Interior's Bureau of Land Management awards $2.3M janitorial contract to Fairbanks Resource Agency, Inc

Contract Overview

Contract Amount: $2,305,608 ($2.3M)

Contractor: Fairbanks Resource Agency, Inc.

Awarding Agency: Department of the Interior

Start Date: 2021-07-01

End Date: 2026-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $1.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BLM FAIRBANKS JANITORIAL SERVICES

Place of Performance

Location: FAIRBANKS, FAIRBANKS NORTH STAR County, ALASKA, 99701

State: Alaska Government Spending

Plain-Language Summary

Department of the Interior obligated $2.3 million to FAIRBANKS RESOURCE AGENCY, INC. for work described as: BLM FAIRBANKS JANITORIAL SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract duration of five years suggests a need for consistent janitorial services. 3. Awarded as a purchase order, which is typically used for smaller, simpler acquisitions. 4. The contract was not competed, raising questions about potential cost savings through competition. 5. Services are being provided in Alaska, a region that may present unique logistical challenges. 6. The contractor, Fairbanks Resource Agency, Inc., is based in the service area.

Value Assessment

Rating: fair

The contract value of $2.3 million over five years for janitorial services is a significant investment. Without comparable contract data for similar services in Alaska or for the Bureau of Land Management, it is difficult to definitively benchmark the value. However, the firm-fixed-price structure provides cost certainty. The absence of competition means there's no direct market comparison to assess if this price represents optimal value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source purchase order, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can meet the specific requirements, or for smaller acquisitions where the administrative cost of a full competition might outweigh the potential benefits. The lack of competition limits the government's ability to leverage market forces to secure the best possible price and service.

Taxpayer Impact: Taxpayers may not be receiving the most competitive pricing due to the absence of a bidding process. This could result in a higher overall cost compared to what might have been achieved through open competition.

Public Impact

Federal facilities managed by the Bureau of Land Management in Fairbanks, Alaska, will receive janitorial services. The contract ensures a clean and sanitary working environment for federal employees and visitors. The services are geographically focused within the Fairbanks area of Alaska. The contract supports the operational needs of the Bureau of Land Management in its Alaska operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits opportunities for other vendors to secure government contracts.
Purchase orders can sometimes be less scrutinized than larger contract vehicles.

Positive Signals

Contract awarded to a local business in the service area.
Firm-fixed-price contract provides cost predictability.
Long-term contract (5 years) ensures continuity of essential services.

Sector Analysis

Janitorial services represent a significant segment of the facilities maintenance and management sector within the broader commercial services industry. Federal agencies, like the Bureau of Land Management, are consistent purchasers of these services to maintain government-owned buildings and grounds. While specific market size data for federal janitorial contracts in Alaska is not readily available, the overall federal spending on facilities maintenance is substantial, with competition often driving pricing for larger, competed contracts.

Small Business Impact

This contract was not competed and there is no indication of small business set-aside or subcontracting requirements. Therefore, it does not appear to directly benefit small businesses through this specific award. The sole-source nature limits opportunities for small businesses to compete for this particular service requirement.

Oversight & Accountability

As a purchase order, oversight may be less formalized than for larger, competitively awarded contracts. Accountability would primarily rest with the contracting officer and the Bureau of Land Management's facility managers to ensure services are rendered according to the terms of the agreement. Transparency is limited due to the sole-source nature and the use of a purchase order, which typically involves less public documentation than sealed bidding.

Related Government Programs

Federal Facilities Maintenance
Government Janitorial Services
Bureau of Land Management Operations

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited transparency in the procurement process.
Potential for higher costs compared to a competed contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.3 million to FAIRBANKS RESOURCE AGENCY, INC.. BLM FAIRBANKS JANITORIAL SERVICES

Who is the contractor on this award?

The obligated recipient is FAIRBANKS RESOURCE AGENCY, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Land Management).

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2021-07-01. End: 2026-06-30.

What is the track record of Fairbanks Resource Agency, Inc. with federal contracts?

Information regarding the specific track record of Fairbanks Resource Agency, Inc. with federal contracts is not provided in the given data. To assess their performance, one would typically look at past federal contract awards, performance reviews (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations. Without this data, it's difficult to evaluate their reliability and past success in fulfilling government requirements. Further research into federal procurement databases and performance records would be necessary.

How does the pricing of this contract compare to similar janitorial services?

The provided data does not include specific pricing details beyond the total contract value and duration, nor does it offer benchmarks for comparable janitorial services. To assess pricing, one would need to analyze the per-unit costs (e.g., cost per square foot, cost per cleaning hour) and compare them against market rates for similar services in the Fairbanks, Alaska region, as well as against other federal contracts for janitorial services. Given this is a sole-source award, a direct price comparison is challenging, and it's difficult to determine if the price is optimal without competitive data.

What are the primary risks associated with this sole-source contract?

The primary risks associated with this sole-source contract include potential overpricing due to the lack of competition, limited incentive for the contractor to innovate or improve service quality beyond the contract minimums, and a lack of transparency in the award process. There's also a risk that the chosen vendor may not be the most capable or cost-effective option available in the market. Furthermore, reliance on a single vendor can create vulnerabilities if that vendor experiences performance issues or financial instability.

How effective is the Bureau of Land Management in ensuring value for money with sole-source awards?

The effectiveness of the Bureau of Land Management (BLM) in ensuring value for money with sole-source awards can vary significantly. While sole-source awards are sometimes necessary due to unique requirements or limited vendor availability, they inherently reduce the government's leverage in price negotiation. The BLM's effectiveness would depend on its internal policies for justifying sole-source procurements, its diligence in market research to confirm the necessity of a sole source, and its negotiation skills with the chosen vendor. Robust internal controls and justification processes are crucial to mitigate the risks of not achieving best value.

What is the historical spending pattern for janitorial services by the Bureau of Land Management?

The provided data only pertains to a single contract award and does not offer insight into the Bureau of Land Management's (BLM) historical spending patterns for janitorial services. To understand historical spending, one would need to analyze procurement data over several fiscal years, identifying the total amount spent on janitorial services, the number of contracts awarded, the methods of procurement used (competed vs. sole-source), and the primary contractors. This would reveal trends, identify potential areas for cost savings, and assess the agency's reliance on specific vendors or procurement strategies.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 805 AIRPORT ROAD, FAIRBANKS, AK, 99701

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: $2,305,608

Exercised Options: $2,305,608

Current Obligation: $2,305,608

Actual Outlays: $2,015,411

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline