms. This would reveal trends in spending, contractor choices, and the utilization of programs like AbilityOne versus open market procurements.
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: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 1333LC23Q00000001
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 845 PARK PL, NEW ALBANY, IN, 47150
Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,472,206
Exercised Options: $4,472,206
Current Obligation: $4,472,206
Actual Outlays: $3,318,224
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2023-06-01
Current End Date: 2026-05-31
Potential End Date: 2028-12-31 00:00:00
Last Modified: 2026-04-08
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