VA Awards $2.36M Janitorial Contract to Salmon Group Inc. for Arizona Facility

Contract Overview

Contract Amount: $2,364,381 ($2.4M)

Contractor: Salmon Group Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-04-01

End Date: 2027-03-31

Contract Duration: 1,094 days

Daily Burn Rate: $2.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 30

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL CONTRACT FOR SAVAHCS

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85723

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.4 million to SALMON GROUP INC for work described as: JANITORIAL CONTRACT FOR SAVAHCS Key points: 1. Contract Value: $2.36 million over three years. 2. Competition: Competed under Simplified Acquisition Procedures (SAP). 3. Risk: Firm Fixed Price contract type mitigates cost overrun risk. 4. Sector: Facilities maintenance and janitorial services.

Value Assessment

Rating: good

The firm fixed price contract provides cost certainty. Benchmarking against similar janitorial contracts for federal facilities of comparable size and scope is recommended to ensure optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a smaller pool of bidders and may not achieve the same level of price discovery as full and open competition.

Taxpayer Impact: The contract value of $2.36 million represents a modest expenditure for janitorial services, with the firm fixed price structure aiming to control costs for taxpayers.

Public Impact

Ensures a clean and sanitary environment at the SAVAHCS facility. Supports local employment through the contractor, Salmon Group Inc. Provides essential services for the operation of a Department of Veterans Affairs facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to SAP.
Potential for better pricing with broader competition.

Positive Signals

Firm Fixed Price contract.
Clear scope of work for janitorial services.

Sector Analysis

This contract falls within the facilities maintenance and support services sector, specifically janitorial services. Spending benchmarks for this sector vary widely based on facility size, location, and service intensity.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis could explore if opportunities were missed for small businesses in this procurement.

Oversight & Accountability

The Department of Veterans Affairs awarded this contract. Oversight would involve monitoring performance against the contract requirements and ensuring timely payments.

Related Government Programs

Janitorial Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition.
Potential for higher unit costs due to SAP.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.4 million to SALMON GROUP INC. JANITORIAL CONTRACT FOR SAVAHCS

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 $2.4 million.

What is the period of performance?

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

What is the typical cost range for janitorial services for a facility of this size and type?

The typical cost range for janitorial services for a federal facility of this size and type can vary significantly based on geographic location, specific service requirements (e.g., frequency, specialized cleaning), and labor costs. Without more specific details on the SAVAHCS facility's square footage and the exact scope of services, providing a precise benchmark is challenging. However, contracts of this value suggest a substantial facility requiring comprehensive daily or near-daily cleaning services.

What are the potential risks associated with limited competition under SAP for this contract?

Limited competition under Simplified Acquisition Procedures (SAP) carries the risk of potentially higher prices and reduced innovation compared to full and open competition. While SAP is designed for efficiency in smaller procurements, it may not attract the widest range of qualified vendors, potentially leading to less aggressive bidding. This could result in the government not achieving the best possible value for the taxpayer's dollar.

How effectively does the firm fixed price structure ensure value for money in this janitorial contract?

The firm fixed price (FFP) structure is generally effective in ensuring value for money for janitorial services by transferring most of the cost risk to the contractor. This means the government pays a set price regardless of the contractor's actual costs. For routine services like janitorial work, where the scope is well-defined, FFP provides budget certainty and incentivizes the contractor to manage their own costs efficiently to maximize profit.

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: 36C26224Q0035

Offers Received: 30

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: $3,782,818

Exercised Options: $2,390,261

Current Obligation: $2,364,381

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline