Air Force awards $14.6M janitorial contract to Rocky Mountain Service Systems, Inc. for 2435 days

Contract Overview

Contract Amount: $14,637,993 ($14.6M)

Contractor: Rocky Mountain Service Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-05-01

End Date: 2010-12-31

Contract Duration: 2,435 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 29

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200408!000306!5700!CA03 !21 CONS/LGC !FA251704C0005 !A!N! !N! ! !20040501!20040930!067312090!067312090!067312090!N!ROCKY MOUNTAIN SERVICE SYSTEMS!30 E KIOWA !COLORADO SPRIN !CO!80903!16000!041!08!COLORADO SPRINGS !EL PASO !COLORADO !+000000903085!N!N!000009572708!S201!CUSTODIAL - JANITORIAL SERVICES !S1 !SERVICES !000 !* !561720!E! !3! ! ! ! ! !99990909!B!E!N!A! !A!N!J!2!029!K! !C!N!Z! ! !Y!B!N!Y! ! !Z! !K!A!00 !A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80914

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $14.6 million to ROCKY MOUNTAIN SERVICE SYSTEMS, INC. for work described as: 200408!000306!5700!CA03 !21 CONS/LGC !FA251704C0005 !A!N! !N! ! !20040501!20040930!067312090!067312090!067312090!N!ROCKY MOUNTAIN SERVICE SYSTEMS!30 E KIOWA !COLORADO SPRIN !CO!80903!16000!041!08!COLORADO SPRINGS !EL P… Key points: 1. Contract awarded for custodial and janitorial services, indicating a need for facility maintenance. 2. The contract duration of 2435 days suggests a long-term requirement for these services. 3. Awarded by the Department of the Air Force, highlighting defense sector spending. 4. The contract value of $14.6M over its term implies a significant investment in maintaining operational facilities. 5. The service category (561720) points to a standardized, recurring need within government operations. 6. Fixed-price contract type suggests predictable costs for the government, assuming scope is well-defined.

Value Assessment

Rating: fair

The contract value of $14.6M over approximately 6.7 years results in an average annual cost of roughly $2.18M. Benchmarking this against similar janitorial service contracts is difficult without more specific details on the scope of services, facility size, and location. However, the duration and value suggest a substantial, ongoing requirement. The firm fixed-price nature provides cost certainty, but the overall value proposition depends heavily on the quality and efficiency of the services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' which typically means it was competed broadly, but certain sources were excluded based on specific criteria. The presence of 29 bids indicates a competitive process. A higher number of bidders generally suggests a healthier market and potentially better pricing for the government. The exclusion of sources, if not clearly justified, could warrant further scrutiny.

Taxpayer Impact: A competitive award with 29 bidders is generally favorable for taxpayers, as it increases the likelihood of receiving competitive pricing and good value for the services rendered.

Public Impact

The primary beneficiaries are the personnel and operations of the Department of the Air Force facilities where these janitorial services are provided. Services delivered include essential custodial and janitorial functions to maintain a clean and safe working environment. The geographic impact is concentrated in Colorado Springs, Colorado, where the contractor is located and services are likely performed. Workforce implications include job creation for janitorial staff employed by Rocky Mountain Service Systems, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long contract duration, which could increase costs if not managed.
Reliance on a single contractor for an extended period may reduce flexibility in adapting to changing facility needs or service requirements.
The 'exclusion of sources' clause in the competition type warrants understanding the specific rationale to ensure no viable competitors were unfairly excluded.

Positive Signals

The high number of bids (29) suggests a robust competitive environment, which is a positive signal for value.
A firm fixed-price contract provides cost predictability for the government over the contract term.
The contractor's long-term engagement implies a level of established performance and reliability in meeting service demands.

Sector Analysis

The janitorial services sector is a significant part of the facilities management industry, supporting the operational needs of various organizations, including government agencies. This contract falls within the broader professional, scientific, and technical services category. Spending on janitorial services by federal agencies is consistent, reflecting the ongoing need to maintain government buildings and infrastructure. Comparable spending benchmarks would depend on the specific square footage, types of facilities, and service levels required.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The large contract value and duration suggest that subcontracting opportunities might exist, potentially benefiting small businesses in the janitorial or related support services sector. However, without specific subcontracting plans or goals mandated in the contract, the direct impact on the small business ecosystem is uncertain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Performance standards and quality assurance surveillance plans (QASPs) would be crucial for monitoring service delivery. Transparency is generally provided through contract award databases, but detailed performance reports or audits are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Schedules for facilities maintenance
Department of Defense Facilities Management Contracts
Federal Janitorial and Custodial Services Contracts

Risk Flags

Long contract duration may lead to price escalation or performance degradation.
Potential for 'exclusion of sources' to limit competition if not well-justified.
Lack of detailed scope of work in summary data makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.6 million to ROCKY MOUNTAIN SERVICE SYSTEMS, INC.. 200408!000306!5700!CA03 !21 CONS/LGC !FA251704C0005 !A!N! !N! ! !20040501!20040930!067312090!067312090!067312090!N!ROCKY MOUNTAIN SERVICE SYSTEMS!30 E KIOWA !COLORADO SPRIN !CO!80903!16000!041!08!COLORADO SPRINGS !EL PASO !COLORADO !+000000903085!N!N!000009572708!S201!CUSTODIAL - JANITORIAL SERVICES !S1 !SERVICES !000 !* !561720!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is ROCKY MOUNTAIN SERVICE SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $14.6 million.

What is the period of performance?

Start: 2004-05-01. End: 2010-12-31.

What is the specific scope of janitorial services required under this contract, and how does it compare to industry standards for similar facilities?

The provided data indicates the contract is for 'CUSTODIAL - JANITORIAL SERVICES' under NAICS code 561720. However, the specific scope, such as frequency of cleaning, types of areas covered (e.g., offices, restrooms, common areas, specialized areas), and specific tasks (e.g., dusting, vacuuming, mopping, waste removal, sanitization), is not detailed in the provided data snippet. To compare this to industry standards, one would need to know the square footage of the facilities, the type of facilities (e.g., administrative buildings, hangars, barracks), and the expected level of service (e.g., daily, weekly, specialized deep cleaning). Without this granular information, a precise comparison is challenging. However, the contract value of $14.6M over approximately 6.7 years suggests a comprehensive service level is expected for potentially large or numerous facilities.

How does the per-day or per-year cost of this contract compare to other similar janitorial service contracts awarded by the Department of Defense or other federal agencies?

The total contract value is $14,637,993.32 over a period from May 1, 2004, to December 31, 2010, which is approximately 2435 days or about 6.7 years. This equates to an average annual cost of roughly $2.18 million ($14.6M / 6.7 years). To benchmark this effectively, we would need data on the size and type of facilities being serviced, the specific services included, and the geographic location. Federal procurement data often shows a wide range for janitorial services based on these factors. For instance, contracts for large military bases or complex facilities could easily reach millions annually, while smaller office buildings would cost significantly less. Without more context on the scope, a direct comparison is difficult, but the annual figure suggests a substantial service requirement.

What is the track record of Rocky Mountain Service Systems, Inc. in performing federal contracts, particularly for janitorial services?

The provided data indicates that Rocky Mountain Service Systems, Inc. was awarded this specific contract (FA251704C0005) by the Department of the Air Force. The contract duration is substantial (2435 days), suggesting a potentially successful performance history that led to such a long-term award. However, this data snippet alone does not provide a comprehensive view of the company's overall track record with federal contracts. To assess their track record thoroughly, one would need to examine their performance history on this and other contracts, including any past performance evaluations, contract modifications, disputes, or terminations. Information from sources like the Federal Procurement Data System (FPDS) or contractor performance databases would be necessary for a complete assessment.

Given the 'full and open competition after exclusion of sources' designation, what were the specific criteria for excluding certain sources, and could this have impacted the final price?

The designation 'full and open competition after exclusion of sources' implies that the solicitation was made available to all responsible prospective contractors, but certain sources were excluded based on specific, documented reasons. These reasons could include factors like past performance issues, failure to meet minimum qualifications, or specific security requirements. The exclusion of sources, if done appropriately and with clear justification, is intended to ensure that only qualified and suitable contractors participate, potentially leading to better overall contract outcomes. However, if the exclusion criteria were overly restrictive or not well-justified, it could limit competition and potentially lead to higher prices than if a broader pool of bidders had been allowed. The fact that 29 bids were received suggests that competition was still robust despite any exclusions.

What are the potential risks associated with a long-duration contract (2435 days) for janitorial services, and what mitigation strategies are typically employed?

Long-duration contracts for services like janitorial work carry several potential risks. Firstly, the cost of labor and materials can fluctuate significantly over several years, potentially eroding the value of a fixed-price contract if not adequately accounted for in the initial pricing. Secondly, the government's needs or facility conditions might change, making the original scope of work less relevant or requiring modifications that could lead to disputes or increased costs. Thirdly, contractor performance can degrade over time, or the contractor might face financial instability, impacting service delivery. Mitigation strategies typically include robust performance monitoring by a COR, clear contract terms and conditions, provisions for equitable adjustments in pricing for significant material cost changes (if applicable), and regular performance reviews. The government also retains the right to terminate the contract for default if performance is unsatisfactory.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 29

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 30 E KIOWA, COLORADO SPRIN, CO

Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $14,643,418

Exercised Options: $14,643,418

Current Obligation: $14,637,993

Contract Characteristics

Cost or Pricing Data: NO

Timeline