GSA awards $24.5M janitorial services contract to Corporate Source, Inc. for Puerto Rico facilities

Contract Overview

Contract Amount: $24,466,603 ($24.5M)

Contractor: Corporate Source, Inc the

Awarding Agency: General Services Administration

Start Date: 2020-08-01

End Date: 2026-01-31

Contract Duration: 2,009 days

Daily Burn Rate: $12.2K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CARIBBEAN COMPREHENSIVE JANITORIAL SERVICES AT FEDERICO DEGETAU FOB COMPLEX / CAMPUS, HATO REY, PR AND GSA CENTER, GUAYNABO, PUERTO RICO

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00918

Plain-Language Summary

General Services Administration obligated $24.5 million to CORPORATE SOURCE, INC THE for work described as: CARIBBEAN COMPREHENSIVE JANITORIAL SERVICES AT FEDERICO DEGETAU FOB COMPLEX / CAMPUS, HATO REY, PR AND GSA CENTER, GUAYNABO, PUERTO RICO Key points: 1. Contract value represents a significant investment in facility maintenance for federal sites. 2. Sole-source award raises questions about potential cost efficiencies and market competition. 3. Long contract duration (over 5 years) suggests a need for stable, long-term service provision. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Services are critical for maintaining health, safety, and operational readiness at federal facilities. 6. Geographic focus on Puerto Rico highlights specific regional support needs.

Value Assessment

Rating: fair

The contract value of $24.5 million over approximately five years for janitorial services appears substantial. Benchmarking against similar large-scale federal janitorial contracts is difficult without more granular data on service scope and frequency. However, the lack of competition in the award process may have limited opportunities for price discovery, potentially leading to a less than optimal price for the government. The fixed-price nature of the contract provides cost certainty but requires careful monitoring of performance to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning it was not competed on the open market. This approach is typically used when only one responsible source can provide the required services. The implications for price discovery are significant, as the absence of multiple bids means the government did not benefit from competitive pressure to drive down costs. While there may be justifications for a sole-source award, it generally leads to higher prices compared to a fully competed contract.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competition. Without a competitive bidding process, there is less assurance that the price reflects the best possible value achievable in the market.

Public Impact

Federal employees and visitors benefit from clean and safe working environments at the Federico Degetau FOB Complex and GSA Center. Essential janitorial and maintenance services are delivered to ensure the operational readiness of critical federal facilities. The contract directly impacts the local economy in Puerto Rico through employment opportunities for janitorial staff. Ensures compliance with health and safety standards within federal buildings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Long-term nature of the contract could lead to complacency if not actively managed.
Lack of transparency in the sole-source justification process.

Positive Signals

Fixed-price contract provides budget certainty for the agency.
Contractor is responsible for delivering services over an extended period, ensuring continuity.
Focus on essential facility maintenance supports government operations.

Sector Analysis

The janitorial services sector is a significant part of the broader facilities management industry. Federal contracts for these services are substantial, supporting the maintenance of government buildings nationwide. This contract, valued at over $24 million, falls within the typical range for large-scale federal facility maintenance. The industry is characterized by a mix of large corporations and smaller specialized firms, with competition often driven by price, service quality, and past performance. This specific award to Corporate Source, Inc. represents a significant portion of spending within this niche in Puerto Rico.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The sole-source nature of the award further limits opportunities for small businesses to participate in this particular contract. This means the primary economic benefit will likely accrue to the prime contractor, Corporate Source, Inc., rather than being distributed among a wider ecosystem of smaller service providers.

Oversight & Accountability

Oversight for this contract would typically fall under the General Services Administration's (GSA) Public Buildings Service. Mechanisms likely include regular performance reviews, site inspections, and adherence to the terms and conditions of the firm-fixed-price contract. Transparency is limited by the sole-source nature of the award. The Inspector General of the GSA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Building Maintenance Contracts
Janitorial and Cleaning Services
GSA Facilities Management
Puerto Rico Federal Operations Support

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns if performance is not rigorously monitored.
Limited transparency in the procurement process.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $24.5 million to CORPORATE SOURCE, INC THE. CARIBBEAN COMPREHENSIVE JANITORIAL SERVICES AT FEDERICO DEGETAU FOB COMPLEX / CAMPUS, HATO REY, PR AND GSA CENTER, GUAYNABO, PUERTO RICO

Who is the contractor on this award?

The obligated recipient is CORPORATE SOURCE, INC THE.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $24.5 million.

What is the period of performance?

Start: 2020-08-01. End: 2026-01-31.

What is the track record of Corporate Source, Inc. in performing similar federal janitorial contracts?

Information regarding Corporate Source, Inc.'s specific track record with federal janitorial contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history with federal agencies, and any reported issues or commendations. Given this is a sole-source award, it implies the agency has determined Corporate Source, Inc. is capable of meeting the requirements, but further due diligence on their performance history, especially on contracts of similar scale and complexity, would be prudent for understanding value and risk.

How does the per-square-foot cost of this contract compare to industry benchmarks for federal facilities?

The provided data does not include the total square footage of the facilities covered by this contract, making a direct per-square-foot cost comparison impossible. To benchmark effectively, one would need the total area being serviced (e.g., Federico Degetau FOB Complex and GSA Center) and the contract's total value prorated over the service period. Without this, it's difficult to assess if the pricing is competitive. Industry benchmarks for federal janitorial services vary widely based on location, building type, and service intensity, but such a comparison would be a key step in a value-for-money assessment.

What specific justifications were provided for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures), and the award type is 'SOLE SOURCE'. Specific justifications for a sole-source award are not detailed here but typically involve circumstances such as only one vendor possessing the unique capability, proprietary technology, or urgent need that cannot be met by other sources. A thorough review of the Justification for Other than Full and Open Competition (JOFOC) document, if available, would be necessary to understand the rationale and assess its validity.

What is the historical spending pattern for janitorial services at these specific Puerto Rico facilities?

The provided data includes a 'br' (base_rep_count) value of 12178, which might indicate a previous contract or related activity, but it does not offer a clear historical spending pattern for janitorial services at these specific facilities. To understand historical spending, one would need to examine prior contracts for janitorial services at the Federico Degetau FOB Complex and GSA Center, including their values, durations, and award types. This would help determine if the current $24.5 million award represents an increase, decrease, or consistent level of spending for these services over time.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this janitorial services contract. These are critical components that define the expected quality and scope of work, and they form the basis for performance monitoring and payment. Typically, such contracts would include detailed requirements for cleaning frequency, specific areas to be cleaned, standards for cleanliness, response times for issues, and potentially environmental or sustainability goals. Without these details, assessing performance and value is challenging.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1225 FRANKLIN AVE STE 335, GARDEN CITY, NY, 11530

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,093,881

Exercised Options: $24,466,603

Current Obligation: $24,466,603

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47PC0620A0001

IDV Type: BPA

Timeline