VA awards $2.15M janitorial contract to Ability Works Inc. in California

Contract Overview

Contract Amount: $2,152,890 ($2.2M)

Contractor: Ability Works Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-04-01

End Date: 2026-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $1.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL SERVICES AT JACKSON RO

Place of Performance

Location: DELANO, KERN County, CALIFORNIA, 93216

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.2 million to ABILITY WORKS INC for work described as: JANITORIAL SERVICES AT JACKSON RO Key points: 1. Contract awarded as a purchase order, indicating a streamlined procurement process. 2. The contract duration of 1460 days suggests a long-term need for these services. 3. Fixed-price contract type helps manage cost certainty for the agency. 4. The contract is not subject to small business set-aside provisions. 5. Geographic focus on California for janitorial services.

Value Assessment

Rating: fair

The contract value of $2.15 million over approximately four years for janitorial services appears to be within a reasonable range for a federal facility of significant size. Benchmarking against similar janitorial contracts for federal buildings of comparable square footage and service scope would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract offers cost predictability, but the absence of detailed performance metrics or service level agreements in the provided data makes a thorough value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning it was not openly competed. The data indicates it was 'NOT AVAILABLE FOR COMPETITION'. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. Without competition, there is a reduced opportunity for price discovery and potentially less incentive for the contractor to offer the most competitive pricing.

Taxpayer Impact: Sole-source awards can sometimes lead to higher costs for taxpayers compared to competitively bid contracts, as the government does not benefit from the downward pressure that multiple bidders can exert on prices.

Public Impact

Provides essential janitorial services to maintain the cleanliness and sanitation of a Department of Veterans Affairs facility. Ensures a safe and healthy environment for veterans, staff, and visitors. Supports the operational readiness of the VA facility in California. Creates employment opportunities through the contractor, Ability Works Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in suboptimal pricing for taxpayers.
Limited transparency into the specific service requirements and performance standards.
Potential for cost overruns if scope creep occurs without adequate oversight.

Positive Signals

Firm fixed-price contract provides cost certainty.
Long contract duration indicates a stable, ongoing need for services.
Award to Ability Works Inc. supports a specific business entity.

Sector Analysis

Janitorial services fall under the broader facilities maintenance and management sector. This sector is characterized by a mix of large, established companies and smaller, specialized service providers. Federal contracts for janitorial services are common across various agencies to maintain government buildings and installations. The market size for federal janitorial contracts is substantial, driven by the extensive real estate portfolio managed by agencies like the Department of Veterans Affairs. Benchmarking against similar contracts would involve comparing pricing and service levels for janitorial work in federal buildings of comparable size and complexity.

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 indicated in the provided data. The award to Ability Works Inc. does not directly contribute to the government's small business contracting goals through this specific vehicle. Further investigation into Ability Works Inc.'s size status and subcontracting practices would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officer and their representatives. As a purchase order, the oversight mechanisms might be less formalized than for larger, more complex contract types. Transparency is limited by the available data, but the contract details and performance would typically be managed through internal VA procedures. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Janitorial Services Contracts
Department of Veterans Affairs Facility Maintenance
Purchase Orders
Firm Fixed Price Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited data on contractor past performance.
Absence of detailed service level agreements.
Potential for higher costs due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.2 million to ABILITY WORKS INC. JANITORIAL SERVICES AT JACKSON RO

Who is the contractor on this award?

The obligated recipient is ABILITY WORKS 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 $2.2 million.

What is the period of performance?

Start: 2022-04-01. End: 2026-03-31.

What is the specific performance history of Ability Works Inc. with federal contracts, particularly for janitorial services?

The provided data does not include specific performance history details for Ability Works Inc. To assess their track record, one would need to consult federal procurement databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). These systems often contain past performance evaluations, including ratings on quality, timeliness, cost control, and customer satisfaction for previous contracts. A review of these records would reveal if Ability Works Inc. has a history of successful contract completion, any past performance issues, or disputes with federal agencies. Without this information, it is difficult to gauge their reliability and capability for this specific janitorial services contract.

How does the awarded price compare to market rates for similar janitorial services in California?

The provided data does not include sufficient detail to benchmark the price against market rates. Key missing information includes the square footage of the facility, the specific scope of services (e.g., frequency of cleaning, types of areas serviced, specialized cleaning requirements), and the labor rates. To perform a comparison, one would need to gather data on average janitorial service costs per square foot or per hour for commercial and government facilities in the relevant geographic area of California. Comparing the total contract value ($2.15 million) spread over the contract duration (1460 days) and considering the estimated labor and material costs against industry benchmarks would be necessary. The sole-source nature of the award also limits the ability to infer a competitive market price.

What are the specific risks associated with a sole-source award for janitorial services?

The primary risk associated with a sole-source award for janitorial services is the potential for inflated pricing due to the lack of competition. Without competing bids, the contractor may not feel pressured to offer the most cost-effective solution, potentially leading to higher costs for the government and taxpayers. Another risk is reduced incentive for the contractor to innovate or improve service quality beyond the minimum required, as there is no direct competitive threat. Furthermore, a sole-source award can limit transparency in the procurement process and may raise questions about whether the government truly obtained the best value. Ensuring robust contract oversight and performance management becomes even more critical in sole-source situations to mitigate these risks.

What is the expected impact of this contract on the operational efficiency of the VA facility?

This contract is expected to have a positive impact on the operational efficiency of the VA facility by ensuring a consistently clean and sanitary environment. Regular janitorial services are crucial for maintaining building infrastructure, preventing the spread of germs, and creating a conducive atmosphere for healthcare delivery and administrative functions. A well-maintained facility contributes to staff morale, patient comfort, and overall safety. The long-term nature of the contract suggests a commitment to sustained operational standards. The efficiency impact is directly tied to the quality and reliability of the services provided by Ability Works Inc., which should be monitored through performance metrics.

How has federal spending on janitorial services in California trended over the past five years?

Analyzing federal spending trends on janitorial services in California over the past five years requires access to comprehensive federal procurement data. Generally, spending in this category is influenced by factors such as the number of federal facilities in the state, their maintenance needs, and budget allocations for facility operations. Agencies like the Department of Defense, General Services Administration (GSA), and the Department of Veterans Affairs are significant spenders in this area. Trends could show an increase due to aging infrastructure requiring more maintenance, or fluctuations based on agency budget cycles and priorities. Specific data for California would reveal if there's been a consistent rise, decrease, or stabilization in this type of contracting.

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: 36C10E22Q0070

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3895 BEASLEY RD, JACKSON, MS, 39213

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: $2,705,337

Exercised Options: $2,152,890

Current Obligation: $2,152,890

Actual Outlays: $2,015,664

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline