DHS Awards $27.1M for Custodial Services to J.P. Industries, Inc. Under SourceAmerica Program
Contract Overview
Contract Amount: $27,121,214 ($27.1M)
Contractor: J.P. Industries, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2016-09-01
End Date: 2021-07-31
Contract Duration: 1,794 days
Daily Burn Rate: $15.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF CUSTODIAL AND GROUNDS MAINTENANCE SERVICES UNDER THE SOURCEAMERICA PROGRAM - TUCSON SECTOR USBP.
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85703
State: Arizona Government Spending
Plain-Language Summary
Department of Homeland Security obligated $27.1 million to J.P. INDUSTRIES, INC. for work described as: IGF::OT::IGF CUSTODIAL AND GROUNDS MAINTENANCE SERVICES UNDER THE SOURCEAMERICA PROGRAM - TUCSON SECTOR USBP. Key points: 1. Contract awarded to J.P. Industries, Inc. for janitorial services. 2. The contract is valued at $27.1 million over its duration. 3. Services are provided under the SourceAmerica program, which connects government agencies with non-profit agencies employing individuals with disabilities. 4. The contract was not available for competition. 5. The contract type is Firm Fixed Price.
Value Assessment
Rating: fair
The contract value of $27.1 million for janitorial services over nearly five years appears high compared to typical government contracts for similar services. Benchmarking against other custodial contracts of similar scope and duration is recommended.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited competition approach. This may impact price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition could result in higher costs for taxpayers compared to a fully competitive procurement.
Public Impact
Supports individuals with disabilities through the SourceAmerica program. Ensures essential custodial services for U.S. Customs and Border Protection facilities. Provides stable employment for individuals in Arizona. The contract's limited competition raises questions about cost-effectiveness for taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for overpricing due to lack of competition
Positive Signals
- Supports a social good program (SourceAmerica)
- Provides essential services
Sector Analysis
This contract falls under the janitorial services sector, specifically within the broader facilities maintenance category. Government spending on janitorial services is substantial, and contracts are often awarded through competitive bidding to ensure value for money.
Small Business Impact
The SourceAmerica program aims to create employment opportunities for individuals with disabilities, often through partnerships with businesses that may include small businesses or non-profits. Further analysis is needed to determine the extent of small business participation in this specific contract.
Oversight & Accountability
The contract's limited competition status warrants oversight to ensure fair pricing and effective service delivery. The use of the SourceAmerica program should be monitored to confirm it meets its social and operational objectives.
Related Government Programs
- Janitorial Services
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Contract duration is substantial (nearly 5 years).
- No clear indication of performance metrics or evaluation.
- Potential for cost savings through competitive bidding.
Tags
janitorial-services, department-of-homeland-security, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $27.1 million to J.P. INDUSTRIES, INC.. IGF::OT::IGF CUSTODIAL AND GROUNDS MAINTENANCE SERVICES UNDER THE SOURCEAMERICA PROGRAM - TUCSON SECTOR USBP.
Who is the contractor on this award?
The obligated recipient is J.P. INDUSTRIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $27.1 million.
What is the period of performance?
Start: 2016-09-01. End: 2021-07-31.
What is the specific justification for limiting competition on this custodial services contract?
The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION'. Without further details, the specific justification remains unclear. Typically, justifications for limited competition might include unique capabilities, urgent needs, or specific program requirements like those under SourceAmerica. A thorough review of the justification documentation is necessary to assess its validity and impact on pricing.
How does the per-unit cost of these janitorial services compare to industry benchmarks, considering the SourceAmerica program's operational model?
Benchmarking the per-unit cost is challenging without detailed service breakdowns and specific operational models of SourceAmerica participants. While the program serves a valuable social purpose, its operational structure might differ from standard commercial janitorial services, potentially affecting cost comparisons. A detailed cost analysis, factoring in program overhead and employment goals, would be needed for an accurate benchmark.
What is the long-term effectiveness of using limited competition for essential services like custodial maintenance, particularly under specialized programs?
Limited competition for essential services can be effective in meeting specific program goals, such as employment for individuals with disabilities via SourceAmerica. However, it carries a risk of reduced cost-efficiency and innovation compared to open competition. Long-term effectiveness hinges on robust oversight, clear performance metrics, and periodic re-evaluation of the competition strategy to ensure value and service quality are maintained.
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
Solicitation ID: HSBP1016R0044
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2851 N COUNTRY CLUB RD, TUCSON, AZ, 85716
Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,162,780
Exercised Options: $27,121,214
Current Obligation: $27,121,214
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2016-09-01
Current End Date: 2021-07-31
Potential End Date: 2021-07-31 07:38:57
Last Modified: 2022-09-28
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