GSA awards $87.4M janitorial contract to Fedcap Rehabilitation Services, Inc. without competition

Contract Overview

Contract Amount: $87,392,168 ($87.4M)

Contractor: Fedcap Rehabilitation Services, Inc

Awarding Agency: General Services Administration

Start Date: 2022-01-01

End Date: 2026-12-31

Contract Duration: 1,825 days

Daily Burn Rate: $47.9K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE PERIOD JANITORIAL SERVICES CONTRACT FOR MANHATTAN, GSA PBS REGION 2.

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10007

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $87.4 million to FEDCAP REHABILITATION SERVICES, INC for work described as: BASE PERIOD JANITORIAL SERVICES CONTRACT FOR MANHATTAN, GSA PBS REGION 2. Key points: 1. Contract awarded without full and open competition, raising questions about price discovery. 2. The contract's duration of five years suggests a long-term commitment to the selected vendor. 3. Fedcap Rehabilitation Services, Inc. is the sole awardee, indicating a potential lack of market engagement. 4. The firm-fixed-price contract type shifts performance risk to the contractor. 5. This award represents a significant portion of GSA's spending on janitorial services in the region. 6. The absence of small business set-aside flags suggests no specific focus on small business participation.

Value Assessment

Rating: questionable

Benchmarking the value of this $87.4 million janitorial services contract is challenging due to the lack of competitive bidding. Without comparable bids, it's difficult to assess if the price reflects fair market value. The contract's duration and scale suggest a substantial service requirement, but the absence of competition prevents a robust value-for-money assessment. Further analysis would require understanding the specific service levels and performance metrics to compare against industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a BPA Call. The data indicates it was a sole-source award, meaning Fedcap Rehabilitation Services, Inc. was the only vendor considered. This approach bypasses the standard competitive process, limiting the opportunity for other qualified vendors to bid and potentially offer more competitive pricing or innovative solutions. The lack of competition means price discovery is not driven by market forces.

Taxpayer Impact: Taxpayers may not be receiving the best possible price for these essential janitorial services due to the absence of a competitive bidding process. The government's ability to secure optimal value is diminished when market forces are not engaged.

Public Impact

The contract provides janitorial services for GSA Public Buildings Service facilities in Manhattan, New York. Fedcap Rehabilitation Services, Inc., a non-profit organization, is the primary beneficiary of this award. The services ensure the cleanliness and maintenance of federal buildings, impacting government employees and the public. The contract supports employment opportunities, potentially including individuals with disabilities, through Fedcap's mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price transparency and potential cost savings for taxpayers.
Sole-source award raises concerns about whether the government secured the best value.
Long contract duration without re-competition may reduce incentives for ongoing efficiency improvements.
Absence of small business set-aside may limit opportunities for smaller, specialized janitorial firms.

Positive Signals

Award to Fedcap Rehabilitation Services, Inc. aligns with potential social impact goals by supporting a non-profit.
Firm-fixed-price contract shifts performance risk to the contractor, ensuring cost certainty for the government.
The contract ensures essential janitorial services are maintained for critical federal facilities.

Sector Analysis

The janitorial services sector is a significant component of the facilities management industry, characterized by a mix of large corporations and numerous small businesses. Federal contracts for these services are common across various agencies to maintain government-owned or leased properties. Spending benchmarks vary widely based on facility size, location, and service intensity. This $87.4 million contract for GSA in Manhattan represents a substantial award within this sector, particularly for a single, long-term requirement.

Small Business Impact

The contract data indicates that this award was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This means that opportunities for small businesses to participate in providing these janitorial services, either as prime contractors or subcontractors, may be limited. The focus appears to be on the prime awardee, Fedcap Rehabilitation Services, Inc., which is a non-profit organization.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Public Buildings Service (PBS). As a firm-fixed-price contract, performance monitoring is key to ensuring service delivery meets the contract's requirements. Transparency is limited by the sole-source nature of the award. While specific IG jurisdiction is not detailed, GSA's Office of Inspector General typically oversees GSA contracts for waste, fraud, and abuse.

Related Government Programs

GSA Federal Buildings Fund
Facilities Maintenance Contracts
Janitorial and Cleaning Services
Building Operations and Maintenance

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Market Research
Long-Term Sole Source Award

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $87.4 million to FEDCAP REHABILITATION SERVICES, INC. BASE PERIOD JANITORIAL SERVICES CONTRACT FOR MANHATTAN, GSA PBS REGION 2.

Who is the contractor on this award?

The obligated recipient is FEDCAP REHABILITATION SERVICES, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $87.4 million.

What is the period of performance?

Start: 2022-01-01. End: 2026-12-31.

What is the track record of Fedcap Rehabilitation Services, Inc. in performing similar large-scale janitorial contracts for the federal government?

Fedcap Rehabilitation Services, Inc. is a non-profit organization with a mission to provide opportunities for people with barriers to economic self-sufficiency. While their primary focus may not solely be janitorial services, they often engage in various service contracts, including facilities maintenance, as part of their employment and training programs. Information on their specific track record with large federal janitorial contracts would require a deeper dive into their past performance data and contract history. It's important to assess if they have demonstrated the capacity, quality of service, and management expertise to handle a contract of this magnitude and duration, ensuring compliance with federal standards and performance expectations.

How does the awarded price compare to market rates for janitorial services in Manhattan, given the contract was not competed?

Direct comparison of the awarded price to market rates is difficult without competitive bid data. The contract's value of approximately $87.4 million over five years equates to roughly $17.5 million annually. This figure needs to be contextualized by the scale and scope of services required across potentially numerous GSA facilities in Manhattan. Factors such as square footage, frequency of cleaning, specialized services (e.g., deep cleaning, disinfection), and labor costs in a high-cost-of-living area like Manhattan would influence the rate. Without competitive bids, it's challenging to definitively state if this price represents optimal value or if a competitive process could have yielded lower costs.

What are the primary risks associated with awarding a large, long-term contract like this on a sole-source basis?

The primary risks of a sole-source award for a large, long-term contract include a lack of price competition, potentially leading to inflated costs for taxpayers. It can also reduce incentives for the contractor to innovate or improve efficiency over the contract's life, as there's no immediate threat of losing the business to a competitor. Furthermore, it limits the government's ability to explore alternative solutions or service providers that might offer better value or specialized capabilities. There's also a risk that the government may not be fully aware of the best available market solutions if the market isn't actively engaged through a competitive process.

What are the implications of this contract being awarded to a non-profit organization like Fedcap Rehabilitation Services, Inc.?

Awarding this contract to Fedcap Rehabilitation Services, Inc., a non-profit, suggests a potential alignment with government objectives to support social enterprises and provide employment opportunities for individuals facing barriers to employment. This can be seen as a positive social impact outcome. However, the core requirement remains the effective and efficient delivery of janitorial services. The government must ensure that Fedcap possesses the necessary operational capacity, management expertise, and quality control systems to meet the contract's performance standards, regardless of its non-profit status. The focus should remain on service delivery and value for money.

What is the historical spending pattern for janitorial services by GSA Region 2, and how does this award compare?

Analyzing historical spending patterns for GSA Region 2's janitorial services would provide context for this $87.4 million award. Without specific historical data, it's difficult to make a direct comparison. However, a contract of this magnitude suggests either a consolidation of previously fragmented services, an increase in the scope of services required, or a significant rise in contract values due to inflation or market conditions. Understanding past contract durations, award values, and competition levels for similar services in the region would help determine if this award is an anomaly or part of a trend.

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: 633 3RD AVE 6TH FL, NEW YORK, NY, 10017

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: $136,770,808

Exercised Options: $87,392,168

Current Obligation: $87,392,168

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $9,860,835

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47PC0622A0002

IDV Type: BPA

Timeline