GSA awards $5M custodial services BPA call to Bestway Services, Inc. for Los Angeles facility

Contract Overview

Contract Amount: $4,983,965 ($5.0M)

Contractor: Bestway Services, Inc.

Awarding Agency: General Services Administration

Start Date: 2023-03-01

End Date: 2027-02-28

Contract Duration: 1,460 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPTION 1 CALL ORDER FOR CUSTODIAL AT 350 USCH AT W. FIRST ST, LOS ANGELES, CA

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90012

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $5.0 million to BESTWAY SERVICES, INC. for work described as: OPTION 1 CALL ORDER FOR CUSTODIAL AT 350 USCH AT W. FIRST ST, LOS ANGELES, CA Key points: 1. Contract value appears reasonable for a multi-year custodial services agreement in a major metropolitan area. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The firm-fixed-price contract type helps mitigate cost overrun risks. 4. Performance period spans four years, allowing for consistent service delivery. 5. This contract falls under facilities support services, a common government need. 6. No small business set-aside was applied, indicating potential missed opportunities for smaller firms.

Value Assessment

Rating: good

The contract value of approximately $5 million over four years for custodial services at a federal building in Los Angeles seems within a reasonable range. Benchmarking against similar contracts for facilities support services in large urban areas would provide a more precise assessment, but the price appears competitive given the scope and duration. The firm-fixed-price structure is advantageous for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this method generally fosters a competitive environment, which should lead to better pricing and service quality for the government. The GSA's standard procurement processes likely ensured a thorough evaluation of proposals.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, driving down costs through competitive pressure and ensuring the government receives the best value for its investment.

Public Impact

Federal employees and visitors to the U.S. Custom House in Los Angeles will benefit from a clean and well-maintained facility. Essential custodial services, including cleaning, waste removal, and general upkeep, will be provided. The geographic impact is localized to the Los Angeles, California area. The contract supports jobs within the facilities management and janitorial services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess service quality.
The number of bidders is not specified, leaving uncertainty about the true level of competition.
No small business subcontracting plan is indicated, potentially limiting opportunities for small businesses.

Positive Signals

The contract utilizes a firm-fixed-price structure, which caps the government's financial liability.
The award was made under full and open competition, suggesting a robust bidding process.
The contract duration of four years allows for stable service provision and relationship building.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of government buildings. This sector is highly competitive, with numerous private sector companies offering janitorial, maintenance, and related services. Government spending in this area is consistent and substantial, reflecting the ongoing need to maintain federal properties across the country. Comparable spending benchmarks would typically be based on square footage, service level agreements, and geographic location.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of a subcontracting plan requirement for small businesses. This means that opportunities for small businesses to directly participate in this contract are limited unless they are prime contractors themselves or are subcontracted by the prime. The absence of a specific set-aside may mean that larger, established companies were better positioned to compete for this award.

Oversight & Accountability

The General Services Administration (GSA) typically has robust oversight mechanisms for its contracts, including performance monitoring and quality assurance. The Public Buildings Service, responsible for managing federal buildings, likely has established procedures for ensuring contract compliance. Transparency is generally maintained through contract award databases, although specific performance details may be internal. Inspector General oversight would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Federal Building Maintenance Contracts
Government Janitorial Services
GSA Facilities Management
Public Building Operations

Risk Flags

Potential for service quality issues if contractor performance is not adequately monitored.
Lack of specific bidder numbers raises questions about the extent of competition.
No explicit small business subcontracting requirement could limit economic opportunities for smaller firms.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $5.0 million to BESTWAY SERVICES, INC.. OPTION 1 CALL ORDER FOR CUSTODIAL AT 350 USCH AT W. FIRST ST, LOS ANGELES, CA

Who is the contractor on this award?

The obligated recipient is BESTWAY 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 $5.0 million.

What is the period of performance?

Start: 2023-03-01. End: 2027-02-28.

What is the track record of Bestway Services, Inc. with federal contracts?

Information regarding Bestway Services, Inc.'s specific track record with federal contracts is not detailed in the provided data. A comprehensive analysis would require reviewing their past performance ratings, any prior contract awards (especially with GSA or other federal agencies), and any documented issues or successes. Federal procurement databases like SAM.gov or FPDS can often provide historical contract data for contractors, including award amounts, agencies served, and contract types. Understanding their experience in providing similar custodial services at a similar scale would be crucial for assessing their capability and reliability for this BPA call.

How does the awarded price compare to market rates for similar custodial services in Los Angeles?

The provided data does not include specific market rate benchmarks for custodial services in Los Angeles. To assess value for money, a comparison would be needed against industry data for commercial or government contracts of similar scope (e.g., square footage serviced, frequency of cleaning, specific services included) in the same geographic region. Factors such as prevailing wage rates, the cost of supplies, and the level of service required (e.g., standard cleaning vs. specialized disinfection) significantly influence market rates. The firm-fixed-price nature of this contract suggests that Bestway Services, Inc. has factored these costs into their bid.

What are the primary risks associated with this custodial services contract?

Key risks include potential underperformance by the contractor, leading to substandard facility cleanliness and user dissatisfaction. Service disruptions due to staffing issues, equipment failure, or unforeseen events (like pandemics) could also pose a risk. Cost escalation is mitigated by the firm-fixed-price structure, but scope creep or unmanaged changes could still impact overall value. Ensuring consistent quality and adherence to schedules over the four-year period requires diligent oversight from the GSA. Additionally, ensuring compliance with labor laws and safety regulations is critical.

How effective is the GSA's Public Buildings Service in managing custodial contracts?

The GSA's Public Buildings Service (PBS) is responsible for managing a vast portfolio of federal buildings and generally has established processes for contract oversight. Their effectiveness is typically measured by the consistent delivery of required services, tenant satisfaction, and adherence to budget. While specific performance data for this contract isn't available, PBS utilizes various tools like performance work statements, quality assurance surveillance plans, and regular inspections to monitor contractor performance. Challenges can arise in ensuring uniform quality across all contracts and locations, but the agency has a vested interest in maintaining its facilities effectively.

What is the historical spending pattern for custodial services by the General Services Administration?

The General Services Administration (GSA) is a significant spender on facilities support services, including custodial services, due to its role in managing and operating federal buildings nationwide. Historical spending patterns indicate a consistent and substantial investment in maintaining these properties. GSA often utilizes various contract vehicles, such as Indefinite Delivery/Indefinite Quantity (IDIQ) contracts, Blanket Purchase Agreements (BPAs), and individual task orders or calls, to procure these services. Spending levels can fluctuate based on the number of facilities managed, their condition, and budget allocations, but it remains a core operational expenditure for the agency.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1211 BUCHANAN ST, NASHVILLE, TN, 37208

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, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $6,152,769

Exercised Options: $4,983,965

Current Obligation: $4,983,965

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47PK0222A0007

IDV Type: BPA

Timeline