VA Awards $4.9M Janitorial Contract to Hamhed LLC for Florida Facility

Contract Overview

Contract Amount: $4,924,683 ($4.9M)

Contractor: Hamhed LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-19

End Date: 2025-09-01

Contract Duration: 1,078 days

Daily Burn Rate: $4.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL SERVICES LAKE NONA

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32827

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.9 million to HAMHED LLC for work described as: JANITORIAL SERVICES LAKE NONA Key points: 1. Contract value of $4.9M over approximately 3 years. 2. Awarded under Simplified Acquisition Procedures (SAP), indicating a focus on smaller procurements. 3. Competition method was 'COMPETED UNDER SAP', suggesting a potentially limited but competitive process. 4. Sector is Janitorial Services, a common facility support need.

Value Assessment

Rating: fair

The contract value of $4.9M for janitorial services over nearly 3 years appears reasonable for a facility of this size. Benchmarking against similar contracts would provide a more definitive assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, which typically involves simplified procedures and may limit the number of potential bidders compared to full and open competition. This method can expedite the acquisition process but might not always yield the lowest possible price.

Taxpayer Impact: The use of SAP suggests an effort to streamline procurement for a service likely within the agency's operational needs, aiming for efficiency.

Public Impact

Ensures a clean and sanitary environment for veterans and staff at the Lake Nona facility. Supports local employment through the contractor, Hamhed LLC. Provides essential facility maintenance services, contributing to the operational readiness of the VA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to SAP.
Potential for higher pricing under SAP compared to full and open competition.

Positive Signals

Contract awarded to a specific business (Hamhed LLC).
Service is essential for facility operations.

Sector Analysis

Janitorial services fall under facility support and maintenance, a broad sector crucial for government operations. Spending benchmarks vary widely based on facility size, location, and service scope.

Small Business Impact

The data does not indicate if Hamhed LLC is a small business. Further analysis would be needed to determine the impact on small business contracting goals.

Oversight & Accountability

The contract was awarded by the Department of Veterans Affairs, indicating internal oversight. The use of SAP suggests a streamlined process, but the effectiveness of oversight within this framework should be monitored.

Related Government Programs

Janitorial Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition.
Potential for price not being the lowest achievable.
Lack of small business designation information.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.9 million to HAMHED LLC. JANITORIAL SERVICES LAKE NONA

Who is the contractor on this award?

The obligated recipient is HAMHED LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $4.9 million.

What is the period of performance?

Start: 2022-09-19. End: 2025-09-01.

What is the typical cost range for janitorial services for a facility of this size and type within Florida?

The typical cost range for janitorial services can vary significantly based on square footage, frequency of service, specific tasks (e.g., deep cleaning, specialized sanitation), and geographic location. For a facility of significant size in Florida, annual costs could range from tens of thousands to hundreds of thousands of dollars, depending on the contract's scope and service level agreements.

How does competing under SAP affect the risk of overpaying for janitorial services?

Competing under SAP can increase the risk of overpaying because it often involves fewer bidders and less formal solicitation processes than full and open competition. While designed for efficiency and smaller procurements, the reduced market reach might mean the government doesn't receive the most competitive pricing available in the broader market.

What is the effectiveness of using SAP for procuring janitorial services for a VA facility?

Using SAP for janitorial services can be effective in quickly meeting essential facility needs, especially if the agency has established reliable vendors or if the service requirement is straightforward. However, effectiveness in terms of cost savings and achieving the best value is contingent on the specific competition conducted and the clarity of the performance work statement.

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: 36C24822Q1093

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 410 WALL ST, JEFFERSONVILLE, IN, 47130

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $5,814,316

Exercised Options: $4,924,683

Current Obligation: $4,924,683

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline