Transportation awards $1M+ for janitorial services at Detroit Metro Airport, with limited competition

Contract Overview

Contract Amount: $1,047,792 ($1.0M)

Contractor: Services to Enhance Potential

Awarding Agency: Department of Transportation

Start Date: 2022-09-16

End Date: 2026-09-30

Contract Duration: 1,475 days

Daily Burn Rate: $710/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL SERVICES AT DETROIT METRO ATCT (DTW), DETROIT, MI

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48242

State: Michigan Government Spending

Plain-Language Summary

Department of Transportation obligated $1.0 million to SERVICES TO ENHANCE POTENTIAL for work described as: JANITORIAL SERVICES AT DETROIT METRO ATCT (DTW), DETROIT, MI Key points: 1. Value for money appears fair given the contract duration and scope. 2. Competition dynamics indicate a limited procurement process, potentially impacting price. 3. Risk indicators are moderate, with a long contract duration and fixed-price structure. 4. Performance context is specific to airport facility maintenance. 5. Sector positioning is within government services and facility management.

Value Assessment

Rating: fair

The contract value of approximately $1.05 million over nearly four years for janitorial services at a major airport suggests a moderate per-year cost. Benchmarking against similar large-scale airport janitorial contracts would be necessary for a definitive value assessment. The firm fixed-price structure provides cost certainty but may limit flexibility if unforeseen service needs arise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed openly, falling under a 'NOT AVAILABLE FOR COMPETITION' category. This suggests that specific circumstances or pre-existing conditions led to a limited procurement approach, potentially involving a sole-source justification or a specific set-aside that was not fully open. The lack of broad competition means fewer vendors had the opportunity to bid, which can affect price discovery and potentially lead to higher costs than in a fully open market.

Taxpayer Impact: Taxpayers may not have received the most competitive pricing due to the limited nature of the competition. A more open bidding process could have yielded lower bids from a wider range of service providers.

Public Impact

The primary beneficiaries are the traveling public and airport staff who will experience a cleaner and more sanitary environment at Detroit Metro Airport (DTW). The services delivered include essential janitorial and cleaning functions critical for maintaining airport hygiene and operational standards. The geographic impact is localized to the Detroit Metro Airport facility in Michigan. Workforce implications include the creation or maintenance of jobs for janitorial staff, likely through the awarded contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in suboptimal pricing for taxpayers.
Long contract duration (nearly 4 years) could lead to vendor complacency or missed opportunities for cost savings through re-competition.
Lack of detailed performance metrics in the provided data makes it difficult to assess efficiency.

Positive Signals

Firm fixed-price contract provides budget certainty for the government.
Contract addresses essential facility maintenance needs for a critical transportation hub.
Long-term contract provides stability for the service provider and ensures consistent service delivery.

Sector Analysis

This contract falls within the government services sector, specifically focusing on facility maintenance and janitorial services. The market for such services is large and competitive, with many private sector firms capable of performing these tasks. Government contracts for facility management are common across various agencies, often awarded through competitive bidding processes. The size of this particular contract is moderate within the broader landscape of federal facility maintenance spending.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary consideration for this specific contract award. There is no indication of a small business set-aside. Therefore, the direct impact on the small business ecosystem is likely minimal, and there are no explicit subcontracting requirements for small businesses mentioned in this data.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration (FAA), a division of the Department of Transportation. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and payment schedules. Transparency is generally facilitated through federal contract databases like FPDS, where basic award information is published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Aviation Administration Facility Maintenance Contracts
Department of Transportation Airport Operations
General Services Administration (GSA) Schedules for Janitorial Services
Airport Authority Maintenance Contracts

Risk Flags

Limited competition may lead to higher costs.
Contract duration is long, potentially reducing flexibility.
Lack of detailed performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $1.0 million to SERVICES TO ENHANCE POTENTIAL. JANITORIAL SERVICES AT DETROIT METRO ATCT (DTW), DETROIT, MI

Who is the contractor on this award?

The obligated recipient is SERVICES TO ENHANCE POTENTIAL.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $1.0 million.

What is the period of performance?

Start: 2022-09-16. End: 2026-09-30.

What is the historical spending pattern for janitorial services at Detroit Metro Airport (DTW) by the FAA?

Analyzing historical spending requires access to detailed procurement data beyond this single award. Typically, agencies like the FAA would have recurring needs for janitorial services at major airports. Past contracts might have been awarded through different procurement methods, potentially including competitive bids or other contract vehicles. Without specific historical data for DTW janitorial services, it's difficult to establish a precise spending pattern. However, it's common for such services to be contracted out, with spending fluctuating based on contract values, service scope changes, and the number of competing vendors over time. A review of previous contract awards for DTW would reveal if this $1.05M award represents an increase, decrease, or consistent level of spending for these services.

How does the pricing of this contract compare to similar janitorial service contracts at other major airports?

A direct comparison of pricing requires detailed data on the scope of services, square footage cleaned, frequency of service, labor rates, and specific performance standards for comparable contracts. The provided data indicates a firm fixed price of approximately $1.05 million over nearly four years for janitorial services at DTW. To benchmark this, one would need to identify contracts for similar-sized airports or facilities managed by the FAA or other transportation agencies. Factors such as local labor costs, the specific requirements (e.g., specialized cleaning, security protocols), and the level of competition in those other procurements would influence their pricing. Without such comparative data, assessing whether this contract's pricing is high, low, or fair is speculative. However, the limited competition noted in this award might suggest a potential for higher pricing than in a more robustly competed scenario.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract?

The provided data summary does not include specific performance metrics or Service Level Agreements (SLAs) for this janitorial services contract. Typically, such contracts would detail requirements related to cleanliness standards, response times for issues, waste management protocols, and inspection procedures. Performance would likely be monitored through regular government inspections and potentially through user feedback mechanisms. The firm fixed-price nature suggests that the contractor is responsible for meeting these undefined standards within the agreed-upon price. A thorough assessment of contract value and effectiveness would necessitate reviewing the full contract document to understand these critical performance expectations and how compliance is measured and enforced.

What was the justification for awarding this contract on a 'NOT AVAILABLE FOR COMPETITION' basis?

The designation 'NOT AVAILABLE FOR COMPETITION' implies that the contract was not awarded through a standard open bidding process. Federal procurement regulations (like the FAR) outline specific circumstances under which competition may be limited or waived. These can include sole-source justifications (e.g., only one vendor can provide the service), urgent and compelling needs, or specific program requirements. Without the detailed justification documentation associated with this award, the precise reason remains unknown. However, such a designation typically requires a formal justification approved by the contracting officer, explaining why full and open competition was not feasible or not in the government's best interest.

What is the track record of the awarded contractor (SERVICES TO ENHANCE POTENTIAL) on similar federal contracts?

The provided data identifies the contractor as 'SERVICES TO ENHANCE POTENTIAL' with a contract value of $1,047,792.33. To assess their track record, one would need to search federal procurement databases (like FPDS or SAM.gov) for other contracts awarded to this entity. Key aspects to examine would include the types of services previously performed, the value and duration of those contracts, their performance history (including any past performance ratings or disputes), and their experience with government agencies, particularly the FAA or Department of Transportation. A contractor with a history of successful, on-time, and within-budget performance on similar contracts would generally be considered a lower risk.

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

Solicitation ID: 697DCK-22-R-00178

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2941 S GULLEY RD, DEARBORN, MI, 48124

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: $1,292,385

Exercised Options: $1,047,792

Current Obligation: $1,047,792

Actual Outlays: $843,804

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline