VA Awards $4.36M Janitorial Contract to HAMHED LLC Under Full and Open Competition

Contract Overview

Contract Amount: $4,364,593 ($4.4M)

Contractor: Hamhed LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-22

End Date: 2026-09-21

Contract Duration: 364 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EO14042 - JANITORIAL SERVICES

Place of Performance

Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90822

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.4 million to HAMHED LLC for work described as: EO14042 - JANITORIAL SERVICES Key points: 1. Contract value of $4.36 million for janitorial services. 2. Awarded by the Department of Veterans Affairs to HAMHED LLC. 3. Utilizes full and open competition after exclusion of sources. 4. Contract duration is 364 days, ending September 21, 2026.

Value Assessment

Rating: good

The contract value appears reasonable for janitorial services of this duration. Benchmarking against similar contracts would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and fair market value.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the services rendered.

Public Impact

Ensures cleanliness and sanitation at VA facilities, directly impacting patient care and staff well-being. Supports a private sector company, HAMHED LLC, through a significant government contract. The contract's performance will be monitored by the VA to ensure service quality.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service quality issues if not properly managed.
Dependence on a single contractor for essential services.

Positive Signals

Competitive award process.
Clear contract duration and end date.

Sector Analysis

Janitorial services fall under the broader facilities maintenance sector. Government spending in this area is consistent, focusing on maintaining operational readiness and hygiene in federal buildings.

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 participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing contract performance. Standard oversight mechanisms should be in place to ensure compliance with terms and conditions.

Related Government Programs

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

Risk Flags

Contract duration is close to one year, requiring re-competition soon.
Potential for price increases in future contract renewals.
Dependence on contractor performance for essential services.
Limited information on contractor past performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.4 million to HAMHED LLC. EO14042 - JANITORIAL SERVICES

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 $4.4 million.

What is the period of performance?

Start: 2025-09-22. End: 2026-09-21.

What is the benchmark cost for janitorial services of this scope and duration?

Benchmarking janitorial services requires detailed scope of work, square footage, frequency of service, and specific tasks. Without this granular data, a precise benchmark is difficult. However, government contracts for similar services can range significantly, with per-square-foot costs varying based on location and service intensity. A rough estimate might place it within a competitive range, but detailed comparison is needed.

What are the risks associated with a single delivery order for this service?

The primary risk with a single delivery order is the potential for service disruption if the contractor fails to perform or encounters unforeseen issues. While the contract is competitively awarded, the VA relies on HAMHED LLC for the full duration. Contingency plans for contractor default or performance deficiencies are crucial to mitigate this risk and ensure continuity of essential janitorial services.

How does this contract contribute to the VA's mission effectiveness?

Maintaining clean and sanitary facilities is critical for the VA's mission of providing healthcare. This contract directly supports that by ensuring a hygienic environment for patients, staff, and visitors, thereby reducing the risk of infections and contributing to overall patient safety and well-being. Effective janitorial services are foundational to a functional healthcare setting.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36C26225N1158

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 GALVAN WAY, NEW ALBANY, IN, 47150

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: $4,364,593

Exercised Options: $4,364,593

Current Obligation: $4,364,593

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26220D0007

IDV Type: IDC

Timeline