GSA's $35.7M Janitorial Services Contract with The Corporate Source Inc. Lacked Competition

Contract Overview

Contract Amount: $35,692,915 ($35.7M)

Contractor: THE Corporate Source Incorporated

Awarding Agency: General Services Administration

Start Date: 2000-04-11

End Date: 2008-11-28

Contract Duration: 3,153 days

Daily Burn Rate: $11.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FACILITIES MAINTENANCE SERVICES JANITORIAL AND MECHANICAL MAINTENANCE SERVICES

Place of Performance

Location: CENTRAL ISLIP, SUFFOLK County, NEW YORK, 11722

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $35.7 million to THE CORPORATE SOURCE INCORPORATED for work described as: FACILITIES MAINTENANCE SERVICES JANITORIAL AND MECHANICAL MAINTENANCE SERVICES Key points: 1. The contract awarded to The Corporate Source Inc. for janitorial and mechanical maintenance services totaled $35.7 million. 2. Awarded in 2000 and expiring in 2008, the contract was not available for competition. 3. The lack of competition raises concerns about potential overpricing and reduced value for taxpayers. 4. The services fall under the Janitorial Services NAICS code 561720.

Value Assessment

Rating: questionable

Pricing assessment is difficult without competitive benchmarks. The contract's duration and lack of competition suggest potential for inflated costs compared to market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was explicitly stated as 'NOT AVAILABLE FOR COMPETITION'. This limited competition approach bypasses standard procurement processes, potentially hindering price discovery and negotiation.

Taxpayer Impact: The absence of competitive bidding likely resulted in higher costs for taxpayers than could have been achieved through an open market approach.

Public Impact

Taxpayers may have overpaid for essential facilities maintenance services due to the lack of competitive bidding. The long duration of the contract (2000-2008) further exacerbates concerns about sustained above-market pricing. Government agencies relying on these services may have received suboptimal value for their investment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Long contract duration
Potential for inflated pricing

Positive Signals

Services provided to Public Buildings Service
Firm Fixed Price contract type

Sector Analysis

This contract falls within the facilities maintenance sector, specifically janitorial services. Spending benchmarks for janitorial services vary widely based on location, facility size, and service scope, but competitive procurement is standard for achieving best value.

Small Business Impact

The data indicates this contract was not awarded to a small business (sb: false). There is no information provided on whether small businesses were subcontracted.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status suggests a potential lapse in oversight or a justification that warrants further scrutiny to ensure taxpayer funds were used efficiently and effectively.

Related Government Programs

Janitorial Services
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Lack of competition
Long contract duration without re-competition
Potential for overpricing
No clear justification for sole-source award
Limited transparency on performance metrics

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $35.7 million to THE CORPORATE SOURCE INCORPORATED. FACILITIES MAINTENANCE SERVICES JANITORIAL AND MECHANICAL MAINTENANCE SERVICES

Who is the contractor on this award?

The obligated recipient is THE CORPORATE SOURCE INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35.7 million.

What is the period of performance?

Start: 2000-04-11. End: 2008-11-28.

What was the specific justification for deeming this contract 'NOT AVAILABLE FOR COMPETITION'?

The justification for 'NOT AVAILABLE FOR COMPETITION' is critical. Typically, such designations require specific circumstances like urgent needs, unique capabilities, or sole-source providers. Without this justification, it's impossible to assess if the government received fair value or if competitive processes were bypassed inappropriately, potentially leading to higher costs for taxpayers.

How did the lack of competition impact the pricing and quality of janitorial services provided?

The lack of competition inherently removes the pressure on the contractor to offer competitive pricing or maintain high service quality to retain business. This can lead to inflated prices and potentially stagnant service levels, as the contractor faces no direct threat from competitors. A thorough review of performance metrics and price adjustments over the contract's lifespan would be needed to quantify this impact.

Were there any performance reviews or audits conducted during the contract's 8-year duration?

Information regarding performance reviews or audits is not provided in the data. For a contract of this value and duration, especially one awarded without competition, regular oversight and performance evaluations are crucial. The absence of this information raises concerns about accountability and whether the government adequately monitored the contractor's adherence to terms and service standards.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 460 WEST 34TH STREET, NEW YORK, NY, 90

Business Categories: AbilityOne Program Participant, Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $35,692,915

Exercised Options: $35,692,915

Current Obligation: $35,692,915

Timeline