VA awards $3.3M contract for janitorial services in Washington D.C

Contract Overview

Contract Amount: $3,289,684 ($3.3M)

Contractor: Salmon Group Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-07-27

End Date: 2026-09-30

Contract Duration: 430 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.3 million to SALMON GROUP INC for work described as: JANITORIAL SERVICES Key points: 1. Contract awarded to Salmon Group Inc. for janitorial services. 2. Service period runs from July 2025 to September 2026. 3. Contract type is Firm Fixed Price, indicating predictable costs. 4. Awarded under full and open competition, suggesting market-driven pricing. 5. The contract is a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The North American Industry Classification System (NAICS) code is 541519, which appears to be a mismatch for janitorial services.

Value Assessment

Rating: questionable

The contract value of $3.3 million for janitorial services over approximately 14 months needs further benchmarking against similar contracts for the specified geographic area. Without comparable data, assessing value for money is difficult. The firm fixed-price structure provides cost certainty, but the overall price competitiveness cannot be determined without market analysis. The NAICS code mismatch raises concerns about the accuracy of the data and potential misclassification of services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. With 8 bids received, there was a reasonable level of competition. This suggests that the pricing is likely to be competitive, as vendors would have strived to offer attractive terms to secure the contract. The presence of multiple bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition with multiple bidders typically benefits taxpayers by ensuring that the government receives services at a fair market price, minimizing the risk of overpayment.

Public Impact

The primary beneficiaries are the Department of Veterans Affairs facilities in the District of Columbia, ensuring a clean and sanitary environment for veterans and staff. The services delivered include essential janitorial and cleaning functions. The geographic impact is limited to the District of Columbia. The contract supports local employment through the janitorial service provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

NAICS code mismatch (541519) for janitorial services suggests potential data entry error or misclassification, impacting accurate service categorization and analysis.
Lack of specific performance metrics or service level agreements in the provided data makes it difficult to assess the quality and effectiveness of the janitorial services.
The contract duration and value, without further context on the scope of facilities and services, make it challenging to benchmark against industry standards for value for money.

Positive Signals

Awarded through full and open competition with 8 bids, indicating a competitive bidding process and potential for fair pricing.
Firm Fixed Price contract type provides cost certainty for the government.
The contract is for essential facility maintenance, contributing to a safe and healthy environment for VA personnel and veterans.

Sector Analysis

Janitorial services represent a significant segment of the facilities management industry, supporting government operations across various agencies. This contract falls within the broader professional, scientific, and technical services sector, specifically related to building maintenance. Comparable spending benchmarks for janitorial services can vary widely based on facility size, location, and specific service requirements. The NAICS code provided (541519) is typically associated with 'Other Computer Related Services,' which is a significant discrepancy for janitorial work.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications for small businesses mandated by this award. The primary contractor, Salmon Group Inc., would determine any subcontracting opportunities based on their own business practices.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of Veterans Affairs. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Schedules for Facilities Maintenance
Department of Defense (DoD) Base Operations Support Contracts
Other Agency-Specific Facility Support Contracts

Risk Flags

NAICS Code Mismatch
Lack of Performance Metrics
Unclear Scope of Work

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.3 million to SALMON GROUP INC. JANITORIAL SERVICES

Who is the contractor on this award?

The obligated recipient is SALMON GROUP 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 $3.3 million.

What is the period of performance?

Start: 2025-07-27. End: 2026-09-30.

What is the typical NAICS code for janitorial services, and why might 541519 have been used?

The typical North American Industry Classification System (NAICS) code for janitorial services is 561720 (Janitorial Services). The code 541519 ('Other Computer Related Services') is highly unusual for this type of contract. This discrepancy could stem from a data entry error, a misinterpretation of the service scope, or potentially a bundled contract where IT services were also included, though the award description focuses solely on janitorial work. If it's an error, it hinders accurate classification and comparison with similar janitorial contracts. If it implies bundled services, the contract details provided are insufficient to assess the IT component.

How does the firm fixed-price contract type benefit the VA in this scenario?

A Firm Fixed Price (FFP) contract type is advantageous for the VA in this janitorial services contract because it establishes a ceiling on the total cost the government will pay, regardless of the contractor's actual costs. This provides budget certainty and predictability, making financial planning easier. The risk of cost overruns is shifted to the contractor, Salmon Group Inc. This structure incentivizes the contractor to manage their expenses efficiently to maintain profitability, which can indirectly benefit the government through competitive pricing during the bidding process.

What does the level of competition (8 bids) suggest about the pricing for these janitorial services?

Receiving 8 bids for this janitorial services contract indicates a healthy level of competition. When multiple vendors vie for a contract, they are typically motivated to offer competitive pricing to win the award. This suggests that the price negotiated is likely close to the market rate for similar services in the Washington D.C. area. A higher number of bids generally leads to better price discovery and reduces the government's risk of paying an inflated price compared to a sole-source or limited-competition scenario.

What are the potential risks associated with the NAICS code mismatch?

The primary risk associated with the NAICS code mismatch (541519 for janitorial services) is inaccurate data aggregation and analysis. This can lead to flawed benchmarking against comparable contracts, making it difficult to assess true value for money. It may also skew spending reports and category analyses within the VA or government-wide. Furthermore, it could impact future procurement strategies if decision-makers rely on this misclassified data. There's also a risk that the actual services performed might deviate from the intended janitorial scope if the NAICS code implies other types of services.

Can we assess the value for money without knowing the specific scope of facilities and services?

Assessing the true value for money for this $3.3 million janitorial services contract is challenging without detailed information on the scope of work. Key factors influencing value include the square footage of the facilities being serviced, the frequency of cleaning, the specific types of services required (e.g., deep cleaning, specialized sanitation), and the operating hours of the facilities. While the firm fixed-price and full and open competition suggest a potentially fair price, the overall value proposition cannot be definitively determined without understanding the quantity and quality of services expected relative to the cost.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: WPP PLC

Address: 1331 PENNSYLVANIA AVE NW, WASHINGTON, DC, 20004

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $14,568,602

Exercised Options: $3,289,684

Current Obligation: $3,289,684

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F098DA

IDV Type: FSS

Timeline