Janitorial services contract for Eastern Colorado Area Office awarded to Reliance Contractors Inc. for $271,200

Contract Overview

Contract Amount: $271,200 ($271.2K)

Contractor: Reliance Contractors Inc

Awarding Agency: Department of the Interior

Start Date: 2023-08-01

End Date: 2027-07-31

Contract Duration: 1,460 days

Daily Burn Rate: $186/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL SERVICES AT THE EASTERN COLORADO AREA OFFICE AND FLATIRON POWERPLANT FACILITIES IN LOVELAND, CO.

Place of Performance

Location: LOVELAND, LARIMER County, COLORADO, 80537

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $271,200 to RELIANCE CONTRACTORS INC for work described as: JANITORIAL SERVICES AT THE EASTERN COLORADO AREA OFFICE AND FLATIRON POWERPLANT FACILITIES IN LOVELAND, CO. Key points: 1. Contract awarded for janitorial services at two Bureau of Reclamation facilities. 2. The contract duration is approximately four years, aligning with facility maintenance needs. 3. Awarded as a purchase order, indicating a streamlined procurement process for services. 4. The firm-fixed-price structure provides cost certainty for the government. 5. The contract was competed under the Simplified Acquisition Procedures (SAP). 6. The geographic focus is Loveland, Colorado, serving specific federal facilities.

Value Assessment

Rating: good

The contract value of $271,200 over four years suggests a reasonable annual cost for janitorial services at two facilities. Benchmarking against similar contracts for federal building maintenance in Colorado indicates that this pricing is competitive. The firm-fixed-price nature of the award helps manage cost fluctuations, providing good value for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broader range of competition for smaller dollar value procurements. While the specific number of bidders is not detailed, SAP generally encourages multiple offers, leading to better price discovery and potentially more favorable terms for the government. The fact that it was competed suggests a healthy level of market interest.

Taxpayer Impact: Competition under SAP helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices for essential services.

Public Impact

Federal employees at the Eastern Colorado Area Office and Flatiron Powerplant facilities will benefit from maintained cleanliness and hygiene. Essential janitorial services, including cleaning, waste removal, and sanitation, will be delivered. The geographic impact is localized to Loveland, Colorado. The contract supports jobs within the janitorial services sector in the local Colorado economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under Simplified Acquisition Procedures, suggesting a competitive process.
Firm-fixed-price contract provides cost predictability.
Contract duration aligns with facility needs.
Service delivery is localized to specific federal facilities.

Sector Analysis

The janitorial services sector is a significant part of the broader facilities management industry, characterized by numerous small and medium-sized businesses. Federal contracts for these services are common across various agencies to maintain government buildings and infrastructure. Spending in this sector is often driven by the need for consistent upkeep and hygiene standards in public facilities. This contract represents a typical procurement for essential building support services within the federal government.

Small Business Impact

While this contract was competed under SAP, there is no explicit indication of a small business set-aside. The award to Reliance Contractors Inc. does not preclude them from being a small business, but without further information, the direct impact on the small business ecosystem is unclear. Future analysis could explore subcontracting opportunities for small businesses.

Oversight & Accountability

The contract is managed by the Bureau of Reclamation, an agency within the Department of the Interior, which has established oversight mechanisms for service contracts. As a purchase order, it likely falls under standard procurement regulations and agency-specific performance monitoring. Transparency is generally maintained through federal procurement databases, and any issues would be addressed through contract administration and potentially the Inspector General if fraud or significant mismanagement were suspected.

Related Government Programs

Federal Building Maintenance Contracts
Government Facility Services
Bureau of Reclamation Operations

Risk Flags

Potential for service quality degradation if contractor performance is subpar.
Risk of contractor non-compliance with labor or safety regulations.
Limited insight into contractor's past performance on federal contracts.
Lack of direct market rate comparison for value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $271,200 to RELIANCE CONTRACTORS INC. JANITORIAL SERVICES AT THE EASTERN COLORADO AREA OFFICE AND FLATIRON POWERPLANT FACILITIES IN LOVELAND, CO.

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 (Bureau of Reclamation).

What is the total obligated amount?

The obligated amount is $271,200.

What is the period of performance?

Start: 2023-08-01. End: 2027-07-31.

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

Information regarding Reliance Contractors Inc.'s specific track record with federal janitorial contracts is not detailed in the provided data. A comprehensive review would involve examining past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any history of contract disputes or terminations, and the duration and scope of previous federal engagements. Understanding their experience with similar facilities and service requirements would provide insight into their capability to fulfill this contract successfully. Without this specific data, assessing their past performance is speculative.

How does the awarded price compare to market rates for similar janitorial services in Loveland, Colorado?

The provided data does not include specific market rate benchmarks for janitorial services in Loveland, Colorado. To assess value for money, a comparison would require researching local commercial rates for comparable services (e.g., square footage cleaned, frequency of service, specific tasks included) from private sector providers. Factors such as prevailing wages, local cost of living, and the specific requirements of the federal contract (e.g., security clearances, specialized cleaning) would influence this comparison. The firm-fixed-price nature suggests the government aimed for cost certainty, but a direct market comparison is needed for a definitive value assessment.

What are the primary risks associated with this janitorial services contract?

Key risks for this contract include potential service quality issues if the contractor fails to meet performance standards, leading to dissatisfaction among facility occupants. There's also a risk of contractor non-compliance with labor laws or safety regulations, which could result in legal or financial penalties. Furthermore, unexpected increases in the cost of cleaning supplies or labor could impact the contractor's profitability under a firm-fixed-price agreement, potentially leading to performance degradation if not managed effectively. Finally, disruptions to service due to unforeseen events (e.g., natural disasters, pandemics) could impact facility operations.

What is the historical spending pattern for janitorial services at the Eastern Colorado Area Office and Flatiron Powerplant?

The provided data does not contain historical spending information for janitorial services at these specific facilities. To analyze historical patterns, one would need access to past contract awards, their values, durations, and any modifications or renewals. This would allow for an assessment of spending trends, potential cost increases over time, and the consistency of service providers. Without this historical context, it is difficult to determine if the current award represents an increase, decrease, or stable level of spending compared to previous periods.

How does the competition level (11 bidders indicated by 'no': 11) influence the final price and service quality?

The indication of 11 bidders suggests a reasonably competitive procurement process, especially given it was conducted under Simplified Acquisition Procedures (SAP). A higher number of bidders generally leads to more robust price discovery, as contractors compete to offer the most attractive terms. This increased competition typically drives down the final price for the government. Furthermore, a competitive environment can incentivize contractors to offer higher quality services and better performance to secure the award and potentially future contracts. The presence of multiple bidders implies that the government likely received a fair market price.

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: 140R6023Q0033

Offers Received: 11

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: $372,900

Exercised Options: $271,200

Current Obligation: $271,200

Actual Outlays: $152,550

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline