VA awards $3.9M janitorial contract to Superior Keystone LLC for 3 years

Contract Overview

Contract Amount: $3,925,093 ($3.9M)

Contractor: Superior Keystone LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-08-17

End Date: 2026-09-30

Contract Duration: 1,140 days

Daily Burn Rate: $3.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL SERVICES

Place of Performance

Location: ASHEVILLE, BUNCOMBE County, NORTH CAROLINA, 28805

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.9 million to SUPERIOR KEYSTONE LLC for work described as: JANITORIAL SERVICES Key points: 1. Contract awarded via a competitive process, suggesting potential for good value. 2. Fixed-price contract type helps mitigate cost overrun risks. 3. Performance period extends over three years, indicating a need for sustained services. 4. The contract is for janitorial services, a common and essential facility support function. 5. Geographic focus on North Carolina for service delivery. 6. Contract value appears moderate for the duration and scope of services.

Value Assessment

Rating: good

The contract value of approximately $3.9 million over three years for janitorial services appears reasonable. Benchmarking against similar federal contracts for janitorial services in the Southeast region suggests this award falls within typical spending ranges for the scope and duration. The firm fixed-price structure provides cost certainty for the government, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process was utilized for awards below certain thresholds. While the specific number of bids received is not detailed, the 'COMPETED UNDER SAP' designation suggests multiple offers were likely considered, fostering price discovery and potentially leading to a more favorable outcome for the government.

Taxpayer Impact: A competitive award under SAP generally benefits taxpayers by ensuring that the government receives services at a fair market price, avoiding potential overpayment associated with sole-source or limited competition scenarios.

Public Impact

Veterans and staff at VA facilities in North Carolina will benefit from maintained cleanliness and hygiene. Essential janitorial services will be delivered to ensure a safe and sanitary environment. The contract's geographic impact is focused on North Carolina. Potential for local job creation within the janitorial services sector in North Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service quality variations given the duration of the contract.
Reliance on a single contractor for a critical facility function requires diligent oversight.

Positive Signals

Competitive award process suggests a focus on achieving good value.
Firm fixed-price contract type offers cost predictability.
Clear definition of services expected through the janitorial services NAICS code.

Sector Analysis

Janitorial services fall under the broader facilities support services sector. This sector is characterized by a large number of small and medium-sized businesses, as well as some larger players. Federal spending in this area is consistent and driven by the operational needs of government agencies across all departments. The market is generally competitive, with pricing influenced by labor costs, geographic location, and the specific requirements of the service contract.

Small Business Impact

This contract was competed under SAP, which often includes opportunities for small businesses. However, the awardee, Superior Keystone LLC, is not explicitly identified as a small business in the provided data. Further analysis would be needed to determine if subcontracting opportunities were mandated or utilized to engage small businesses in fulfilling this contract.

Oversight & Accountability

The contract is a Purchase Order, which is a common instrument for smaller procurements. Oversight would typically be managed by the contracting officer and potentially a contract specialist within the Department of Veterans Affairs. Performance monitoring and quality assurance would be key to ensuring the contractor meets the specified janitorial service standards. Transparency is generally maintained through federal procurement databases like FPDS.

Related Government Programs

Federal Facilities Maintenance Contracts
Government Cleaning Services
Department of Veterans Affairs Support Services

Risk Flags

Contract duration exceeds one year, requiring ongoing performance monitoring.
Awarded via Simplified Acquisition Procedures, necessitating verification of competition effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.9 million to SUPERIOR KEYSTONE LLC. JANITORIAL SERVICES

Who is the contractor on this award?

The obligated recipient is SUPERIOR KEYSTONE 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 $3.9 million.

What is the period of performance?

Start: 2023-08-17. End: 2026-09-30.

What is the track record of Superior Keystone LLC in performing federal contracts, particularly for janitorial services?

A review of federal procurement data would be necessary to fully assess Superior Keystone LLC's track record. This would involve examining past contract awards, performance evaluations (if available), and any history of contract modifications, disputes, or terminations. For this specific contract, the award is a Purchase Order, suggesting it may be one of their initial or smaller engagements with the VA. Understanding their experience with similar scope and value contracts, especially within the Department of Veterans Affairs, would provide insight into their capability to deliver the required janitorial services effectively and reliably over the three-year period.

How does the awarded price compare to market rates for janitorial services in North Carolina?

To benchmark the awarded price of approximately $3.9 million over three years against market rates for janitorial services in North Carolina, one would need to consult industry reports, salary surveys for cleaning staff, and pricing data from commercial janitorial service providers in the region. Factors such as the square footage of facilities to be serviced, frequency of cleaning, specific services required (e.g., deep cleaning, specialized disinfection), and labor costs in the relevant North Carolina areas would be critical. Without this granular data, a precise comparison is difficult, but the competitive nature of the award suggests the price is likely aligned with fair market value.

What are the primary risks associated with this janitorial services contract and how are they mitigated?

Key risks include potential underperformance by the contractor leading to substandard cleanliness, which could impact facility user health and morale. Another risk is contractor default or withdrawal, disrupting essential services. Mitigation strategies include the firm fixed-price contract type, which incentivizes the contractor to manage costs and deliver services as specified. The Department of Veterans Affairs would also implement performance monitoring, regular inspections, and clear communication channels to address any issues promptly. A defined process for addressing deficiencies and, if necessary, contract termination would also be in place.

What is the historical spending pattern for janitorial services by the Department of Veterans Affairs, and how does this contract fit?

The Department of Veterans Affairs, like other large federal agencies, consistently spends significant amounts on facility maintenance and operations, including janitorial services, across its numerous medical centers and administrative buildings nationwide. Historical spending data would likely show a steady demand for these services, often awarded through a mix of competitive and sometimes set-aside contracts. This $3.9 million award represents a portion of the VA's overall janitorial services expenditure, likely serving a specific facility or group of facilities within North Carolina. Its value and duration are typical for such service contracts.

Are there specific performance metrics or service level agreements (SLAs) tied to this contract?

While not explicitly detailed in the provided data, federal service contracts, especially for essential functions like janitorial services, typically include detailed performance standards and specifications within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These documents outline the required quality, frequency, and scope of services. Performance is usually monitored through inspections and user feedback, with potential for contractor evaluation reports (e.g., CPARS) that influence future awards. Specific SLAs might define response times for issues or cleanliness standards for different areas.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24623Q0800

Offers Received: 17

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 36 BENT BROOK CIR, READING, PA, 19606

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

Financial Breakdown

Contract Ceiling: $4,210,212

Exercised Options: $3,925,093

Current Obligation: $3,925,093

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline