HHS awards $12.8M janitorial services contract to TEAM INCORPORATED, a firm fixed-price deal

Contract Overview

Contract Amount: $12,851,430 ($12.9M)

Contractor: Team Incorporated

Awarding Agency: Department of Health and Human Services

Start Date: 2002-09-15

End Date: 2008-09-30

Contract Duration: 2,207 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $12.9 million to TEAM INCORPORATED for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2207 days (approx. 6 years) indicates a long-term service need. 3. The firm fixed-price contract type shifts cost risk to the contractor. 4. Awarded by the Office of the Assistant Secretary for Administration, indicating internal operational support. 5. The contract is geographically focused on Maryland. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: fair

Benchmarking the value of this $12.8 million janitorial services contract is challenging without specific performance metrics or detailed service scope. However, the duration of over six years suggests a consistent need for these services. The firm fixed-price nature of the contract means the contractor bears the risk of cost overruns, which can be a positive for the government if managed effectively. Comparing this to other federal janitorial contracts would require detailed analysis of service levels, square footage, and geographic location.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 6 bidders indicates a healthy level of interest and competition for this service requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The robust competition for this contract suggests that taxpayers likely benefited from a competitive price, as multiple firms vied to win the business by offering their best terms.

Public Impact

Federal employees working in HHS facilities in Maryland benefit from a clean and maintained work environment. The services delivered include essential janitorial and cleaning functions to ensure facility hygiene and upkeep. The geographic impact is concentrated within Maryland, where the HHS facilities are located. The contract supports the operational needs of the Department of Health and Human Services, indirectly contributing to its mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to complacency if not actively managed.
Potential for price increases in future renewals if competition diminishes.
Dependence on a single contractor for essential facility services.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a competitive market for these services.
Contractor has a long-term commitment, potentially leading to specialized knowledge of facility needs.

Sector Analysis

The federal janitorial services market is a significant segment within the broader facilities management industry. Government agencies, like HHS, rely on these contracts to maintain a wide array of buildings and operational spaces. While specific market size data for federal janitorial services is not readily available, the overall facilities management market is valued in the hundreds of billions. This contract represents a portion of that spending, focused on essential cleaning and maintenance within a specific geographic region.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to participate in this specific contract are likely limited to subcontracting opportunities that may arise at the discretion of the prime contractor, TEAM INCORPORATED. The absence of set-aside provisions suggests that the primary focus of this procurement was on obtaining the best value through full and open competition.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Health and Human Services' contracting officers and program managers. The firm fixed-price nature of the contract implies that the government's primary oversight concern would be ensuring the contractor meets the defined service levels and performance standards outlined in the contract. Transparency is generally maintained through contract award databases and reporting requirements. Specific Inspector General jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified.

Related Government Programs

Federal Building Maintenance Contracts
Government Cleaning Services
HHS Facilities Management
Commercial Cleaning Services

Risk Flags

Long-term contract duration
Firm Fixed Price contract type requires strong performance monitoring
No explicit small business subcontracting goals mentioned

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.9 million to TEAM INCORPORATED. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is TEAM INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $12.9 million.

What is the period of performance?

Start: 2002-09-15. End: 2008-09-30.

What is the historical spending pattern for janitorial services at HHS, and how does this $12.8 million award compare?

Analyzing historical spending requires access to detailed HHS procurement data over multiple fiscal years. Without that specific data, a direct comparison is difficult. However, a $12.8 million award over approximately six years averages to roughly $2.1 million per year. This figure can be benchmarked against similar-sized federal facilities or agencies to gauge if it represents a typical investment for janitorial services. Factors such as the number of buildings, square footage, geographic location, and the scope of services (e.g., standard cleaning vs. specialized disinfection) significantly influence annual spending. A higher annual average might indicate a larger facility footprint or more intensive service requirements, while a lower average could suggest smaller facilities or more basic service needs.

What specific performance standards or service level agreements are associated with this contract?

The provided data does not detail the specific performance standards or service level agreements (SLAs) for this janitorial services contract. Typically, such contracts would include requirements for cleaning frequency, specific areas to be cleaned (e.g., restrooms, common areas, offices), standards for cleanliness (e.g., absence of visible dirt, odor control), and response times for urgent cleaning needs. The firm fixed-price nature suggests that the contractor is responsible for meeting these standards to receive full payment. Performance would likely be monitored by a government COR (Contracting Officer's Representative) who would track adherence to the SLAs and report any deficiencies.

How does the firm fixed-price contract type impact the government's financial risk and the contractor's operational approach?

A firm fixed-price (FFP) contract places the majority of the financial risk on the contractor. This means TEAM INCORPORATED is obligated to perform the work for the agreed-upon price, regardless of their actual costs. If their expenses for labor, supplies, or equipment exceed their estimates, their profit margin will decrease, or they could incur a loss. Conversely, if they manage their costs efficiently, their profit will increase. For the government, this FFP structure provides cost certainty, as the total price is fixed. It incentivizes the contractor to be highly efficient and cost-conscious to maximize their profit. The government's primary risk shifts from cost overruns to potential underperformance if the contractor cuts corners to save money, making robust performance monitoring crucial.

What is TEAM INCORPORATED's track record with federal contracts, particularly in janitorial or facility maintenance services?

Information regarding TEAM INCORPORATED's specific track record with federal contracts, especially in janitorial or facility maintenance, is not detailed in the provided data. To assess their performance history, one would need to consult federal procurement databases (like SAM.gov or FPDS) for past awards, contract performance evaluations (e.g., CPARS reports), and any history of contract disputes or terminations. A positive track record with similar contracts would indicate a lower risk for HHS, suggesting the contractor has demonstrated capability and reliability in delivering these types of services. Conversely, a history of poor performance or unresolved issues would raise concerns about their ability to meet the requirements of this new contract.

Given the 6 bidders, what does this suggest about the competitiveness and potential for price savings in the federal janitorial services market?

The fact that six bidders participated in this 'full and open competition' suggests a reasonably competitive market for janitorial services within the relevant geographic area and for the scope defined by HHS. A higher number of bidders generally correlates with better price discovery and a greater likelihood that the government secured a competitive price. If only one or two companies bid, it might indicate a less competitive market, potential barriers to entry for other firms, or a poorly defined requirement that deterred broader participation. The presence of six indicates that multiple firms were willing and able to compete, likely driving down the offered prices to secure the contract award.

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

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 7659B FULLERTON RD, SPRINGFIELD, VA, 22153

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

Financial Breakdown

Contract Ceiling: $45,072,129

Exercised Options: $38,426,625

Current Obligation: $12,851,430

Timeline