Labor Department awards $5.4M for janitorial services, with 2 bids received for a 2071-day contract

Contract Overview

Contract Amount: $5,417,196 ($5.4M)

Contractor: Action Facilities Management Inc

Awarding Agency: Department of Labor

Start Date: 2020-07-29

End Date: 2026-03-31

Contract Duration: 2,071 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL, MAID AND IN-HOUSE LAUNDRY SERVICES MSHA MINE ACADEMY, BEAVER, WV

Place of Performance

Location: BEAVER, RALEIGH County, WEST VIRGINIA, 25813

State: West Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $5.4 million to ACTION FACILITIES MANAGEMENT INC for work described as: JANITORIAL, MAID AND IN-HOUSE LAUNDRY SERVICES MSHA MINE ACADEMY, BEAVER, WV Key points: 1. Value for money assessed against similar facilities support contracts. 2. Competition dynamics indicate a limited number of bidders for this service. 3. Risk indicators include contract duration and potential for service degradation. 4. Performance context is set against the needs of the MSHA Mine Academy. 5. Sector positioning within Facilities Support Services requires benchmarking against industry standards.

Value Assessment

Rating: fair

The contract value of $5.4 million over approximately 5.75 years suggests an average annual cost of around $940,000. Benchmarking against similar facilities support services contracts for government facilities indicates this pricing is within a reasonable range, though specific service levels and geographic cost variations can influence precise comparisons. The firm-fixed-price structure provides cost certainty but may limit flexibility if unforeseen service needs arise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with two bids received. While competition was sought, the low number of bidders (two) may suggest potential barriers to entry or a specialized market for these services. This level of competition could lead to a price that is not as aggressively optimized as it might be with a larger pool of bidders, but it still provides a basis for price discovery.

Taxpayer Impact: Taxpayers benefit from a competitive process, even with a limited number of bidders, as it helps ensure the price is not excessively high. However, a broader competition could potentially yield even greater savings.

Public Impact

The primary beneficiaries are the students and staff of the MSHA Mine Academy in Beaver, WV, who will receive a clean and maintained learning and working environment. Essential services include janitorial, maid, and in-house laundry services, crucial for hygiene and operational efficiency. The geographic impact is localized to Beaver, West Virginia, supporting the operational needs of a specific federal facility. Workforce implications include the direct employment of personnel by ACTION FACILITIES MANAGEMENT INC to perform these services, potentially including local hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may not represent the best possible price.
Long contract duration (2071 days) increases risk of service quality degradation over time.
Firm-fixed-price contract may not accommodate unforeseen service needs efficiently.

Positive Signals

Awarded under full and open competition, ensuring broad market access.
Contractor has an established award history, suggesting some level of vetting.
Services are essential for the functioning and safety of the MSHA Mine Academy.

Sector Analysis

The Facilities Support Services sector (NAICS 561210) encompasses a wide range of services essential for the operation and maintenance of buildings and grounds. This contract falls within the government's significant spending on facility management, which includes cleaning, maintenance, and support functions. Comparable spending benchmarks for similar government facilities often show a wide variance based on size, location, and specific service requirements. The market is generally competitive, with both large and small businesses vying for contracts.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses within the provided data. The award to ACTION FACILITIES MANAGEMENT INC, a presumably larger entity, suggests that small businesses were either not primary bidders or did not meet the specific requirements for this particular solicitation. This contract does not appear to directly contribute to the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Building Maintenance Contracts
Government Facility Cleaning Services
Department of Labor Facilities Management
Mine Safety and Health Administration Operations

Risk Flags

Limited Competition
Long Contract Duration
Potential for Service Degradation

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $5.4 million to ACTION FACILITIES MANAGEMENT INC. JANITORIAL, MAID AND IN-HOUSE LAUNDRY SERVICES MSHA MINE ACADEMY, BEAVER, WV

Who is the contractor on this award?

The obligated recipient is ACTION FACILITIES MANAGEMENT INC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $5.4 million.

What is the period of performance?

Start: 2020-07-29. End: 2026-03-31.

What is the track record of ACTION FACILITIES MANAGEMENT INC with federal contracts, particularly in facilities support?

ACTION FACILITIES MANAGEMENT INC has a history of receiving federal contracts, primarily within the facilities support and maintenance domain. Analysis of their contract awards would reveal the types of services provided, the agencies they have served, and the total value of contracts awarded over time. Examining past performance reviews and any documented issues or successes associated with their previous federal engagements is crucial for assessing their reliability and capability to fulfill the current contract requirements. A review of their award history can indicate if they have successfully managed similar-sized or duration contracts in the past, providing confidence in their ability to execute this $5.4 million award.

How does the per-unit cost of these janitorial services compare to similar contracts at other federal facilities?

Benchmarking the per-unit cost for these janitorial services against similar contracts at other federal facilities is challenging without detailed service level agreements (SLAs) and specific metrics. However, the total contract value of $5.4 million over approximately 2071 days (about 5.75 years) suggests an average annual expenditure of roughly $940,000. This figure needs to be contextualized by the size of the MSHA Mine Academy, the scope of services (janitorial, maid, laundry), and the geographic cost of labor in Beaver, WV. Generally, government facility support services costs can vary significantly. If comparable facilities of similar size and service scope in comparable regions have annual costs substantially lower or higher, it would indicate potential over or under-pricing, or differences in service intensity.

What are the primary risks associated with a firm-fixed-price contract of this duration for janitorial services?

The primary risks associated with a firm-fixed-price contract of this duration (2071 days) for janitorial services include potential service degradation over time and contractor inflexibility. As the contract price is fixed, the contractor may face incentives to reduce costs by cutting corners on service quality, using less effective cleaning agents, or reducing staffing levels as the contract progresses, especially if labor or supply costs increase unexpectedly. Conversely, the government faces the risk of paying a premium if market conditions or service needs change significantly, making the fixed price less advantageous. The long duration also means that any initial miscalculation in pricing or scope by either party can have prolonged financial implications.

How effective are the current oversight mechanisms in ensuring the quality of services delivered under this contract?

The effectiveness of oversight mechanisms for this contract depends heavily on the diligence of the Department of Labor's contracting officers and the presence of a robust quality assurance surveillance plan (QASP). While the firm-fixed-price structure provides a baseline for accountability, active monitoring is essential. This includes regular inspections, performance reviews, and prompt addressing of any deficiencies. The existence and utilization of a QASP, which outlines how the government will monitor contractor performance, are critical indicators of effective oversight. Without specific details on the QASP or the frequency of performance evaluations, it's difficult to definitively assess effectiveness, but the structure allows for oversight through performance metrics and reporting.

What are the historical spending patterns for janitorial and facilities support services at the MSHA Mine Academy or similar facilities?

Historical spending patterns for janitorial and facilities support services at the MSHA Mine Academy or similar facilities would provide crucial context for evaluating the current $5.4 million award. If previous contracts for these services at the academy were significantly lower or higher, it would warrant investigation into the reasons for the difference, such as changes in scope, inflation, or market dynamics. Analyzing spending trends over several years can reveal patterns of cost escalation, identify periods of unusually high or low spending, and help determine if the current contract represents a reasonable continuation or deviation from historical norms. This data is essential for assessing value for money and identifying potential anomalies.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 115 MALONE DR, MORGANTOWN, WV, 26501

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $6,303,692

Exercised Options: $6,272,390

Current Obligation: $5,417,196

Actual Outlays: $5,068,864

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QSHA19D004F

IDV Type: FSS

Timeline