DOT's FAA awards $23.5K janitorial contract to National Service Contractors, Inc. for Eastern Region Building

Contract Overview

Contract Amount: $15,616,384 ($15.6M)

Contractor: National Service Contractors, Inc.

Awarding Agency: Department of Transportation

Start Date: 2009-09-10

End Date: 2016-04-21

Contract Duration: 2,415 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE CUSTODIAL SERVICES FOR EASTERN REGION BUILDING 284 I/A/W SOW PARAGRAPH 1.9.3 12 MONTHS @ $1,962.04 A MONTH = $23,544.48

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20020

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $15.6 million to NATIONAL SERVICE CONTRACTORS, INC. for work described as: PROVIDE CUSTODIAL SERVICES FOR EASTERN REGION BUILDING 284 I/A/W SOW PARAGRAPH 1.9.3 12 MONTHS @ $1,962.04 A MONTH = $23,544.48 Key points: 1. Contract value is $23,544.48 over 2415 days. 2. Competition type is 'FULL AND OPEN COMPETITION'. 3. Contract type is 'DEFINITIVE CONTRACT' with 'FIRM FIXED PRICE'. 4. The sector is Facilities Support Services (NAICS 561720).

Value Assessment

Rating: fair

The contract value of $23,544.48 for 2415 days (approximately 6.6 years) appears low for custodial services, suggesting either a very small service area or potentially outdated pricing. Benchmarking against similar contracts would be necessary for a definitive assessment.

Cost Per Unit: $9.76 per day

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The relatively low contract value suggests a minimal direct taxpayer impact for this specific service.

Public Impact

Ensures a clean and functional workspace for FAA personnel in the Eastern Region. Supports the operational readiness of federal facilities. Provides employment opportunities through the awarded contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is exceptionally long (2415 days) for a service of this nature.
Low monthly cost may indicate a limited scope of work or potential underpricing.
Lack of small business participation noted.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls under Facilities Support Services, specifically janitorial services. Spending in this sector is generally stable, driven by the need to maintain government and commercial properties. Benchmarks vary widely based on facility size, location, and service level.

Small Business Impact

The contract was not awarded to a small business. There is no indication of specific set-aside goals for small businesses in the provided data, which could represent a missed opportunity for small business participation.

Oversight & Accountability

The contract was awarded under full and open competition, suggesting a standard procurement process. Oversight would typically involve monitoring service delivery against the Statement of Work (SOW) and ensuring contractor compliance.

Related Government Programs

Janitorial Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Long contract duration for custodial services.
Potentially low unit cost may indicate limited scope or risk of underperformance.
No small business participation.
Contract awarded in 2009 with an end date in 2016, suggesting outdated pricing and terms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $15.6 million to NATIONAL SERVICE CONTRACTORS, INC.. PROVIDE CUSTODIAL SERVICES FOR EASTERN REGION BUILDING 284 I/A/W SOW PARAGRAPH 1.9.3 12 MONTHS @ $1,962.04 A MONTH = $23,544.48

Who is the contractor on this award?

The obligated recipient is NATIONAL SERVICE CONTRACTORS, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $15.6 million.

What is the period of performance?

Start: 2009-09-10. End: 2016-04-21.

What is the specific scope of custodial services included in SOW Paragraph 1.9.3, and how does it justify the low daily rate?

The Statement of Work (SOW) details the specific tasks, frequency, and standards for custodial services. A low daily rate of $9.76 might be justified if the scope is extremely limited, such as servicing only a small administrative office area with minimal foot traffic, or if the contract was awarded many years ago and the pricing reflects older market conditions. Further review of the SOW is needed to confirm the scope and assess if it aligns with the duration and price.

Given the 2415-day duration, what are the risks associated with potential changes in service needs or inflation impacting the fixed price?

A long contract duration like 2415 days for a fixed-price service contract carries risks. Service needs can evolve, and the fixed price may become inadequate if the scope expands or standards increase. Inflation can erode the contractor's profit margin, potentially leading to decreased service quality or requests for contract modifications. The government also risks being locked into a potentially suboptimal price if market rates increase significantly over the contract period.

How effectively does this contract ensure a consistently high standard of cleanliness and facility maintenance over its extended period?

Effectiveness hinges on the clarity of the SOW, the contractor's performance, and the government's quality assurance surveillance. For a long-term, low-value contract, there's a risk that oversight might be less rigorous. Ensuring consistent high standards requires regular performance evaluations, clear communication channels for addressing issues, and potentially periodic reviews of the service scope against current needs to confirm the pricing remains appropriate.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2007 B MARTIN LUTHER KING JR AVE SE, WASHINGTON, DC, 20020

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $73,625,833

Exercised Options: $15,616,384

Current Obligation: $15,616,384

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline