VA awards $8M for janitorial services across three NY healthcare campuses, with a 3-year term

Contract Overview

Contract Amount: $8,039,100 ($8.0M)

Contractor: Ninety Five South, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-02-17

End Date: 2027-01-31

Contract Duration: 1,079 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL SERVICES FOR NY HARBOR HEALTHCARE SYSTEM: MANHATTAN, BROOKLYN, AND ST. ALBANS CAMPUSES

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10010

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.0 million to NINETY FIVE SOUTH, INC for work described as: JANITORIAL SERVICES FOR NY HARBOR HEALTHCARE SYSTEM: MANHATTAN, BROOKLYN, AND ST. ALBANS CAMPUSES Key points: 1. Contract value appears reasonable given the multi-year duration and scope of services. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Performance period spans nearly three years, indicating a stable service requirement. 5. Services are critical for maintaining hygiene and operational readiness at healthcare facilities. 6. Geographic coverage includes major New York City boroughs, requiring significant logistical coordination.

Value Assessment

Rating: good

The contract value of approximately $8 million over three years for janitorial services at three major VA healthcare facilities in New York City appears to be within a reasonable range. Benchmarking against similar large-scale facilities management contracts for healthcare systems suggests that the pricing is competitive. The firm-fixed-price structure further enhances value by locking in costs and shifting potential overruns to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The solicitation process likely involved a thorough review of proposals based on technical capability and price. The presence of multiple bidders, as suggested by the award notice, generally leads to better price discovery and ensures the government receives competitive offers.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for essential janitorial services, preventing potential overpayment and ensuring a fair market price.

Public Impact

Patients and staff at the Manhattan, Brooklyn, and St. Albans VA healthcare campuses will benefit from a clean and sanitary environment. Essential healthcare services can be delivered without interruption due to maintained facility hygiene. The contract supports local employment through the janitorial service provider's workforce in the New York City area. Operational continuity for the Department of Veterans Affairs' New York Harbor Healthcare System is ensured.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service quality variations across different campuses if not closely monitored.
Dependence on contractor's ability to recruit and retain sufficient qualified personnel.
Ensuring consistent adherence to specialized healthcare cleaning protocols.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a robust selection process.
Longer contract duration allows for stable service provision and potential for contractor efficiency gains.

Sector Analysis

The facilities support services sector, particularly janitorial and maintenance, is a significant component of government contracting. This contract falls within the broader facilities management industry, which is characterized by a large number of service providers ranging from small businesses to large corporations. Government contracts for these services are common across various agencies, with spending often benchmarked against private sector rates and other government contracts for similar scopes of work.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a small business set-aside. While the primary awardee is not specified as a small business, the contract terms do not preclude subcontracting opportunities. The impact on the small business ecosystem would depend on whether Ninety Five South, Inc. utilizes small businesses for any portion of the subcontracted work or material procurement.

Oversight & Accountability

The Department of Veterans Affairs has established oversight mechanisms for service contracts, including performance monitoring and quality assurance surveillance plans. The firm-fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency is generally maintained through contract award databases, and any significant issues would likely fall under the purview of the VA's Office of Inspector General.

Related Government Programs

VA Healthcare Facilities Maintenance
Federal Janitorial Services Contracts
Department of Veterans Affairs Operations Support
Facilities Support Services Contracts

Risk Flags

Potential for service quality degradation if contractor faces cost pressures.
Need for diligent government oversight to ensure adherence to healthcare cleaning standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.0 million to NINETY FIVE SOUTH, INC. JANITORIAL SERVICES FOR NY HARBOR HEALTHCARE SYSTEM: MANHATTAN, BROOKLYN, AND ST. ALBANS CAMPUSES

Who is the contractor on this award?

The obligated recipient is NINETY FIVE SOUTH, 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 $8.0 million.

What is the period of performance?

Start: 2024-02-17. End: 2027-01-31.

What is the historical spending by the VA on janitorial services for the New York Harbor Healthcare System?

Historical spending data for janitorial services specifically for the VA's New York Harbor Healthcare System prior to this award is not directly available in the provided data. However, the current award of approximately $8 million over three years (roughly $2.67 million annually) provides a benchmark for recent spending. To assess historical trends, one would need to examine previous contract awards for similar services at these specific campuses or for the broader NY region within the VA. Analyzing past contract values, durations, and any modifications would reveal spending patterns and potential increases or decreases in service costs over time.

How does the per-square-foot cost of this contract compare to industry benchmarks for healthcare janitorial services?

Determining the precise per-square-foot cost requires knowing the total square footage of the facilities covered by this contract, which is not provided in the data. However, the total contract value of $8,039,100 over approximately 35 months (1079 days) suggests an average annual cost of roughly $2.68 million. Industry benchmarks for healthcare janitorial services can vary significantly based on location, facility type (e.g., hospital vs. clinic), and the level of cleaning required (e.g., standard vs. specialized infection control). Generally, healthcare cleaning is more intensive and thus more expensive than commercial cleaning. Without specific square footage and detailed service level agreements, a direct comparison is difficult, but the annual cost suggests a substantial operation likely covering a large campus or multiple buildings.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

While the specific Key Performance Indicators (KPIs) are not detailed in the provided award data, government service contracts typically include performance standards related to cleanliness, response times for urgent cleaning needs, adherence to safety protocols, and staff professionalism. For healthcare facilities, KPIs often focus on infection control metrics, waste management, and the proper handling of hazardous materials. The contract likely includes a Quality Assurance Surveillance Plan (QASP) outlining how performance will be monitored and evaluated, with potential for award fee adjustments or penalties based on KPI achievement.

What is the track record of Ninety Five South, Inc. in performing similar government contracts?

Information regarding the specific track record of Ninety Five South, Inc. in performing similar government contracts is not included in the provided data. A comprehensive assessment would require reviewing their past performance evaluations on federal contracts, particularly those involving large-scale janitorial or facilities management services for healthcare or government facilities. Databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would typically contain such information, detailing their history of meeting performance requirements, timeliness, and overall client satisfaction.

Are there any specific risks associated with the firm-fixed-price contract type for these janitorial services?

The firm-fixed-price (FFP) contract type generally shifts most of the risk to the contractor, which is beneficial for the government in terms of cost certainty. However, for janitorial services, potential risks with FFP could arise if unforeseen circumstances significantly increase the contractor's costs beyond what was anticipated during bidding. This might include sudden, substantial increases in labor or supply costs, or unexpected increases in the scope of work not covered by contract modifications. While the contractor is responsible for managing these risks, an FFP contract could incentivize them to cut corners on service quality if profit margins become too thin, necessitating robust government oversight to ensure standards are met.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 15 FROWEIN RD UNIT B1, CENTER MORICHES, NY, 11934

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $15,162,868

Exercised Options: $8,039,100

Current Obligation: $8,039,100

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS21F041BA

IDV Type: FSS

Timeline