Department of Labor's Janitorial Services contract awarded to TRI-ARK INDUSTRIES, INC. for over $11 million

Contract Overview

Contract Amount: $11,064,750 ($11.1M)

Contractor: Tri-Ark Industries, Inc.

Awarding Agency: Department of Labor

Start Date: 2003-12-19

End Date: 2008-10-10

Contract Duration: 1,757 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: OTHER PROFESSIONAL SERVICES & JANITORIAL SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $11.1 million to TRI-ARK INDUSTRIES, INC. for work described as: OTHER PROFESSIONAL SERVICES & JANITORIAL SERVICES Key points: 1. Contract value of $11.06 million over its duration. 2. Awarded through full and open competition after exclusion of sources. 3. Duration of 1757 days. 4. Service type: Janitorial Services. 5. Contracting agency: Department of Labor. 6. Place of performance: District of Columbia.

Value Assessment

Rating: fair

The total contract value of $11.06 million for janitorial services over approximately 4.8 years appears to be within a reasonable range for a federal contract of this scope. However, without specific details on the scope of services, square footage cleaned, or frequency of service, a precise value-for-money assessment is challenging. Benchmarking against similar janitorial contracts for federal buildings of comparable size and location would provide a clearer picture of whether the pricing was competitive.

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, specific sources may have been excluded for stated reasons. The number of bidders is not provided, which limits the assessment of the intensity of competition. A truly open competition with multiple responsive bidders typically drives better pricing and service quality.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to solicit the best value from a wide range of potential providers, potentially leading to cost savings.

Public Impact

Benefits federal employees and visitors by ensuring a clean and sanitary working environment within the Department of Labor facilities. Provides essential janitorial services, including cleaning, waste removal, and maintenance of restrooms and common areas. Geographic impact is concentrated in the District of Columbia, where the Department of Labor is headquartered. Supports a workforce involved in providing these essential cleaning and maintenance services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or quality assurance data makes it difficult to assess service effectiveness.
The 'exclusion of sources' clause in the competition type warrants further investigation into the justification for excluding potential bidders.
Limited information on the specific scope of services provided for the $11 million award.

Positive Signals

Awarded through a full and open competition process, suggesting an effort to achieve competitive pricing.
Contract duration of nearly five years indicates a stable service provision for the agency.
The contract is for essential janitorial services, crucial for maintaining a functional government facility.

Sector Analysis

Janitorial services fall under the broader category of facilities maintenance and support services. The federal government is a significant consumer of these services, contracting for cleaning, waste management, and related upkeep across numerous agencies and installations. The market for janitorial services is typically fragmented, with a mix of large facility management companies and smaller, specialized cleaning contractors. This contract represents a portion of the government's overall spending on maintaining its physical infrastructure and ensuring a safe and healthy environment for its employees and the public.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not detailed in the provided data. The contract does not appear to have been specifically set aside for small businesses, and it is unclear if TRI-ARK INDUSTRIES, INC. is a small business or if they are required to subcontract with small businesses. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically reside within the Department of Labor's contracting and program management offices. The 'Office of the Assistant Secretary for Administration and Management' likely plays a key role. Inspector General oversight may be applicable, particularly concerning financial accountability and adherence to contract terms. Transparency is facilitated through contract databases like FPDS, but detailed performance reports are often internal.

Related Government Programs

Federal Building Maintenance Contracts
Government Facilities Support Services
Department of Labor Administrative Support
Janitorial Services Contracts
Professional Services Contracts

Risk Flags

Competition Type Ambiguity
Lack of Detailed Performance Metrics
Limited Publicly Available Scope of Work

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $11.1 million to TRI-ARK INDUSTRIES, INC.. OTHER PROFESSIONAL SERVICES & JANITORIAL SERVICES

Who is the contractor on this award?

The obligated recipient is TRI-ARK INDUSTRIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2003-12-19. End: 2008-10-10.

What was the specific justification for excluding certain sources in the 'full and open competition after exclusion of sources' award?

The justification for excluding specific sources in a 'full and open competition after exclusion of sources' award typically stems from requirements outlined in the Federal Acquisition Regulation (FAR). Common reasons include the need for specialized capabilities, prior performance issues with certain contractors, or specific security requirements that only a subset of potential offerors can meet. Without access to the specific solicitation documents and award decision rationale for this particular contract (DOL-PA-03-00035), the precise reasons for excluding sources remain unknown. Agencies must document these exclusions to ensure fairness and compliance with procurement regulations, demonstrating that the exclusion was in the government's best interest and did not unduly restrict competition.

How does the awarded amount of over $11 million compare to similar janitorial contracts for federal agencies in the District of Columbia?

Benchmarking this $11.06 million contract against similar janitorial services contracts in the District of Columbia requires access to detailed contract data, including the scope of services, square footage, frequency, and duration. However, based on general market knowledge, a contract of this value over nearly five years for a major federal agency like the Department of Labor is substantial. It suggests a comprehensive service agreement covering significant square footage and potentially high-frequency cleaning schedules. Smaller, less frequent contracts for janitorial services in federal buildings can range from tens of thousands to a few million dollars. This award indicates a large-scale, long-term commitment to maintaining the agency's facilities to a high standard, likely encompassing multiple buildings or extensive areas within a primary complex.

What are the key performance indicators (KPIs) used to evaluate the performance of TRI-ARK INDUSTRIES, INC. under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate TRI-ARK INDUSTRIES, INC.'s performance. Typically, janitorial service contracts include KPIs related to cleanliness standards (e.g., visual inspection scores, absence of dust/debris), response times for reported issues (e.g., spills, restroom stocking), waste management efficiency, and adherence to schedules. Performance is often assessed through regular inspections, client feedback, and potentially service level agreement (SLA) metrics. The effectiveness of oversight and the contractor's track record would be directly tied to how rigorously these KPIs are monitored and enforced by the Department of Labor's contracting officers and facility managers.

What is the historical spending pattern for janitorial services by the Department of Labor over the last decade?

Analyzing the historical spending pattern for janitorial services by the Department of Labor over the last decade would require a comprehensive review of federal procurement databases (like FPDS). This specific contract (DOL-PA-03-00035) was awarded in 2003 and expired in 2008, representing a period of spending. To understand the broader trend, one would need to aggregate all janitorial service contracts awarded by the DOL during that timeframe, noting variations in contract values, durations, awardees, and competition levels. This analysis could reveal whether spending has increased or decreased, if there's been a shift towards larger or smaller contracts, or changes in the dominant contracting methods (e.g., full and open vs. set-asides).

What is the potential risk associated with a contract duration of 1757 days (approximately 4.8 years)?

A contract duration of 1757 days (approximately 4.8 years) presents several potential risks and benefits. On the positive side, it offers stability and predictability for both the agency and the contractor, potentially leading to better service quality through established routines and contractor investment. However, risks include potential price escalation over time if not adequately managed through contract clauses, reduced flexibility for the agency to adopt new technologies or service providers if performance dips, and the possibility of contractor complacency. For taxpayers, the risk lies in locking into a potentially suboptimal price or service level for an extended period if the initial competition or ongoing oversight is weak. Mitigation strategies include robust performance management, clear contract modification procedures, and periodic market reviews.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Janitorial Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 107 EAST MAIN STREET, NORRISTOWN, PA, 90

Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations, Woman Owned Business

Financial Breakdown

Contract Ceiling: $11,870,723

Exercised Options: $11,870,723

Current Obligation: $11,064,750

Timeline