GSA's $14.5M custodial contract for Census HQ awarded to Vador Ventures, Inc. over 5 years

Contract Overview

Contract Amount: $14,490,881 ($14.5M)

Contractor: Vador Ventures, Inc.

Awarding Agency: General Services Administration

Start Date: 2007-09-07

End Date: 2013-03-31

Contract Duration: 2,032 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 19

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CUSTODIAL/JANITORIAL SERVICES AT CENSUS HEADQUARTERS

Place of Performance

Location: SUITLAND, PRINCE GEORGE'S County, MARYLAND, 20746, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $14.5 million to VADOR VENTURES, INC. for work described as: CUSTODIAL/JANITORIAL SERVICES AT CENSUS HEADQUARTERS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 5 years (2032 days) indicates a long-term need for services. 3. The firm-fixed-price contract type shifts cost risk to the contractor. 4. Awarded by the General Services Administration (GSA), a key federal procurement agency. 5. The North American Industry Classification System (NAICS) code 561720 points to janitorial services. 6. The contract was awarded in 2007, with services concluding in 2013.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific service details and comparable contract data. The total value of approximately $14.5 million over roughly five years suggests an average annual spend of around $2.9 million. This figure needs to be assessed against the square footage of Census Headquarters and the scope of custodial services provided. Given the age of the award (2007-2013), current market rates may differ significantly.

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.' This indicates that while the competition was intended to be broad, there was a specific reason for excluding certain sources, which is not detailed here. With 19 bids received, the competition level appears robust, which typically aids in price discovery and achieving competitive pricing for the government.

Taxpayer Impact: A competitive bidding process with 19 offers generally benefits taxpayers by driving down prices and ensuring the government receives services at a reasonable cost.

Public Impact

The primary beneficiaries are the employees and visitors of the Census Bureau headquarters, who will experience a cleaner and more sanitary work environment. The services delivered include essential custodial and janitorial functions necessary for maintaining federal facilities. The geographic impact is localized to the Census Bureau's headquarters in Maryland. The contract supports jobs within the janitorial services industry, contributing to the local economy in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The specific reasons for 'Exclusion of Sources' are not detailed, which could obscure potential competitive disadvantages.
The contract was awarded in 2007, and its value and performance metrics may not reflect current market conditions or best practices.
Lack of detailed performance metrics makes it difficult to assess the quality of services provided over the contract's lifespan.

Positive Signals

Awarded through full and open competition, indicating a broad initial outreach for bidders.
Receipt of 19 bids suggests significant interest and a competitive marketplace for these services.
The firm-fixed-price contract type transfers cost overrun risks to the contractor, potentially saving taxpayer money if costs are managed efficiently.

Sector Analysis

The custodial and janitorial services sector is a significant part of the facilities management industry. Federal agencies, like the GSA, are major consumers of these services to maintain government buildings. The market is generally characterized by a mix of large, established companies and smaller, specialized firms. Competition is typically driven by price, service quality, and adherence to federal regulations and standards. This contract fits within the broader category of government support services.

Small Business Impact

This contract does not appear to have been set aside for small businesses, as indicated by 'ss: false' and 'sb: false'. The large number of bids (19) suggests that both large and small businesses may have participated in the bidding process, but the award was not specifically targeted towards small business participation. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the General Services Administration (GSA), specifically the Public Buildings Service. Accountability measures would be embedded in the contract's performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance period.

Related Government Programs

Federal Building Maintenance Contracts
Government Facility Support Services
Janitorial Services Contracts
GSA Schedule Contracts
Census Bureau Operations Support

Risk Flags

Potential lack of transparency regarding source exclusion criteria.
Contract awarded in 2007; performance data may be outdated.
Limited detail on specific service metrics and quality assurance.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $14.5 million to VADOR VENTURES, INC.. CUSTODIAL/JANITORIAL SERVICES AT CENSUS HEADQUARTERS

Who is the contractor on this award?

The obligated recipient is VADOR VENTURES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.5 million.

What is the period of performance?

Start: 2007-09-07. End: 2013-03-31.

What were the specific services included under the 'Custodial/Janitorial Services' contract?

The provided data indicates the contract was for 'CUSTODIAL/JANITORIAL SERVICES AT CENSUS HEADQUARTERS.' While specific line items are not detailed, these services typically encompass a range of tasks necessary for maintaining the cleanliness and sanitation of a federal facility. This includes, but is not limited to, daily cleaning of offices, restrooms, common areas, and lobbies; trash removal; floor care (sweeping, mopping, vacuuming, waxing); dusting of surfaces; window cleaning; and potentially specialized services like carpet cleaning or pest control, depending on the contract's scope. The exact deliverables would have been outlined in the Performance Work Statement (PWS) attached to the contract.

How does the awarded price compare to similar contracts for custodial services?

Direct comparison of the $14.5 million total award value to similar contracts is difficult without knowing the specific square footage of the Census Bureau headquarters, the service levels required (e.g., frequency of cleaning, specific tasks), and the geographic location's prevailing labor and material costs. The contract was awarded in 2007 and concluded in 2013. To assess value, one would need to benchmark against contracts awarded around the same period for facilities of comparable size and complexity. Factors like the number of occupants, security requirements, and specific cleaning standards (e.g., LEED certification maintenance) also influence pricing. Without this context, a definitive value comparison is speculative.

What are the potential risks associated with a long-term contract like this (over 5 years)?

Long-term contracts, such as this one spanning over 2000 days (more than 5 years), carry several potential risks. Firstly, there's the risk of price escalation if the contract terms do not adequately account for inflation or changes in labor and material costs, although the firm-fixed-price structure mitigates this for the government. Secondly, there's a risk of service quality degradation over time if contractor performance is not rigorously monitored. Thirdly, technological advancements or changes in cleaning standards might render the contracted services outdated. Finally, a long duration can reduce flexibility for the government to adapt to changing needs or to capitalize on potentially better pricing from new market entrants if contract renewal options are not exercised or if the contract is re-competed.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply?

This designation suggests that the procurement process aimed for broad competition but had specific criteria that led to the exclusion of certain potential offerors. 'Full and Open Competition' is the standard preferred method for federal procurements, meaning all responsible sources are permitted to submit an offer. However, the 'After Exclusion of Sources' clause indicates that specific types of sources were intentionally not considered or were removed from the pool of eligible bidders, possibly due to specific requirements, past performance issues, or other pre-defined criteria. The exact reasons for exclusion are not provided in the summary data, making it difficult to fully assess the impact on competition.

How does the firm-fixed-price (FFP) contract type benefit the government in this scenario?

A Firm-Fixed-Price (FFP) contract type is generally advantageous for the government when the scope of work is well-defined and the risks of cost overruns are manageable. In this custodial services contract, the FFP structure means that Vador Ventures, Inc. was responsible for completing the work within the agreed-upon price, regardless of their actual costs. This shifts the financial risk of cost overruns from the government to the contractor. For the government, this provides budget certainty and predictability, as the total cost is known upfront. It incentivizes the contractor to control costs efficiently to maximize their profit margin.

What is the significance of the NAICS code 561720?

The North American Industry Classification System (NAICS) code 561720 specifically identifies 'Janitorial Services.' This classification is crucial for understanding the nature of the contract. It confirms that the primary service being procured is related to cleaning, sanitation, and general upkeep of facilities. This code is used for statistical purposes, including tracking industry size, economic activity, and employment. For procurement professionals, it helps in identifying potential contractors within the relevant industry sector and ensures the contract is categorized appropriately within government spending databases.

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

Solicitation ID: GS-11P-06-ZG-D-0246

Offers Received: 19

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3619 14TH ST NW, WASHINGTON, DC, 20010

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,490,881

Exercised Options: $14,490,881

Current Obligation: $14,490,881

Contract Characteristics

Multi-Year Contract: Yes

Timeline