DHS awards $2.97M janitorial contract to Cape Abilities, Inc. for Coast Guard facilities in MA

Contract Overview

Contract Amount: $2,965,852 ($3.0M)

Contractor: Cape Abilities, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2020-04-01

End Date: 2025-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $1.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL AND LINEN SERVICES AT USCG BASE CAPE COD AND ARSTA CAPE COD, MA

Place of Performance

Location: BUZZARDS BAY, BARNSTABLE County, MASSACHUSETTS, 02542

State: Massachusetts Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.0 million to CAPE ABILITIES, INC. for work described as: JANITORIAL AND LINEN SERVICES AT USCG BASE CAPE COD AND ARSTA CAPE COD, MA Key points: 1. Contract awarded to a single provider, raising questions about competition and potential cost savings. 2. The contract duration of five years suggests a need for stable, long-term service provision. 3. Fixed-price contract type aims to control costs, but requires careful monitoring of service quality. 4. Service category is janitorial, a common requirement for government facilities. 5. Geographic focus on Cape Cod, MA, indicates localized service delivery.

Value Assessment

Rating: fair

The contract value of approximately $2.97 million over five years averages to about $593,000 annually for janitorial services. Benchmarking this against similar contracts for facilities of comparable size and scope is difficult without more specific data on square footage and service levels. However, given the sole-source nature, it's challenging to definitively assess if this represents optimal value for money. The firm fixed-price structure provides cost certainty for the government, but the absence of competition limits the ability to verify competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source is available or in cases of urgent need. The lack of competition means there was no opportunity for multiple vendors to bid, which could potentially lead to higher prices than if the contract had been competed. The specific justification for the sole-source award is not detailed here but would be crucial for understanding the rationale.

Taxpayer Impact: The absence of competition means taxpayers may not be benefiting from the most competitive pricing achievable through an open bidding process. This could result in a higher overall cost for the janitorial services provided.

Public Impact

Provides essential janitorial and linen services to U.S. Coast Guard Base Cape Cod and ARSTA Cape Cod. Ensures a clean and sanitary environment for military personnel and civilian staff operating at these facilities. Supports the operational readiness of critical Coast Guard infrastructure in Massachusetts. Likely employs local staff for service delivery, contributing to the regional economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential savings.
Lack of competitive bidding raises concerns about whether the best possible price was secured.
Contract duration of five years without clear performance review triggers could lead to complacency.

Positive Signals

Firm fixed-price contract provides budget certainty.
Award to Cape Abilities, Inc. may align with specific agency missions or socio-economic goals (if applicable).
Consistent service provision over five years ensures facility cleanliness.

Sector Analysis

Janitorial services fall under the broader facilities maintenance and management sector. This sector is characterized by a mix of large, established companies and smaller, specialized service providers. Government contracts for janitorial services are common and represent a significant portion of spending in this category. The market is generally competitive, making sole-source awards less common and warranting closer scrutiny. Benchmarking would involve comparing per-square-foot cleaning costs across similar government facilities.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available for this contract. As it was awarded sole-source, it is unlikely to have been specifically set aside for small businesses. Further investigation would be needed to determine if Cape Abilities, Inc. is a small business itself or if any subcontracting opportunities exist for small businesses within this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Coast Guard and the Department of Homeland Security's contracting and program management offices. The firm fixed-price nature of the contract provides a degree of cost control. However, the effectiveness of oversight depends on robust performance monitoring, quality assurance checks, and adherence to service level agreements. Transparency is enhanced by public contract databases, but detailed performance metrics and inspection reports may not be readily available.

Related Government Programs

Federal Janitorial Services Contracts
Department of Homeland Security Facilities Maintenance
U.S. Coast Guard Operational Support Contracts

Risk Flags

Sole-source award requires justification review.
Potential for uncompetitive pricing due to lack of competition.
Performance monitoring and quality assurance are critical.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.0 million to CAPE ABILITIES, INC.. JANITORIAL AND LINEN SERVICES AT USCG BASE CAPE COD AND ARSTA CAPE COD, MA

Who is the contractor on this award?

The obligated recipient is CAPE ABILITIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $3.0 million.

What is the period of performance?

Start: 2020-04-01. End: 2025-03-31.

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

The provided data indicates the contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, which is synonymous with a sole-source award. The specific justification for this determination is not included in the abbreviated data. Typically, sole-source awards are made when only one responsible source is capable of providing the required service, or in cases of urgent and compelling need where competition is not feasible. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to ascertain the precise reasons. This could range from unique capabilities of the contractor, specialized equipment requirements, or a critical operational necessity that only this specific vendor could meet within the required timeframe. Understanding this justification is key to assessing whether the sole-source award was appropriate and if it truly represented the best option for the government.

How does the annual cost of this contract compare to industry benchmarks for janitorial services at similar government facilities?

The contract value is approximately $2.97 million over five years, averaging about $593,000 annually. Benchmarking this figure requires detailed information about the square footage of the facilities (USCG Base Cape Cod and ARSTA Cape Cod), the scope and frequency of services (e.g., daily cleaning, deep cleaning, window washing, waste removal, linen services), and the specific labor rates in the Cape Cod, MA area. General industry benchmarks for janitorial services can vary widely, but often range from $0.50 to $2.00 per square foot per month, depending on the level of service. If we assume a hypothetical facility size and service level, we could attempt a rough comparison. However, without specific details on the service requirements and facility size, a precise comparison is not feasible. The sole-source nature of the award also complicates direct price comparisons, as competitive market forces were not applied.

What performance metrics or quality assurance measures are in place to ensure the effectiveness of the janitorial services provided?

The provided data does not specify the performance metrics or quality assurance measures for this contract. However, for a firm fixed-price contract of this duration and value, it is standard practice for the U.S. Coast Guard to have a Performance Work Statement (PWS) outlining detailed service requirements and standards. Quality assurance would typically involve regular inspections, customer satisfaction surveys, and performance evaluations conducted by a designated government representative (e.g., Contracting Officer's Representative - COR). These measures are crucial for ensuring that Cape Abilities, Inc. meets the required standards for cleanliness, timeliness, and overall service delivery. The effectiveness of these oversight mechanisms directly impacts the value received by the government and the taxpayer.

What is the track record of Cape Abilities, Inc. in performing similar government contracts?

The provided data identifies Cape Abilities, Inc. as the contractor but does not offer details on their past performance history with government contracts. To assess their track record, one would need to examine their contract history, including previous awards, performance evaluations (such as Past Performance Information - PPI reports), and any instances of contract disputes or terminations. Organizations like Cape Abilities often have specific missions, and their experience may be concentrated in certain areas. A thorough review of their federal contract performance would be necessary to determine their reliability, efficiency, and success in delivering janitorial and related services in the past, especially for government clients.

How does the total spending on janitorial services by the U.S. Coast Guard in Massachusetts compare to this specific contract?

This contract represents $2.97 million in spending for janitorial and linen services at specific Coast Guard facilities in Massachusetts over a five-year period. To compare this to total spending, one would need to aggregate all janitorial service contracts awarded by the U.S. Coast Guard within the state of Massachusetts across all its installations and for all relevant contract periods. This would involve querying federal procurement databases for contracts categorized under NAICS code 561720 (Janitorial Services) awarded by the USCG in MA. Without access to this broader spending data, it's impossible to determine if this single contract constitutes a significant portion of the USCG's janitorial service expenditure in the state or if it is relatively modest in comparison to the overall budget for such services.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 895 MARY DUNN RD, HYANNIS, MA, 02601

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: $2,965,852

Exercised Options: $2,965,852

Current Obligation: $2,965,852

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline