FAA Awards $2M Janitorial Contract to LIM SERVICE INDUSTRIES INC for Kansas City District West

Contract Overview

Contract Amount: $2,033,429 ($2.0M)

Contractor: LIM Service Industries Inc

Awarding Agency: Department of Transportation

Start Date: 2024-12-03

End Date: 2029-12-31

Contract Duration: 1,854 days

Daily Burn Rate: $1.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONSOLIDATED JANITORIAL SERVICES FOR MULTIPLE KANSAS CITY DISTRICT WEST LOCATIONS

Place of Performance

Location: OLATHE, JOHNSON County, KANSAS, 66062

State: Kansas Government Spending

Plain-Language Summary

Department of Transportation obligated $2.0 million to LIM SERVICE INDUSTRIES INC for work described as: CONSOLIDATED JANITORIAL SERVICES FOR MULTIPLE KANSAS CITY DISTRICT WEST LOCATIONS Key points: 1. Contract awarded for janitorial services across multiple FAA locations in Kansas City. 2. LIM SERVICE INDUSTRIES INC is the sole provider for this service. 3. The contract is a firm-fixed-price definitive contract with a duration of 1854 days. 4. No specific data on competition or pricing benchmarks is readily available. 5. The contract is not set aside for small businesses.

Value Assessment

Rating: fair

The contract value is $2,033,429.21 over approximately 5 years. Without comparable contract data or detailed pricing breakdowns, it is difficult to assess if this represents excellent value. The firm-fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs than if competitive bids were solicited. The rationale for the sole-source award is not provided.

Taxpayer Impact: Taxpayer funds are being used for this contract. The lack of competition may result in a less efficient use of these funds compared to a competitive procurement.

Public Impact

Ensures cleanliness and maintenance of FAA facilities in the Kansas City District West. Supports operational readiness and a safe working environment for federal employees. Provides essential services that contribute to the overall functioning of the transportation infrastructure. The contract's duration suggests a long-term need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Limited transparency on pricing justification
Potential for inflated costs due to sole-source award

Positive Signals

Ensures essential facility maintenance
Long-term service provision
Firm-fixed-price contract provides budget predictability

Sector Analysis

Janitorial services fall under the broader facilities support sector. Spending in this sector is generally stable, driven by the need to maintain government and commercial properties. Benchmarks for janitorial services vary significantly based on location, scope, and service level.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication that small businesses are involved as subcontractors. This represents a missed opportunity to support small business participation in federal contracting.

Oversight & Accountability

The contract is managed by the Federal Aviation Administration (FAA), a component of the Department of Transportation. Oversight would typically involve contract performance monitoring and financial accountability to ensure services are delivered as specified and within budget.

Related Government Programs

Janitorial Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Sole-source award limits competition and price negotiation.
Lack of readily available pricing benchmarks for comparison.
No indication of small business participation.
Potential for cost overruns if pricing is not rigorously justified.
Absence of detailed justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.0 million to LIM SERVICE INDUSTRIES INC. CONSOLIDATED JANITORIAL SERVICES FOR MULTIPLE KANSAS CITY DISTRICT WEST LOCATIONS

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 $2.0 million.

What is the period of performance?

Start: 2024-12-03. End: 2029-12-31.

What is the justification for awarding this janitorial contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies must typically demonstrate that only one responsible source can provide the required services. Without this justification, it's difficult to assess if the government received fair and reasonable pricing, as competitive pressure, which usually drives down costs, was absent.

Are there any performance metrics or service level agreements (SLAs) associated with this contract to ensure quality and effectiveness?

Performance metrics and SLAs are crucial for ensuring the effectiveness of janitorial services. They define the expected standards of cleanliness, response times for issues, and overall service quality. Without clearly defined and monitored SLAs, the government risks receiving substandard services, impacting the working environment and potentially leading to future issues.

What is the historical performance of LIM SERVICE INDUSTRIES INC on similar government contracts, and does it support this award?

Evaluating the historical performance of LIM SERVICE INDUSTRIES INC is essential for assessing the risk associated with this contract. Past performance data, including on-time delivery, quality of service, and adherence to contract terms, provides insight into the contractor's reliability and capability. Positive past performance would mitigate some concerns, while negative performance would raise significant red flags.

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-24-R-00353

Offers Received: 1

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: $5,731,626

Exercised Options: $2,033,429

Current Obligation: $2,033,429

Actual Outlays: $1,126,009

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline