VA awards $3.3M janitorial contract to Glory to the Lord Investments Inc. in California

Contract Overview

Contract Amount: $3,286,170 ($3.3M)

Contractor: Glory to the Lord Investments Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-07-01

End Date: 2023-07-28

Contract Duration: 392 days

Daily Burn Rate: $8.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EO14042 - JANITORIAL SERVICES

Place of Performance

Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90822

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.3 million to GLORY TO THE LORD INVESTMENTS INC for work described as: EO14042 - JANITORIAL SERVICES Key points: 1. Contract value appears reasonable for janitorial services in California. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a firm fixed price, which transfers risk to the contractor. 4. Performance is in California, a large market for such services. 5. The contractor is a new entity in federal contracting. 6. The duration of the contract is over a year, indicating a need for sustained services.

Value Assessment

Rating: good

The contract value of approximately $3.3 million over 392 days for janitorial services in California is within a reasonable range for similar federal contracts. Without specific details on the scope of work (e.g., square footage, frequency of service), a precise benchmark is difficult. However, the firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. The award amount appears to be a competitive outcome given the full and open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the initial solicitation may have had some restrictions, the final award was made after a broad competitive process. The presence of 3 bids suggests a moderate level of competition. A higher number of bidders typically leads to more aggressive pricing and better value for the government.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by encouraging multiple companies to bid, driving down prices and ensuring the government receives the best possible value.

Public Impact

The primary beneficiaries are the Department of Veterans Affairs facilities in California, which will receive janitorial services. The contract ensures the cleanliness and maintenance of government buildings, contributing to a safe and healthy environment for staff and visitors. The geographic impact is localized to the service areas within California where the VA facilities are located. The contract supports jobs within the janitorial services sector, likely benefiting local workers in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited track record for the contractor in federal space.
The specific scope of work and service level agreements are not detailed, making it hard to fully assess value.
The contract duration is significant, requiring ongoing monitoring of performance.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Full and open competition was utilized, indicating a competitive process.
The contract supports a critical government function (facility maintenance).

Sector Analysis

The janitorial services sector is a significant part of the facilities management industry. Federal spending in this area supports the maintenance and upkeep of numerous government buildings across the country. This contract fits within the broader category of facility support services, which is a mature market with many established providers. Benchmarking against other janitorial contracts would require detailed scope of work comparisons.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data does not indicate any subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, the prime contractor's own size and potential use of small business subcontractors for specialized tasks are not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs contracting officers and program managers. Performance standards and payment schedules are outlined in the contract. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Janitorial Services Contracts
Department of Veterans Affairs Facility Maintenance
Government Building Cleaning Services
Commercial Cleaning Contracts

Risk Flags

Contractor Past Performance
Moderate Competition Level
Scope of Work Clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.3 million to GLORY TO THE LORD INVESTMENTS INC. EO14042 - JANITORIAL SERVICES

Who is the contractor on this award?

The obligated recipient is GLORY TO THE LORD INVESTMENTS 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: 2022-07-01. End: 2023-07-28.

What is the typical cost per square foot for janitorial services in California for federal facilities?

Determining a precise per-square-foot cost for janitorial services in California federal facilities is complex due to variations in service scope, frequency, building type, and specific location within the state. However, industry benchmarks for commercial janitorial services in major California metropolitan areas can range from $0.05 to $0.20 per square foot per cleaning, depending on the level of service. Federal contracts often have specific requirements that might influence pricing. Given the total award of $3,286,169.86 over approximately 392 days (about 1.08 years), and assuming a significant facility footprint, the implied average monthly cost is around $253,000. Without knowing the total square footage serviced and the frequency of cleaning, a direct comparison is challenging. The firm fixed-price nature of this contract means the contractor is responsible for managing these costs within the awarded amount.

Does Glory to the Lord Investments Inc. have a significant past performance record with the federal government?

Based on the provided data, Glory to the Lord Investments Inc. appears to be a relatively new entrant or has a limited documented history of federal contracting. The data does not indicate extensive past performance. Federal agencies typically assess past performance as a key factor in contract awards, especially for larger or more complex contracts. For this contract, the agency (Department of Veterans Affairs) would have evaluated the contractor's ability to perform based on available information, which might include prior experience, references, or other indicators of capability. The limited track record could represent a potential risk factor that the agency would need to mitigate through careful monitoring and performance management.

How does the competition level for this contract compare to similar janitorial service contracts?

This contract was awarded under 'Full and Open Competition After Exclusion of Sources' with 3 bids received. While 'full and open' competition is the preferred method for ensuring broad market participation, receiving only 3 bids suggests a moderate rather than high level of competition for this specific requirement. In many federal contracting arenas, particularly for services like janitorial support, a higher number of bidders (e.g., 5 or more) is often observed, especially when the scope is well-defined and the market is robust. A lower number of bidders can sometimes indicate barriers to entry, specialized requirements, or simply less market interest. For taxpayers, moderate competition generally leads to reasonably competitive pricing, but intense competition typically yields better value.

What are the potential risks associated with a firm fixed-price contract for janitorial services?

A firm fixed-price (FFP) contract shifts the majority of cost risk to the contractor, which is generally advantageous for the government. However, for janitorial services, potential risks include the contractor cutting corners on service quality to maintain profitability if their initial cost estimates were too low or if unforeseen operational challenges arise. This could lead to a decline in cleanliness standards, impacting the work environment and potentially requiring more intensive government oversight to ensure contract compliance. Another risk is that if the scope of work significantly changes or expands beyond what was originally anticipated, the contractor may be less flexible in accommodating these changes without requesting a contract modification or potentially seeking to renegotiate terms, which could negate some of the FFP benefits.

What is the historical spending trend for janitorial services by the Department of Veterans Affairs?

The Department of Veterans Affairs (VA) consistently spends significant amounts on janitorial and facility maintenance services to ensure the upkeep of its numerous medical centers, clinics, and administrative buildings nationwide. Historical spending data indicates a steady demand for these services, often awarded through a mix of contract types and competition levels. While specific year-over-year trends for janitorial services alone are not detailed here, the VA's overall budget allocation for facilities management and operations suggests a sustained level of expenditure in this category. Contracts like this one are part of a larger strategy to maintain a safe and sanitary environment for veterans and staff, reflecting the agency's ongoing commitment to infrastructure upkeep.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1000 TOWN CENTER DR, OXNARD, CA, 93036

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: $3,286,170

Exercised Options: $3,286,170

Current Obligation: $3,286,170

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26220D0009

IDV Type: IDC

Timeline