Custodial services contract for NYC building awarded to Fedcap Rehabilitation Services for $15.77M over 3 years

Contract Overview

Contract Amount: $15,766,516 ($15.8M)

Contractor: Fedcap Rehabilitation Services, Inc

Awarding Agency: Social Security Administration

Start Date: 2023-09-01

End Date: 2026-08-31

Contract Duration: 1,095 days

Daily Burn Rate: $14.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NORTHEASTERN PROGRAM SUPPORT CENTER (NEPSC)- CUSTODIAL SERVICE CONTRACT FOR THE ADDABBO BUILDING LOCATED IN JAMAICA NY.

Place of Performance

Location: JAMAICA, QUEENS County, NEW YORK, 11432

State: New York Government Spending

Plain-Language Summary

Social Security Administration obligated $15.8 million to FEDCAP REHABILITATION SERVICES, INC for work described as: NORTHEASTERN PROGRAM SUPPORT CENTER (NEPSC)- CUSTODIAL SERVICE CONTRACT FOR THE ADDABBO BUILDING LOCATED IN JAMAICA NY. Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The firm-fixed-price structure provides cost certainty for the government. 3. Performance period of three years allows for stable service delivery. 4. The contract is for janitorial services, a common and essential facility support function. 5. The awardee, Fedcap Rehabilitation Services, Inc., has a mission aligned with employing individuals with barriers to employment.

Value Assessment

Rating: fair

The contract's value of approximately $15.77 million over three years for custodial services at a single federal building appears within a reasonable range for such services in a high-cost area like New York City. However, without specific details on the scope of services, square footage, and frequency of cleaning, a precise benchmark is difficult. The lack of competition suggests potential for overpayment compared to a competitively bid contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The reasons for this determination are not provided in the data. Sole-source awards typically result from a lack of available sources or specific circumstances that preclude full and open competition. This limits the government's ability to leverage market forces to achieve the best possible price.

Taxpayer Impact: Taxpayers may not be receiving the most cost-effective service due to the absence of competitive bidding, potentially leading to a higher price than if multiple vendors had vied for the contract.

Public Impact

The Social Security Administration benefits from a clean and well-maintained facility for its operations at the Addabbo Building in Jamaica, NY. Fedcap Rehabilitation Services, Inc. is the primary service provider, potentially employing individuals with disabilities or other barriers to employment. The contract ensures the physical environment of the federal building is maintained to appropriate standards. The geographic impact is localized to Jamaica, New York, where the Addabbo Building is situated.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award raises questions about the justification for not seeking competitive bids.
Limited transparency into the pricing structure due to non-competitive nature.

Positive Signals

Contract award to an organization with a social mission (Fedcap Rehabilitation Services) aligns with potential government objectives for supporting employment.
Firm-fixed-price contract provides budget certainty.
Longer-term contract (3 years) offers stability in service provision.

Sector Analysis

The janitorial services sector is a mature and competitive market, with numerous providers ranging from small local businesses to large national corporations. Federal contracts for these services are common across various agencies and facilities. Benchmarking this contract's value is challenging without detailed service scope, but it represents a significant investment in facility maintenance for a single federal building.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have a small business subcontracting plan explicitly mentioned. As a sole-source award, the opportunity for small businesses to participate as prime contractors was eliminated. Further investigation would be needed to determine if Fedcap Rehabilitation Services, Inc. utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Social Security Administration's contracting officer and program managers. As a definitive contract, it is subject to standard federal procurement regulations and oversight. The specific mechanisms for performance monitoring, quality assurance, and dispute resolution are not detailed in the provided data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Building Maintenance Contracts
Social Security Administration Facility Operations
Janitorial and Custodial Services
Sole-Source Federal Procurements

Risk Flags

Sole-source award limits price competition.
Lack of detailed service scope makes value assessment difficult.
Contractor's specific experience in federal custodial services not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $15.8 million to FEDCAP REHABILITATION SERVICES, INC. NORTHEASTERN PROGRAM SUPPORT CENTER (NEPSC)- CUSTODIAL SERVICE CONTRACT FOR THE ADDABBO BUILDING LOCATED IN JAMAICA NY.

Who is the contractor on this award?

The obligated recipient is FEDCAP REHABILITATION SERVICES, INC.

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $15.8 million.

What is the period of performance?

Start: 2023-09-01. End: 2026-08-31.

What is the specific scope of custodial services included in this contract?

The provided data identifies the contract as being for 'CUSTODIAL SERVICE CONTRACT FOR THE ADDABBO BUILDING LOCATED IN JAMAICA NY.' However, it does not detail the specific services included. Typically, custodial services encompass tasks such as cleaning restrooms, emptying trash, vacuuming, mopping floors, dusting surfaces, and maintaining common areas. The exact frequency and extent of these services, along with any specialized cleaning requirements (e.g., for sensitive equipment or specific building materials), would be outlined in the contract's statement of work (SOW). Without the SOW, a precise understanding of the service scope is limited, making direct value comparisons more challenging.

What is the justification for awarding this contract on a sole-source basis?

The data explicitly states the contract was 'NOT COMPETED,' indicating a sole-source award. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source is available or capable of providing the required service, or in cases of urgent and compelling need. Without further documentation or agency justification, the specific reason for this sole-source award remains unknown. This lack of competition limits the government's ability to ensure it is obtaining the best value through market-driven pricing.

How does the contract value compare to similar custodial service contracts for federal buildings of comparable size and location?

Benchmarking this $15.77 million, 3-year contract for custodial services at the Addabbo Building in Jamaica, NY, is difficult without detailed information on the building's square footage, the specific services required, and the frequency of service. However, custodial services in high-cost urban areas like New York City are generally more expensive than in lower-cost regions. The absence of competition means this price may not reflect the lowest achievable market rate. A thorough comparison would require access to similar competitively bid contracts for federal facilities of comparable size and service level within the same geographic area.

What is the track record of Fedcap Rehabilitation Services, Inc. in performing federal custodial contracts?

Fedcap Rehabilitation Services, Inc. is an organization focused on providing vocational training and employment services to individuals with barriers to employment. While their mission aligns with social impact goals, their specific track record in performing large-scale federal custodial service contracts is not detailed in the provided data. Information regarding their past performance on similar contracts, client satisfaction, and adherence to contract requirements would be necessary to fully assess their capability and reliability in this specific service area. Federal contract databases may contain performance evaluations for this contractor on other awards.

What are the potential risks associated with a sole-source award for essential facility services?

The primary risk associated with a sole-source award for essential facility services like custodial support is the potential for inflated costs due to the lack of competitive pressure. Without multiple bidders vying for the contract, the awarded vendor may not be incentivized to offer the most competitive pricing. Additionally, there's a risk of complacency in service quality over time, as the contractor faces no direct threat of losing the business to a competitor. Transparency in pricing and performance monitoring becomes even more critical in sole-source situations to mitigate these risks and ensure taxpayer value.

What is the historical spending pattern for custodial services at the Addabbo Building?

The provided data only includes information for the current contract awarded to Fedcap Rehabilitation Services, Inc., with a start date of September 1, 2023, and an end date of August 31, 2026. It does not offer historical spending data for custodial services at the Addabbo Building prior to this contract. To understand historical spending patterns, one would need to access previous contract awards for this facility, including the awarded amounts, contract types, and duration of those prior agreements. This would allow for an analysis of cost trends and changes in service providers over time.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 28321323RR0200003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 633 3RD AVE 6TH FL, NEW YORK, NY, 10017

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: $26,655,333

Exercised Options: $15,766,516

Current Obligation: $15,766,516

Actual Outlays: $12,699,387

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline