DOT awards $5.9M janitorial contract to Fedcap Rehabilitation Services, Inc. for 5 years

Contract Overview

Contract Amount: $5,896,344 ($5.9M)

Contractor: Fedcap Rehabilitation Services, Inc

Awarding Agency: Department of Transportation

Start Date: 2023-02-16

End Date: 2028-02-29

Contract Duration: 1,839 days

Daily Burn Rate: $3.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL AND GROUNDS MAINTENANCE SERVICES (N90/LGA/TEB/CDW)

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10017

State: New York Government Spending

Plain-Language Summary

Department of Transportation obligated $5.9 million to FEDCAP REHABILITATION SERVICES, INC for work described as: JANITORIAL AND GROUNDS MAINTENANCE SERVICES (N90/LGA/TEB/CDW) Key points: 1. Contract awarded to a single vendor, raising questions about competition and potential cost savings. 2. The firm-fixed-price structure aims to control costs, but the lack of competition may limit price discovery. 3. Performance will be monitored by the FAA, with a focus on service delivery and grounds maintenance. 4. This contract represents a significant portion of federal spending on janitorial services in the New York region. 5. The duration of the contract suggests a long-term need for these essential facility services.

Value Assessment

Rating: fair

The contract value of $5.9 million over approximately five years suggests an annual spend of roughly $1.18 million. Without comparable contract data for janitorial services of this scale and scope within the FAA or DOT, a precise value-for-money assessment is challenging. However, the firm-fixed-price nature of the contract provides some cost certainty. Benchmarking against similar large-scale government or commercial janitorial contracts would be necessary for a more robust evaluation of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. While the specific justification for the sole-source award is not detailed in the provided data, such awards can sometimes be used for specialized services or when only one vendor is deemed capable of meeting the requirements. The lack of competition means that potential cost savings that might arise from a competitive bidding process were not realized.

Taxpayer Impact: Taxpayers may not have received the most competitive pricing due to the absence of a bidding process. This could potentially lead to higher costs than if multiple vendors had competed for the contract.

Public Impact

Fedcap Rehabilitation Services, Inc. will provide essential janitorial and grounds maintenance services. The services will be delivered at facilities managed by the Federal Aviation Administration in New York. This contract supports the operational readiness and cleanliness of critical federal infrastructure. The contract may indirectly support employment opportunities through Fedcap Rehabilitation Services, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award requires strong justification to ensure fair pricing.
Performance monitoring is crucial to ensure service quality meets expectations.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Long-term contract (5 years) indicates a stable and ongoing need for services.
Award to Fedcap Rehabilitation Services, Inc. may align with specific agency missions or capabilities.

Sector Analysis

The janitorial services sector is a significant part of the facilities management industry, characterized by a mix of large corporations and smaller specialized firms. Federal spending on such services is substantial, supporting the upkeep of government buildings and infrastructure nationwide. This contract, valued at nearly $6 million over five years, falls within the typical range for large-scale government service contracts. The industry is generally labor-intensive, with pricing influenced by labor costs, service scope, and geographic location.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited based on this information. Further investigation into Fedcap Rehabilitation Services, Inc.'s subcontracting plans would be needed to assess any indirect benefits to small businesses.

Oversight & Accountability

Oversight for this contract will be managed by the Federal Aviation Administration (FAA). The firm-fixed-price contract type provides a degree of cost control. Transparency regarding the specific performance metrics and reporting requirements would be necessary to fully assess accountability. The contract's duration and value suggest it would likely fall under standard federal procurement oversight mechanisms.

Related Government Programs

Federal Building Maintenance Contracts
Government Facility Services
Janitorial and Cleaning Services
Grounds Maintenance Contracts

Risk Flags

Lack of Competition
Potential for Overpricing
Sole-Source Justification Required

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $5.9 million to FEDCAP REHABILITATION SERVICES, INC. JANITORIAL AND GROUNDS MAINTENANCE SERVICES (N90/LGA/TEB/CDW)

Who is the contractor on this award?

The obligated recipient is FEDCAP REHABILITATION SERVICES, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.9 million.

What is the period of performance?

Start: 2023-02-16. End: 2028-02-29.

What is the track record of Fedcap Rehabilitation Services, Inc. in performing similar government contracts?

Fedcap Rehabilitation Services, Inc. is a non-profit organization that provides vocational training and employment services for individuals with barriers to employment. While their primary mission is rehabilitation and employment, they do engage in contract work, including services like janitorial and facilities maintenance. To assess their track record specifically for this type of government contract, a review of their past performance ratings on similar federal contracts would be essential. This would involve examining data on their timeliness, quality of service, and adherence to contract terms on previous engagements. Without specific performance data, it's difficult to definitively gauge their suitability beyond their organizational mission.

How does the awarded price compare to market rates for similar janitorial services in New York?

The awarded contract value of approximately $1.18 million annually for janitorial and grounds maintenance services in New York needs to be benchmarked against prevailing market rates. Factors influencing these rates include the square footage of facilities, the level of service required (e.g., frequency of cleaning, specialized services), labor costs specific to the New York region, and the scope of grounds maintenance. A comprehensive market analysis would involve comparing this contract's unit costs (if available) or total price against bids received from other vendors for similar services, or against industry benchmarks for commercial janitorial contracts in the same geographic area. Given the sole-source nature, a direct comparison to competitive bids is not possible, making external market data crucial for assessing value.

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

The primary risk associated with a sole-source award for janitorial services is the potential for inflated pricing due to a lack of competition. When only one vendor is considered, there is less incentive for them to offer their most competitive price. Another risk is reduced service quality over time, as the vendor may feel less pressure to perform at a high level without the threat of losing future business to competitors. Furthermore, a sole-source award can limit opportunities for innovative solutions or cost-saving approaches that might have been proposed by a more competitive field of bidders. Ensuring robust performance monitoring and clear service level agreements becomes even more critical in sole-source situations.

What is the expected effectiveness of these janitorial services in maintaining FAA facilities in New York?

The effectiveness of these janitorial services will largely depend on the specific performance standards outlined in the contract and the FAA's diligent oversight. The contract's firm-fixed-price structure aims to ensure that the contractor is responsible for delivering the agreed-upon services within the set budget. Key indicators of effectiveness would include the cleanliness and upkeep of facilities, adherence to schedules, responsiveness to any issues, and compliance with health and safety regulations. The long-term nature of the contract (5 years) suggests an expectation of consistent and reliable service delivery. The FAA's ability to monitor performance metrics and enforce contract terms will be crucial in realizing the expected effectiveness.

How does this contract's value compare to historical federal spending on janitorial services in the New York region?

To compare this contract's value ($5.9 million over 5 years) to historical federal spending on janitorial services in New York, one would need access to historical procurement data for the region. This would involve aggregating spending on similar North American Industry Classification System (NAICS) codes (like 561720 for Janitorial Services) awarded by various federal agencies operating in New York. Analyzing trends in contract values, durations, and competition levels over past years would provide context. For instance, if historical spending in this category has been significantly higher or lower, or if contracts were typically competed more broadly, it would offer insights into whether this specific award is an outlier or follows established patterns.

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-23-R-00023

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 633 3RD AVE 6TH FL, NEW YORK, NY, 10017

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: $11,028,876

Exercised Options: $11,028,876

Current Obligation: $5,896,344

Actual Outlays: $5,239,019

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline