EPA awards $5M facilities support contract to Integriward, LLC for Duluth, MN operations

Contract Overview

Contract Amount: $5,000,337 ($5.0M)

Contractor: Integriward, LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2021-06-01

End Date: 2025-11-30

Contract Duration: 1,643 days

Daily Burn Rate: $3.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FACILITIES SUPPORT SERVICES FOR OPERATIONS AND MAINTENANCE AND JANITORIAL SUPPORT CONTRACT - US EPA FACILITY DULUTH, MN

Place of Performance

Location: DULUTH, SAINT LOUIS County, MINNESOTA, 55804

State: Minnesota Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $5.0 million to INTEGRIWARD, LLC for work described as: FACILITIES SUPPORT SERVICES FOR OPERATIONS AND MAINTENANCE AND JANITORIAL SUPPORT CONTRACT - US EPA FACILITY DULUTH, MN Key points: 1. Contract value appears reasonable for the scope of facilities support and janitorial services. 2. Limited competition raises concerns about potential overpricing and reduced value for taxpayers. 3. Firm Fixed Price contract type offers cost certainty but may limit flexibility. 4. Contract duration of over three years suggests a need for consistent service delivery. 5. The contract is positioned within the facilities support services sector, a common government need. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: fair

The contract value of approximately $5 million over its period of performance (roughly 1643 days) suggests an annual spend of around $1.2 million. Benchmarking this against similar facilities support and janitorial contracts for federal agencies of comparable size and scope is challenging without more specific service details. However, the firm fixed-price nature indicates a defined cost for the services, which can be advantageous if the scope is well-defined and the contractor's pricing is competitive. Without comparative data on per-square-foot maintenance costs or specific service inclusions, a definitive value assessment is difficult, but the price appears within a plausible range for comprehensive facilities management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Integriward, LLC, was considered. This significantly limits the competitive landscape. While sole-source awards can be justified for specific reasons such as unique capabilities or urgent needs, they typically result in less price discovery and potentially higher costs for the government compared to full and open competition. The absence of multiple bidders means the EPA did not benefit from a range of proposals and pricing strategies that could have driven down costs.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the best possible price, as competition is a key driver for cost savings in government contracting.

Public Impact

The Environmental Protection Agency (EPA) facility in Duluth, MN, will benefit from consistent operations and maintenance services. Services include janitorial support, ensuring a clean and functional work environment for EPA staff. The contract supports the operational continuity of a key federal facility in Minnesota. It indirectly supports the federal workforce by maintaining their place of employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs for taxpayers.
Sole-source award lacks transparency in pricing compared to competitive bids.
Potential for contractor lock-in due to lack of competitive alternatives.

Positive Signals

Firm Fixed Price contract provides cost certainty for the EPA.
Contract duration suggests a stable and reliable service provider is expected.
Focus on essential facilities support ensures operational continuity.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of government buildings and facilities. This sector is characterized by numerous providers, ranging from large facility management corporations to smaller, specialized service companies. Government spending in this area is consistent due to the ongoing need to maintain federal infrastructure. Comparable spending benchmarks are difficult to establish without detailed service scopes, but the annual spend of approximately $1.2 million is moderate for a federal facility of significant size.

Small Business Impact

The contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to participate in this contract, either as the prime contractor or as subcontractors, were not explicitly prioritized. The absence of a small business set-aside could limit the participation of smaller, specialized firms in providing these essential services.

Oversight & Accountability

The contract is a definitive contract awarded by the Environmental Protection Agency (EPA), which has established oversight mechanisms for its procurement and contract management. As a firm fixed-price contract, the primary oversight will focus on ensuring the contractor meets the defined service level agreements and deliverables. The EPA's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency is generally facilitated through public contract databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

Federal Facilities Maintenance Contracts
Government Janitorial Services
EPA Operations and Maintenance Contracts
General Services Administration (GSA) Facility Management

Risk Flags

Sole-source award may result in suboptimal pricing.
Lack of competition limits potential for innovation and cost savings.
Contract performance monitoring is crucial due to limited competitive pressure.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $5.0 million to INTEGRIWARD, LLC. FACILITIES SUPPORT SERVICES FOR OPERATIONS AND MAINTENANCE AND JANITORIAL SUPPORT CONTRACT - US EPA FACILITY DULUTH, MN

Who is the contractor on this award?

The obligated recipient is INTEGRIWARD, LLC.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $5.0 million.

What is the period of performance?

Start: 2021-06-01. End: 2025-11-30.

What is Integriward, LLC's track record with federal contracts, particularly for facilities support services?

Integriward, LLC has a history of performing federal contracts, primarily within the facilities support and maintenance domain. While specific details on past performance metrics for this particular contractor are not provided in the summary data, their ability to secure this sole-source award suggests they have met certain criteria or possess unique qualifications deemed necessary by the EPA. A deeper dive into their contract history, including past performance reviews, any reported issues, and the types of agencies they have served, would provide a more comprehensive understanding of their reliability and capability in delivering these services. Examining their financial stability and any history of litigation or disputes would also be prudent for assessing future performance risks.

How does the pricing of this contract compare to similar facilities support contracts awarded by the EPA or other federal agencies?

Direct price comparison is challenging without detailed service scopes and performance metrics. However, the annual spend of approximately $1.2 million for facilities support and janitorial services at a federal facility in Duluth, MN, can be considered a starting point. If this contract were competed, it would be expected that multiple bids would be evaluated against established benchmarks for similar services. Given the sole-source nature, there's an inherent risk that the pricing may not reflect the most competitive market rates. Further analysis would require accessing a broader database of federal facilities support contracts, filtering by scope, location, and agency size, to identify comparable pricing structures and identify potential deviations.

What are the primary risks associated with a sole-source award for facilities support services?

The primary risks associated with a sole-source award for facilities support services include a lack of price competition, which can lead to higher costs for the government and taxpayers. Without competing bids, the government may not achieve the best possible value for its money. Additionally, sole-source awards can reduce transparency in the procurement process and may limit the government's ability to leverage innovation or specialized expertise that might be offered by other potential contractors. There's also a risk of contractor complacency or reduced incentive to perform at peak efficiency, as the incumbent contractor faces no immediate competitive threat for future contract renewals. This can potentially impact service quality over the long term.

What is the expected impact of this contract on the operational effectiveness of the EPA facility in Duluth, MN?

This contract is expected to ensure the consistent and reliable operation and maintenance of the EPA facility in Duluth, MN. By securing services for facilities support and janitorial needs, the contract aims to maintain a safe, clean, and functional working environment for EPA personnel. This directly supports the agency's mission by ensuring that its physical infrastructure is well-maintained, allowing staff to focus on their core environmental protection duties without disruption. The firm fixed-price nature provides budget certainty for these essential services, contributing to the overall operational stability of the facility.

How has federal spending in facilities support services evolved over the past five years, and where does this contract fit in?

Federal spending in facilities support services has remained a significant and consistent category over the past five years, driven by the government's vast real estate portfolio. Agencies continually require maintenance, repair, operations, and janitorial services to ensure the functionality and safety of their facilities. This contract, valued at approximately $5 million over its term, represents a moderate-sized award within this broad category. While overall federal spending in this sector is substantial, individual contracts vary widely based on facility size, location, and the complexity of services required. This specific award aligns with the ongoing need for routine operational support at federal installations.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 68HERC21R0093

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Integriward LLC

Address: 4203 GARDENDALE STREET SUITE C210, SAN ANTONIO, TX, 78229

Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $5,027,705

Exercised Options: $5,027,705

Current Obligation: $5,000,337

Actual Outlays: $4,909,499

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline