GSA Awards $56.9M for Janitorial Services in New York, Facing Limited Competition

Contract Overview

Contract Amount: $56,920,934 ($56.9M)

Contractor: Fedcap Rehabilitation Services, Inc

Awarding Agency: General Services Administration

Start Date: 2009-10-01

End Date: 2016-12-31

Contract Duration: 2,648 days

Daily Burn Rate: $21.5K/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 FOR ONE AND 26 FEDERAL PLAZA AND HOWARD STREET GARAGE, NEW YORK, NY THE SUBJECT TASK ORDER IS HEREBY ISSUED UNDER CONTRACT NO. GS-02P-09-PV-D-0013 TO ORDER BASIC SERVICES (MONTHLY SERVICES) FOR THE BASE YEAR AND FOR FOUR (4) FOLLOW-ON YEARS. ALL PRICES ARE INTERIM PRICES SUBJECT TO FURTHER NEGOTIATION.

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10278

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $56.9 million to FEDCAP REHABILITATION SERVICES, INC for work described as: JANITORIAL AND RELATED SERVICES FOR ONE AND 26 FEDERAL PLAZA AND HOWARD STREET GARAGE, NEW YORK, NY THE SUBJECT TASK ORDER IS HEREBY ISSUED UNDER CONTRACT NO. GS-02P-09-PV-D-0013 TO ORDER BASIC SERVICES (MONTHLY SERVICES) FOR THE BASE YEAR AND FOR FOUR (4) FOLLOW-ON YEARS. ALL … Key points: 1. The contract covers janitorial services for federal buildings in New York City over a 2648-day period. 2. Fedcap Rehabilitation Services, Inc. is the incumbent contractor. 3. The contract type is Fixed Price with Economic Price Adjustment, with interim prices subject to negotiation. 4. The North American Industry Classification System (NAICS) code is 561720 for Janitorial Services.

Value Assessment

Rating: fair

The total award value is $56.9 million. Without specific unit cost data or benchmarks for janitorial services in NYC federal buildings, a precise value assessment is difficult. The interim pricing structure also introduces uncertainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION', indicating a limited competition scenario. This could be due to specific requirements or existing relationships, potentially impacting price discovery and overall value.

Taxpayer Impact: The significant contract value suggests a substantial taxpayer investment. Limited competition may lead to higher costs than a fully competitive environment.

Public Impact

Ensures cleanliness and maintenance of federal facilities in a major metropolitan area. Supports employment opportunities, potentially including individuals with disabilities through Fedcap's mission. The long duration of the contract impacts long-term budget planning for the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpricing.
Interim pricing requires further negotiation, introducing cost uncertainty.
Lack of detailed performance metrics makes assessing service quality difficult.

Positive Signals

Incumbent contractor has established operational knowledge.
Contract provides essential services for federal buildings.

Sector Analysis

Janitorial services fall under the broader facilities management sector. Benchmarks for this sector vary widely based on location, building size, and service scope. Federal contracts often have specific requirements that can influence pricing.

Small Business Impact

The provided data does not indicate any specific provisions or set-asides for small businesses within this contract. Further investigation would be needed to determine small business participation.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. The Public Buildings Service (PBS) manages federal real estate. Oversight should focus on ensuring fair pricing and quality service delivery throughout the contract's life.

Related Government Programs

Janitorial Services
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Limited competition
Interim pricing subject to negotiation
Lack of detailed performance metrics
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $56.9 million to FEDCAP REHABILITATION SERVICES, INC. JANITORIAL AND RELATED SERVICES FOR ONE AND 26 FEDERAL PLAZA AND HOWARD STREET GARAGE, NEW YORK, NY THE SUBJECT TASK ORDER IS HEREBY ISSUED UNDER CONTRACT NO. GS-02P-09-PV-D-0013 TO ORDER BASIC SERVICES (MONTHLY SERVICES) FOR THE BASE YEAR AND FOR FOUR (4) FOLLOW-ON YEARS. ALL PRICES ARE INTERIM PRICES SUBJECT TO FURTHER NEGOTIATION.

Who is the contractor on this award?

The obligated recipient is FEDCAP REHABILITATION SERVICES, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $56.9 million.

What is the period of performance?

Start: 2009-10-01. End: 2016-12-31.

What specific factors led to the 'NOT AVAILABLE FOR COMPETITION' designation, and how were these justified?

The designation 'NOT AVAILABLE FOR COMPETITION' typically arises from specific circumstances such as a sole-source justification, a follow-on contract to a previous award where competition was limited, or unique technical requirements. Without further details, it's difficult to ascertain the exact reason. Agencies must provide a justification for limiting competition to ensure taxpayer funds are used efficiently and fairly.

How will the interim pricing be finalized, and what mechanisms are in place to ensure a fair outcome for taxpayers?

The contract states prices are interim and subject to further negotiation. This implies a negotiation phase will occur to establish final pricing. Mechanisms for ensuring fairness could include market research, cost analysis by the contracting officer, and potentially independent government cost estimates. Transparency in this negotiation process is crucial.

What performance standards and metrics are associated with this janitorial services contract to ensure effectiveness?

The provided data does not detail specific performance standards or metrics. Effective oversight would require clearly defined service level agreements (SLAs), key performance indicators (KPIs) related to cleanliness, response times, and customer satisfaction, and a robust inspection process to ensure the contractor meets these requirements.

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

Offers Received: 1

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

Evaluated Preference: NONE

Contractor Details

Address: 211 W 14TH ST, NEW YORK, NY, 10011

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: $57,688,383

Exercised Options: $56,920,934

Current Obligation: $56,920,934

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS02P09PVD0013

IDV Type: IDC

Timeline