Interior Department awards $200K janitorial contract to Reliance Contractors Inc. for Montana facility

Contract Overview

Contract Amount: $20,000 ($20.0K)

Contractor: Reliance Contractors Inc

Awarding Agency: Department of the Interior

Start Date: 2024-05-28

End Date: 2026-06-30

Contract Duration: 763 days

Daily Burn Rate: $26/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MT - BOZEMAN FISH TECHNOLOGY CENTER - JANITORIAL SERVICES - BASE WITH 4 OPTION YEARS

Place of Performance

Location: BOZEMAN, GALLATIN County, MONTANA, 59715

State: Montana Government Spending

Plain-Language Summary

Department of the Interior obligated $20,000 to RELIANCE CONTRACTORS INC for work described as: MT - BOZEMAN FISH TECHNOLOGY CENTER - JANITORIAL SERVICES - BASE WITH 4 OPTION YEARS Key points: 1. Contract awarded via Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 2. The contract has a base period and four option years, indicating potential for long-term service. 3. The firm-fixed-price structure aims to control costs for the government. 4. The award is a Purchase Order, a common instrument for services under SAP. 5. The contract is for janitorial services, a standard facility support function.

Value Assessment

Rating: fair

The contract value of $200,000 over approximately two years (base period) for janitorial services at a single facility appears to be within a reasonable range for such services. However, without specific details on the facility size, scope of work, and local labor costs, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for janitorial services in Montana or for comparable federal facilities would provide a clearer picture of whether the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which generally allows for full and open competition for procurements valued below the simplified acquisition threshold. While the specific number of bidders is not provided, the use of SAP suggests that multiple offers were likely solicited and considered, promoting price discovery and competition. The fact that it was competed indicates that the agency sought competitive pricing.

Taxpayer Impact: Competing the contract, even under SAP, helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The U.S. Fish and Wildlife Service facility in Bozeman, Montana, will benefit from maintained cleanliness and hygiene. Janitorial services ensure a safe and healthy working environment for federal employees. The contract supports local employment through Reliance Contractors Inc., a Montana-based company. The geographic impact is localized to the Bozeman, Montana area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or service level agreements in the provided data.
Limited insight into the contractor's past performance or experience with federal contracts.
The duration of the contract (base plus options) could lead to complacency if not actively managed.

Positive Signals

The contract was competed, indicating an effort to secure competitive pricing.
Firm-fixed-price contract type helps manage cost certainty for the government.
Awarded to a specific contractor, suggesting they met the requirements outlined in the solicitation.

Sector Analysis

Janitorial services fall under the broader facilities support services sector, which is a significant component of the commercial services industry. This sector includes a wide range of services necessary for the operation and maintenance of buildings and grounds. Federal spending in this area is consistent across many agencies to ensure the upkeep of government facilities. The market is typically characterized by a mix of large facility management companies and smaller, specialized service providers.

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 contract value and the nature of janitorial services, it is plausible that small businesses could be significant players in this market, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically reside with the U.S. Fish and Wildlife Service contracting officer and program managers. The Purchase Order structure implies a defined scope of work and payment terms. Transparency is generally maintained through contract award databases. Specific accountability measures would be detailed in the contract's terms and conditions, including performance standards and remedies for non-compliance.

Related Government Programs

Federal Janitorial Services Contracts
Facility Support Services
Department of the Interior Contracts
U.S. Fish and Wildlife Service Procurement

Risk Flags

Potential for service quality degradation over contract term if not actively managed.
Limited public information on contractor's past performance.
Scope of work details not fully specified in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $20,000 to RELIANCE CONTRACTORS INC. MT - BOZEMAN FISH TECHNOLOGY CENTER - JANITORIAL SERVICES - BASE WITH 4 OPTION YEARS

Who is the contractor on this award?

The obligated recipient is RELIANCE CONTRACTORS INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Fish and Wildlife Service).

What is the total obligated amount?

The obligated amount is $20,000.

What is the period of performance?

Start: 2024-05-28. End: 2026-06-30.

What is the specific scope of janitorial services required under this contract?

The provided data indicates the contract is for 'Janitorial Services' but does not detail the specific tasks included. Typically, janitorial services encompass cleaning and maintaining restrooms, floors, windows, walls, and common areas; dusting furniture; emptying trash receptacles; and ensuring general tidiness. For a federal facility, this might also include specialized cleaning protocols, adherence to safety standards, and potentially specific requirements related to the facility's function (e.g., laboratory areas, public access points). A detailed statement of work (SOW) within the contract documents would outline these specifics, including frequency of service, areas to be covered, and performance standards.

How does the $200,000 contract value compare to similar janitorial contracts for federal facilities?

Benchmarking the $200,000 contract value requires comparing it to similar janitorial service contracts for federal facilities of comparable size and scope, ideally within the same geographic region (Montana). Without access to a comprehensive database of federal contract awards filtered by service type, location, and facility size, a precise comparison is difficult. However, for a single facility over approximately two years (base period), this value appears moderate. Larger federal buildings or complexes would command significantly higher contract values, while very small outposts might have lower costs. The firm-fixed-price nature suggests the government sought cost certainty, and the competition under SAP implies an effort to achieve a fair market price.

What are the potential risks associated with this contract for Reliance Contractors Inc. and the government?

For Reliance Contractors Inc., risks include underestimating the labor and material costs required to meet the contract's performance standards, potential penalties for failing to meet service level agreements (if specified), and challenges in retaining qualified staff. For the government, risks involve potential lapses in service quality if the contractor underperforms, difficulties in enforcing contract terms if not clearly defined, and the potential for price increases if option periods are exercised without adequate re-evaluation of market rates. The firm-fixed-price structure mitigates cost overrun risks for the government but places the performance risk more heavily on the contractor.

What is the track record of Reliance Contractors Inc. in performing federal contracts, particularly for janitorial services?

The provided data does not include information on Reliance Contractors Inc.'s past performance or track record with federal contracts. To assess this, one would typically consult the Federal Awardee Performance and Integrity Information System (FAPIIS) or review past performance evaluations submitted by previous government contracting officers. A lack of readily available performance data in the public domain could indicate a newer entrant to federal contracting or a company that has primarily served the commercial sector. A thorough review of their performance history is crucial for understanding their reliability and capability.

How does the duration of the contract (base plus 4 option years) impact its overall value and risk?

The contract's duration, with a base period and four option years, offers potential for continuity of service and reduced administrative burden associated with frequent re-procurement. For the government, this can ensure a stable service provider. However, it also introduces risks. Option periods are typically exercised at the government's discretion, and if not managed carefully, prices could escalate over time without adequate justification or comparison to current market rates. The contractor also faces the risk of market shifts affecting their ability to perform profitably over the extended period. Effective contract management and periodic price reviews are essential to maximize value and mitigate risks over the full potential term.

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: 140FS224Q0132

Offers Received: 12

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: $50,000

Exercised Options: $20,000

Current Obligation: $20,000

Actual Outlays: $15,833

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline