Treasury's IRS awards $12.2M custodial contract to Vador Ventures, Inc. under full and open competition

Contract Overview

Contract Amount: $12,200,070 ($12.2M)

Contractor: Vador Ventures, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2003-05-15

End Date: 2003-09-03

Contract Duration: 111 days

Daily Burn Rate: $109.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CUSTODIAL CONTRACT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $12.2 million to VADOR VENTURES, INC. for work described as: CUSTODIAL CONTRACT Key points: 1. The contract value of $12.2 million for janitorial services represents a significant investment in maintaining federal facilities. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The contract duration of 111 days is relatively short, indicating a potential for frequent re-competition or a specific, limited-scope need. 4. The award was made by the Department of the Treasury to Vador Ventures, Inc., highlighting a specific agency's operational needs. 5. The North American Industry Classification System (NAICS) code 561720 confirms the service category as janitorial. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 7. The contract was awarded under the "DCA" designation, the meaning of which requires further clarification. 8. The base contract value of $10.99 million is close to the total award, suggesting minimal modifications or options exercised.

Value Assessment

Rating: fair

Benchmarking the value of this $12.2 million custodial contract is challenging without more specific details on the scope of services and the facilities covered. However, the base award of $10.99 million for a 111-day period suggests a substantial daily rate. Comparing this to similar large-scale custodial contracts across federal agencies would be necessary to determine if the pricing is competitive. The Firm Fixed Price structure indicates that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this method of procurement is designed to foster a competitive environment. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government. The absence of specific bidder numbers prevents a definitive assessment of the competition's intensity.

Taxpayer Impact: Full and open competition is the most taxpayer-friendly approach as it maximizes the potential for receiving the best value through a wide range of offers.

Public Impact

Federal employees and visitors benefit from a clean and well-maintained working environment within the IRS facilities in the District of Columbia. Essential janitorial services, including cleaning, sanitation, and waste management, are delivered to ensure operational continuity. The geographic impact is localized to the District of Columbia, where the IRS facilities are located. The contract supports jobs within the janitorial services sector, likely benefiting the local workforce in the DC metropolitan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The short contract duration (111 days) may indicate a temporary need or a precursor to a larger, longer-term contract, raising questions about long-term service stability.
The meaning of the award code 'DCA' is unclear and warrants further investigation to understand its implications for the contract's terms or scope.
Without knowing the number of bidders, it's difficult to fully assess the level of competition and its impact on the final price.
The base award amount is very close to the total award, suggesting limited flexibility or potential for scope creep, which could be positive or negative depending on initial planning.

Positive Signals

The contract was awarded under full and open competition, suggesting a transparent and competitive bidding process.
The Firm Fixed Price contract type transfers cost overrun risk to the contractor, protecting taxpayer funds.
The services provided are essential for maintaining a safe and functional work environment for federal employees.
The contractor, Vador Ventures, Inc., has secured a federal contract, indicating some level of established capability.

Sector Analysis

The custodial services sector within the federal government is a significant market, encompassing a wide range of maintenance and cleaning needs for government facilities. This contract falls under the broader facilities support services industry. Federal spending in this area is driven by the need to maintain thousands of buildings nationwide. While specific benchmarks for janitorial services are difficult to pinpoint without detailed scope, the overall federal spending on facility maintenance is in the billions annually. This contract represents a small portion of that overall expenditure.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. There is no information provided regarding subcontracting plans or goals for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Vador Ventures, Inc. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury's contracting officers and program managers. Accountability measures are inherent in the Firm Fixed Price contract type, where the contractor is responsible for delivering services within the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, though specific performance metrics and oversight reports are not always publicly accessible. The Inspector General for the Department of the Treasury may have jurisdiction for audits and investigations if any issues arise.

Related Government Programs

Federal Buildings and Facilities Maintenance
Government Janitorial Services
IRS Operations Support
Department of the Treasury Contracts

Risk Flags

Unclear Award Code (DCA)
Short Contract Duration
Limited Competition Data (Bid Count Unknown)

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $12.2 million to VADOR VENTURES, INC.. CUSTODIAL CONTRACT

Who is the contractor on this award?

The obligated recipient is VADOR VENTURES, INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $12.2 million.

What is the period of performance?

Start: 2003-05-15. End: 2003-09-03.

What is the specific scope of services included in this $12.2 million custodial contract?

The provided data indicates the contract is for 'Janitorial Services' under NAICS code 561720. However, the specific details of the scope are not itemized. This would typically include tasks such as cleaning restrooms, floors, windows, emptying trash, dusting, and potentially specialized services like carpet cleaning or pest control. The exact deliverables, frequency of services, and performance standards would be detailed in the contract's Statement of Work (SOW), which is not included in the provided data. Understanding the precise scope is crucial for evaluating the value for money.

How does the $12.2 million award compare to historical spending on custodial services by the IRS or Treasury?

The provided data shows a single award of $12.2 million with a base of $10.99 million, awarded on May 15, 2003, and expiring September 3, 2003 (111 days). This short duration suggests it might be a bridge contract or a specific project rather than a long-term, recurring service. To compare historical spending, one would need to access historical contract databases (like FPDS or USASpending) for the IRS and Treasury, looking for similar janitorial service contracts over multiple years. Without that comparative data, it's impossible to determine if this award represents an increase, decrease, or consistent level of spending for such services.

What does the 'DCA' award code signify for this contract?

The award code 'DCA' is not a standard, universally recognized federal procurement acronym. It could potentially stand for a specific type of contract action, a funding source, a contracting activity designation, or an internal agency code. Without further context from the awarding agency (Department of the Treasury) or access to the contract file, its precise meaning remains unclear. This ambiguity could obscure details about the contract's nature, its justification, or its specific administrative handling, potentially impacting a full understanding of the award.

What was the competitive landscape like for this 'full and open competition' award?

While the contract was awarded under 'full and open competition,' the provided data does not specify the number of bids received. A robust competition typically involves multiple bidders vying for the contract. The effectiveness of the competition in driving down prices and ensuring best value depends on the number and quality of the proposals submitted. If only one or two bids were received, the 'full and open' designation might not translate into significant price competition. Further investigation into the bid count would be necessary for a comprehensive assessment.

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

The provided data confirms Vador Ventures, Inc. as the awardee for this specific $12.2 million custodial contract. However, it does not offer insights into their broader track record, past performance evaluations, or history with other federal agencies. To assess their track record, one would need to search federal procurement databases for other contracts awarded to Vador Ventures, Inc., review any available past performance information (PPI) or contractor performance assessment reporting (CPARS) data, and check for any significant contract disputes or terminations.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 3619 14TH STREET, NW, WASHINGTON, DC, 98

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $16,170,118

Exercised Options: $13,750,325

Current Obligation: $12,200,070

Timeline