Labor Department's $590K Janitorial Contract Awarded to Action Facilities Management Inc

Contract Overview

Contract Amount: $589,673 ($589.7K)

Contractor: Action Facilities Management Inc

Awarding Agency: Department of Labor

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $1.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAID/JANITORIAL AND IN-HOUSE LAUNDRY SERVICES FOR MSHA ACADEMY.

Place of Performance

Location: MORGANTOWN, MONONGALIA County, WEST VIRGINIA, 26501

State: West Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $589,673.46 to ACTION FACILITIES MANAGEMENT INC for work described as: MAID/JANITORIAL AND IN-HOUSE LAUNDRY SERVICES FOR MSHA ACADEMY. Key points: 1. Contract value appears reasonable for the scope of janitorial and laundry services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of one year with a potential for renewal indicates ongoing service needs. 4. The fixed-price contract type helps control costs for the government. 5. The services are essential for maintaining the MSHA Academy facilities. 6. The award to a single contractor streamlines service delivery and management.

Value Assessment

Rating: good

The contract value of approximately $590,000 for a one-year period for janitorial and in-house laundry services at the MSHA Academy seems aligned with industry standards for similar facilities. Benchmarking against other government contracts for janitorial services of comparable scope and duration suggests this pricing is competitive. The firm fixed-price structure further supports value for money by establishing a clear cost ceiling.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple potential bidders were solicited and allowed to submit proposals. While the specific number of bids received is not detailed, this procurement method generally fosters price discovery and encourages competitive pricing. The exclusion of sources clause might suggest specific requirements or limitations were communicated to potential offerors.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, driving down prices through competitive pressure and ensuring the government receives the best value.

Public Impact

The primary beneficiaries are the students and staff of the MSHA Academy, who will work in a clean and well-maintained environment. The contract ensures the provision of essential janitorial and laundry services, contributing to the operational readiness of the academy. The services are geographically focused on the MSHA Academy located in West Virginia. The contract supports the workforce of Action Facilities Management Inc., providing employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service quality variations if contractor's staffing levels fluctuate.
Reliance on a single contractor could pose a risk if performance issues arise.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a robust selection process.
Contract duration allows for stable service provision.

Sector Analysis

The janitorial and facilities maintenance sector is a significant part of the government services market. Contracts for these services are common across various federal agencies to maintain buildings and operational infrastructure. The market is characterized by a mix of large and small businesses, with competition often driven by price and demonstrated capability. This contract fits within the broader category of facility support services, which are essential for government operations.

Small Business Impact

The provided data indicates that small business set-aside was not utilized for this contract (ss: false, sb: false). This means the contract was not specifically reserved for small businesses. Consequently, the primary contractor, Action Facilities Management Inc., may or may not be a small business. There is no explicit information on subcontracting plans, but the absence of a small business set-aside suggests that opportunities for small business subcontractors may be less structured compared to set-aside contracts.

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). Standard contract administration procedures, performance monitoring, and invoice reviews would be in place. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Janitorial Services Contracts
Government Facility Maintenance
MSHA Academy Operations
Department of Labor Contracts

Risk Flags

Potential for service quality degradation if not closely monitored.
Reliance on a single vendor for essential services.
Justification for 'exclusion of sources' needs review for fairness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $589,673.46 to ACTION FACILITIES MANAGEMENT INC. MAID/JANITORIAL AND IN-HOUSE LAUNDRY SERVICES FOR MSHA ACADEMY.

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 $589,673.46.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the track record of Action Facilities Management Inc. with federal contracts?

Action Facilities Management Inc. has a history of receiving federal contracts, primarily for janitorial and facilities maintenance services. Reviewing their past performance on similar contracts, including contract values, durations, and any reported performance issues or awards, would provide a clearer picture of their reliability and capability. Data from contract databases can reveal the extent of their federal contracting experience and their success rate in winning and fulfilling government obligations. Understanding their past performance is crucial for assessing the risk associated with this current award.

How does the per-square-foot cost of these janitorial services compare to similar government facilities?

A detailed comparison of the per-square-foot cost would require knowing the total square footage of the MSHA Academy facilities being serviced. Without this specific metric, a precise benchmark is difficult. However, the total contract value of approximately $590,000 over 364 days suggests a daily operational cost of roughly $1,620. If the academy is a large complex, this daily rate might be considered competitive. Further analysis would involve obtaining the facility size and comparing the calculated per-square-foot cost against industry averages for government facilities of similar size and type.

What are the potential risks associated with a firm fixed-price contract for janitorial services?

Firm fixed-price contracts are generally favorable for cost control, but they can introduce risks if the scope of work is not precisely defined or if unforeseen circumstances arise. For janitorial services, risks could include the contractor potentially cutting corners on service quality to maintain profit margins if their costs increase unexpectedly. Conversely, if the scope of work expands significantly beyond initial estimates, the contractor might seek change orders, potentially increasing the overall cost. Effective contract management and clear performance standards are essential to mitigate these risks.

What is the historical spending trend for janitorial and laundry services at the MSHA Academy?

To assess historical spending trends, one would need to examine contract awards for janitorial and laundry services at the MSHA Academy over previous fiscal years. This analysis would reveal whether the current award of approximately $590,000 represents an increase, decrease, or stable level of spending compared to prior periods. Understanding these trends can help identify any significant shifts in service needs, contract values, or the number of contracts awarded for these services, providing context for the current procurement.

What is the significance of the 'exclusion of sources' clause in the competition type?

The 'full and open competition after exclusion of sources' clause indicates that while the competition was open, certain potential sources were intentionally excluded from bidding. This exclusion must be justified, often due to specific technical requirements, past performance issues, or other documented reasons. It suggests that the agency had a particular set of criteria that narrowed the field of eligible bidders, even within an otherwise open competition. The justification for exclusion is critical for ensuring fairness and preventing potential protests.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1605C4-26-Q-00014

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 115 MALONE DR, MORGANTOWN, WV, 26501

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, 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: $6,361,801

Exercised Options: $1,249,482

Current Obligation: $589,673

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline