GSA's $17M Janitorial Contract for Philadelphia Buildings Lacks Competition, Raises Cost Concerns

Contract Overview

Contract Amount: $17,053,542 ($17.1M)

Contractor: Elwyn of Pennsylvania and Delaware

Awarding Agency: General Services Administration

Start Date: 2005-12-13

End Date: 2010-12-31

Contract Duration: 1,844 days

Daily Burn Rate: $9.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: JANITORIAL AND RELATED SERVICES AT THE WILLIAM GREEN FEDEARL BUILDING AND THE JAMES A. BYRNE COURTHOUSE, PHILADELPHIA, PA

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19106

State: Pennsylvania Government Spending

Plain-Language Summary

General Services Administration obligated $17.1 million to ELWYN OF PENNSYLVANIA AND DELAWARE for work described as: JANITORIAL AND RELATED SERVICES AT THE WILLIAM GREEN FEDEARL BUILDING AND THE JAMES A. BYRNE COURTHOUSE, PHILADELPHIA, PA Key points: 1. Contract awarded to Elwyn of Pennsylvania and Delaware for janitorial services. 2. Significant spending of $17.05 million over 5 years. 3. Lack of competition raises questions about price discovery and value. 4. Services provided at the William Green Federal Building and James A. Byrne Courthouse.

Value Assessment

Rating: questionable

The contract's fixed-price with economic price adjustment structure, combined with a lack of competition, makes it difficult to assess value. Without benchmarks or competitive bids, it's hard to determine if the $17.05 million represents a fair market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a limited or sole-source award. This significantly hinders price discovery and potentially leads to inflated costs for taxpayers as there is no market pressure to offer competitive pricing.

Taxpayer Impact: The lack of competitive bidding may result in taxpayers paying more than necessary for janitorial services.

Public Impact

Federal buildings in Philadelphia receive essential janitorial services. Taxpayer funds are allocated for maintaining federal facilities. The contract's duration impacts long-term budget planning for GSA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment due to limited price discovery
Fixed Price with Economic Price Adjustment can increase costs

Positive Signals

Essential service provision
Long-term contract provides stability

Sector Analysis

This contract falls under facilities support services, specifically janitorial services. Spending benchmarks for such services can vary widely based on building size, location, and service level agreements. The $17 million over five years for two major federal buildings in Philadelphia suggests a substantial investment.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine the extent of small business participation.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Accountability for cost and performance rests with GSA's Public Buildings Service. The lack of competition warrants closer scrutiny of the procurement process and contract management.

Related Government Programs

Janitorial Services
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Lack of competitive bidding
Potential for cost overruns due to economic price adjustment
Limited transparency in price determination
No clear indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $17.1 million to ELWYN OF PENNSYLVANIA AND DELAWARE. JANITORIAL AND RELATED SERVICES AT THE WILLIAM GREEN FEDEARL BUILDING AND THE JAMES A. BYRNE COURTHOUSE, PHILADELPHIA, PA

Who is the contractor on this award?

The obligated recipient is ELWYN OF PENNSYLVANIA AND DELAWARE.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $17.1 million.

What is the period of performance?

Start: 2005-12-13. End: 2010-12-31.

What was the justification for not competing this contract, and how was the initial price determined to be fair and reasonable?

The justification for not competing this contract is not provided in the data. Typically, limited competition is allowed under specific circumstances, such as when only one responsible source can satisfy agency requirements. The initial price determination would have relied on GSA's internal cost analysis, historical data, or market research, but without competitive bids, validating its fairness is challenging.

What are the potential risks associated with the 'Fixed Price with Economic Price Adjustment' contract type in a non-competitive environment?

The primary risk is cost escalation. While fixed-price contracts aim for cost certainty, the economic price adjustment clause allows for increases based on external factors (e.g., inflation, labor costs). In a non-competitive scenario, the contractor has less incentive to absorb these adjustments, and the government lacks a benchmark to negotiate against, potentially leading to higher overall spending than a competitively bid contract.

How does the absence of competition impact the quality and efficiency of janitorial services provided?

The absence of competition can reduce the incentive for the contractor to innovate or improve service quality and efficiency beyond the minimum contractual requirements. Without the threat of losing business to a competitor, the contractor may be less motivated to proactively address issues or seek cost-saving measures that could benefit the government. Performance monitoring becomes even more critical.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GS-03P-05-AZC-0033

Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Parent Company: Elwyn (UEI: 073737918)

Address: 2047 BRIDGEWATER RD, ASTON, PA, 05

Business Categories: AbilityOne Program Participant, Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,053,542

Exercised Options: $17,053,542

Current Obligation: $17,053,542

Timeline