Homeland Security awards $40.9M for custodial services to J.P. Industries, Inc. under AbilityOne program

Contract Overview

Contract Amount: $40,946,247 ($40.9M)

Contractor: J.P. Industries, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-08-01

End Date: 2026-07-31

Contract Duration: 1,825 days

Daily Burn Rate: $22.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CUSTODIAL AND GROUNDS MAINTENANCE SERVICES UNDER THE ABILITYONE PROGRAM FOR CBP, USBP TUCSON SECTOR AREA OF OPERATIONS.

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85713

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $40.9 million to J.P. INDUSTRIES, INC. for work described as: CUSTODIAL AND GROUNDS MAINTENANCE SERVICES UNDER THE ABILITYONE PROGRAM FOR CBP, USBP TUCSON SECTOR AREA OF OPERATIONS. Key points: 1. Contract awarded to a single vendor, raising questions about competitive pricing. 2. AbilityOne program participation may limit direct competition but supports employment for individuals with disabilities. 3. Long-term contract duration (5 years) suggests a need for stable, ongoing services. 4. Firm Fixed Price contract type offers cost certainty for the government. 5. Services are geographically focused on the Tucson Sector Area of Operations. 6. No indication of small business set-aside or subcontracting plans.

Value Assessment

Rating: fair

The contract's value of $40.9 million over five years for custodial and grounds maintenance services appears substantial. Benchmarking against similar contracts is difficult without more specific service details and geographic scope. However, the firm fixed-price structure provides cost predictability. The reliance on the AbilityOne program, while serving a social good, may bypass standard competitive procurement processes that could potentially yield lower prices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under the AbilityOne program, which is a mandatory source for certain supplies and services, effectively making it a sole-source procurement. While this program aims to create employment opportunities for individuals with disabilities, it limits the opportunity for open competition among a broader range of vendors. The lack of a competitive bidding process means that the government did not explore potentially more cost-effective solutions from the open market.

Taxpayer Impact: Taxpayers may not be receiving the most competitive pricing due to the non-competitive nature of this award. The program's social objectives are prioritized over potential cost savings through market competition.

Public Impact

Provides essential custodial and grounds maintenance services for U.S. Customs and Border Protection (CBP) and the U.S. Border Patrol (USBP) in the Tucson Sector. Supports the employment of individuals with disabilities through the AbilityOne program. Ensures a clean and functional operational environment for border security personnel. Geographically impacts the Arizona region, specifically the Tucson Sector Area of Operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may lead to higher costs for taxpayers.
Limited transparency into the pricing structure due to sole-source nature.
Potential for vendor lock-in given the long-term contract and program requirements.

Positive Signals

Supports the social mission of the AbilityOne program by creating employment for individuals with disabilities.
Firm Fixed Price contract provides budget certainty for the agency.
Ensures essential services are delivered to a critical federal agency (DHS).

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically custodial and grounds maintenance. The federal government is a significant consumer of such services across various agencies and locations. The AbilityOne program, mandated by the Javits-Wagner-O'Neill Act, directs federal agencies to procure specific products and services from non-profit agencies employing individuals with blindness or significant disabilities. This contract represents a portion of the government's broader spending on facility maintenance and its commitment to social procurement programs.

Small Business Impact

This contract does not appear to involve a small business set-aside. As it is awarded under the AbilityOne program, the primary focus is on providing employment for individuals with disabilities through designated non-profit agencies, rather than specifically targeting small businesses. There is no information provided regarding subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security and U.S. Customs and Border Protection. As a firm fixed-price contract, performance monitoring is key to ensuring service delivery meets the required standards. The AbilityOne program itself has oversight mechanisms managed by the Committee for Purchase From People Who Are Blind or Severely Disabled. Transparency is moderate, as the contract details are publicly available, but the rationale for sole-source procurement is tied to program requirements.

Related Government Programs

AbilityOne Program
Federal Custodial Services
Department of Homeland Security Contracts
U.S. Customs and Border Protection Services

Risk Flags

Sole-source award limits price competition.
Long contract duration may reduce flexibility.
Potential for higher costs due to mandatory source program.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $40.9 million to J.P. INDUSTRIES, INC.. CUSTODIAL AND GROUNDS MAINTENANCE SERVICES UNDER THE ABILITYONE PROGRAM FOR CBP, USBP TUCSON SECTOR AREA OF OPERATIONS.

Who is the contractor on this award?

The obligated recipient is J.P. INDUSTRIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $40.9 million.

What is the period of performance?

Start: 2021-08-01. End: 2026-07-31.

What is the specific scope of 'custodial and grounds maintenance services' required under this contract?

The provided data does not detail the specific scope of services. However, 'custodial services' typically encompass cleaning, sanitation, waste removal, and general upkeep of interior spaces. 'Grounds maintenance' usually includes landscaping, lawn care, snow removal, and upkeep of exterior areas. For this contract, the services are for the U.S. Customs and Border Protection (CBP) and U.S. Border Patrol (USBP) Tucson Sector Area of Operations, implying the need to maintain facilities critical to border security operations. A more detailed statement of work (SOW) would be necessary to fully understand the specific requirements, frequency of services, and performance standards.

How does the pricing of this contract compare to similar custodial services procured through open competition?

Direct comparison of pricing is challenging due to the sole-source nature of this award under the AbilityOne program. Typically, sole-source contracts, especially those mandated by specific programs, may not reflect the lowest possible market price achievable through open competition. The AbilityOne program prioritizes employment for individuals with disabilities, which can influence cost structures. To assess value-for-money, one would need to compare the per-unit cost of services (e.g., cost per square foot cleaned, cost per hour of groundskeeping) against benchmarks for similar services in the Tucson, Arizona region, while also considering the social impact objectives.

What are the potential risks associated with a sole-source contract of this magnitude and duration?

The primary risk with a sole-source contract, particularly one valued at $40.9 million over five years, is the potential for inflated pricing and reduced incentive for the contractor to innovate or improve efficiency, as there is no direct market competition. Vendor lock-in is another risk; the agency becomes dependent on a single provider. Performance issues could also be harder to rectify without the leverage of competitive alternatives. However, the firm fixed-price structure mitigates some financial risk for the government by capping costs. The oversight by DHS and CBP, along with the specific requirements of the AbilityOne program, are intended to manage these risks.

What is the historical spending pattern for custodial and grounds maintenance services by CBP and USBP in the Tucson Sector?

The provided data only includes details for this specific contract (2021-2026). To analyze historical spending patterns, one would need to examine previous contracts for similar services awarded to CBP and USBP in the Tucson Sector. This would involve searching federal procurement databases (like FPDS or USASpending) for contracts with relevant NAICS codes (like 561720 for janitorial services) and geographic identifiers. Understanding past spending levels, contract durations, and awardees would provide context for the current $40.9 million award, helping to determine if it represents an increase, decrease, or stable level of investment in these services.

What are the performance metrics and quality assurance measures in place for this contract?

The provided data does not specify the performance metrics or quality assurance measures. However, for any federal contract, especially one involving essential services for law enforcement agencies, performance standards are typically defined in the contract's Statement of Work (SOW). These metrics often include response times, cleanliness standards, adherence to schedules, and safety compliance. Quality assurance procedures would likely involve regular inspections, performance reviews, and feedback mechanisms managed by the contracting officer's representative (COR) within CBP or USBP. Failure to meet these metrics could lead to contract remedies.

How does the J.P. Industries, Inc. track record influence the assessment of this contract's value?

J.P. Industries, Inc.'s track record is crucial for assessing the value and risk of this contract. Information regarding their past performance on similar government contracts, including client satisfaction, adherence to schedules, quality of work, and any history of disputes or contract terminations, would be essential. A strong performance history suggests a lower risk of service disruption and a higher likelihood of receiving quality services, thus supporting the contract's value. Conversely, a poor track record would raise concerns about the contractor's ability to meet the requirements and potentially lead to cost overruns or service failures, diminishing the perceived value.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2851 N COUNTRY CLUB RD, TUCSON, AZ, 85716

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: $40,946,247

Exercised Options: $40,946,247

Current Obligation: $40,946,247

Actual Outlays: $25,120,018

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline