GSA awards $109M custodial services contract to Fedcap Rehabilitation Services, Inc. for Manhattan campus

Contract Overview

Contract Amount: $109,214,365 ($109.2M)

Contractor: Fedcap Rehabilitation Services, Inc

Awarding Agency: General Services Administration

Start Date: 2016-12-01

End Date: 2021-12-31

Contract Duration: 1,856 days

Daily Burn Rate: $58.8K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF MANHATTAN CAMPUS CUSTODIAL SERVICES

Place of Performance

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

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $109.2 million to FEDCAP REHABILITATION SERVICES, INC for work described as: IGF::OT::IGF MANHATTAN CAMPUS CUSTODIAL SERVICES Key points: 1. Contract awarded to a single provider, raising questions about competition and potential cost savings. 2. The contract duration of over 5 years suggests a long-term need for these services. 3. Awarded under a BPA Call, indicating a pre-negotiated framework agreement was utilized. 4. The fixed-price contract type provides cost certainty for the government. 5. No small business set-aside was utilized, potentially limiting opportunities for smaller firms. 6. The service category is janitorial services, a common and essential facility support function.

Value Assessment

Rating: fair

The contract value of approximately $109 million over five years for custodial services at a large campus is substantial. Without specific benchmarks for custodial services in the New York City area or comparable GSA contracts, it is difficult to definitively assess value for money. The fact that it was not competed under SAP suggests it may have exceeded certain thresholds, but the lack of a competitive process limits the ability to benchmark pricing against market rates. Further analysis would require detailed service scope and pricing comparisons.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED UNDER SAP' and through a BPA Call, which typically implies a limited competition or a sole-source award scenario. The absence of a full and open competition means that multiple potential bidders were not solicited, which can lead to less aggressive pricing. The specific details of why it was not competed under SAP or if other BPA call options were considered are not provided, making a full assessment of the competition dynamics challenging.

Taxpayer Impact: The lack of open competition means taxpayers may not have benefited from the most competitive pricing achievable through a broader solicitation process.

Public Impact

The primary beneficiary is the General Services Administration (GSA) Public Buildings Service, ensuring the cleanliness and maintenance of the Manhattan campus. Essential custodial and janitorial services are delivered, contributing to a safe and functional work environment for federal employees and visitors. The geographic impact is concentrated in New York City, specifically at the GSA's Manhattan campus. The contract supports jobs within the janitorial services sector, likely benefiting from Fedcap Rehabilitation Services' mission-driven employment model.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may have resulted in higher costs for taxpayers.
Limited transparency into the justification for a sole-source or limited competition award.
Absence of small business participation could be a missed opportunity for economic inclusion.

Positive Signals

Award to Fedcap Rehabilitation Services, Inc. aligns with potential social impact goals if they prioritize employment for individuals with barriers.
Firm fixed-price contract provides budget certainty for the agency.
Long-term contract indicates a stable and ongoing need for these critical services.

Sector Analysis

The janitorial services sector is a significant part of the facilities management industry, characterized by a mix of large corporations and numerous small businesses. Federal spending in this area is consistent, driven by the need to maintain government buildings nationwide. This contract, valued at over $100 million, represents a substantial portion of spending within this niche for the New York region. Comparable contracts would involve large-scale facility maintenance and cleaning services for major government installations or large commercial properties.

Small Business Impact

This contract does not appear to have been specifically set aside for small businesses, nor is there information indicating subcontracting requirements for small businesses. The award to Fedcap Rehabilitation Services, Inc., while potentially having a social mission, does not automatically translate to small business subcontracting. This suggests that opportunities for small businesses in the janitorial services sector to participate in this specific federal contract may have been limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Public Buildings Service. As a large contract, it is likely subject to regular performance reviews and financial audits. The Inspector General of the GSA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award and its execution. Transparency is dependent on GSA's reporting practices and public availability of contract performance data.

Related Government Programs

GSA Federal Buildings Fund
Facilities Maintenance and Operations Contracts
Janitorial and Cleaning Services Contracts
Public Buildings Service Contracts

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $109.2 million to FEDCAP REHABILITATION SERVICES, INC. IGF::OT::IGF MANHATTAN CAMPUS CUSTODIAL SERVICES

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 $109.2 million.

What is the period of performance?

Start: 2016-12-01. End: 2021-12-31.

What is the track record of Fedcap Rehabilitation Services, Inc. in performing large-scale custodial contracts for the federal government?

Information regarding Fedcap Rehabilitation Services, Inc.'s specific track record on large-scale federal custodial contracts is not detailed in the provided data. However, Fedcap is known for its broader mission of providing vocational training and employment for individuals with barriers to employment. Their experience in managing such a significant contract would depend on their operational capacity and prior performance in similar service delivery roles. A deeper dive into their past performance reports (e.g., Contractor Performance Assessment Reporting System - CPARS) would be necessary to fully assess their capabilities and reliability for this specific service.

How does the awarded price compare to market rates for similar custodial services in New York City?

The provided data does not include specific pricing details or a breakdown of services rendered, making a direct comparison to market rates challenging. The total award of $109 million over approximately five years averages to roughly $21.8 million per year. To assess value, this annual figure would need to be benchmarked against per-square-foot cleaning costs or costs for similar-sized facilities in the New York City metropolitan area, considering factors like service frequency, specialized cleaning requirements, and labor costs. Without this granular data and market analysis, the value proposition remains unclear.

What are the primary risks associated with awarding a large custodial contract without full and open competition?

The primary risks associated with awarding a large contract without full and open competition include potentially higher costs for taxpayers due to the lack of competitive pressure on pricing. There's also a risk of reduced innovation, as a single provider may have less incentive to introduce cost-saving or efficiency-enhancing measures. Furthermore, it can limit opportunities for other qualified businesses, including small businesses, to enter the federal market. Transparency and accountability can also be diminished, making it harder to ensure the government is receiving the best possible value and service.

What is the expected effectiveness of Fedcap Rehabilitation Services, Inc. in delivering janitorial services based on their organizational mission?

Fedcap Rehabilitation Services, Inc.'s organizational mission focuses on empowering individuals with barriers to employment through training and job placement. While this mission is commendable and can lead to a dedicated workforce, the effectiveness in delivering janitorial services at a large federal campus hinges on their operational management, quality control processes, and ability to scale services to meet demand. Their success would depend on robust training programs for their staff, efficient scheduling, and strong contract management to ensure service standards are consistently met, regardless of their social mission.

How does this contract's value compare to historical federal spending on custodial services for GSA facilities in New York?

The provided data does not contain historical spending figures for custodial services at GSA facilities in New York, making a direct comparison impossible. However, a $109 million contract over five years represents a significant annual expenditure. To contextualize this, one would need to analyze GSA's historical procurement data for similar services in the region, looking at the number and size of facilities managed, contract durations, and inflation-adjusted spending trends. This would help determine if this award is in line with, higher than, or lower than previous spending patterns.

What are the implications of the BPA Call award mechanism for contract oversight and performance management?

Awarding through a BPA Call implies that a Basic Ordering Agreement (BOA) or Blanket Purchase Agreement (BPA) was already in place, likely establishing pre-negotiated terms, conditions, and potentially pricing. This can streamline the procurement process. However, for oversight and performance management, it means the focus shifts to ensuring the specific call order aligns with the overarching BPA and that the contractor meets the defined performance standards for this particular task. The effectiveness of oversight depends on the clarity of the call order's scope, performance metrics, and the agency's diligence in monitoring compliance and quality.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 633 3RD AVE 6TH FL, NEW YORK, NY, 10017

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: $109,543,254

Exercised Options: $109,214,365

Current Obligation: $109,214,365

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS02P17PVA0002

IDV Type: BPA

Timeline