Treasury's IRS awards $7.48M facilities support contract to United Facility Services Corp

Contract Overview

Contract Amount: $7,477,002 ($7.5M)

Contractor: United Facility Services Corp

Awarding Agency: Department of the Treasury

Start Date: 2021-06-01

End Date: 2026-05-31

Contract Duration: 1,825 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ELECTRONIC COMPUTING CENTER CUSTODIAL AND PEST CONTROL SERVICES POP: JUNE 1, 2021 - MAY 31, 2026

Place of Performance

Location: KEARNEYSVILLE, JEFFERSON County, WEST VIRGINIA, 25430

State: West Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $7.5 million to UNITED FACILITY SERVICES CORP for work described as: ELECTRONIC COMPUTING CENTER CUSTODIAL AND PEST CONTROL SERVICES POP: JUNE 1, 2021 - MAY 31, 2026 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of five years indicates a long-term need for these services. 3. The contract type is Time and Materials, which can pose cost control challenges. 4. The base award amount is $7.48 million over five years. 5. The services provided are custodial and pest control for an electronic computing center. 6. The contract is a delivery order under a larger contract vehicle. 7. The contractor, United Facility Services Corp, is the sole awardee. 8. The contract is located in West Virginia.

Value Assessment

Rating: fair

The contract's value of $7.48 million over five years for custodial and pest control services at an electronic computing center appears to be within a reasonable range for such specialized facilities support. However, without specific benchmarks for custodial and pest control services at federal computing centers, a precise value-for-money assessment is difficult. The Time and Materials (T&M) contract type introduces inherent risk for cost overruns if not managed diligently, as it allows for costs to fluctuate based on labor hours and material usage. Comparing this to similar contracts for facilities maintenance at comparable federal sites would provide a clearer picture of its cost-effectiveness.

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,' which implies that while the competition was open, certain sources may have been excluded prior to the solicitation. The data indicates there were two bidders. A competitive process with multiple bidders generally leads to better price discovery and potentially lower costs for the government. The fact that only two bids were received could suggest a niche market or specific requirements that limited the pool of potential offerors.

Taxpayer Impact: The competitive nature of this award, despite a limited number of bidders, is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source award. However, further analysis of the bidding process and the reasons for excluding other sources would be needed to confirm optimal taxpayer value.

Public Impact

The primary beneficiaries are the IRS and the Department of the Treasury, ensuring the operational readiness of their electronic computing center. The services delivered include essential custodial and pest control, maintaining a clean and safe environment for sensitive electronic equipment. The geographic impact is localized to West Virginia, where the electronic computing center is situated. The contract supports the operational infrastructure of a critical federal agency, indirectly benefiting taxpayers by ensuring the continuity of tax processing and data management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored, as it bases payment on actual labor hours and material costs.
The 'Full and Open Competition After Exclusion of Sources' designation warrants further investigation into the rationale behind excluding potential bidders.
Limited competition (two bidders) may indicate a lack of robust market engagement or specialized requirements that restrict broader participation.

Positive Signals

The award was made through a competitive process, which generally promotes better pricing and service.
The contract duration of five years provides stability and predictability for essential facility services.
The services are critical for maintaining the operational integrity of a federal electronic computing center.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, encompass a broad range of services necessary for the operation and maintenance of buildings and grounds. This sector includes services like cleaning, pest control, and general maintenance. Federal spending in this area is substantial, supporting the vast infrastructure of government agencies. Comparable spending benchmarks for custodial and pest control services at large-scale data centers or critical infrastructure facilities are often proprietary or vary significantly based on location, security requirements, and service level agreements. The market for these services is competitive, with numerous providers ranging from small local businesses to large national corporations.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The awardee, United Facility Services Corp, is likely a larger entity. Future analysis could explore if the prime contractor has a history of subcontracting with small businesses for services related to this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Internal Revenue Service (IRS) contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The Department of the Treasury's Office of Inspector General (OIG) may also conduct audits or investigations into the contract's execution and financial management to ensure accountability and prevent fraud, waste, and abuse. Transparency is facilitated through contract award databases, but detailed performance metrics and specific oversight activities are typically internal.

Related Government Programs

Federal Facilities Maintenance Contracts
Government IT Infrastructure Support
Custodial Services for Federal Buildings
Pest Control Services for Government Facilities
IRS Operational Support Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited competition (two bidders) may indicate market concentration or specific barriers to entry.
Need for robust oversight to ensure service quality and prevent inefficient resource utilization.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $7.5 million to UNITED FACILITY SERVICES CORP. ELECTRONIC COMPUTING CENTER CUSTODIAL AND PEST CONTROL SERVICES POP: JUNE 1, 2021 - MAY 31, 2026

Who is the contractor on this award?

The obligated recipient is UNITED FACILITY SERVICES CORP.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $7.5 million.

What is the period of performance?

Start: 2021-06-01. End: 2026-05-31.

What is the track record of United Facility Services Corp. in performing similar federal contracts?

A review of federal procurement data would be necessary to fully assess United Facility Services Corp.'s track record. This would involve examining past performance evaluations, any contract disputes or terminations, and the types and values of previous contracts awarded to the company. Understanding their history with similar facilities support services, particularly for sensitive environments like electronic computing centers, would provide insight into their capability and reliability. Without specific past performance data, it is difficult to definitively assess their suitability beyond the current award.

How does the awarded price compare to market rates for custodial and pest control services at similar federal facilities?

Benchmarking this contract's price requires access to detailed market research data and pricing information for comparable federal facilities. Factors such as facility size, specific service requirements (e.g., cleanroom standards, security protocols), geographic location, and labor costs significantly influence pricing. The Time and Materials (T&M) nature of this contract adds complexity, as the final cost depends on actual hours and materials used. A comprehensive comparison would involve analyzing data from similar contracts awarded by agencies like GSA or other departments for facilities of comparable scale and criticality, considering the specific service level agreements.

What are the primary risks associated with a Time and Materials (T&M) contract for these services?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for the actual labor hours and materials consumed, plus a fixed fee or percentage for profit. This structure can incentivize contractors to extend labor hours or use more expensive materials if not managed rigorously. For custodial and pest control services at an electronic computing center, risks include inefficient labor utilization, unnecessary material purchases, and potential scope creep if requirements are not clearly defined and monitored. Effective oversight, detailed record-keeping, and strong contract management are crucial to mitigate these risks and ensure value for taxpayers.

What is the historical spending pattern for custodial and pest control services at the IRS's electronic computing centers?

To determine historical spending patterns, one would need to analyze procurement data for custodial and pest control services specifically for IRS electronic computing centers over several fiscal years. This analysis would involve identifying all relevant contracts, their award values, durations, and the services provided. Trends in spending could reveal whether costs have increased or decreased over time, whether contract vehicles have changed, and if there have been shifts in awarded contractors. Understanding these patterns is essential for budget forecasting, identifying potential cost efficiencies, and assessing the long-term investment in maintaining these critical facilities.

What specific performance metrics are likely being used to evaluate United Facility Services Corp.'s service delivery?

Performance metrics for custodial and pest control services at an electronic computing center would likely focus on maintaining specific environmental standards, such as cleanliness levels, air quality, and absence of pests. Key performance indicators (KPIs) might include response times for service requests, adherence to schedules, quality of cleaning (e.g., dust levels, surface sanitation), effectiveness of pest control measures (e.g., reduction in pest sightings), and compliance with safety and security protocols. The contract would typically outline these metrics, along with acceptable performance ranges and potential remedies for deficiencies, ensuring the critical infrastructure remains operational and secure.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 130 BROOK AVE, DEER PARK, NY, 11729

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,899,660

Exercised Options: $7,697,828

Current Obligation: $7,477,002

Actual Outlays: $6,935,252

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QSHA19D0011

IDV Type: IDC

Timeline