DHS awards $8.9M for janitorial services in Texas, raising value-for-money questions

Contract Overview

Contract Amount: $8,957,033 ($9.0M)

Contractor: Professional Contract Services, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-30

End Date: 2027-03-31

Contract Duration: 912 days

Daily Burn Rate: $9.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL & GROUNDS KEEPING SERVICES LRT SECTOR.

Place of Performance

Location: LAREDO, WEBB County, TEXAS, 78040

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $9.0 million to PROFESSIONAL CONTRACT SERVICES, INC. for work described as: JANITORIAL & GROUNDS KEEPING SERVICES LRT SECTOR. Key points: 1. Contract awarded on a firm-fixed-price basis, offering cost certainty but potentially limiting flexibility. 2. The contract duration of 912 days suggests a need for sustained services. 3. The absence of a specific PSC code makes direct comparison to similar services challenging. 4. The contract's value is moderate within the broader professional contract services sector. 5. Limited competition raises concerns about optimal pricing and potential for cost overruns. 6. The award to Professional Contract Services, Inc. warrants a review of their past performance.

Value Assessment

Rating: fair

The contract value of $8.9 million over approximately 2.5 years for janitorial and grounds keeping services appears to be within a reasonable range for large-scale facilities support. However, without specific details on the scope of services, square footage covered, or service frequency, a precise value-for-money assessment is difficult. Benchmarking against similar contracts for facilities maintenance in Texas or for the Department of Homeland Security would provide a clearer picture of whether the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'not available for competition' basis, indicating a sole-source procurement. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific circumstances (e.g., urgent needs, unique capabilities), they generally lead to less price discovery and potentially higher costs for the government compared to full and open competition.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the best possible price, as the government did not leverage competition to drive down costs.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection facilities in Texas, ensuring a clean and maintained operational environment. Services include janitorial and grounds keeping, contributing to the upkeep and functionality of federal properties. The geographic impact is concentrated in Texas, supporting federal operations within the state. The contract supports jobs within the janitorial and grounds keeping services industry in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award raises questions about the necessity and justification for bypassing competitive processes.
Limited transparency on the specific services and performance metrics makes oversight challenging.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Long-term contract (over 2 years) ensures continuity of essential services.
Award to an established entity (Professional Contract Services, Inc.) may indicate a history of service delivery.

Sector Analysis

The janitorial and grounds keeping services sector is a significant part of the broader facilities support services industry. This contract falls under professional contract services, which encompasses a wide range of support functions for government agencies. While specific market size data for janitorial services within federal contracts is not readily available, the overall federal spending on facilities maintenance is substantial. This contract represents a portion of that spending, focused on ensuring the operational readiness and appearance of critical border protection infrastructure.

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 for small businesses stemming from a small business set-aside. The award to Professional Contract Services, Inc., a presumably larger entity, means that opportunities for small business participation would likely depend on the prime contractor's own subcontracting plans, which are not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Customs and Border Protection's contracting officer and program managers. As a firm-fixed-price contract, oversight would focus on ensuring that the contractor meets the defined service requirements and performance standards. Transparency is limited by the sole-source nature of the award and the lack of detailed public reporting on performance metrics. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Facilities Maintenance Services
Professional and Business Support Services
Grounds Maintenance Services
Janitorial Services

Risk Flags

Sole-source award may indicate reduced competition and potentially higher costs.
Lack of detailed service scope makes value-for-money assessment difficult.
Contract duration is lengthy, requiring sustained performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $9.0 million to PROFESSIONAL CONTRACT SERVICES, INC.. JANITORIAL & GROUNDS KEEPING SERVICES LRT SECTOR.

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 $9.0 million.

What is the period of performance?

Start: 2024-09-30. End: 2027-03-31.

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

A review of federal contract databases would be necessary to fully assess the track record of Professional Contract Services, Inc. This would involve examining past performance on similar contracts, including their timeliness of delivery, quality of services, and any history of disputes or contract modifications. Understanding their experience with government agencies, especially the Department of Homeland Security or its components like U.S. Customs and Border Protection, would provide crucial context for evaluating their capability to fulfill the current $8.9 million contract effectively. Without specific past performance data, it is difficult to definitively gauge their reliability and expertise in this domain.

How does the awarded price of $8.9 million compare to market rates for similar janitorial and grounds keeping services in Texas?

To compare the awarded price to market rates, one would need to analyze data from similar contracts awarded by federal, state, or local governments, as well as private sector contracts of comparable scope and scale within Texas. Factors such as the square footage of facilities, frequency of cleaning, specific services required (e.g., landscaping, waste removal, specialized cleaning), and labor costs in the relevant Texas region would need to be considered. Given this is a sole-source award, a direct price comparison is challenging as competitive pressures were not applied. However, benchmarking against publicly available data for facilities management contracts could reveal if the $8.9 million figure is significantly higher or lower than typical market pricing for similar service levels.

What are the specific risks associated with a sole-source award for janitorial and grounds keeping services?

The primary risk associated with a sole-source award is the potential for reduced value for money due to the lack of competition. Without multiple bidders vying for the contract, the government may end up paying a higher price than if the contract had been competed. There's also a risk that the chosen contractor may not be the most innovative or efficient provider available. Furthermore, sole-source awards can sometimes indicate a lack of adequate planning or market research by the agency, potentially leading to suboptimal contract terms or performance. Transparency is also reduced, making it harder for external observers to verify the fairness and efficiency of the procurement process.

What is the expected effectiveness of these janitorial and grounds keeping services in supporting U.S. Customs and Border Protection's mission?

Effective janitorial and grounds keeping services are crucial for maintaining a safe, healthy, and professional working environment for U.S. Customs and Border Protection (CBP) personnel. Clean and well-maintained facilities contribute to operational efficiency, employee morale, and the overall image of the agency. For CBP, which operates at border crossings and ports of entry, these services ensure that facilities are presentable and functional, supporting their critical mission of border security and trade facilitation. The effectiveness will depend on the contractor's adherence to the service level agreements and the scope of work defined in the contract, ensuring that facilities meet required standards consistently.

How has federal spending on janitorial and grounds keeping services, particularly by DHS, trended over the past five years?

Analyzing federal spending trends for janitorial and grounds keeping services, especially by the Department of Homeland Security (DHS), would require accessing historical federal procurement data. This would involve looking at contract awards categorized under NAICS code 561210 (Facilities Support Services) or similar classifications over the last five fiscal years. Trends might indicate an increase or decrease in spending, potentially influenced by factors such as changes in facility needs, budget allocations, or shifts towards outsourcing versus in-house services. Understanding these historical patterns can provide context for the current $8.9 million award, helping to determine if it aligns with or deviates from established spending trajectories.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70B03C24R00000097

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: $26,708,637

Exercised Options: $8,957,033

Current Obligation: $8,957,033

Actual Outlays: $5,399,204

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline