Treasury's Mint awards $6.9M janitorial and snow removal contract to Integrity National Corporation

Contract Overview

Contract Amount: $6,924,004 ($6.9M)

Contractor: Integrity National Corporation

Awarding Agency: Department of the Treasury

Start Date: 2020-10-01

End Date: 2026-05-31

Contract Duration: 2,068 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE JANITORIAL AND SNOW REMOVAL SERVICES FOR USM-PH

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19106

State: Pennsylvania Government Spending

Plain-Language Summary

Department of the Treasury obligated $6.9 million to INTEGRITY NATIONAL CORPORATION for work described as: PROVIDE JANITORIAL AND SNOW REMOVAL SERVICES FOR USM-PH Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2068 days (approx. 5.6 years) indicates a long-term need for these services. 3. The firm-fixed-price contract type shifts cost risk to the contractor, potentially stabilizing costs. 4. The award value of $6.9M over the contract period suggests a steady demand for janitorial and snow removal services. 5. The contractor, Integrity National Corporation, is responsible for delivering these essential facility support services. 6. The contract is managed by the United States Mint, a bureau within the Department of the Treasury.

Value Assessment

Rating: good

The contract's value of $6.9 million over approximately 5.6 years averages to about $1.23 million per year. Without specific benchmarks for janitorial and snow removal services for facilities of similar size and complexity within the government or private sector, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure suggests the government has negotiated a set price, which can be advantageous if costs are well-managed by the contractor. Further analysis would require comparing the per-square-foot cleaning costs or snow removal rates to industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this service. While two bidders is better than a sole-source award, a higher number of bids would typically lead to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: A competitive bidding process, even with two bidders, generally benefits taxpayers by encouraging contractors to offer their best pricing to secure the contract. This helps ensure that taxpayer funds are used more efficiently compared to non-competitive awards.

Public Impact

The primary beneficiaries are the employees and visitors of the United States Mint facilities, who will experience a clean and safe working environment. Essential services including janitorial upkeep and snow removal will be consistently delivered, ensuring operational continuity. The contract's geographic impact is focused on the location(s) where the United States Mint facilities are situated in Pennsylvania. The contract supports jobs within the janitorial and snow removal sectors, contributing to the local workforce in Pennsylvania.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition remains limited.
Dependence on a single contractor for critical facility maintenance could pose a risk if performance issues arise.
The firm-fixed-price nature might incentivize the contractor to minimize service levels if not adequately monitored.

Positive Signals

Awarded through full and open competition, indicating a fair process.
Firm-fixed-price contract type provides cost certainty for the government.
Long contract duration suggests a stable and ongoing need for these services, providing continuity.
The contractor, Integrity National Corporation, is responsible for delivering these essential services.

Sector Analysis

The janitorial and snow removal services sector is a significant part of the facilities management industry. This contract falls under the broader category of commercial and institutional building services. While specific market size data for government janitorial and snow removal contracts is not readily available, the overall facilities management market is substantial. This contract represents a portion of the government's spending on maintaining its physical infrastructure and ensuring a safe and functional environment for its employees and operations.

Small Business Impact

This contract does not appear to have a small business set-aside (sb: false). There is no explicit mention of subcontracting goals for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Treasury's United States Mint. Performance standards and service level agreements outlined in the contract would be used to monitor the contractor's adherence to requirements. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule contracts for facilities maintenance
Department of Defense janitorial and grounds maintenance contracts
Other agency-specific facility support service contracts

Risk Flags

Potential for limited competition if only two bidders participated.
Risk of service quality degradation under firm-fixed-price if not adequately monitored.
Dependence on contractor performance for essential facility operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $6.9 million to INTEGRITY NATIONAL CORPORATION. PROVIDE JANITORIAL AND SNOW REMOVAL SERVICES FOR USM-PH

Who is the contractor on this award?

The obligated recipient is INTEGRITY NATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (United States Mint).

What is the total obligated amount?

The obligated amount is $6.9 million.

What is the period of performance?

Start: 2020-10-01. End: 2026-05-31.

What is the track record of Integrity National Corporation in performing similar government contracts?

Assessing the track record of Integrity National Corporation requires accessing historical contract data, such as past performance reviews, any contract modifications, and previous awards. Without direct access to this information, it's difficult to definitively state their performance history. However, the fact that they were awarded this contract under full and open competition suggests they met the minimum qualifications and demonstrated capability. Further investigation into their past performance ratings on federal procurement data systems would provide a clearer picture of their reliability and quality of service in fulfilling government obligations.

How does the annual cost of this contract compare to industry benchmarks for janitorial and snow removal services?

The annual cost for this contract is approximately $1.23 million ($6.9M / 5.6 years). To benchmark this against industry standards, we would need to know the square footage of the facilities being serviced, the types of services included (e.g., frequency of cleaning, scope of snow removal), and the geographic location's cost of living and labor. Typically, janitorial services can range from $0.05 to $0.50 per square foot per month, and snow removal costs vary widely based on snowfall and service level. Without these specifics, a direct comparison is speculative. However, government contracts often aim for competitive pricing, suggesting this figure is likely within a reasonable range, though potentially higher than the lowest private sector bids due to compliance and overhead.

What are the primary risks associated with this firm-fixed-price contract for janitorial and snow removal services?

The primary risk with a firm-fixed-price (FFP) contract, while beneficial for cost certainty, is that the contractor may seek to reduce costs by cutting corners on service quality or labor if not adequately monitored. For janitorial services, this could mean less frequent or thorough cleaning. For snow removal, it might mean slower response times or less comprehensive clearing. Another risk is contractor default or poor performance, which could disrupt facility operations. The government's recourse is through contract surveillance, performance evaluations, and potential penalties or termination for default, but these processes require diligent oversight.

How effective is the 'full and open competition' process in ensuring value for taxpayer money in this specific contract?

The 'full and open competition' process is designed to maximize value by allowing all eligible vendors to compete, theoretically driving down prices and improving service quality. In this case, with two bids received, the competition was present but perhaps not as robust as it could be. While it ensured that the government received at least two proposals to evaluate, a higher number of bidders often leads to more aggressive pricing. The value for taxpayer money is thus dependent on the competitiveness of those two bids and the government's ability to effectively evaluate them against the stated requirements and performance metrics.

What is the historical spending trend for janitorial and snow removal services at the United States Mint?

Analyzing historical spending trends for janitorial and snow removal services at the United States Mint would require accessing prior contract awards and obligations data. This specific contract, awarded in late 2020, covers a period extending to mid-2026. To understand trends, one would need to look at previous contracts for similar services, noting their duration, value, and the contractors involved. This would reveal whether spending has been consistent, increasing, or decreasing, and whether the number of competitors has changed over time, providing context for the current award value and competitive landscape.

Are there specific performance metrics or KPIs tied to this contract to ensure service quality?

While the provided data does not explicitly list Key Performance Indicators (KPIs) or specific metrics, government contracts of this nature typically include detailed performance standards and requirements within the Statement of Work (SOW) or Performance Work Statement (PWS). These documents outline the expected quality, timeliness, and scope of janitorial and snow removal services. Performance is usually monitored through regular inspections, user feedback, and contractor reporting. Failure to meet these standards can result in contractual remedies, such as price deductions or corrective action requests, ensuring a level of accountability for service quality.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2036X520R00004

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8403 COLESVILLE RD STE 1100, SILVER SPRING, MD, 20910

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

Financial Breakdown

Contract Ceiling: $8,784,978

Exercised Options: $6,924,004

Current Obligation: $6,924,004

Actual Outlays: $6,577,735

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline