Custodial Services Contract for Armed Forces Retirement Home in Gulfport, MS Awarded for $8.8M

Contract Overview

Contract Amount: $8,814,290 ($8.8M)

Contractor: Global Connections to Employment, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2021-10-01

End Date: 2026-06-30

Contract Duration: 1,733 days

Daily Burn Rate: $5.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CUSTODIAL SERVICES AT THE ARMED FORCES RETIREMENT HOME LOCATED IN GULFPORT, MS

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32501

State: Florida Government Spending

Plain-Language Summary

Department of the Treasury obligated $8.8 million to GLOBAL CONNECTIONS TO EMPLOYMENT, INC. for work described as: CUSTODIAL SERVICES AT THE ARMED FORCES RETIREMENT HOME LOCATED IN GULFPORT, MS Key points: 1. Contract awarded to Global Connections to Employment, Inc. for custodial services. 2. The contract has a total value of $8,814,289.53 over its duration. 3. The contract is for janitorial services at the Armed Forces Retirement Home in Gulfport, MS. 4. The contract duration is 1733 days, ending June 30, 2026. 5. The contract type is Firm Fixed Price.

Value Assessment

Rating: fair

The contract value of $8.8M for custodial services over approximately 4.75 years appears to be within a reasonable range for a facility of this nature. However, without specific benchmarks for custodial services at retirement homes or government facilities of similar size and scope, a precise pricing assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited competition approach. This method may not yield the most competitive pricing as it restricts the pool of potential offerors. Price discovery might be less robust compared to a full and open competition.

Taxpayer Impact: The limited competition nature of this contract could potentially lead to higher costs for taxpayers if a more competitive process would have resulted in lower bids.

Public Impact

Ensures essential custodial services are provided for the well-being of residents at the Armed Forces Retirement Home. Supports employment for Global Connections to Employment, Inc., a contractor providing services. The contract's duration ensures continuity of services for the facility. Funds are allocated from the Department of the Treasury, Bureau of the Fiscal Service.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in suboptimal pricing.
Lack of detailed cost breakdown makes value assessment challenging.
Contract duration is substantial, requiring ongoing monitoring.

Positive Signals

Ensures essential services for a veteran population.
Contract is firm fixed price, providing cost certainty.
Contractor is identified, ensuring service provision.

Sector Analysis

The contract falls under the General Services and Administration (GSA) sector, specifically for janitorial and custodial services. Benchmarks for this sector vary widely based on facility size, location, and service level agreements. This contract's value of $8.8M over nearly five years suggests a significant scope of work.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight would typically be managed by the contracting agency (Bureau of the Fiscal Service) and potentially the requiring activity (Armed Forces Retirement Home). Regular performance reviews and contract management are crucial to ensure services meet requirements and taxpayer funds are used effectively.

Related Government Programs

Janitorial Services
Department of the Treasury Contracting
Bureau of the Fiscal Service Programs

Risk Flags

Limited competition raises concerns about potential overpricing.
Lack of detailed service scope makes value assessment difficult.
Contract duration is long, increasing exposure to market changes.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $8.8 million to GLOBAL CONNECTIONS TO EMPLOYMENT, INC.. CUSTODIAL SERVICES AT THE ARMED FORCES RETIREMENT HOME LOCATED IN GULFPORT, MS

Who is the contractor on this award?

The obligated recipient is GLOBAL CONNECTIONS TO EMPLOYMENT, INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $8.8 million.

What is the period of performance?

Start: 2021-10-01. End: 2026-06-30.

What specific services are included in the 'custodial services' and how do they align with industry standards for retirement homes?

The contract specifies 'Janitorial Services' (NAICS 561720). This typically includes cleaning, dusting, vacuuming, mopping, trash removal, and restroom sanitation. For a retirement home, this would likely extend to common areas, resident rooms (if specified), and administrative spaces. Detailed service level agreements within the contract would clarify the exact scope and frequency, ensuring alignment with health, safety, and comfort standards for residents.

Given the limited competition, what mechanisms are in place to ensure the contractor is performing efficiently and at a fair price?

While limited competition restricts upfront price negotiation, effective oversight is critical. This includes performance monitoring against contract requirements, regular quality assurance checks, and potentially periodic reviews of pricing if contract modifications are considered. The firm fixed price structure provides some cost certainty, but the agency must still ensure the contractor is delivering value and meeting all performance standards.

How does the $8.8M contract value compare to similar custodial service contracts for government facilities or large residential complexes?

A direct comparison is challenging without more specific data points like square footage, service frequency, and specific service inclusions. However, $8.8M over nearly five years ($1.85M annually) for custodial services at a retirement home suggests a substantial facility requiring comprehensive cleaning and maintenance. Benchmarking against similar government facilities or large-scale residential contracts would be necessary for a definitive assessment of its cost-effectiveness.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: RFP-AFRG-CUSTODIAL SRVS

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1221 W LAKEVIEW AVE, PENSACOLA, FL, 32501

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,739,013

Exercised Options: $8,889,290

Current Obligation: $8,814,290

Actual Outlays: $7,891,666

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline