DHS Awards $27.1M for Custodial Services to J.P. Industries, Inc. Under SourceAmerica Program

Contract Overview

Contract Amount: $27,121,214 ($27.1M)

Contractor: J.P. Industries, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2016-09-01

End Date: 2021-07-31

Contract Duration: 1,794 days

Daily Burn Rate: $15.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF CUSTODIAL AND GROUNDS MAINTENANCE SERVICES UNDER THE SOURCEAMERICA PROGRAM - TUCSON SECTOR USBP.

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85703

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $27.1 million to J.P. INDUSTRIES, INC. for work described as: IGF::OT::IGF CUSTODIAL AND GROUNDS MAINTENANCE SERVICES UNDER THE SOURCEAMERICA PROGRAM - TUCSON SECTOR USBP. Key points: 1. Contract awarded to J.P. Industries, Inc. for janitorial services. 2. The contract is valued at $27.1 million over its duration. 3. Services are provided under the SourceAmerica program, which connects government agencies with non-profit agencies employing individuals with disabilities. 4. The contract was not available for competition. 5. The contract type is Firm Fixed Price.

Value Assessment

Rating: fair

The contract value of $27.1 million for janitorial services over nearly five years appears high compared to typical government contracts for similar services. Benchmarking against other custodial contracts of similar scope and duration is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited competition approach. This may impact price discovery and potentially lead to higher costs for taxpayers.

Taxpayer Impact: The lack of competition could result in higher costs for taxpayers compared to a fully competitive procurement.

Public Impact

Supports individuals with disabilities through the SourceAmerica program. Ensures essential custodial services for U.S. Customs and Border Protection facilities. Provides stable employment for individuals in Arizona. The contract's limited competition raises questions about cost-effectiveness for taxpayers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the janitorial services sector, specifically within the broader facilities maintenance category. Government spending on janitorial services is substantial, and contracts are often awarded through competitive bidding to ensure value for money.

Small Business Impact

The SourceAmerica program aims to create employment opportunities for individuals with disabilities, often through partnerships with businesses that may include small businesses or non-profits. Further analysis is needed to determine the extent of small business participation in this specific contract.

Oversight & Accountability

The contract's limited competition status warrants oversight to ensure fair pricing and effective service delivery. The use of the SourceAmerica program should be monitored to confirm it meets its social and operational objectives.

Related Government Programs

Risk Flags

Tags

janitorial-services, department-of-homeland-security, az, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $27.1 million to J.P. INDUSTRIES, INC.. IGF::OT::IGF CUSTODIAL AND GROUNDS MAINTENANCE SERVICES UNDER THE SOURCEAMERICA PROGRAM - TUCSON SECTOR USBP.

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 $27.1 million.

What is the period of performance?

Start: 2016-09-01. End: 2021-07-31.

What is the specific justification for limiting competition on this custodial services contract?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION'. Without further details, the specific justification remains unclear. Typically, justifications for limited competition might include unique capabilities, urgent needs, or specific program requirements like those under SourceAmerica. A thorough review of the justification documentation is necessary to assess its validity and impact on pricing.

How does the per-unit cost of these janitorial services compare to industry benchmarks, considering the SourceAmerica program's operational model?

Benchmarking the per-unit cost is challenging without detailed service breakdowns and specific operational models of SourceAmerica participants. While the program serves a valuable social purpose, its operational structure might differ from standard commercial janitorial services, potentially affecting cost comparisons. A detailed cost analysis, factoring in program overhead and employment goals, would be needed for an accurate benchmark.

What is the long-term effectiveness of using limited competition for essential services like custodial maintenance, particularly under specialized programs?

Limited competition for essential services can be effective in meeting specific program goals, such as employment for individuals with disabilities via SourceAmerica. However, it carries a risk of reduced cost-efficiency and innovation compared to open competition. Long-term effectiveness hinges on robust oversight, clear performance metrics, and periodic re-evaluation of the competition strategy to ensure value and service quality are maintained.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesServices to Buildings and DwellingsJanitorial Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HSBP1016R0044

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: $27,162,780

Exercised Options: $27,121,214

Current Obligation: $27,121,214

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2016-09-01

Current End Date: 2021-07-31

Potential End Date: 2021-07-31 07:38:57

Last Modified: 2022-09-28

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