WORK INC awarded $9.9M contract for janitorial services by GSA Public Buildings Service

Contract Overview

Contract Amount: $9,927,968 ($9.9M)

Contractor: Work Inc

Awarding Agency: General Services Administration

Start Date: 2002-06-15

End Date: 2009-07-31

Contract Duration: 2,603 days

Daily Burn Rate: $3.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02222

State: Massachusetts Government Spending

Plain-Language Summary

General Services Administration obligated $9.9 million to WORK INC for work described as: Key points: 1. Contract awarded at a fixed price, indicating clear cost expectations. 2. The contract duration of over 2600 days suggests a long-term need for these services. 3. The award was not competed, raising questions about potential cost savings through competition. 4. The contractor, WORK INC, has a history with this type of service. 5. Services are for janitorial needs, a common and essential facility support function. 6. The contract falls under the MASSACHUSETTS state, indicating a specific geographic focus.

Value Assessment

Rating: fair

The contract value of $9.9M over approximately 7 years averages to about $1.4M annually. Without specific benchmarks for janitorial services in the region or for similar facilities, it is difficult to definitively assess value for money. However, the firm fixed-price nature suggests that the contractor assumed the risk for cost overruns. Further analysis would require comparison to similar contracts awarded by the GSA or other agencies for comparable square footage and service levels.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other vendors. The reason for this designation is not provided in the data. Sole-source awards can sometimes lead to higher prices compared to competitively bid contracts, as there is less pressure on the contractor to offer the lowest possible price. The lack of competition limits the government's ability to explore alternative solutions or pricing structures.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without a competitive process, it's harder to ensure that the price reflects the best possible value.

Public Impact

Federal employees and visitors benefit from maintained clean and sanitary federal facilities. Essential janitorial and cleaning services are delivered to ensure operational readiness and a safe working environment. The geographic impact is focused on MASSACHUSETTS, supporting federal operations within that state. The contract supports the workforce of WORK INC, providing employment opportunities in the janitorial services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than a fully competed contract.
The long duration of the contract could lead to vendor complacency if not actively managed.
Absence of specific performance metrics in the provided data makes it difficult to assess service quality.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
The contractor, WORK INC, has experience in providing these services.
The contract addresses a fundamental operational need for facility maintenance.

Sector Analysis

Janitorial services represent a significant segment of the facilities management industry, which is a crucial support sector for government operations. This contract fits within the broader category of commercial and institutional building services. Benchmarking this contract's value would ideally involve comparing its per-square-foot cost to similar government or commercial contracts in the same geographic region, considering the scope of services provided.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). There is no information on subcontracting opportunities for small businesses. This sole-source award does not appear to have been structured to specifically benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the General Services Administration's Public Buildings Service. Accountability measures would be defined in the contract's terms and conditions, including performance standards and payment schedules. Transparency is limited by the sole-source nature of the award and the lack of detailed performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Maintenance Contracts
Government Facility Support Services
GSA Schedules
Commercial Cleaning Services

Risk Flags

Sole-source award lacks competitive pricing pressure.
Long contract duration may limit flexibility and introduce complacency risk.
No explicit performance metrics provided for quality assessment.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $9.9 million to WORK INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is WORK INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $9.9 million.

What is the period of performance?

Start: 2002-06-15. End: 2009-07-31.

What is the historical spending pattern for janitorial services by the General Services Administration?

The General Services Administration (GSA) is a major procurer of janitorial and facility maintenance services across the federal government. Historical spending data reveals a consistent and substantial investment in these services to maintain federal buildings. While specific figures fluctuate year to year based on agency needs, building portfolios, and economic conditions, the GSA consistently allocates significant portions of its budget to ensure the cleanliness, safety, and operational integrity of federal properties. Analyzing past GSA contracts for similar services, including their duration, value, and competition levels, can provide context for current awards. For instance, understanding the average cost per square foot for janitorial services across different GSA regions or contract types (e.g., indefinite-delivery indefinite-quantity vs. fixed-price) is crucial for evaluating the value of individual contracts like the one awarded to WORK INC.

How does the pricing of this contract compare to similar janitorial service contracts?

Direct price comparison is challenging without detailed service scope and location-specific cost data. However, the total award of $9.9M over approximately 7 years suggests an average annual cost of roughly $1.4M. To benchmark this, one would need to compare it against contracts for similar-sized federal buildings or facilities in MASSACHUSETTS, considering factors like square footage, frequency of service, and specific tasks (e.g., deep cleaning, waste management). The fact that this was a sole-source award raises a flag, as competitive bidding often drives prices down. If similar, competitively awarded contracts in the region show significantly lower annual costs for comparable services, it would indicate that this contract may not represent optimal value for money from a pricing perspective.

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

The primary risk of a sole-source award for janitorial services is the potential for inflated costs due to the lack of competition. Without competing bids, the government may not secure the most cost-effective solution. Additionally, there's a risk of reduced innovation or service quality, as the incumbent contractor may face less pressure to improve or adapt their offerings. Transparency is also diminished, making it harder to justify the expenditure to taxpayers. While sole-source awards are sometimes necessary due to unique circumstances or specific contractor capabilities, they warrant careful justification and scrutiny to ensure the government is not overpaying or receiving suboptimal service.

What is the track record of WORK INC in providing janitorial services to the federal government?

The provided data indicates that WORK INC is the contractor for this specific janitorial services contract. To assess their track record, one would need to examine their performance history on this and potentially other federal contracts. This includes reviewing past performance evaluations, any documented issues or disputes, and their overall reliability in meeting contract requirements. A positive track record would involve consistent delivery of quality services, adherence to schedules, and effective communication with contracting officers. Conversely, a history of performance issues or contract terminations would raise concerns about their capability to fulfill this current award effectively.

How does the duration of this contract impact its overall value and risk?

The contract duration of approximately 2603 days (over 7 years) is substantial for janitorial services. A longer duration can offer stability and predictability for both the government and the contractor, potentially leading to a more established working relationship and economies of scale. However, it also carries risks. It can reduce flexibility for the government to adapt to changing needs or to take advantage of new technologies or more competitive market offerings that may emerge over time. Furthermore, a long-term sole-source contract increases the risk of vendor complacency and potential price increases if not managed proactively through contract modifications or performance reviews.

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

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 3 ARLINGTON ST, QUINCY, MA, 08

Business Categories: AbilityOne Program Participant, Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,927,968

Exercised Options: $9,927,968

Current Obligation: $9,927,968

Timeline