DHS awards $24.3M janitorial contract to Professional Contract Services, Inc. for 5 years

Contract Overview

Contract Amount: $24,304,251 ($24.3M)

Contractor: Professional Contract Services, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2019-09-30

End Date: 2024-09-29

Contract Duration: 1,826 days

Daily Burn Rate: $13.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL AND GROUNDS MAINTENANCE

Place of Performance

Location: LAREDO, WEBB County, TEXAS, 78041

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.3 million to PROFESSIONAL CONTRACT SERVICES, INC. for work described as: JANITORIAL AND GROUNDS MAINTENANCE Key points: 1. Contract value appears reasonable for a 5-year janitorial service agreement. 2. Limited competition raises concerns about potential overpricing and reduced value. 3. Firm Fixed Price contract type offers cost certainty but limits flexibility. 4. Contract duration of 1826 days (5 years) is standard for such services. 5. Geographic focus on Texas for janitorial services. 6. No small business set-aside indicates potential missed opportunities for smaller firms.

Value Assessment

Rating: fair

The contract value of $24.3 million over five years for janitorial and grounds maintenance services in Texas appears to be within a reasonable range for a large federal contract of this nature. However, without specific details on the scope of services, square footage, or frequency of cleaning, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for janitorial services at other federal facilities of comparable size and complexity would be necessary for a more definitive evaluation. The firm fixed-price structure provides budget predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This significantly limits the opportunity for price discovery and potentially leads to higher costs for the government compared to a fully competed contract. The absence of competition means that the government did not benefit from the innovation and cost-saving proposals that multiple bidders might have offered. The rationale for the sole-source award is not provided in the available data.

Taxpayer Impact: Sole-source awards can result in taxpayers paying a premium for services due to the lack of competitive pressure to offer the best possible price.

Public Impact

The primary beneficiaries are the U.S. Customs and Border Protection facilities in Texas requiring janitorial and grounds maintenance. Services include maintaining cleanliness and upkeep of government facilities. Geographic impact is concentrated within Texas. The contract supports jobs within the janitorial and grounds maintenance sector, likely benefiting local workers in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits opportunities for small businesses to compete.
Firm fixed-price contract may not be optimal if service needs change significantly.

Positive Signals

Firm fixed-price contract provides cost certainty for the agency.
Long-term contract (5 years) offers stability for service provision.
Contract is awarded to a single, established provider for janitorial services.

Sector Analysis

The janitorial and grounds maintenance sector is a significant part of the broader professional, scientific, and technical services industry. Federal spending in this area supports the upkeep of numerous government facilities nationwide. While specific market size data for federal janitorial contracts is not readily available, it represents a substantial portion of the overall facilities management market. This contract fits within the government's need to maintain its physical infrastructure, ensuring a safe and functional working environment for federal employees and visitors.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates the contractor is not a small business. This means that opportunities for small businesses to directly perform these services were not prioritized. While the prime contractor might engage small businesses for subcontracting, the absence of a set-aside suggests a missed opportunity to foster small business growth and participation in federal contracting. Further investigation into subcontracting plans would be needed to assess the actual impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Customs and Border Protection's contracting officer and program managers. Performance standards and quality control measures are expected to be outlined in the contract's statement of work. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

Federal Buildings and Facilities Maintenance
Government Janitorial Services
Professional, Scientific, and Technical Services Contracts
Department of Homeland Security Facilities Management

Risk Flags

Sole-source award limits competition.
Lack of transparency regarding justification for sole-source award.
Potential for higher costs due to limited competition.
No small business set-aside identified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.3 million to PROFESSIONAL CONTRACT SERVICES, INC.. JANITORIAL AND GROUNDS MAINTENANCE

Who is the contractor on this award?

The obligated recipient is PROFESSIONAL CONTRACT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $24.3 million.

What is the period of performance?

Start: 2019-09-30. End: 2024-09-29.

What is the specific scope of janitorial and grounds maintenance services covered under this contract?

The provided data indicates the contract is for 'JANITORIAL AND GROUNDS MAINTENANCE' (NAICS code 561720). However, the precise details of the services are not specified. This would typically include tasks such as cleaning of floors, walls, windows, restrooms, and common areas, as well as groundskeeping activities like lawn mowing, landscaping, and snow removal, depending on the facility's location and needs. A comprehensive understanding requires reviewing the contract's Statement of Work (SOW), which would detail the specific duties, frequency, performance standards, and locations.

How does the awarded price compare to market rates for similar janitorial services in Texas?

A direct comparison of the awarded price ($24.3 million over 5 years) to market rates for similar janitorial services in Texas is difficult without more specific information. Key factors influencing market rates include the size and type of facilities, the level of service required (e.g., daily, weekly cleaning), specific cleaning protocols (e.g., healthcare-grade cleaning), and the geographic sub-region within Texas. Given the sole-source nature of the award, it is harder to ascertain if the price reflects competitive market conditions. A thorough benchmark analysis would involve comparing the contract's unit costs (e.g., cost per square foot cleaned) against prevailing commercial and government contract rates in the relevant Texas area.

What is the justification for awarding this contract on a sole-source basis?

The provided data states the contract type is 'NOT AVAILABLE FOR COMPETITION,' which typically signifies a sole-source award. Federal regulations (like the Federal Acquisition Regulation - FAR) allow for sole-source procurements under specific circumstances, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without further information from the awarding agency (Department of Homeland Security, U.S. Customs and Border Protection), the exact justification remains unknown. This lack of competition is a significant factor in assessing the overall value and potential risks associated with the contract.

What are the performance metrics and quality assurance measures for this contract?

Performance metrics and quality assurance measures are crucial for ensuring the effectiveness of janitorial and grounds maintenance services. While not detailed in the provided summary data, federal contracts typically include a Performance Work Statement (PWS) or Statement of Work (SOW) that outlines specific performance standards, key performance indicators (KPIs), and methods for evaluating the contractor's performance. These might include metrics related to cleanliness levels, response times for issues, adherence to schedules, and customer satisfaction. Quality assurance surveillance plans (QASPs) are often employed by the government to monitor contractor performance against these standards.

Has Professional Contract Services, Inc. performed similar federal contracts previously, and what is their track record?

The provided data identifies 'PROFESSIONAL CONTRACT SERVICES, INC.' as the contractor. To assess their track record, one would need to consult federal procurement databases (like FPDS or SAM.gov) to review their past performance on similar contracts. This would involve looking at contract history, past performance evaluations, any disputes or claims filed, and their overall experience in providing janitorial and grounds maintenance services to federal agencies. A positive track record with successful past performance would increase confidence in their ability to meet the requirements of this new contract.

What is the historical spending pattern for janitorial and grounds maintenance services by U.S. Customs and Border Protection?

Analyzing historical spending patterns for janitorial and grounds maintenance by U.S. Customs and Border Protection (CBP) would provide context for the current $24.3 million award. This involves examining past contract awards for similar services, their values, durations, and the contractors involved over several fiscal years. Understanding whether this contract represents an increase, decrease, or stable level of spending can help identify trends, potential efficiencies, or areas where spending may have escalated. It also helps in assessing the consistency of service providers and the overall budget allocation for facility maintenance within CBP.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70B03C19Q00000070

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 718 W FM 1626, AUSTIN, TX, 78748

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: $44,637,077

Exercised Options: $24,304,251

Current Obligation: $24,304,251

Actual Outlays: $11,821,872

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline