Treasury's $6.8M custodial services contract awarded to Global Connections to Employment, Inc. for a 5-year term

Contract Overview

Contract Amount: $6,797,747 ($6.8M)

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: $3.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CUSTODIAL SERVICES FOR THE WASHINGTON DC CAMPUS

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32501

State: Florida Government Spending

Plain-Language Summary

Department of the Treasury obligated $6.8 million to GLOBAL CONNECTIONS TO EMPLOYMENT, INC. for work described as: CUSTODIAL SERVICES FOR THE WASHINGTON DC CAMPUS Key points: 1. Value for money appears fair given the 5-year duration and fixed-price nature, though detailed cost breakdowns are not public. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery and innovation. 3. Risk indicators include the lack of competition and reliance on a single contractor for essential services. 4. Performance context is limited without specific metrics, but the contract covers a significant campus. 5. Sector positioning places this within the facilities support services industry, a common government expenditure.

Value Assessment

Rating: fair

The contract's total value of approximately $6.8 million over nearly five years suggests a moderate annual spend. Benchmarking against similar custodial service contracts is challenging without more specific service details and geographic cost variations. However, the firm-fixed-price structure provides cost certainty for the government, which is a positive aspect. The absence of competitive bidding, however, raises questions about whether the most economical price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. The data indicates 'NOT AVAILABLE FOR COMPETITION,' suggesting specific circumstances led to this decision, possibly related to the contractor's unique capabilities or a prior relationship. The lack of multiple bidders means there was no direct price comparison or market pressure to drive down costs, which is a common outcome in sole-source procurements.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers compared to competitively bid contracts, as the government may not benefit from the full range of market-driven pricing. This limits the opportunity to secure the best possible value.

Public Impact

The primary beneficiary is the Department of the Treasury, ensuring a clean and functional Washington D.C. campus. Services delivered include janitorial and custodial support, essential for maintaining a safe and healthy work environment. The geographic impact is localized to the Washington D.C. campus. Workforce implications involve the employment of individuals by Global Connections to Employment, Inc. to perform these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Sole-source awards can reduce transparency in pricing.
Dependence on a single vendor for essential services poses a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Long-term contract (nearly 5 years) allows for stable service provision.
Contract awarded to a single entity simplifies management.

Sector Analysis

This contract falls within the facilities support services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of government buildings. Spending in this sector is consistent across many federal agencies. Comparable spending benchmarks are difficult to establish without detailed service scope, but custodial services are a standard operational expense for large organizations.

Small Business Impact

The contract data indicates that small business set-aside was not utilized (ss: false) and there is no indication of subcontracting goals (sb: false). This suggests that the primary award was not specifically targeted towards small businesses, and there are no explicit requirements for the prime contractor to engage small businesses for subcontracting opportunities under this particular award. The impact on the small business ecosystem is therefore neutral to potentially negative if subcontracting opportunities were forgone.

Oversight & Accountability

Oversight for this contract would typically reside with the Bureau of the Fiscal Service, the contracting activity within the Department of the Treasury. Accountability measures are inherent in the contract terms, particularly the firm-fixed-price structure which obligates the contractor to deliver services for the agreed price. Transparency is limited due to the sole-source nature and lack of publicly available performance metrics or detailed cost breakdowns. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Custodial Services Contracts
Government Facilities Maintenance
Department of the Treasury Operations Support
Sole-Source Service Procurements

Risk Flags

Sole-source award lacks competitive justification.
Potential for non-optimal pricing due to lack of competition.
Limited transparency on performance metrics and cost breakdowns.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $6.8 million to GLOBAL CONNECTIONS TO EMPLOYMENT, INC.. CUSTODIAL SERVICES FOR THE WASHINGTON DC CAMPUS

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 $6.8 million.

What is the period of performance?

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

What is the track record of Global Connections to Employment, Inc. with federal contracts, particularly for custodial services?

Information regarding the specific track record of Global Connections to Employment, Inc. with federal contracts, especially for custodial services, is not detailed in the provided data snippet. A comprehensive review would require accessing the Federal Procurement Data System (FPDS) or similar databases to analyze past performance, contract values, agencies served, and any reported issues or commendations. Without this external data, it's impossible to assess their experience level and reliability for this specific Treasury contract beyond the fact that they were awarded this sole-source opportunity.

How does the annual cost of this contract compare to similar custodial service contracts at other federal facilities?

Direct comparison of the annual cost is difficult without detailed service scope and location-specific cost-of-living adjustments. The approximate annual value of this contract is around $1.36 million ($6.8M / 5 years). Custodial services costs can vary significantly based on the size of the facility, the level of service required (e.g., frequency of cleaning, specialized services), and prevailing labor rates in the geographic area. To benchmark effectively, one would need to identify contracts for similarly sized federal buildings in the Washington D.C. metropolitan area and compare their annual spending on comparable janitorial services, considering factors like square footage and service intensity.

What are the primary risks associated with awarding a sole-source contract for essential custodial services?

The primary risks associated with a sole-source award for essential custodial services include potential overpayment due to a lack of competitive pricing pressure, reduced incentive for the contractor to innovate or improve efficiency, and a lack of vendor alternatives if performance issues arise or the contractor faces financial instability. For essential services like custodial support, a sole-source award means the agency is heavily reliant on a single provider, which can create vulnerabilities. Furthermore, the absence of competition limits the government's ability to explore different service models or technologies that might be more cost-effective or efficient.

What specific performance metrics or service level agreements (SLAs) are included in this contract to ensure service quality?

The provided data snippet does not include details on specific performance metrics or Service Level Agreements (SLAs) for this custodial services contract. Typically, such contracts would outline expectations for cleaning frequency, quality standards, response times for issues, and potentially employee conduct. The effectiveness of the contract's value and the contractor's performance would be assessed against these metrics. Without access to the full contract document, it is impossible to determine the specific measures in place to ensure the quality and adequacy of the custodial services provided to the Treasury Department.

What is the historical spending trend for custodial services by the Bureau of the Fiscal Service or the Department of the Treasury?

The provided data focuses on a single contract and does not offer historical spending trends for custodial services by the Bureau of the Fiscal Service or the Department of the Treasury. To analyze historical spending, one would need to aggregate data from multiple contracts over several fiscal years, looking at the total expenditure on custodial and janitorial services across the agency. This would involve identifying all relevant contract awards, their values, durations, and the specific services rendered to understand patterns, identify potential increases or decreases in spending, and assess budget allocation for these services over time.

Under what specific circumstances was this contract deemed 'NOT AVAILABLE FOR COMPETITION'?

The data indicates the contract was sole-source ('NOT AVAILABLE FOR COMPETITION'), but the specific justification is not provided. Federal procurement regulations allow for sole-source awards under limited circumstances, such as when only one responsible source can satisfy the agency's needs, in cases of urgent and compelling need, or when it's a follow-on contract to a previously competed effort where only the original contractor can provide necessary sustainment. Without the official justification document (e.g., a Justification and Approval - J&A), the precise reason for this sole-source designation remains unknown, making it difficult to assess the appropriateness of the procurement method.

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-AFRW-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: $7,070,173

Exercised Options: $7,070,173

Current Obligation: $6,797,747

Actual Outlays: $6,095,891

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline