GSA's $23.5M custodial contract for 5 Baltimore federal buildings awarded to Chimes, Inc. over 8 years

Contract Overview

Contract Amount: $23,543,225 ($23.5M)

Contractor: Chimes District of Columbia Incorporated

Awarding Agency: General Services Administration

Start Date: 2006-03-01

End Date: 2014-06-30

Contract Duration: 3,043 days

Daily Burn Rate: $7.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: CUSTODIAL AND RELATED SERVICES 5 FEDERAL BUILDINGS BALTIMORE MD

Place of Performance

Location: BALTIMORE, BALTIMORE (CITY) County, MARYLAND, 21201

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $23.5 million to CHIMES DISTRICT OF COLUMBIA INCORPORATED for work described as: CUSTODIAL AND RELATED SERVICES 5 FEDERAL BUILDINGS BALTIMORE MD Key points: 1. Contract value represents significant investment in maintaining federal facilities. 2. Sole-source award raises questions about potential cost efficiencies and market competition. 3. Long duration of the contract (over 8 years) suggests a stable, long-term need. 4. Fixed-price with economic price adjustment indicates potential for cost fluctuations. 5. Focus on janitorial services highlights essential operational support for government infrastructure. 6. Award to a single entity may limit opportunities for diverse service providers.

Value Assessment

Rating: fair

The contract value of $23.5 million over approximately 8 years for custodial services across 5 federal buildings in Baltimore averages to roughly $2.9 million annually. Benchmarking this against similar large-scale federal custodial contracts is challenging without more specific details on the square footage, scope of services, and location-specific labor costs. However, the long duration and fixed-price with economic price adjustment structure suggest a need for careful monitoring to ensure continued value for money, as costs could escalate.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed on the open market. While the specific justification for the sole-source award is not detailed here, it typically implies that only one responsible source was available or that it was deemed in the government's best interest to award to a specific contractor. This lack of competition can limit price discovery and potentially lead to higher costs compared to a fully competed contract.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the competitive pricing that typically drives down costs when multiple vendors vie for a contract.

Public Impact

Federal employees and visitors benefit from maintained and sanitary working environments within 5 federal buildings in Baltimore. Essential custodial and related services ensure the operational readiness and upkeep of critical government infrastructure. The contract supports local employment through the service provider, Chimes, Inc., which is based in the District of Columbia but serves Maryland facilities. Geographic impact is concentrated within Baltimore, Maryland, affecting the cleanliness and functionality of federal properties in that area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Economic price adjustment clause introduces potential for cost increases over the contract term.
Lack of detailed performance metrics in the provided data makes assessing service quality difficult.

Positive Signals

Long-term contract indicates a stable and consistent need for services, providing predictable work for the contractor.
Award to Chimes, Inc. suggests a potentially established relationship and proven capability for delivering these services.
Focus on custodial services ensures a fundamental aspect of facility management is addressed.

Sector Analysis

The custodial and janitorial services sector is a significant component of the broader facilities management industry. Federal agencies, like the General Services Administration (GSA), are major consumers of these services to maintain their vast real estate portfolios. The market is characterized by a mix of large, national providers and smaller, regional or specialized firms. Federal contracts often involve stringent requirements for security, labor standards, and performance, influencing pricing and operational approaches. This contract fits within the GSA's mission to provide workspace and services to federal agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award, it also does not appear to involve subcontracting opportunities for small businesses unless explicitly mandated by the contracting agency outside of standard set-aside procedures. This means the primary contract value does not directly contribute to the small business contracting goals.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Public Buildings Service. Mechanisms likely include contract performance reviews, site inspections, and financial audits to ensure compliance with the contract terms and service level agreements. Transparency is generally facilitated through contract award databases, though the specific details of performance and cost justifications for sole-source awards may be less publicly accessible.

Related Government Programs

Federal Building Maintenance Contracts
Government Facility Services
Janitorial Services for Public Buildings
GSA Building Operations
Custodial Services for Federal Agencies

Risk Flags

Sole-source award may limit cost savings.
Economic price adjustment introduces cost uncertainty.
Long contract duration could mask performance issues.
Limited public data on specific service scope and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $23.5 million to CHIMES DISTRICT OF COLUMBIA INCORPORATED. CUSTODIAL AND RELATED SERVICES 5 FEDERAL BUILDINGS BALTIMORE MD

Who is the contractor on this award?

The obligated recipient is CHIMES DISTRICT OF COLUMBIA INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.5 million.

What is the period of performance?

Start: 2006-03-01. End: 2014-06-30.

What is the specific justification for this contract being awarded on a sole-source basis?

The provided data indicates the contract was awarded on a sole-source basis ('ct': 'NOT AVAILABLE FOR COMPETITION'). Specific justifications for sole-source awards typically fall under FAR Part 6.3, such as 'only one responsible source and no other supplies or services will satisfy agency requirements' or 'a public exigency will not permit the delay incident to competitive solicitation.' Without further documentation from the GSA, the precise reason remains unknown. This could be due to specialized requirements, the unique capabilities of Chimes, Inc., or other factors deemed critical by the agency at the time of award. The lack of competition means taxpayers may not have benefited from potentially lower prices achievable through a competitive bidding process.

How does the annual cost of this contract compare to similar federal custodial contracts in the region?

The total award is $23,543,225.11 over approximately 8 years (3043 days from March 1, 2006, to June 30, 2014). This averages to roughly $2.94 million per year. Direct comparison to similar federal custodial contracts in the Baltimore region is difficult without detailed scope information (e.g., square footage of buildings, specific services required beyond basic janitorial, security levels). However, federal custodial contracts can range widely. For context, smaller federal buildings might have contracts in the tens or hundreds of thousands annually, while larger, more complex facilities could reach millions. This contract's value suggests it covers a substantial portfolio of federal space in Baltimore, necessitating a significant operational budget for maintenance.

What are the potential risks associated with a fixed-price contract with economic price adjustment (FP-EPA)?

A Fixed-Price with Economic Price Adjustment (FP-EPA) contract aims to balance the contractor's risk with the government's need to account for potential fluctuations in labor and material costs. The primary risk for the government is that costs can increase over the contract term due to inflation or other economic factors, as stipulated in the adjustment clause. While this protects the contractor from unforeseen cost increases, it can lead to higher overall spending than a firm fixed-price contract if economic conditions are unfavorable. For taxpayers, this means the final cost is not entirely predictable at the outset. Careful monitoring and negotiation of the adjustment formula are crucial to mitigate excessive cost growth.

What is the track record of Chimes, Inc. in performing federal custodial contracts?

Chimes, Inc. is identified as the contractor for this $23.5 million federal custodial services contract. While the provided data doesn't detail their performance history on this specific contract or others, their selection for a sole-source award of this magnitude suggests they possess the necessary qualifications, capacity, and potentially a prior relationship or demonstrated capability that the GSA deemed essential. Further investigation into past performance reviews, any documented issues, or commendations related to their federal contracts would be necessary to fully assess their track record. Their status as a long-term provider (over 8 years) implies a degree of satisfaction or necessity from the agency's perspective.

How does the duration of this contract (over 8 years) impact its value and risk?

The contract duration of over 8 years (3043 days) provides stability for both the contractor and the government. For the contractor, it ensures a consistent revenue stream and allows for investment in staff and equipment. For the government, it offers continuity of essential services and potentially reduces administrative burden associated with frequent re-procurement. However, a long duration, especially with an economic price adjustment clause, increases the risk of cost escalation over time. It also means that any inefficiencies or suboptimal performance by the contractor could persist for an extended period before a new competition can occur, potentially diminishing overall value for taxpayers compared to shorter, more frequently reviewed contracts.

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

Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Contractor Details

Address: 4815 SETON DR, BALTIMORE, MD, 90

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

Financial Breakdown

Contract Ceiling: $18,197,294

Exercised Options: $18,197,294

Current Obligation: $23,543,225

Timeline