VA awards $3.7M Janitorial Services BPA Call to HAMHED LLC for facilities support in Pennsylvania

Contract Overview

Contract Amount: $3,666,705 ($3.7M)

Contractor: Hamhed LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL SERVICES UNFUNDED OPTION YEAR

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19104

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.7 million to HAMHED LLC for work described as: JANITORIAL SERVICES UNFUNDED OPTION YEAR Key points: 1. Contract awarded via a Blanket Purchase Agreement (BPA) Call, indicating a pre-competed framework. 2. The contract is Firm Fixed Price, providing cost certainty for the VA. 3. Services are for facilities support, specifically janitorial, aligning with VA's operational needs. 4. The award is for an initial period of 364 days, with potential for future funding. 5. The contractor, HAMHED LLC, is relatively new to federal contracting based on available data. 6. The contract is not set aside for small businesses, suggesting a broader competitive field.

Value Assessment

Rating: fair

The award amount of $3.7 million for janitorial services over one year appears within a reasonable range for large-scale facilities support. However, without specific details on the scope of services (e.g., square footage, frequency of cleaning, specialized services), a precise value-for-money assessment is challenging. Benchmarking against similar janitorial contracts for federal facilities of comparable size and complexity would be necessary for a more definitive evaluation. The firm-fixed-price structure mitigates cost overrun risks for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a Full and Open Competition via a BPA Call. This suggests that multiple vendors had the opportunity to bid on the underlying BPA, and then this specific call likely involved competition among those BPA holders. The exact number of bidders for this specific call is not provided, but the 'full and open' designation implies a robust competitive process was intended.

Taxpayer Impact: A full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

Benefits the Department of Veterans Affairs by ensuring clean and sanitary facilities for veterans and staff. Provides essential janitorial services, contributing to a safe and healthy environment within VA facilities. The geographic impact is focused on Pennsylvania, supporting local VA operations. Creates or sustains employment opportunities for janitorial staff within the contractor's workforce. Ensures compliance with health and safety standards for federal buildings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited public information on HAMHED LLC's past performance and capacity for a contract of this size.
The contract is for an unfunded option year, raising questions about budget allocation and future funding certainty.
Lack of specific performance metrics or KPIs in the provided data makes it difficult to assess service quality expectations.

Positive Signals

Awarded under a full and open competition, suggesting a competitive bidding process.
Firm Fixed Price contract type provides cost certainty for the government.
The BPA Call mechanism implies a pre-vetted pool of contractors, potentially streamlining future awards.

Sector Analysis

The facilities support services sector, including janitorial, is a significant component of government contracting. Federal agencies rely heavily on these services to maintain operational readiness and provide a safe environment. Spending in this category is often driven by the number and size of federal facilities. While specific market size data for janitorial services within the federal government is not readily available, it represents a consistent and substantial expenditure across numerous agencies.

Small Business Impact

This contract was not awarded as a small business set-aside. The 'full and open' competition suggests that large businesses were likely eligible and potentially participated. There is no explicit information provided regarding subcontracting plans or goals for small businesses on this specific BPA Call. Further analysis would be needed to determine if small businesses are involved in the supply chain or subcontracting opportunities related to this award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers. As a BPA Call, the underlying BPA likely has established oversight mechanisms. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Facilities Maintenance Contracts
Government Janitorial Services
Department of Veterans Affairs Support Services
Blanket Purchase Agreements (BPAs)

Risk Flags

Contractor Performance Risk
Budget Uncertainty (Unfunded Option Year)
Scope Definition Clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.7 million to HAMHED LLC. JANITORIAL SERVICES UNFUNDED OPTION YEAR

Who is the contractor on this award?

The obligated recipient is HAMHED LLC.

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 $3.7 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the track record of HAMHED LLC in performing federal janitorial contracts?

Based on the provided data, HAMHED LLC is the awardee of this specific BPA Call for janitorial services. Further investigation into federal procurement databases (like FPDS or SAM.gov) would be necessary to ascertain HAMHED LLC's broader track record. This would include examining previous contract awards, performance evaluations (if publicly available), and any history of disputes or issues. Without this additional data, it is difficult to provide a comprehensive assessment of their past performance specifically in federal janitorial services.

How does the awarded price compare to similar janitorial contracts for federal facilities?

A direct comparison of the $3.7 million award for one year is challenging without detailed scope information. However, federal janitorial contracts can range significantly based on facility size, services required (e.g., deep cleaning, specialized sanitation), and geographic location. For large federal complexes or multiple facilities within a region, this amount could be competitive. Benchmarking against contracts for similar VA facilities or other large federal buildings in Pennsylvania would provide a more accurate assessment of value. The firm-fixed-price nature helps control costs, but the underlying unit rates and service levels are key to true value.

What are the primary risks associated with this contract award?

Key risks include potential performance deficiencies if HAMHED LLC lacks sufficient experience or resources for the scale of services required, despite the full and open competition. The 'unfunded option year' status raises concerns about future budget appropriations and potential contract termination if funding is not secured. Additionally, reliance on a single contractor for essential janitorial services means any disruption in service could impact facility operations and health standards. The limited public information on the contractor's history adds a layer of uncertainty regarding reliability and quality.

How effective is the competition level in ensuring fair pricing for these janitorial services?

The 'full and open competition' designation suggests a robust process aimed at achieving fair pricing. This typically involves multiple bidders vying for the contract, driving down costs through market forces. However, the effectiveness is also dependent on the specific competition for this BPA Call. If only a few vendors participated, or if the underlying BPA had limited competition, the price discovery might be less optimal. The firm-fixed-price structure further supports fair pricing by setting a ceiling on costs, but the initial bid prices are what truly reflect the competitive landscape.

What is the historical spending pattern for janitorial services at this specific VA facility or region?

Analyzing historical spending for janitorial services at the relevant VA facility or within the Pennsylvania region would provide crucial context. This involves reviewing past contract awards for similar services, noting the contractors, award amounts, and contract durations. Significant year-over-year increases or decreases in spending could indicate changes in service scope, inflation, or shifts in procurement strategy. Understanding this pattern helps determine if the current $3.7 million award represents a continuation of established spending levels or a notable deviation, potentially signaling a need for further justification or scrutiny.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 410 WALL ST, JEFFERSONVILLE, IN, 47130

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,666,705

Exercised Options: $3,666,705

Current Obligation: $3,666,705

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24423A0003

IDV Type: BPA

Timeline