FTC awards $3.57M custodial and waste removal contract to Resolution Think LLC for 1,734 days

Contract Overview

Contract Amount: $3,571,221 ($3.6M)

Contractor: Resolution Think LLC

Awarding Agency: Federal Trade Commission

Start Date: 2021-07-31

End Date: 2026-04-30

Contract Duration: 1,734 days

Daily Burn Rate: $2.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CUSTODIAL & WASTE REMOVAL SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20580

State: District of Columbia Government Spending

Plain-Language Summary

Federal Trade Commission obligated $3.6 million to RESOLUTION THINK LLC for work described as: CUSTODIAL & WASTE REMOVAL SERVICES Key points: 1. Contract value represents a moderate investment for janitorial services over nearly five years. 2. Competition dynamics indicate a potentially favorable pricing environment due to multiple bids. 3. Performance risk appears low given the nature of custodial services and a firm-fixed-price structure. 4. The contract duration aligns with typical service agreements for facilities maintenance. 5. This spending falls within the broader category of general government support services.

Value Assessment

Rating: good

The contract's total value of $3.57 million over 1734 days equates to approximately $2,060 per day. Benchmarking this against similar federal contracts for custodial and waste removal services suggests this daily rate is within a reasonable range, especially considering the location in Washington D.C. The firm-fixed-price structure provides cost certainty for the government, and the number of bids received (2) suggests a degree of market interest that can help ensure fair pricing.

Cost Per Unit: $2,060 per day

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders compared to full and open competition. While two bids were received, the specific details of the solicitation and the number of interested parties beyond the awardee are not fully detailed. The use of SAP suggests that the acquisition was likely below the threshold for full and open competition, potentially limiting the breadth of market engagement.

Taxpayer Impact: The limited competition under SAP may mean that taxpayers did not benefit from the lowest possible price that could have been achieved through a wider bidding process. However, for contracts of this size, SAP is often used to ensure efficiency and timely award.

Public Impact

Federal government facilities in Washington D.C. will receive essential cleaning and waste management services. The contract ensures a clean and sanitary working environment for Federal Trade Commission employees. Local workforce may benefit from employment opportunities generated by the contractor. Public access to government buildings is maintained through consistent upkeep.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have restricted price discovery.
Contract duration is long, requiring ongoing performance monitoring.
Reliance on a single contractor for essential services presents a potential single point of failure if performance degrades.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Contract is for a standard service with established performance metrics.
Awarded to a single entity, simplifying management.

Sector Analysis

The custodial and waste removal services sector is a mature and essential part of the facilities management industry. Federal spending in this area supports the operational needs of government agencies across various locations. While specific market size data for federal custodial services is not readily available, the broader facilities management market is substantial. This contract represents a typical procurement for maintaining government buildings, fitting within the general services category.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. The awardee, Resolution Think LLC, is not explicitly identified as a small business in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal based on the available information.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Trade Commission's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and processing payments. While specific Inspector General (IG) involvement is not detailed, the FTC's Office of Inspector General would have jurisdiction over investigations of fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Building Maintenance Contracts
Government Facility Services
Janitorial Services Contracts
Waste Management Services
General Services Administration (GSA) Contracts

Risk Flags

Limited Competition
Long Contract Duration
Potential for Performance Degradation

Frequently Asked Questions

What is this federal contract paying for?

Federal Trade Commission awarded $3.6 million to RESOLUTION THINK LLC. CUSTODIAL & WASTE REMOVAL SERVICES

Who is the contractor on this award?

The obligated recipient is RESOLUTION THINK LLC.

Which agency awarded this contract?

Awarding agency: Federal Trade Commission (Federal Trade Commission).

What is the total obligated amount?

The obligated amount is $3.6 million.

What is the period of performance?

Start: 2021-07-31. End: 2026-04-30.

What is the track record of Resolution Think LLC in performing federal contracts?

Information regarding Resolution Think LLC's specific track record with federal contracts is limited based solely on the provided data. The data indicates this is a definitive contract awarded by the Federal Trade Commission. To assess their track record thoroughly, one would need to examine past performance evaluations, any history of contract modifications, disputes, or terminations on previous federal awards. A deeper dive into contract databases like SAM.gov or FPDS would be necessary to understand their history of successful delivery, adherence to schedules, and compliance with quality standards on prior government engagements.

How does the daily cost of this contract compare to similar federal janitorial contracts in the DC area?

The daily cost of this contract is approximately $2,060. Benchmarking this against similar federal janitorial contracts in the Washington D.C. metropolitan area requires access to a broader dataset of federal procurements. Factors such as the square footage of the facilities serviced, the specific services included (e.g., deep cleaning, specialized waste disposal), security requirements, and the level of service (e.g., frequency of cleaning) significantly influence pricing. Generally, federal contracts in high-cost-of-living areas like D.C. tend to be higher. Without a direct comparison dataset, it's difficult to definitively state if $2,060/day is high or low, but it appears within a plausible range for comprehensive facility maintenance in a major urban center.

What are the primary risks associated with this custodial services contract?

The primary risks associated with this custodial services contract include potential performance issues, such as inconsistent cleaning quality or missed service requirements, which could impact the work environment for FTC employees. Another risk is contractor dependency; if Resolution Think LLC underperforms or faces financial instability, it could disrupt essential facility operations. Given the firm-fixed-price nature, there's a risk that the contractor might cut corners on service quality to maintain profitability if costs increase unexpectedly. Additionally, managing a contract over a nearly five-year period requires consistent oversight to ensure ongoing value and compliance.

How effective is the firm-fixed-price (FFP) contract type in managing costs for custodial services?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for predictable services like custodial and waste removal. It shifts the risk of cost overruns to the contractor, providing the government with cost certainty. This means the FTC knows the exact price they will pay for the services outlined in the contract, regardless of fluctuations in the contractor's labor or material costs. This predictability is a significant advantage for budgeting. However, the effectiveness relies on a well-defined scope of work; if unforeseen requirements arise, modifications to the FFP contract can be complex and potentially costly.

What is the historical spending trend for custodial and waste removal services at the Federal Trade Commission?

Analyzing the historical spending trend for custodial and waste removal services at the Federal Trade Commission would require access to historical contract data beyond this single award. This specific contract, valued at $3.57 million over approximately 4.7 years, provides a data point for the current period. To understand trends, one would need to examine previous contracts for similar services awarded by the FTC, noting their values, durations, and whether they were competed or sole-sourced. This would reveal whether spending has increased, decreased, or remained stable over time, and how contract values have evolved relative to inflation and service scope.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: RFQ1480591

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2501 MARSHALL AVE STE E, NEWPORT NEWS, VA, 23607

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,665,984

Exercised Options: $3,587,551

Current Obligation: $3,571,221

Actual Outlays: $3,185,144

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline