GSA's $11.7M Janitorial Contract Awarded to Northern Management Services in South Carolina

Contract Overview

Contract Amount: $11,696,369 ($11.7M)

Contractor: Northern Management Services, Inc.

Awarding Agency: General Services Administration

Start Date: 2003-09-01

End Date: 2009-02-28

Contract Duration: 2,007 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: JANITORIA AND O&M SERVICES FOR SOUTH CAROLINA

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30308

State: Georgia Government Spending

Plain-Language Summary

General Services Administration obligated $11.7 million to NORTHERN MANAGEMENT SERVICES, INC. for work described as: JANITORIA AND O&M SERVICES FOR SOUTH CAROLINA Key points: 1. Contract value of $11.7 million over its period of performance. 2. Northern Management Services, Inc. secured the contract. 3. The contract was awarded under Full and Open Competition after Exclusion of Sources. 4. The primary service category is Janitorial Services (NAICS 561720).

Value Assessment

Rating: fair

The contract's fixed-price with economic price adjustment structure can lead to cost increases over time. Benchmarking against similar janitorial contracts is difficult without more granular cost data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract utilized full and open competition, which generally promotes competitive pricing. However, the 'after exclusion of sources' clause warrants further investigation into the specific reasons for exclusion and their impact on price discovery.

Taxpayer Impact: The competitive nature of the award suggests an effort to secure fair market value, but the economic price adjustment clause introduces potential for cost escalation impacting taxpayers.

Public Impact

Ensures essential cleaning and maintenance services for federal facilities in South Carolina. Supports federal operational continuity through reliable facility upkeep. The contract's duration and value indicate a significant commitment to a single provider for a substantial period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause may inflate costs.
Exclusion of sources in competition needs clarification.
Lack of detailed cost breakdown hinders precise benchmarking.

Positive Signals

Full and open competition was utilized.
Contract addresses essential facility maintenance needs.

Sector Analysis

Janitorial services fall under the broader facilities support sector. Spending benchmarks for this sector vary widely based on facility size, location, and service intensity. This contract represents a moderate investment for the specified region and duration.

Small Business Impact

The contract was awarded to Northern Management Services, Inc. It is not explicitly stated whether this is a small business, and the contract was not set aside for small businesses.

Oversight & Accountability

The General Services Administration (GSA) awarded this contract through its Public Buildings Service. Oversight would involve monitoring service delivery and adherence to contract terms, with potential for review by agency watchdogs.

Related Government Programs

Janitorial Services
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Potential for cost overruns due to EPA clause.
Lack of clarity on source exclusion impacts competition.
Absence of detailed cost breakdown hinders benchmarking.
No explicit mention of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $11.7 million to NORTHERN MANAGEMENT SERVICES, INC.. JANITORIA AND O&M SERVICES FOR SOUTH CAROLINA

Who is the contractor on this award?

The obligated recipient is NORTHERN MANAGEMENT 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 $11.7 million.

What is the period of performance?

Start: 2003-09-01. End: 2009-02-28.

What was the specific justification for excluding other sources prior to the full and open competition, and did this exclusion impact the final price?

The justification for excluding other sources prior to the full and open competition is not detailed in the provided data. This exclusion could potentially limit the competitive pool, possibly leading to a less favorable price for the government than if all potential sources were considered from the outset. Further investigation into the agency's rationale is needed to assess the full impact on price discovery and taxpayer value.

How does the economic price adjustment (EPA) clause in this fixed-price contract typically affect cost escalation compared to contracts without EPAs?

Economic price adjustment clauses are designed to allow for changes in contract price due to fluctuations in labor costs, material prices, or other economic factors. While they can protect contractors from unforeseen cost increases and ensure service continuity, they also introduce uncertainty for the government regarding the final cost. Compared to fixed-price contracts without EPAs, those with EPAs generally carry a higher risk of cost escalation, potentially leading to higher overall spending for taxpayers over the contract's life.

What performance metrics or service level agreements (SLAs) were established to ensure the effectiveness and quality of the janitorial services provided?

The provided data does not specify the performance metrics or service level agreements (SLAs) associated with this contract. Effective oversight typically relies on clearly defined SLAs for aspects like cleaning frequency, quality standards, response times to issues, and staff conduct. Without this information, it is difficult to assess the contractor's performance and the overall effectiveness of the janitorial services in meeting federal facility needs.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 11

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

Evaluated Preference: NONE

Contractor Details

Address: 607 CHURCH ST, SANDPOINT, ID, 01

Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $11,696,369

Exercised Options: $11,696,369

Current Obligation: $11,696,369

Parent Contract

Parent Award PIID: GS04P03RDC0047

IDV Type: IDC

Timeline