Transportation awards $397K janitorial contract to Lim Service Industries Inc. for Minnesota air traffic facilities

Contract Overview

Contract Amount: $396,984 ($397.0K)

Contractor: LIM Service Industries Inc

Awarding Agency: Department of Transportation

Start Date: 2025-08-25

End Date: 2030-09-30

Contract Duration: 1,862 days

Daily Burn Rate: $213/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL SERVICES AT MSP ATCT/TRACON-GUARD HOUSE, STP ATCT, FCM ATCT, MIC ATCT IN MN

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55450

State: Minnesota Government Spending

Plain-Language Summary

Department of Transportation obligated $396,983.74 to LIM SERVICE INDUSTRIES INC for work described as: JANITORIAL SERVICES AT MSP ATCT/TRACON-GUARD HOUSE, STP ATCT, FCM ATCT, MIC ATCT IN MN Key points: 1. Contract value appears reasonable for janitorial services at multiple large facilities over a 5-year period. 2. The contract was not competed under Simplified Acquisition Procedures, raising questions about potential cost savings. 3. Limited competition could lead to higher prices and reduced service quality. 4. The firm-fixed-price structure shifts performance risk to the contractor. 5. This contract supports the operational readiness of critical air traffic control infrastructure. 6. The duration of the contract extends beyond one year, indicating a need for sustained janitorial support.

Value Assessment

Rating: fair

The contract value of approximately $397,000 over five years for janitorial services at multiple air traffic control facilities seems within a reasonable range for the scope of work. However, without specific benchmarks for janitorial services at similar federal facilities or detailed breakdowns of the services provided, a precise value-for-money assessment is challenging. The firm-fixed-price contract type suggests that the contractor bears the risk of cost overruns, which can be a positive indicator if the price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed under Simplified Acquisition Procedures (SAP), and the data indicates it was 'NOT COMPETED UNDER SAP'. This suggests that the procurement process may not have involved a broad solicitation of potential vendors. The number of bidders is not specified, but the 'NOT COMPETED' status implies a lack of robust competition, potentially limiting price discovery and the opportunity to secure the best value.

Taxpayer Impact: The lack of open competition means taxpayers may not have benefited from the most competitive pricing available in the market. This approach can sometimes lead to higher costs than if multiple vendors had vied for the contract.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and the traveling public, who rely on clean and functional air traffic control facilities. Services include janitorial maintenance for the Minneapolis-Saint Paul (MSP) Air Traffic Control Tower (ATCT)/TRACON guard house, St. Paul (STP) ATCT, and Minneapolis (MIC) ATCT. The geographic impact is concentrated within Minnesota, specifically at the listed air traffic control facilities. The contract supports the operational environment for air traffic controllers and related personnel, indirectly impacting aviation safety and efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of open competition may result in suboptimal pricing for taxpayers.
Absence of detailed service requirements makes it difficult to assess true value.
Contract duration could mask potential inefficiencies if not closely monitored.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Contract supports essential operations of critical national infrastructure.
Long-term contract provides stability for service delivery.

Sector Analysis

The janitorial services sector is highly fragmented, with numerous small and large providers. Federal contracts for such services are common across various agencies. Benchmarking this contract's value is difficult without specific details on square footage, frequency of service, and specialized cleaning requirements. However, the total contract value over five years suggests a moderate-sized service contract within the broader federal facilities maintenance landscape.

Small Business Impact

The data indicates that small business participation (sb) is false, and the contract was not set aside for small businesses (ss is false). This suggests that Lim Service Industries Inc. is likely not a small business, and there was no specific provision to encourage small business subcontracting. The impact on the small business ecosystem is minimal as this contract did not prioritize their involvement.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration (FAA) contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to meet defined service standards. Transparency could be enhanced by making detailed service level agreements and performance reports publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Aviation Administration Facilities Maintenance
Department of Transportation Janitorial Contracts
Air Traffic Control Facility Operations
Federal Building Maintenance Services

Risk Flags

Limited competition raises concerns about price and value.
Lack of transparency in the procurement process.
Potential for higher costs due to non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $396,983.74 to LIM SERVICE INDUSTRIES INC. JANITORIAL SERVICES AT MSP ATCT/TRACON-GUARD HOUSE, STP ATCT, FCM ATCT, MIC ATCT IN MN

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 $396,983.74.

What is the period of performance?

Start: 2025-08-25. End: 2030-09-30.

What is the track record of Lim Service Industries Inc. in performing federal janitorial contracts?

Information regarding Lim Service Industries Inc.'s specific track record with federal janitorial contracts is not provided in the data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes with similar government procurements. Without this data, it's difficult to gauge their reliability and quality of service in a federal context. Further research into federal procurement databases like SAM.gov or FPDS could yield more insights into their past performance and client satisfaction.

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

The provided data does not include the square footage of the facilities covered by this contract, nor does it detail the frequency or scope of the janitorial services. Therefore, a direct comparison of the per-square-foot cost to industry benchmarks for federal janitorial services is not possible. To perform such an analysis, one would need the total square footage of the MSP ATCT/TRACON guard house, STP ATCT, and MIC ATCT, along with the detailed service requirements and the total contract value ($396,983.74). This would allow for a calculation of cost per square foot to compare against established rates for similar government facilities.

What are the specific risks associated with a 'NOT COMPETED UNDER SAP' contract for janitorial services?

A 'NOT COMPETED UNDER SAP' designation indicates that the contract was not procured through the standard competitive bidding process, particularly under Simplified Acquisition Procedures (SAP), which are designed for smaller purchases. The primary risks include a lack of competitive pricing, potentially leading to higher costs for taxpayers. It can also limit the pool of qualified vendors, potentially resulting in lower service quality or less innovation. Furthermore, it raises concerns about transparency and fairness in the procurement process, as opportunities for a wider range of businesses may have been missed.

What is the historical spending pattern for janitorial services at these specific Minnesota air traffic control facilities?

The provided data does not contain historical spending information for janitorial services at these specific Minnesota air traffic control facilities. To analyze historical spending patterns, one would need access to previous contract awards for janitorial services at the MSP ATCT/TRACON guard house, STP ATCT, and MIC ATCT. This would involve examining contract values, durations, and awarded vendors over several past performance periods. Such an analysis would help determine if current spending is consistent with past expenditures, if costs have increased or decreased, and if there have been shifts in awarded contractors.

How does the contract duration of over five years impact the assessment of value for money?

A contract duration of over five years (approximately 1862 days, or just over 5 years) for janitorial services can impact the assessment of value for money in several ways. On one hand, it provides service continuity and allows the contractor to become familiar with the facilities, potentially leading to efficiencies. It can also reduce administrative burden associated with frequent re-procurement. However, a long duration also reduces flexibility to adapt to changing needs or to capitalize on new, potentially more cost-effective service providers that may emerge. It increases the risk of the government being locked into a contract that becomes overpriced or underperforming over time if not actively managed and reviewed.

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 COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 697DCK-25-R-00135

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: $1,917,577

Exercised Options: $503,540

Current Obligation: $396,984

Actual Outlays: $108,138

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline