USDA Forest Service Awards $16M Janitorial Contract to KCAPEX LLC for New Mexico Facilities

Contract Overview

Contract Amount: $16,000 ($16.0K)

Contractor: Kcapex LLC

Awarding Agency: Department of Agriculture

Start Date: 2026-04-13

End Date: 2031-03-31

Contract Duration: 1,813 days

Daily Burn Rate: $9/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RESERVE RD JANITORIAL

Place of Performance

Location: RESERVE, CATRON County, NEW MEXICO, 87830

State: New Mexico Government Spending

Plain-Language Summary

Department of Agriculture obligated $16,000 to KCAPEX LLC for work described as: RESERVE RD JANITORIAL Key points: 1. Contract value of $16 million over its term. 2. Competition method indicates potential for price discovery. 3. Risk factors include contract duration and firm fixed price. 4. Sector is primarily facilities maintenance and janitorial services.

Value Assessment

Rating: fair

The contract value of $16 million over approximately 5 years suggests a moderate annual spend. Benchmarking against similar janitorial service contracts would be necessary to assess if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting it was likely awarded to a small business or through a limited competition. This method may not achieve the same level of price discovery as full and open competition.

Taxpayer Impact: The firm fixed price structure aims to control costs, but the limited competition could potentially lead to a higher-than-optimal price for taxpayers.

Public Impact

Ensures cleanliness and maintenance of Forest Service facilities in New Mexico. Supports local employment through the contractor, KCAPEX LLC. Provides essential services for government operations and public access.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long (over 5 years).
Firm Fixed Price can lead to contractor profit if costs are lower than expected.
Limited competition may reduce price competitiveness.

Positive Signals

Contract competed under SAP, potentially benefiting small businesses.
Definitive contract provides clear terms and conditions.

Sector Analysis

This contract falls within the facilities support services sector, specifically janitorial services. Spending benchmarks for this sector vary widely based on facility size, location, and service scope. Government contracts for janitorial services are common across many agencies.

Small Business Impact

The contract was competed under SAP, which often favors small business participation. Further analysis would be needed to confirm if KCAPEX LLC is a small business and if the competition effectively reached a broad range of potential small business offerors.

Oversight & Accountability

Oversight will be crucial to ensure KCAPEX LLC meets the janitorial service requirements outlined in the definitive contract. The Forest Service contracting officer's representative will be responsible for monitoring performance and ensuring compliance.

Related Government Programs

Janitorial Services
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Long contract duration (over 5 years).
Firm Fixed Price contract type.
Limited competition under SAP.
Potential for service quality degradation over time.
Lack of detailed cost breakdown for benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $16,000 to KCAPEX LLC. RESERVE RD JANITORIAL

Who is the contractor on this award?

The obligated recipient is KCAPEX LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $16,000.

What is the period of performance?

Start: 2026-04-13. End: 2031-03-31.

What is the estimated annual cost of this contract, and how does it compare to industry benchmarks for similar janitorial services in New Mexico?

The total contract value is $16 million over approximately 5 years, suggesting an average annual cost of $3.2 million. A detailed comparison against industry benchmarks for janitorial services in New Mexico, considering factors like square footage, service frequency, and specific tasks, is needed to assess value for money. Without this, it's difficult to definitively state if the pricing is optimal.

What are the primary risks associated with the firm fixed price contract type and the long duration, and how are they mitigated?

The primary risks include potential contractor profit inflation if costs are lower than anticipated (firm fixed price) and potential for service quality degradation over a long period (1813 days). Mitigation strategies could involve robust performance standards, clear quality assurance surveillance plans, and regular performance reviews by the Forest Service.

How effectively did the Simplified Acquisition Procedures (SAP) competition identify the best value and ensure fair pricing for these janitorial services?

SAP competition aims for efficiency and speed, often suitable for smaller dollar amounts. While it can foster small business participation, it may not always yield the same level of price competition or innovative solutions as full and open competition. The effectiveness in this case depends on the number of bids received and the transparency of the evaluation process.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 127EAV26Q0031

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1741 W 86TH LN, MERRILLVILLE, IN, 46410

Business Categories: Black American Owned Business, Category Business, Community Developed Corporation Owned Firm, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $84,546

Exercised Options: $16,000

Current Obligation: $16,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline