JTM Enterprise LLC awarded $5.2M for janitorial services at Jesse Brown VAMC, a 3-year contract

Contract Overview

Contract Amount: $5,198,813 ($5.2M)

Contractor: JTM Enterprise LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-04-01

End Date: 2027-03-31

Contract Duration: 1,094 days

Daily Burn Rate: $4.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 24

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL SERVICES AT THE JESSE BROWN VAMC

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60612

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.2 million to JTM ENTERPRISE LLC for work described as: JANITORIAL SERVICES AT THE JESSE BROWN VAMC Key points: 1. Value for money appears reasonable given the scope and duration of services. 2. The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 3. Risk indicators are low, with a firm fixed-price contract type and a single incumbent provider. 4. Performance context is established by the need for ongoing janitorial services at a major VA facility. 5. Sector positioning is within the facilities maintenance and support services industry.

Value Assessment

Rating: good

The contract value of $5.2 million over three years for janitorial services at a large VA medical center is within a reasonable range for this type of service. Benchmarking against similar contracts for facilities maintenance at federal buildings of comparable size and complexity would provide a more precise value assessment. The firm fixed-price structure helps control costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders and is intended for procurements below a certain dollar threshold. While the specific number of bidders is not provided, SAP competition generally offers less price discovery than full and open competition. The award to JTM Enterprise LLC suggests they were the most advantageous offer.

Taxpayer Impact: Competition under SAP may result in slightly higher prices compared to full and open competition, but it also allows for faster procurement cycles, which can be beneficial for essential services like janitorial support.

Public Impact

Patients and staff at the Jesse Brown VAMC benefit from a clean and sanitary environment. Essential janitorial and cleaning services are delivered to maintain facility hygiene. The geographic impact is localized to the Jesse Brown VAMC in Illinois. The contract supports jobs within the janitorial services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals due to limited competition history.
Reliance on a single contractor for critical facility maintenance could pose a risk if performance falters.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
Award to an established entity suggests a degree of reliability.
Contract duration of three years allows for consistent service delivery.

Sector Analysis

This contract falls within the facilities support services sector, a broad category encompassing maintenance, cleaning, and operational support for government and commercial properties. The market for janitorial services is highly fragmented, with numerous small and large providers. Federal spending in this area is substantial, driven by the need to maintain a vast portfolio of government buildings and installations. This specific contract represents a portion of the Department of Veterans Affairs' broader spending on facility operations and maintenance.

Small Business Impact

The data indicates this contract was competed under SAP and awarded as a Purchase Order, which are often utilized for smaller procurements. It is not explicitly stated as a small business set-aside. If JTM Enterprise LLC is a small business, this award contributes to federal small business goals. However, without specific set-aside information, the direct impact on the broader small business ecosystem is unclear, though it does provide a contract opportunity.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officer and program managers responsible for the Jesse Brown VAMC. The firm fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency is facilitated through federal procurement databases where contract awards are recorded. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Building Maintenance Contracts
VA Facilities Management
Government Janitorial Services
Simplified Acquisition Procedures Contracts

Risk Flags

Potential for performance issues if contractor fails to meet service level agreements.
Risk associated with limited competition under SAP, though 24 bidders is a positive sign.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.2 million to JTM ENTERPRISE LLC. JANITORIAL SERVICES AT THE JESSE BROWN VAMC

Who is the contractor on this award?

The obligated recipient is JTM ENTERPRISE 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 $5.2 million.

What is the period of performance?

Start: 2024-04-01. End: 2027-03-31.

What is the historical spending pattern for janitorial services at the Jesse Brown VAMC?

Historical spending data for janitorial services at the Jesse Brown VAMC prior to this award is not provided in the given data. However, the current award of approximately $5.2 million over three years (2024-2027) suggests an average annual expenditure of roughly $1.73 million. To understand historical patterns, one would need to access previous contract awards for similar services at this specific facility. This would involve searching federal procurement databases (like FPDS or SAM.gov) for contracts awarded to various vendors for janitorial or cleaning services at the Jesse Brown VAMC for the years preceding the current award. Analyzing these past awards would reveal trends in contract values, durations, awarded contractors, and competition levels, providing context for the current $5.2 million award and its potential implications for future spending.

How does the price per square foot for these janitorial services compare to industry benchmarks?

The provided data does not include the square footage of the Jesse Brown VAMC, which is essential for calculating a price per square foot. Therefore, a direct comparison to industry benchmarks is not possible with the current information. To perform this analysis, one would need to obtain the total square footage of the facility. Once known, the annual cost of the contract (approximately $1.73 million) could be divided by the square footage to derive a cost per square foot. This figure could then be compared to established industry benchmarks for janitorial services in large healthcare facilities, which vary based on location, scope of services (e.g., frequency of cleaning, specialized services), and building type. Without the facility size, any benchmark comparison remains speculative.

What is JTM Enterprise LLC's track record with federal contracts, particularly with the Department of Veterans Affairs?

The provided data indicates that JTM Enterprise LLC is the awardee of this specific contract for janitorial services at the Jesse Brown VAMC. To assess their track record, a review of their past federal contract awards would be necessary. This would involve searching federal procurement databases for previous contracts awarded to JTM Enterprise LLC across various agencies, including the Department of Veterans Affairs. Key aspects to examine would include the types of services provided, contract values, performance history (if available through past performance evaluations), and any history of contract modifications or disputes. A strong track record with the VA, especially for similar services, would suggest a lower performance risk for this new contract. Conversely, a history of issues could raise concerns about JTM's ability to meet the requirements.

What are the specific performance standards and metrics outlined in the contract?

The provided data summary does not detail the specific performance standards and metrics for the janitorial services contract. Typically, such contracts include a Performance Work Statement (PWS) or Statement of Work (SOW) that outlines the required services, quality levels, frequency, and methods of performance. Key performance indicators (KPIs) might include response times for service requests, cleanliness ratings based on inspections, and adherence to safety protocols. The contract type (Firm Fixed Price) implies that the contractor is responsible for meeting these standards. The government would monitor performance against these metrics, and failure to meet them could result in contract remedies. A thorough review of the full contract document, including the PWS/SOW, would be required to identify these specific standards.

How many bids were received, and what does the level of competition suggest about the pricing?

The data indicates the contract was 'COMPETED UNDER SAP' (Simplified Acquisition Procedures) and awarded as a 'PURCHASE ORDER'. While the exact number of bids received is not explicitly stated, SAP is generally used for procurements valued below the SAT (Simplified Acquisition Threshold), often involving fewer bidders than full and open competition. The number of bidders (no: 24) is provided, indicating a relatively robust competition for a SAP-level procurement. A higher number of bidders, like 24, generally suggests a more competitive environment, which tends to drive prices down towards a market-based level. However, the specific nature of SAP competition means it may not achieve the same level of price discovery as larger, more complex solicitations.

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: 36C25224Q0063

Offers Received: 24

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9406 E STAFFORD ST, WICHITA, KS, 67207

Business Categories: Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $7,642,363

Exercised Options: $5,198,813

Current Obligation: $5,198,813

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline