Va's $27.3M Janitorial Services Contract Awarded to Ahtna Technical Services, Inc

Contract Overview

Contract Amount: $27,262,844 ($27.3M)

Contractor: Ahtna Technical Services, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2009-07-01

End Date: 2014-09-30

Contract Duration: 1,917 days

Daily Burn Rate: $14.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL SERVICES FOR MATHER AND MCCLELLAN

Place of Performance

Location: SACRAMENTO, SACRAMENTO County, CALIFORNIA, 94257

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $27.3 million to AHTNA TECHNICAL SERVICES, INC. for work described as: JANITORIAL SERVICES FOR MATHER AND MCCLELLAN Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract was not competitively procured, raising questions about potential price efficiencies. 3. A long duration of 1917 days suggests a stable, ongoing need for these services. 4. The contract's value places it within a significant spending range for facility maintenance. 5. Services are concentrated in California, indicating a specific geographic focus for the VA. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

Benchmarking the value of this janitorial services contract is challenging without comparable contract data for similar facilities and service scopes. The firm-fixed-price structure provides cost certainty for the VA, but the lack of competition means there's no direct market comparison to assess if the price represents optimal value for money. The total value of over $27 million over approximately five years suggests a substantial investment in maintaining these facilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other vendors. This approach is typically used when a specific contractor is uniquely qualified or when circumstances prevent a competitive process. The lack of competition limits the VA's ability to leverage market forces to potentially secure lower pricing or more innovative service delivery.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other businesses to secure government contracts.

Public Impact

Beneficiaries include personnel and visitors at the Mather and McClellan facilities, who will experience improved hygiene and facility upkeep. The primary service delivered is janitorial and custodial maintenance, ensuring cleanliness and sanitation. The geographic impact is localized to California, specifically the areas served by the Mather and McClellan facilities. Workforce implications include employment opportunities for janitorial staff managed by AHTNA TECHNICAL SERVICES, INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in suboptimal pricing.
Sole-source award limits transparency and potential for cost savings.
Long contract duration without competition could mask inefficiencies.
No explicit small business set-aside raises concerns about broader economic impact.

Positive Signals

Firm-fixed-price contract provides budget certainty for the VA.
Long-term contract suggests a stable and reliable service provider.
Focus on janitorial services addresses essential facility maintenance needs.

Sector Analysis

The janitorial services sector is a significant component of the broader facilities management industry. Government contracts for these services are common across various agencies to maintain federal buildings and installations. While specific market size data for federal janitorial services is not readily available, the industry is characterized by numerous small, medium, and large providers. This contract represents a substantial single award within this sector for the Department of Veterans Affairs.

Small Business Impact

This contract does not appear to have a small business set-aside. The sole-source nature of the award further limits the direct involvement of small businesses unless they are subcontractors to AHTNA TECHNICAL SERVICES, INC. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses and if they were utilized.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are established through the contract's performance work statement and reporting requirements. Transparency is limited due to the sole-source nature of the award, but contract details and performance metrics should be accessible through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Building Maintenance Contracts
Department of Veterans Affairs Facility Operations
Government Janitorial Services
Sole-Source Service Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated costs due to lack of competition.
Limited transparency in contract pricing and performance.
No explicit small business subcontracting goals identified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $27.3 million to AHTNA TECHNICAL SERVICES, INC.. JANITORIAL SERVICES FOR MATHER AND MCCLELLAN

Who is the contractor on this award?

The obligated recipient is AHTNA TECHNICAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $27.3 million.

What is the period of performance?

Start: 2009-07-01. End: 2014-09-30.

What is the track record of AHTNA TECHNICAL SERVICES, INC. with federal contracts, particularly for janitorial services?

A review of federal procurement data indicates that AHTNA TECHNICAL SERVICES, INC. has been awarded multiple federal contracts, including those for janitorial and facilities maintenance services. Their performance history across these contracts would need to be assessed to understand their reliability, quality of service, and adherence to contract terms. Specific details on past performance, including any awards or penalties, would provide a clearer picture of their capabilities and suitability for this significant contract. Without access to detailed past performance reviews, it's difficult to definitively assess their track record beyond the fact they have secured federal work.

How does the per-square-foot cost of these janitorial services compare to industry benchmarks or similar VA contracts?

Determining the per-square-foot cost requires specific data on the total square footage of the Mather and McClellan facilities covered by this contract, which is not provided in the summary data. Without this information, a direct cost-per-square-foot comparison is not possible. Generally, janitorial service costs can vary significantly based on the type of facility, the level of service required (e.g., standard cleaning vs. specialized sanitation), geographic location (labor costs), and the specific tasks included in the contract. A firm-fixed-price contract awarded without competition makes it harder to benchmark against market rates, as there's no direct competitive pricing to compare against.

What are the specific risks associated with awarding a large, long-term janitorial contract on a sole-source basis?

The primary risks associated with a sole-source, long-term janitorial contract include potential overpayment due to the lack of competitive pressure to drive down prices, reduced incentive for the contractor to innovate or improve service quality beyond the minimum requirements, and a lack of flexibility if the VA's needs change significantly over the contract's duration. There's also a risk of contractor lock-in, making it difficult and costly to switch providers if performance issues arise or if better value becomes available elsewhere. Furthermore, the absence of competition limits opportunities for other capable businesses to serve the government.

What is the expected impact of these janitorial services on the operational efficiency and health standards at Mather and McClellan facilities?

Effective janitorial services are crucial for maintaining high health and safety standards within federal facilities, which directly impacts the well-being of personnel and visitors. Cleanliness can reduce the spread of illness, improve morale, and contribute to a more productive work environment. For facilities like those managed by the VA, stringent hygiene standards are particularly important. The consistent delivery of these services, as intended by this contract, should lead to improved operational efficiency by ensuring facilities are well-maintained, safe, and presentable, thereby supporting the core missions of the facilities.

How has VA spending on janitorial services evolved over time, and does this contract represent a significant shift?

Analyzing the VA's historical spending on janitorial services would require a broader dataset than what is provided. This specific contract, valued at approximately $27.3 million over its duration, represents a substantial investment for facility maintenance. Without comparative data on previous contracts for these specific facilities or similar-sized VA installations, it's difficult to determine if this award signifies a major shift in spending patterns. However, the trend towards consolidating services into larger contracts or utilizing sole-source awards for specific needs could be a broader agency or federal trend influencing such awards.

Were there any justifications provided for the sole-source award, and do they align with federal acquisition regulations?

Federal Acquisition Regulation (FAR) Part 6 outlines the policies and procedures for contracting, including circumstances under which a sole-source (or non-competitive) award is permissible. Justifications typically include situations where only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling need. For this contract, the specific justification for the sole-source award is not detailed in the provided data. However, for such an award to be compliant, the VA would have had to formally document and approve a justification that meets the stringent criteria outlined in the FAR, such as unique capabilities of the contractor or specific circumstances preventing competition.

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

Solicitation ID: VA-261-09-RP-0009

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ahtna, Incorporated (UEI: 069586055)

Address: 560 E 34TH ST STE 300, ANCHORAGE, AK, 00

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $27,262,844

Exercised Options: $27,262,844

Current Obligation: $27,262,844

Contract Characteristics

Multi-Year Contract: Yes

Timeline