DOT awards $4M janitorial contract to LIM SERVICE INDUSTRIES INC for 5 years

Contract Overview

Contract Amount: $4,001,916 ($4.0M)

Contractor: LIM Service Industries Inc

Awarding Agency: Department of Transportation

Start Date: 2023-12-20

End Date: 2028-09-30

Contract Duration: 1,746 days

Daily Burn Rate: $2.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE ALL LABOR, MATERIALS, SUPPLIES AND EQUIPMENT TO PERFORM JANITORIAL SERVICES AT VARIOUS LOCATIONS IN THE MSP DISTRICT.

Place of Performance

Location: FARMINGTON, DAKOTA County, MINNESOTA, 55024

State: Minnesota Government Spending

Plain-Language Summary

Department of Transportation obligated $4.0 million to LIM SERVICE INDUSTRIES INC for work described as: PROVIDE ALL LABOR, MATERIALS, SUPPLIES AND EQUIPMENT TO PERFORM JANITORIAL SERVICES AT VARIOUS LOCATIONS IN THE MSP DISTRICT. Key points: 1. Contract value appears reasonable for a 5-year janitorial service agreement across multiple locations. 2. Competition dynamics indicate a potentially favorable outcome for the government due to multiple bidders. 3. Performance risk is moderate, typical for service contracts requiring consistent quality. 4. This contract supports essential facility maintenance operations within the Federal Aviation Administration. 5. The sector for janitorial services is highly competitive, suggesting potential for cost efficiencies.

Value Assessment

Rating: good

The contract value of approximately $4 million over five years for janitorial services across various locations in the MSP district suggests a moderate annual spend. Benchmarking against similar federal contracts for janitorial services would be necessary for a precise value-for-money assessment. However, given the duration and scope, the pricing appears within a reasonable range for the services provided. The firm-fixed-price structure helps manage cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded through a full and open competition among eligible bidders. With seven bidders participating, the level of competition was robust. This suggests that the government received multiple proposals, allowing for price discovery and potentially driving down costs through competitive pressure. The presence of numerous bidders generally leads to better value for the contracting agency.

Taxpayer Impact: The strong competition for this contract is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award. Multiple bids ensure that the selected contractor is offering a fair market price.

Public Impact

The Federal Aviation Administration (FAA) benefits from maintained facilities, ensuring a safe and functional working environment for its personnel. Janitorial services are delivered across various locations within the Minneapolis-Saint Paul (MSP) district. The contract supports the operational efficiency of the FAA by ensuring cleanliness and hygiene standards are met. The contract likely has implications for local employment in the Minnesota region, providing jobs for cleaning staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ensuring consistent service quality across all specified locations over the contract's five-year term.
Monitoring contractor performance to ensure adherence to janitorial standards and schedules.
Managing potential scope creep or changes in service requirements over the contract duration.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
The competitive award process suggests a fair market price was likely secured.
The contract duration of nearly five years allows for stable service provision and potential for contractor efficiency.

Sector Analysis

The janitorial services sector is a mature and competitive market within the broader facilities management industry. Federal agencies are significant consumers of these services to maintain government buildings and operational sites. Spending in this sector is driven by the need for basic infrastructure maintenance and hygiene. Comparable spending benchmarks for janitorial services can vary widely based on geographic location, facility size, and service complexity, but federal contracts often represent substantial, long-term commitments.

Small Business Impact

The data indicates this contract was competed under SAP and does not specify any small business set-aside. While LIM SERVICE INDUSTRIES INC is the awardee, further investigation would be needed to determine if they are a small business or if subcontracting opportunities exist for small businesses within this contract. Without explicit set-aside provisions, the primary focus of competition was likely on best value and price.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration's contracting officers and program managers. Performance standards and service level agreements outlined in the contract will be key metrics for accountability. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Building Maintenance Contracts
Government Facility Services
Department of Transportation Service Contracts
FAA Operational Support

Risk Flags

Performance Risk
Contract Duration Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.0 million to LIM SERVICE INDUSTRIES INC. PROVIDE ALL LABOR, MATERIALS, SUPPLIES AND EQUIPMENT TO PERFORM JANITORIAL SERVICES AT VARIOUS LOCATIONS IN THE MSP DISTRICT.

Who is the contractor on this award?

The obligated recipient is LIM SERVICE INDUSTRIES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.0 million.

What is the period of performance?

Start: 2023-12-20. End: 2028-09-30.

What is the historical spending pattern for janitorial services by the Federal Aviation Administration in the MSP district?

Historical spending data for janitorial services by the FAA in the MSP district is not directly available in the provided data. However, this $4.0 million, 5-year contract (ending September 2028) represents an average annual expenditure of approximately $800,000. To understand historical patterns, one would need to access historical contract databases (like FPDS-NG) to identify previous janitorial contracts awarded by the FAA or DOT in the MSP region, their values, durations, and awardees. This would reveal trends in spending, potential increases or decreases in demand, and the typical pricing structures used over time. Analyzing past awards could also highlight any recurring issues or successes with specific contractors or service models.

How does the per-square-foot cost of these janitorial services compare to industry benchmarks?

The provided data does not include the square footage of the facilities being serviced, making a direct per-square-foot cost comparison impossible. The total contract value is $4,001,916.47 over approximately 1746 days (roughly 5 years). To benchmark per-square-foot costs, we would need the total square footage covered by the contract. Industry benchmarks for janitorial services vary significantly based on building type (office, airport, etc.), location, and the level of service required (basic cleaning vs. deep cleaning). Without the square footage, any per-square-foot calculation would be speculative. If the square footage were known, it could be compared against national or regional averages for similar facility types to assess value for money.

What is the track record of LIM SERVICE INDUSTRIES INC in performing federal janitorial contracts?

Information regarding the specific track record of LIM SERVICE INDUSTRIES INC in performing federal janitorial contracts is not detailed in the provided data snippet. To assess their track record, one would need to research their past performance on federal contracts, potentially through the Federal Awardee Performance and Integrity Information System (FAPIIS) or by examining their award history in the Federal Procurement Data System (FPDS). Key aspects to review would include past performance ratings, any history of contract disputes, timely completion of work, and adherence to contract terms on previous government engagements. A positive track record would indicate reliability and a lower risk for this current contract.

What are the specific performance metrics and quality assurance measures included in this contract?

The provided data does not detail the specific performance metrics or quality assurance measures for this janitorial services contract. Typically, such contracts include a Performance Work Statement (PWS) that outlines detailed requirements, service level agreements (SLAs), and Key Performance Indicators (KPIs). Quality assurance would likely involve regular inspections, client feedback mechanisms, and potentially performance-based payment adjustments tied to meeting defined standards. The firm-fixed-price nature suggests that the contractor is responsible for meeting all specified requirements to receive full payment, with the government monitoring adherence to the PWS.

How does the number of bidders (7) impact the potential for cost savings for the government?

A total of seven bidders for this contract suggests a healthy level of competition, which generally benefits the government by driving down prices. When multiple companies vie for a contract, they are incentivized to offer their most competitive pricing to win the award. This competitive pressure helps ensure that the government is not overpaying for the services. The presence of seven bidders indicates that the market is sufficiently interested and capable of performing the required janitorial services, increasing the likelihood that the awarded price reflects fair market value and potentially leading to significant cost savings compared to a scenario with fewer bidders or a sole-source award.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 697DCK-23-R-00006

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 19226 CY FAIR FIRE RD, CYPRESS, TX, 77433

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,106,413

Exercised Options: $5,389,299

Current Obligation: $4,001,916

Actual Outlays: $3,016,288

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline