GSA awards $10.6M Janitorial Services contract to ADA S. MCKINLEY COMMUNITY SERVICES, INC. for 5 years

Contract Overview

Contract Amount: $10,602,385 ($10.6M)

Contractor: ADA S. Mckinley Community Services, Inc.

Awarding Agency: General Services Administration

Start Date: 2006-10-31

End Date: 2011-10-31

Contract Duration: 1,826 days

Daily Burn Rate: $5.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL AND RELATED SERVICES

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60604

State: Illinois Government Spending

Plain-Language Summary

General Services Administration obligated $10.6 million to ADA S. MCKINLEY COMMUNITY SERVICES, INC. for work described as: JANITORIAL AND RELATED SERVICES Key points: 1. Contract awarded for janitorial services, a common government need. 2. The sole contractor, ADA S. MCKINLEY COMMUNITY SERVICES, INC., has held this contract since 2006. 3. Lack of competition raises concerns about potential overpricing and limited innovation. 4. The sector is characterized by numerous small and large providers, making the lack of competition notable.

Value Assessment

Rating: questionable

The contract value of $10.6M over 5 years averages $2.12M annually. Without competitive bids, it's difficult to assess if this pricing is optimal compared to market rates for similar janitorial services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method bypasses the competitive process, potentially leading to higher costs and reduced service quality as there is no market pressure to improve.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for janitorial services.

Public Impact

Essential building maintenance services are provided, ensuring clean and safe federal facilities. Long-term sole-source awards can stifle opportunities for new or smaller businesses to enter the federal contracting space. The extended duration of this contract suggests a stable, albeit uncompeted, service provision.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Long contract duration without re-competition

Positive Signals

Consistent service provider over an extended period

Sector Analysis

Janitorial services are a fundamental part of facility management across all government agencies. Spending benchmarks vary widely based on facility size, type, and location, but competition typically drives efficiency.

Small Business Impact

The contract was awarded to ADA S. MCKINLEY COMMUNITY SERVICES, INC., which may be a small business. However, the lack of competition means other small businesses were not given an opportunity to bid on this requirement.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Future procurements should explore competitive bidding processes to ensure fair pricing and maximize value for taxpayers.

Related Government Programs

Janitorial Services
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Potential for inflated pricing due to lack of competition.
Missed opportunities for small business participation through competitive bidding.
Risk of service stagnation without market-driven incentives.
Lack of transparency regarding the sole-source justification.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $10.6 million to ADA S. MCKINLEY COMMUNITY SERVICES, INC.. JANITORIAL AND RELATED SERVICES

Who is the contractor on this award?

The obligated recipient is ADA S. MCKINLEY COMMUNITY SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.6 million.

What is the period of performance?

Start: 2006-10-31. End: 2011-10-31.

What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this information, it's impossible to fully assess the necessity of bypassing competition.

How does the annual cost of this contract compare to industry benchmarks for similar services in the region?

Benchmarking is challenging without specific details on the scope of services, square footage cleaned, and frequency. However, an average annual cost of over $2 million for janitorial services suggests a need for comparison against similar-sized federal facilities or large commercial contracts in Illinois to identify potential cost savings.

What is the potential impact on service quality and innovation due to the lack of competition over a 10+ year period?

A decade without competition can lead to complacency, potentially impacting service quality and hindering the adoption of new technologies or more efficient cleaning methods. The absence of market pressure might allow for a decline in service standards or an increase in costs over time without a mechanism for correction.

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 COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GS-05P-06-SI-C-3036

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 725 S WELLS ST STE 1-A, CHICAGO, IL, 90

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

Financial Breakdown

Contract Ceiling: $12,495,911

Exercised Options: $12,495,911

Current Obligation: $10,602,385

Contract Characteristics

Multi-Year Contract: Yes

Timeline