DHS awards $12.6M janitorial contract to Professional Contract Services, Inc. in Texas

Contract Overview

Contract Amount: $12,609,342 ($12.6M)

Contractor: Professional Contract Services, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-05-01

End Date: 2027-03-31

Contract Duration: 1,795 days

Daily Burn Rate: $7.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL AND GROUNDS MAINTENANCE SERVICES

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79925

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $12.6 million to PROFESSIONAL CONTRACT SERVICES, INC. for work described as: JANITORIAL AND GROUNDS MAINTENANCE SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, providing cost certainty for the government. 2. The contract duration of nearly five years suggests a need for stable, long-term service provision. 3. Awarded to a single vendor, raising questions about potential lack of competition. 4. The North American Industry Classification System (NAICS) code 561720 indicates a focus on janitorial services. 5. The contract is not a small business set-aside, potentially limiting opportunities for smaller firms. 6. Geographic location in Texas (TX) may indicate specific facility needs or regional service capabilities.

Value Assessment

Rating: fair

Benchmarking janitorial services is challenging without specific scope details. However, a nearly five-year contract valued at over $12 million suggests a significant operational requirement. The firm-fixed-price structure helps control costs, but the lack of competitive bidding means the government may not have secured the lowest possible price. Without comparison to similar contracts for facilities of comparable size and complexity, assessing value for money is difficult.

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 approach is typically used when only one vendor can provide the required services, or for specific justifications like urgency or existing infrastructure. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs for taxpayers.

Taxpayer Impact: Sole-source awards can result in higher prices for taxpayers as there is no competitive pressure to drive down costs. This limits the government's ability to leverage market competition for better value.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection facilities within Texas, ensuring a clean and maintained operational environment. The contract delivers essential janitorial and grounds maintenance services, contributing to facility upkeep and public health. The geographic impact is concentrated in Texas, supporting local employment and service provision within the state. Workforce implications include job creation for janitorial and grounds maintenance staff, likely sourced locally in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Sole-source award raises concerns about transparency and potential for inflated costs.
Contract duration without re-competition could reduce incentives for performance improvement.
Absence of small business set-aside may limit opportunities for smaller, specialized service providers.

Positive Signals

Firm-fixed-price contract provides cost certainty for the duration.
Long-term contract suggests a stable and ongoing need for these essential services.
Award to a single vendor may indicate specialized capabilities or existing relationships.

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 government facilities nationwide. While specific benchmarks for janitorial services are hard to establish due to varying scopes, the federal government is a major consumer of such services, often contracting through various agencies to maintain buildings, grounds, and infrastructure.

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. This means that opportunities for small businesses to directly compete for or participate in this significant contract may be limited. The absence of set-aside provisions could impact the distribution of federal contracting dollars within the small business ecosystem for this particular service category.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. The firm-fixed-price nature simplifies some aspects of financial oversight, but performance monitoring remains crucial. Inspector General reviews could be initiated if performance issues or allegations of impropriety arise.

Related Government Programs

Federal Building Maintenance Contracts
Government Facility Services
Department of Homeland Security Operations Support
Janitorial Services Contracts
Grounds Maintenance Contracts

Risk Flags

Sole-source award
Lack of competition
Long contract duration without re-competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $12.6 million to PROFESSIONAL CONTRACT SERVICES, INC.. JANITORIAL AND GROUNDS MAINTENANCE SERVICES

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 $12.6 million.

What is the period of performance?

Start: 2022-05-01. End: 2027-03-31.

What is the track record of Professional Contract Services, Inc. with federal contracts, particularly in janitorial and grounds maintenance?

Information on the specific track record of Professional Contract Services, Inc. with federal contracts, especially in janitorial and grounds maintenance, is not detailed in the provided data. A comprehensive review would require accessing federal procurement databases like SAM.gov or FPDS to analyze past performance, contract values, and any reported issues or awards. Understanding their history with similar government entities and contract types would provide context for their ability to fulfill this DHS requirement effectively and efficiently. Without this historical data, assessing their reliability and past performance is speculative.

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

The provided data does not include specific pricing details beyond the total contract value of $12,609,342.17. To compare this to market rates for similar janitorial services in Texas, one would need to know the exact scope of work, square footage of facilities serviced, frequency of services, and specific tasks performed. Benchmarking would involve researching average hourly rates for janitorial staff, costs for supplies, and overhead in the relevant Texas region. Given the contract's sole-source nature and long duration, a direct comparison to competitively bid contracts or industry standard pricing would be necessary to assess if the price represents good value for money.

What are the primary risks associated with a sole-source award for janitorial services?

The primary risks associated with a sole-source award for janitorial services include a lack of price competition, which can lead to the government paying a premium compared to what might be achieved through a competitive bidding process. There's also a reduced incentive for the contractor to innovate or improve service quality over time, as there is no immediate threat of losing the contract to a competitor. Furthermore, sole-source awards can raise concerns about transparency and fairness in the procurement process, potentially leading to public scrutiny or perceptions of favoritism if not adequately justified. Ensuring robust performance monitoring and clear service level agreements becomes even more critical in such scenarios.

What is the expected impact of this contract on the operational efficiency and environment of U.S. Customs and Border Protection facilities in Texas?

This contract is expected to ensure that U.S. Customs and Border Protection facilities in Texas are maintained to a high standard of cleanliness and upkeep. Reliable janitorial and grounds maintenance services are crucial for maintaining a safe, healthy, and professional working environment for CBP personnel. A well-maintained facility can contribute to improved morale, reduced health risks, and a more positive image for the agency. The long-term nature of the contract suggests a commitment to sustained operational support, aiming to prevent degradation of facilities and ensure consistent service delivery critical for border security operations.

How has federal spending on janitorial and grounds maintenance services trended over the past five years, and how does this contract fit into that trend?

Analyzing federal spending trends on janitorial and grounds maintenance requires access to historical government spending data, such as from the Federal Procurement Data System (FPDS). Generally, spending in these service categories can fluctuate based on agency budgets, facility needs, and policy priorities. This $12.6 million contract, awarded in 2022 for services through 2027, represents a significant, albeit localized, investment. Without broader trend data, it's difficult to definitively state how this single contract fits into the overall national trend. However, it highlights the consistent need for these essential services across federal agencies to maintain operational infrastructure.

Are there any specific performance metrics or service level agreements (SLAs) associated with this contract that ensure quality and accountability?

The provided data does not specify the performance metrics or service level agreements (SLAs) for this contract. However, for a firm-fixed-price contract of this magnitude and duration, it is standard practice for the contracting agency (Department of Homeland Security, U.S. Customs and Border Protection) to establish clear performance standards. These would typically include requirements for frequency of cleaning, specific cleaning tasks, response times for issues, and grounds maintenance schedules. Performance would likely be monitored by a Contracting Officer's Representative (COR), and failure to meet these standards could result in contractual remedies, such as deductions or termination, depending on the severity.

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

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70B03C22Q00000038

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: $16,099,000

Exercised Options: $12,609,342

Current Obligation: $12,609,342

Actual Outlays: $9,630,008

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline