Janitorial services contract for USMMA awarded at $8.7M, including COVID-19 cleaning, through a sole-source mechanism

Contract Overview

Contract Amount: $9,601,078 ($9.6M)

Contractor: Corporate Source, Inc the

Awarding Agency: Department of Transportation

Start Date: 2021-07-01

End Date: 2026-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $5.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL SERVICES FOR USMMA BUILDINGS AND GROUNDS FOR ONE BASE YEAR AND FOUR OPTION YEARS IN THE TOTAL AMOUNT OF $8,695,348.20. ALSO, SECURE COVID 19 CLEANING FOR USMMA BUILDINGS. PRIORITY SOURCE SOLE SOURCE AWARD (SOURCE AMERICA)

Place of Performance

Location: GREAT NECK, NASSAU County, NEW YORK, 11024

State: New York Government Spending

Plain-Language Summary

Department of Transportation obligated $9.6 million to CORPORATE SOURCE, INC THE for work described as: JANITORIAL SERVICES FOR USMMA BUILDINGS AND GROUNDS FOR ONE BASE YEAR AND FOUR OPTION YEARS IN THE TOTAL AMOUNT OF $8,695,348.20. ALSO, SECURE COVID 19 CLEANING FOR USMMA BUILDINGS. PRIORITY SOURCE SOLE SOURCE AWARD (SOURCE AMERICA) Key points: 1. The contract's value of $8.7 million over five years suggests a significant investment in maintaining the facilities. 2. The sole-source award to Corporate Source, Inc. via Source America bypasses traditional competitive bidding, raising questions about potential cost efficiencies. 3. The inclusion of COVID-19 cleaning protocols indicates an adaptation to evolving health and safety requirements. 4. The contract duration of five years provides stability for service delivery but limits opportunities for re-evaluation of market rates. 5. The fixed-price contract type shifts cost risk to the contractor, which could be reflected in the overall price. 6. The absence of a specific NAICS code (561720 is Janitorial Services, but not explicitly stated as the contract's NAICS) makes direct benchmarking challenging.

Value Assessment

Rating: fair

The total contract value of $8.7 million over five years averages to approximately $1.74 million annually for janitorial services. Without comparable sole-source contracts or detailed service scope, a precise value-for-money assessment is difficult. However, sole-source awards, especially through specific programs like Source America, can sometimes result in higher costs compared to fully competed contracts due to limited price discovery. The inclusion of specialized COVID-19 cleaning may justify a portion of the cost, but the overall pricing should be benchmarked against similar large-scale facility maintenance contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis through Source America, a program that connects government agencies with businesses that employ individuals with disabilities. This procurement method bypasses the standard full and open competition process. While it serves a valuable social mission, it means that the government did not solicit bids from multiple vendors, potentially limiting the opportunity to secure the most competitive pricing.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be benefiting from the most cost-effective pricing that could have been achieved through a competitive bidding process. This limits the government's ability to leverage market forces for cost savings.

Public Impact

The primary beneficiaries are the students, faculty, and staff of the U.S. Merchant Marine Academy (USMMA) who will experience a cleaner and safer environment. The contract ensures the provision of essential janitorial services, including specialized COVID-19 cleaning, to maintain the operational integrity of USMMA facilities. The geographic impact is localized to the USMMA campus in Kings Point, New York. The contract supports employment opportunities within the contractor's organization, potentially including individuals with disabilities, aligning with the Source America mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing opportunities.
Lack of detailed service scope makes precise value benchmarking difficult.
Potential for higher costs compared to fully competed contracts.

Positive Signals

Ensures essential janitorial services are maintained.
Includes critical COVID-19 cleaning protocols.
Supports a social mission through Source America partnership.

Sector Analysis

Janitorial services represent a significant segment within the broader facilities management and commercial services sector. This contract, valued at $8.7 million over five years, falls within the mid-to-large contract size for specialized cleaning services. The market for janitorial services is highly competitive, but specific government programs like Source America create unique procurement channels. Benchmarking this contract's value would typically involve comparing it to other large government or commercial contracts for similar services, adjusted for geographic location and specific service requirements.

Small Business Impact

This contract was awarded through Source America, which prioritizes connecting government agencies with businesses that employ individuals with disabilities. While not a direct small business set-aside in the traditional sense, it supports businesses that often have a strong social mission and may include small businesses within their network. Subcontracting implications are not detailed, but the focus is on the primary contractor's employment of individuals with disabilities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Maritime Administration (MARAD) within the Department of Transportation. Accountability measures are inherent in the contract terms, requiring the contractor to meet specified service levels. Transparency is somewhat limited due to the sole-source nature of the award, but contract details are generally available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Facilities Maintenance Contracts
Government Janitorial Services
COVID-19 Cleaning Services
Source America Contracts
Maritime Administration Procurement

Risk Flags

Sole-source award may limit cost savings.
Lack of competition could impact service innovation.
Dependence on a single contractor for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $9.6 million to CORPORATE SOURCE, INC THE. JANITORIAL SERVICES FOR USMMA BUILDINGS AND GROUNDS FOR ONE BASE YEAR AND FOUR OPTION YEARS IN THE TOTAL AMOUNT OF $8,695,348.20. ALSO, SECURE COVID 19 CLEANING FOR USMMA BUILDINGS. PRIORITY SOURCE SOLE SOURCE AWARD (SOURCE AMERICA)

Who is the contractor on this award?

The obligated recipient is CORPORATE SOURCE, INC THE.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $9.6 million.

What is the period of performance?

Start: 2021-07-01. End: 2026-06-30.

What is the track record of Corporate Source, Inc. in performing similar janitorial services for federal agencies?

Information regarding Corporate Source, Inc.'s specific track record with federal agencies for janitorial services is not detailed in the provided data. However, as a recipient of a sole-source award through Source America, it is implied that the company meets the program's criteria for employing individuals with disabilities and is capable of performing the required services. Further investigation into past performance evaluations, contract history, and client references would be necessary for a comprehensive assessment of their track record. Agencies typically rely on past performance information during the pre-award phase, even for sole-source contracts, to ensure the contractor can meet requirements.

How does the per-square-foot cost of janitorial services in this contract compare to industry benchmarks for similar facilities?

The provided data does not include the total square footage of the USMMA facilities being serviced, nor does it break down the costs by specific service categories (e.g., daily cleaning, deep cleaning, COVID-19 specific sanitation). Without this granular information, calculating a meaningful per-square-foot cost is impossible. To perform such a comparison, one would need the total contract value, the duration, the square footage of the buildings and grounds, and the specific services included. Industry benchmarks for janitorial services vary widely based on facility type, location, and service intensity. A direct comparison would require access to detailed service level agreements and facility metrics.

What are the specific metrics used to measure the performance and effectiveness of the janitorial services provided under this contract?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) used to evaluate the janitorial services. Typically, such contracts include detailed service level agreements (SLAs) that outline expectations for cleanliness, response times for issues, adherence to safety protocols, and customer satisfaction. Performance is often monitored through regular inspections, user feedback, and contractor reporting. The effectiveness of COVID-19 cleaning would likely be assessed based on adherence to CDC guidelines and any specific protocols established by the agency. Without access to the contract's Statement of Work (SOW) or SLAs, a precise understanding of performance measurement is not possible.

What is the historical spending trend for janitorial services at USMMA over the past five years?

The provided data only pertains to the current contract awarded in 2021. Historical spending data for janitorial services at the U.S. Merchant Marine Academy (USMMA) over the past five years is not included. To analyze historical spending patterns, one would need to access previous contract awards for janitorial services at USMMA, including their values, durations, and contractors. This would allow for an assessment of spending trends, potential increases or decreases in service costs, and changes in contracting strategies over time. Such analysis is crucial for understanding budget allocation and identifying potential cost efficiencies.

What is the potential risk associated with a sole-source award for essential services like janitorial maintenance?

The primary risk associated with a sole-source award for essential services like janitorial maintenance is the potential for reduced value for money. Without competition, the government may pay a higher price than if multiple vendors had bid. There's also a risk of complacency from the contractor, as there is no immediate competitive pressure to innovate or improve service quality. Furthermore, if the sole-source contractor fails to perform adequately, the process of finding and awarding a contract to a new provider can be lengthy and disruptive, especially if the alternative procurement methods are also limited. However, sole-source awards through programs like Source America are intended to achieve specific social objectives, which can be considered a different form of 'value' beyond just cost.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1225 FRANKLIN AVE STE 335, GARDEN CITY, NY, 11530

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: $11,384,467

Exercised Options: $9,601,078

Current Obligation: $9,601,078

Actual Outlays: $8,774,038

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Timeline