GSA's $11.25M Janitorial Contract with Challenge Unlimited Faces Scrutiny for Limited Competition

Contract Overview

Contract Amount: $11,254,081 ($11.3M)

Contractor: Challenge Unlimited, Inc.

Awarding Agency: General Services Administration

Start Date: 2008-01-01

End Date: 2013-08-31

Contract Duration: 2,069 days

Daily Burn Rate: $5.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL AND RELATED SERVICES

Place of Performance

Location: SAINT LOUIS, ST. LOUIS County, MISSOURI, 63132

State: Missouri Government Spending

Plain-Language Summary

General Services Administration obligated $11.3 million to CHALLENGE UNLIMITED, INC. for work described as: JANITORIAL AND RELATED SERVICES Key points: 1. The contract awarded to Challenge Unlimited, Inc. for janitorial services totals over $11.25 million. 2. Limited competition raises concerns about potential overspending and lack of market-driven pricing. 3. The 'NOT AVAILABLE FOR COMPETITION' status suggests a sole-source or limited justification was used. 4. Analysis of pricing against similar janitorial contracts is crucial to assess value for money.

Value Assessment

Rating: questionable

The contract's total value of $11.25 million over its duration needs comparison with similar janitorial service contracts. Without competitive bidding, it's difficult to ascertain if the pricing reflects market rates or if taxpayers are overpaying.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a potential sole-source award or a limited competitive process. This lack of broad competition hinders price discovery and may lead to suboptimal pricing for the government.

Taxpayer Impact: The absence of robust competition could result in higher costs for taxpayers compared to a scenario with multiple bidders vying for the contract.

Public Impact

Taxpayers may be paying more than necessary for janitorial services due to limited competition. The lack of transparency in the procurement process raises questions about fairness and efficiency. Government agencies rely on these services, making cost-effectiveness a key concern for public funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of pricing transparency
Potential for overpayment

Positive Signals

Contract awarded to a specific company
Services provided over a defined period

Sector Analysis

Janitorial services fall under the broader facilities maintenance sector. Government spending in this area is substantial, and competitive bidding is typically expected to ensure cost efficiency and quality.

Small Business Impact

The data does not indicate whether Challenge Unlimited, Inc. is a small business. Analysis of small business participation in government contracts is important for economic opportunity.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status warrants further review by oversight bodies to ensure proper justification and adherence to procurement regulations.

Related Government Programs

Janitorial Services
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Unclear justification for sole-source award
Difficulty in assessing value for money

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $11.3 million to CHALLENGE UNLIMITED, INC.. JANITORIAL AND RELATED SERVICES

Who is the contractor on this award?

The obligated recipient is CHALLENGE UNLIMITED, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.3 million.

What is the period of performance?

Start: 2008-01-01. End: 2013-08-31.

What was the specific justification for limiting competition on this janitorial services contract?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' but the specific justification is not detailed. Typically, such limitations require a formal determination, such as a sole-source justification based on unique capabilities or urgent needs. Without this documentation, it's impossible to assess the validity of the non-competitive award and its impact on achieving best value.

How does the per-unit cost of these janitorial services compare to industry benchmarks or similar government contracts?

A direct per-unit cost benchmark is not available from the provided data. To assess value, a detailed analysis comparing the contract's pricing structure (e.g., cost per square foot, labor rates) against publicly available benchmarks for janitorial services in the same geographic region and for similar facility types would be necessary. This comparison is critical given the limited competition.

What is the potential risk of service quality degradation or price inflation due to the lack of competitive pressure?

The primary risk associated with limited competition is the potential for both price inflation and stagnation in service quality. Without the pressure of competing bids, the incumbent contractor may have less incentive to offer the lowest possible price or to innovate and improve service delivery. This can lead to taxpayers overpaying for services that may not meet optimal quality standards over time.

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: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4 EMMIE L KAUS LN, ALTON, IL, 13

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

Financial Breakdown

Contract Ceiling: $11,254,081

Exercised Options: $11,254,081

Current Obligation: $11,254,081

Parent Contract

Parent Award PIID: GS06P07GXD0052

IDV Type: IDC

Timeline