Treasury's $3.98M Janitorial Contract with SW Resources Raises Questions on Competition and Value

Contract Overview

Contract Amount: $3,985,154 ($4.0M)

Contractor: SW Resources, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2023-04-01

End Date: 2026-12-31

Contract Duration: 1,370 days

Daily Burn Rate: $2.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ABILITYONE JANITORIAL SUPPORT SERVICES

Place of Performance

Location: PARKERSBURG, WOOD County, WEST VIRGINIA, 26101

State: West Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $4.0 million to SW RESOURCES, INC. for work described as: ABILITYONE JANITORIAL SUPPORT SERVICES Key points: 1. The contract for janitorial services is valued at $3.98 million over its duration. 2. SW Resources, Inc. is the sole awardee, with the contract type listed as 'NOT AVAILABLE FOR COMPETITION'. 3. The lack of competition raises concerns about potential overpricing and limited taxpayer value. 4. The sector is Facilities Support Services (NAICS 561720).

Value Assessment

Rating: questionable

The contract is firm fixed price, which can offer cost certainty. However, without competitive bidding, it's difficult to assess if the $3.98 million price represents fair market value for janitorial services in West Virginia.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is designated as 'NOT AVAILABLE FOR COMPETITION', indicating a limited competition approach. This significantly restricts price discovery and may lead to higher costs for taxpayers compared to an open competition.

Taxpayer Impact: The lack of competitive bidding limits the government's ability to secure the best possible price, potentially resulting in inefficient use of taxpayer funds.

Public Impact

Taxpayers may be paying more than necessary for janitorial services due to the absence of competitive bidding. The contract's duration of over 3 years (1370 days) locks in this pricing structure. Limited transparency into the justification for 'NOT AVAILABLE FOR COMPETITION' hinders public understanding of the procurement decision.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Limited transparency on award justification

Positive Signals

Firm fixed price contract type offers some cost certainty

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically janitorial services. Benchmarks for janitorial services can vary widely based on location, scope, and service level, but competitive procurement typically drives prices down.

Small Business Impact

The data does not indicate whether SW Resources, Inc. is a small business. The contract was not set aside for small businesses, and the 'NOT AVAILABLE FOR COMPETITION' status further complicates analysis of small business participation.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' designation warrants further scrutiny to ensure proper justification and adherence to procurement regulations. Oversight should focus on the rationale behind limiting competition and ensuring fair pricing.

Related Government Programs

Janitorial Services
Department of the Treasury Contracting
Bureau of the Fiscal Service Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency on award justification
No clear indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $4.0 million to SW RESOURCES, INC.. ABILITYONE JANITORIAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SW RESOURCES, INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $4.0 million.

What is the period of performance?

Start: 2023-04-01. End: 2026-12-31.

What is the specific justification for awarding this janitorial contract on a limited competition basis, and how does it align with federal procurement regulations?

Federal procurement regulations allow for limited competition under specific circumstances, such as when only one responsible source can satisfy the agency's needs. The justification for this contract's limited competition status would need to be documented by the Bureau of the Fiscal Service. Without access to that documentation, it's impossible to definitively assess its alignment with regulations, but the lack of competition inherently raises concerns about potential missed opportunities for better pricing and service.

How does the $3.98 million contract value compare to industry benchmarks for similar janitorial services in West Virginia, considering the duration and scope?

Directly comparing the $3.98 million contract value without detailed scope of work and specific service levels is challenging. However, the absence of competitive bidding suggests the price may not reflect the most cost-effective market rate. Industry benchmarks for janitorial services vary significantly, but competitive solicitations typically yield prices that are more aligned with market realities than sole-source or limited-competition awards.

What mechanisms are in place to ensure the quality and effectiveness of janitorial services provided by SW Resources, Inc. under this contract, given the limited competition?

Contract performance is typically monitored through quality assurance surveillance plans (QASPs) and contract officer representative (COR) oversight, regardless of the competition method. The Department of the Treasury's Bureau of the Fiscal Service should have established procedures to track service delivery, address deficiencies, and ensure the contractor meets the contract's requirements. However, the lack of competitive pressure might reduce the contractor's incentive to proactively exceed expectations.

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: ONLY ONE SOURCE

Solicitation ID: RFP FSA-30300100-23-039

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1007 MARY ST, PARKERSBURG, WV, 26101

Business Categories: AbilityOne Program Participant, Category Business, Community Development Corporation, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,438,634

Exercised Options: $3,985,154

Current Obligation: $3,985,154

Actual Outlays: $3,532,753

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline