DHS awarded $20.8M for janitorial services to J.P. Industries, Inc. under AbilityOne program

Contract Overview

Contract Amount: $20,767,074 ($20.8M)

Contractor: J.P. Industries, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2012-04-01

End Date: 2016-08-31

Contract Duration: 1,613 days

Daily Burn Rate: $12.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF OTHER FUNCTIONS: JANITORIAL SERVICES UNDER ABILITYONE PROCUREMENT PROGRAM FOR TUCSON SECTOR OFFICE OF BORDER PATROL HEADQUARTERS.

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85713

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.8 million to J.P. INDUSTRIES, INC. for work described as: IGF::OT::IGF OTHER FUNCTIONS: JANITORIAL SERVICES UNDER ABILITYONE PROCUREMENT PROGRAM FOR TUCSON SECTOR OFFICE OF BORDER PATROL HEADQUARTERS. Key points: 1. Contract awarded under the AbilityOne program, which prioritizes employment for individuals with disabilities. 2. J.P. Industries, Inc. secured this contract, indicating a potential focus on specialized service providers. 3. The contract duration of over 4 years suggests a stable, long-term need for janitorial services. 4. Fixed-price contract type implies that the contractor bears the risk of cost overruns. 5. The procurement was not open for competition, raising questions about potential cost efficiencies. 6. Geographic focus on Tucson, Arizona, suggests localized service delivery.

Value Assessment

Rating: fair

The contract value of $20.8 million over approximately 4 years for janitorial services appears to be within a reasonable range for a federal contract of this scope and duration. However, without specific benchmarks for janitorial services in the Tucson sector office or comparable AbilityOne contracts, a precise value-for-money assessment is challenging. The fixed-price nature of the contract shifts cost risk to the contractor, which can be beneficial for the government if managed effectively. Further analysis would require detailed cost breakdowns and comparisons to similar service contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under the AbilityOne procurement program, which is a mandatory source for certain supplies and services, effectively making it a sole-source or limited competition scenario. The AbilityOne program is designed to provide employment opportunities for individuals with significant disabilities. While this program serves an important social mission, it limits the opportunity for broader market competition, which could potentially impact price discovery and cost savings compared to an open market procurement.

Taxpayer Impact: Taxpayers benefit from the social mission of the AbilityOne program by supporting employment for individuals with disabilities. However, the lack of open competition may mean that the government is not achieving the lowest possible price for these services.

Public Impact

Individuals with disabilities in the Tucson, Arizona area benefit from employment opportunities through the AbilityOne program. The U.S. Customs and Border Protection's Tucson Sector Office receives essential janitorial services, contributing to a clean and functional work environment. The contract supports local jobs within the janitorial services sector in Arizona. The services provided ensure compliance with federal facility maintenance standards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to AbilityOne program designation may prevent optimal price discovery.
Lack of detailed cost breakdowns makes it difficult to assess true value for money.
Contract duration of over 4 years could lead to complacency if performance is not actively monitored.

Positive Signals

Contract supports a vital social program (AbilityOne) by creating employment for individuals with disabilities.
Fixed-price contract type transfers cost overrun risk to the contractor.
Long-term contract indicates a consistent need and potentially stable service delivery.

Sector Analysis

Janitorial services represent a significant segment of the facilities management industry. Federal agencies are major consumers of these services, often procuring them through various mechanisms including set-asides and mandatory source programs like AbilityOne. The market for janitorial services is generally competitive, but specific government programs can influence procurement methods and pricing. Benchmarking this contract would involve comparing its cost per square foot or per employee to similar federal contracts or private sector contracts for comparable facilities in the region.

Small Business Impact

The AbilityOne program, under which this contract was awarded, specifically aims to create employment for individuals with significant disabilities, often through non-profit agencies that employ these individuals. While this contract itself may not be a direct small business set-aside, the nature of the AbilityOne program often involves smaller, specialized service providers. Subcontracting opportunities for small businesses are not explicitly detailed here but could exist depending on the prime contractor's operational needs and policies.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. The U.S. Customs and Border Protection is responsible for ensuring service delivery meets the contract's requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

AbilityOne Program
Federal Janitorial Services Contracts
Department of Homeland Security Facilities Management
U.S. Customs and Border Protection Operations

Risk Flags

Limited Competition
Potential for Above-Market Pricing
Performance Monitoring Required

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.8 million to J.P. INDUSTRIES, INC.. IGF::OT::IGF OTHER FUNCTIONS: JANITORIAL SERVICES UNDER ABILITYONE PROCUREMENT PROGRAM FOR TUCSON SECTOR OFFICE OF BORDER PATROL HEADQUARTERS.

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 $20.8 million.

What is the period of performance?

Start: 2012-04-01. End: 2016-08-31.

What is the historical spending pattern for janitorial services by the U.S. Customs and Border Protection (CBP) in the Tucson Sector?

Analyzing historical spending for janitorial services by CBP in the Tucson Sector requires access to detailed procurement data over multiple fiscal years. While this specific contract (ID: IGF::OT::IGF OTHER FUNCTIONS) accounts for $20.8 million from 2012 to 2016, it represents only one contract. To understand the overall pattern, one would need to aggregate spending across all janitorial service contracts awarded by CBP in that geographic region during that period and potentially preceding/subsequent periods. Factors influencing spending include the number of facilities, square footage, service levels required, and changes in procurement strategies. Without a comprehensive dataset of all such contracts, it is difficult to establish a definitive historical spending trend.

How does the cost of this contract compare to other federal janitorial service contracts of similar size and scope?

Comparing the cost of this $20.8 million contract for janitorial services to other federal contracts requires identifying comparable contracts based on factors such as geographic location, facility size and type, service requirements (e.g., frequency of cleaning, specialized services), and contract duration. The fact that this contract was awarded under the AbilityOne program, which prioritizes employment for individuals with disabilities, may influence its cost structure compared to contracts competed on the open market. A detailed benchmark analysis would involve examining cost per square foot, cost per employee supported, or total contract value relative to the services provided, adjusting for regional economic differences and program-specific overheads. Without access to a comprehensive database of comparable AbilityOne contracts or detailed cost breakdowns, a precise comparison is challenging.

What are the specific performance metrics and quality assurance measures included in this contract?

The provided data does not detail the specific performance metrics or quality assurance measures for this janitorial services contract. Typically, federal contracts include a Performance Work Statement (PWS) that outlines the required services, standards, and metrics. Quality assurance surveillance plans (QASPs) are also common, detailing how the government will monitor contractor performance. For janitorial services, metrics might include cleanliness ratings, response times to reported issues, and adherence to schedules. Without the contract's PWS and QASP, it's impossible to assess the rigor of the performance monitoring and ensure accountability for service quality.

What is the track record of J.P. Industries, Inc. in performing federal contracts, particularly those under the AbilityOne program?

Assessing the track record of J.P. Industries, Inc. requires reviewing their past performance on federal contracts. This would involve searching contract databases for previous awards, contract durations, and any reported performance issues, awards, or terminations. Specifically for AbilityOne contracts, understanding their experience in managing a workforce that includes individuals with disabilities, meeting program requirements, and delivering consistent service quality is crucial. Information on past performance, including customer satisfaction surveys or past performance evaluations, would provide insight into their reliability and capability. Without access to this specific performance history, it's difficult to definitively evaluate their track record.

What are the potential risks associated with a sole-source procurement under the AbilityOne program for janitorial services?

The primary risk associated with a sole-source procurement under the AbilityOne program is the potential for higher costs due to the lack of open market competition. While the program serves a vital social purpose, the absence of multiple bids may mean the government is not achieving the most economical price. Another risk could be related to service quality if the designated provider lacks sufficient experience or resources, although the AbilityOne program typically partners with entities experienced in employing individuals with disabilities. Ensuring robust oversight and clear performance standards is critical to mitigate these risks and guarantee that the government receives value for its investment while fulfilling the program's social objectives.

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: $20,767,074

Exercised Options: $20,767,074

Current Obligation: $20,767,074

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline