GSA awards $20.3M for NJ field office facilities support, a sole-source contract to Fedcap Rehabilitation Services

Contract Overview

Contract Amount: $20,264,767 ($20.3M)

Contractor: Fedcap Rehabilitation Services, Inc

Awarding Agency: General Services Administration

Start Date: 2022-01-01

End Date: 2025-06-30

Contract Duration: 1,276 days

Daily Burn Rate: $15.9K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: O&M AND ELEVATOR SERVICES FOR NEW JERSEY FIELD OFFICE

Place of Performance

Location: NEWARK, ESSEX County, NEW JERSEY, 07102

State: New Jersey Government Spending

Plain-Language Summary

General Services Administration obligated $20.3 million to FEDCAP REHABILITATION SERVICES, INC for work described as: O&M AND ELEVATOR SERVICES FOR NEW JERSEY FIELD OFFICE Key points: 1. Contract awarded on a sole-source basis, limiting price competition and potentially increasing costs. 2. The contract duration of over 3 years suggests a need for stable, long-term facilities management. 3. Services include Operations & Maintenance and Elevator Services, critical for building functionality. 4. The award to Fedcap Rehabilitation Services, Inc. may align with specific agency missions or capabilities. 5. Fixed-price contract type aims to control costs, but sole-sourcing reduces negotiation leverage. 6. Geographic focus on New Jersey indicates localized operational needs.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and lack of publicly available comparable data for similar facilities support services in the New Jersey region. The fixed-price contract type provides some cost certainty, but the absence of competition means the government did not benefit from a competitive bidding process to ensure the lowest possible price. Without competitive bids, it's difficult to definitively assess if the $20.3 million represents a fair market price for the services rendered over its duration.

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 on a sole-source basis. This indicates that the General Services Administration (GSA) likely identified a specific contractor, Fedcap Rehabilitation Services, Inc., deemed uniquely capable or required for this particular requirement. The lack of competition means that other potential vendors were not given an opportunity to bid, which can limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium for these services due to the absence of a competitive bidding process. The government's ability to negotiate the best possible price is diminished when only one source is considered.

Public Impact

Federal employees and visitors at the New Jersey Field Office benefit from maintained and operational facilities. Essential services including building operations, maintenance, and elevator upkeep are delivered. The contract's geographic impact is concentrated within New Jersey. The workforce implications are tied to the operational needs of Fedcap Rehabilitation Services, Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and taxpayer value.
Lack of transparency in the justification for sole-sourcing.
Potential for cost overruns if pricing was not adequately vetted without competition.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
Long-term contract duration ensures continuity of essential facilities services.
Award to Fedcap Rehabilitation Services may align with specific agency social or mission objectives.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, is a broad sector encompassing a wide range of services necessary for the operation and maintenance of buildings and other facilities. This includes services like cleaning, pest control, and general maintenance. The federal government is a significant consumer of these services across its vast real estate portfolio. Benchmarking this specific contract's value is difficult without more granular data on the scope of O&M and elevator services provided, but the total award of $20.3 million over approximately 3.5 years suggests a substantial requirement for a field office.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus appears to be on the primary contractor's capabilities rather than fostering small business participation through set-asides.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Public Buildings Service, which manages federal real estate. Accountability measures would be embedded in the contract's performance standards and deliverables. Transparency is limited due to the sole-source nature of the award; however, contract award data is typically available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Operations and Maintenance
Elevator Maintenance Contracts
GSA Facilities Management
Operations and Maintenance Services

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for non-competitive pricing

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $20.3 million to FEDCAP REHABILITATION SERVICES, INC. O&M AND ELEVATOR SERVICES FOR NEW JERSEY FIELD OFFICE

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 $20.3 million.

What is the period of performance?

Start: 2022-01-01. End: 2025-06-30.

What is the track record of Fedcap Rehabilitation Services, Inc. in performing similar facilities support contracts for the federal government?

Fedcap Rehabilitation Services, Inc. has a history of performing various government contracts, often with a focus on providing employment and training opportunities for individuals with barriers to employment. While their primary mission may not solely be facilities management, they have secured contracts in this area. A detailed review of their past performance on similar O&M and elevator services contracts, including client satisfaction, adherence to schedules, and budget management, would be necessary to fully assess their capability and reliability for this specific GSA requirement. Information on past performance can often be found in federal procurement databases or through agency performance evaluations, though specific details for sole-source awards might be less publicly scrutinized than for competed contracts.

How does the per-unit cost of services compare to market rates for facilities support in New Jersey, given the sole-source nature of this award?

Directly comparing the per-unit cost is challenging because the contract was awarded on a sole-source basis, meaning there was no competitive bidding process to establish a market-driven price. Without knowing the specific metrics used for 'per-unit' (e.g., cost per square foot, cost per elevator maintenance visit), and lacking comparable bids from other vendors, it's impossible to definitively benchmark against market rates. The government's negotiation leverage is reduced in sole-source situations, potentially leading to prices that are higher than what might be achieved through competition. A thorough cost analysis by GSA would have been required to justify the reasonableness of the price, but the details of this analysis are not publicly available.

What are the specific risks associated with awarding a facilities support contract on a sole-source basis?

The primary risk of a sole-source award is the potential for paying a higher price than necessary due to the lack of competition. This reduces the government's ability to achieve the best value for taxpayer dollars. Another risk is contractor complacency; without the threat of losing future business to competitors, the contractor might be less motivated to innovate or maintain the highest service standards. Furthermore, sole-sourcing can limit the government's flexibility if the contractor's performance declines or if their circumstances change, as switching providers can be difficult and costly. There's also a risk that the justification for sole-sourcing might not be robust, potentially indicating a lack of due diligence in exploring competitive options.

What is the historical spending pattern for facilities support services at the New Jersey Field Office, and how does this $20.3M award compare?

Analyzing historical spending patterns for this specific New Jersey Field Office requires access to detailed procurement data over multiple fiscal years. Without that granular data, it's difficult to provide a precise comparison. However, a $20.3 million award over approximately 3.5 years (from Jan 2022 to June 2025) averages roughly $5.8 million per year. This figure can be compared to previous contracts for similar services at the same location or comparable field offices. If historical spending was significantly lower, this award might represent an increase in costs or scope. Conversely, if previous contracts were of similar magnitude, it might indicate consistent spending levels for essential facilities management.

What specific performance metrics or oversight mechanisms are in place to ensure Fedcap Rehabilitation Services, Inc. delivers adequate O&M and elevator services?

While the specific performance metrics and oversight mechanisms are not detailed in the provided data, federal contracts typically include a Performance Work Statement (PWS) that outlines required services, standards, and deliverables. For a contract of this magnitude and duration, GSA would likely have a Contracting Officer's Representative (COR) responsible for monitoring performance, ensuring compliance with the PWS, and approving payments. Performance evaluations, such as those conducted under the Contractor Performance Assessment Reporting System (CPARS), would also be used to track the contractor's adherence to quality, timeliness, cost control, and other key areas. Regular meetings between GSA and Fedcap would also be part of the oversight process.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

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: $20,264,767

Exercised Options: $20,264,767

Current Obligation: $20,264,767

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $34,749,664

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47PC0722A0001

IDV Type: BPA

Timeline