FEMA awards $2.19M janitorial contract to HHI Services, Inc. for LIRO facility in Baton Rouge

Contract Overview

Contract Amount: $2,190,930 ($2.2M)

Contractor: HHI Services, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-02-01

End Date: 2026-02-28

Contract Duration: 1,123 days

Daily Burn Rate: $2.0K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL SERVICES FOR THE LIRO FACILITY IN BATON ROUGE-NEW CONTRACT AWARD: 2/1/2023-1/31/2024

Place of Performance

Location: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70802

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.2 million to HHI SERVICES, INC. for work described as: JANITORIAL SERVICES FOR THE LIRO FACILITY IN BATON ROUGE-NEW CONTRACT AWARD: 2/1/2023-1/31/2024 Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract was not competed under simplified acquisition procedures, suggesting potential for limited competition. 3. The duration of the contract extends beyond one year, requiring sustained performance monitoring. 4. The contractor, HHI Services, Inc., is a new awardee for this specific service at this facility. 5. The service falls under the janitorial category, a common and essential facility support function.

Value Assessment

Rating: questionable

Benchmarking the value of this janitorial services contract is challenging without more detailed cost breakdowns or comparisons to similar facilities in the Baton Rouge area. The firm-fixed-price structure provides cost certainty, but the absence of competitive bidding raises questions about whether the government secured the best possible price. Further analysis would require understanding the scope of services and comparing them to industry standards for facilities of similar size and complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under simplified acquisition procedures and is listed as 'NOT COMPETED UNDER SAP'. While not explicitly stated as sole-source, this designation implies a lack of broad competition, potentially due to specific circumstances or a limited number of qualified vendors. The absence of a competitive process means the government may not have explored all available options or achieved optimal price discovery.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost savings typically achieved through a bidding process, potentially leading to a higher price than if multiple vendors had vied for the contract.

Public Impact

The primary beneficiary is the Department of Homeland Security (FEMA) through the provision of essential cleaning and maintenance services for the LIRO facility. This contract ensures a sanitary and functional environment for government operations at the specified facility. The services are geographically focused on Baton Rouge, Louisiana. The contract supports local employment through the janitorial services workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in a higher cost to taxpayers.
Limited transparency into the justification for not competing the contract.
Performance risks associated with a single source provider without market pressure.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Ensures essential facility maintenance services are delivered.
Contract award to a specific company indicates they met initial requirements.

Sector Analysis

Janitorial services represent a segment of the broader facilities management and commercial cleaning industry. This sector is characterized by a mix of large national providers and numerous smaller, local businesses. Government contracts for janitorial services are common across various agencies to maintain federal buildings and installations. Benchmarking typically involves comparing pricing for similar services based on square footage, frequency of cleaning, and specialized requirements.

Small Business Impact

The data indicates this contract was not competed under simplified acquisition procedures and does not specify small business set-aside status (ss: false, sb: false). This suggests that small businesses were not specifically targeted for this award, and the contract may have been awarded to a larger entity or through a process that did not prioritize small business participation. Subcontracting opportunities for small businesses are not explicitly detailed in this award notice.

Oversight & Accountability

Oversight for this contract would fall under the Department of Homeland Security and the Federal Emergency Management Agency. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency regarding the justification for not competing the contract would be crucial for accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Maintenance Contracts
Department of Homeland Security Facility Support Services
FEMA Operations Support
Janitorial and Cleaning Services Contracts

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency on Award Justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.2 million to HHI SERVICES, INC.. JANITORIAL SERVICES FOR THE LIRO FACILITY IN BATON ROUGE-NEW CONTRACT AWARD: 2/1/2023-1/31/2024

Who is the contractor on this award?

The obligated recipient is HHI SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2023-02-01. End: 2026-02-28.

What is the specific justification for not competing this contract under simplified acquisition procedures?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP'. This designation typically means that the contract was awarded without a full and open competition, potentially due to reasons such as urgency, a lack of available sources, or specific statutory exceptions. Without further documentation from the agency, the precise justification remains unclear. Agencies are required to document such decisions, and this documentation would typically be available through Freedom of Information Act requests or agency procurement portals. Understanding this justification is critical for assessing whether the government acted appropriately in foregoing a competitive process and if taxpayers received fair value.

How does the awarded price compare to market rates for janitorial services in Baton Rouge?

Directly comparing the awarded price of $2,190,930.03 for 1123 days (approximately $1,952 per day) to specific market rates for janitorial services in Baton Rouge is difficult without detailed information on the scope of services, facility size, and cleaning frequency. Janitorial costs are highly variable, depending on factors like square footage, types of services (e.g., basic cleaning vs. specialized disinfection), and the level of detail required. However, given the lack of competition, it is plausible that the price could be higher than what might be achieved through a competitive bidding process. A thorough market analysis would involve obtaining quotes from multiple local janitorial service providers for a comparable scope of work at a similar facility.

What are the potential risks associated with awarding a contract without full and open competition?

Awarding contracts without full and open competition, as indicated by 'NOT COMPETED UNDER SAP', carries several potential risks. Primarily, it can lead to higher costs for the government because the absence of multiple bids means the contractor faces less pressure to offer competitive pricing. This can result in a lack of value for taxpayer money. Additionally, it limits the government's ability to explore innovative solutions or leverage the unique strengths of different potential providers. There's also a risk of reduced quality if the chosen contractor is not incentivized by market competition to maintain high standards. Finally, it can create an uneven playing field for businesses, potentially disadvantaging small businesses or new entrants that might have offered superior services or pricing.

What is the track record of HHI SERVICES, INC. in performing similar government contracts?

The provided data indicates that this is a new contract award to HHI SERVICES, INC. for janitorial services at the LIRO facility. Without access to a broader federal procurement database or historical contract awards for this specific company, it is difficult to ascertain their overall track record in performing similar government contracts. Further investigation would be needed to determine if they have previously held contracts for janitorial services, their performance ratings on those contracts, and their experience with facilities of comparable size and complexity. This information is crucial for assessing the contractor's reliability and capability.

What is the expected impact of this contract on the local Baton Rouge economy?

This contract is expected to have a positive impact on the local Baton Rouge economy by creating or sustaining jobs for janitorial staff. The direct expenditure of approximately $2.19 million over the contract period will flow into the local economy through wages, supplies, and potentially other local business services utilized by HHI SERVICES, INC. The specific number of jobs created or retained would depend on the company's staffing model and whether they are hiring locally. Furthermore, the reliable provision of janitorial services ensures the continued operation of the LIRO facility, which is part of the federal infrastructure in the region.

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 UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 518 E RAMSEY RD, SAN ANTONIO, TX, 78216

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,190,930

Exercised Options: $2,190,930

Current Obligation: $2,190,930

Actual Outlays: $1,291,713

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline