VA Awards $17.6M Janitorial Services Contract for Puerto Rico Facilities

Contract Overview

Contract Amount: $17,598,183 ($17.6M)

Contractor: DB & W Services, Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2005-09-01

End Date: 2010-03-31

Contract Duration: 1,672 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BUILDING CLEANING AND MAINTENANCE SERVICES FOR SAN JUAN VA MEDICAL CENTER, VA MAYAGUEZ OUTPATIENT CLINIC, MAYAGUEZ AND VA PONCE OUTPATIENT CLINIC, PONCE, PUERTO RICO.

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00921

Plain-Language Summary

Department of Veterans Affairs obligated $17.6 million to DB & W SERVICES, CORP for work described as: BUILDING CLEANING AND MAINTENANCE SERVICES FOR SAN JUAN VA MEDICAL CENTER, VA MAYAGUEZ OUTPATIENT CLINIC, MAYAGUEZ AND VA PONCE OUTPATIENT CLINIC, PONCE, PUERTO RICO. Key points: 1. Contract awarded to DB & W SERVICES, CORP for building cleaning and maintenance. 2. Services cover VA facilities in San Juan, Mayaguez, and Ponce, Puerto Rico. 3. The contract spans over 4 years, from September 2005 to March 2010. 4. This is a firm-fixed-price contract, indicating a set price for services. 5. The NAICS code 561720 signifies Janitorial Services.

Value Assessment

Rating: good

The contract value of $17.6 million over approximately 4.5 years suggests a reasonable annual spend for comprehensive cleaning and maintenance services across multiple medical and outpatient facilities. Benchmarking against similar contracts would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies a limited competition scenario. This method might impact price discovery compared to unrestricted full and open competition, potentially leading to higher prices.

Taxpayer Impact: Taxpayers are impacted by the $17.6 million expenditure for essential facility maintenance, ensuring a clean and safe environment for veterans.

Public Impact

Ensures a clean and sanitary environment for veterans receiving care at VA facilities. Supports the operational readiness of medical and outpatient clinics in Puerto Rico. Provides essential maintenance services, contributing to the longevity of government infrastructure. The contract's duration suggests a stable service provider for these critical locations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have impacted price.
Exclusion of sources raises questions about the breadth of competition.
Contract duration is relatively long, potentially reducing flexibility.

Positive Signals

Awarded to a single contractor for consistent service.
Covers multiple key VA locations in Puerto Rico.
Firm-fixed-price contract provides budget certainty.

Sector Analysis

The janitorial services sector is characterized by numerous small and large businesses providing essential facility upkeep. Spending benchmarks for such services vary significantly based on facility size, location, and service intensity. This contract represents a substantial investment in maintaining healthcare infrastructure.

Small Business Impact

The data indicates this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small businesses had an opportunity to compete or if this was a conscious decision to award to a larger entity.

Oversight & Accountability

The contract was awarded by the Department of Veterans Affairs, indicating internal oversight. The 'exclusion of sources' clause warrants scrutiny to ensure fair and appropriate justification for limiting the competitive pool.

Related Government Programs

Janitorial Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition may lead to higher costs.
Lack of small business participation.
Justification for source exclusion needs review.
Long contract duration could reduce flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $17.6 million to DB & W SERVICES, CORP. BUILDING CLEANING AND MAINTENANCE SERVICES FOR SAN JUAN VA MEDICAL CENTER, VA MAYAGUEZ OUTPATIENT CLINIC, MAYAGUEZ AND VA PONCE OUTPATIENT CLINIC, PONCE, PUERTO RICO.

Who is the contractor on this award?

The obligated recipient is DB & W SERVICES, CORP.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $17.6 million.

What is the period of performance?

Start: 2005-09-01. End: 2010-03-31.

What was the justification for excluding other potential sources in this 'full and open competition after exclusion of sources' award?

The justification for excluding other sources is critical for understanding the procurement process. Agencies typically exclude sources when there's a specific, documented reason, such as unique capabilities, prior performance, or national security concerns. Without this justification, the 'limited' competition aspect raises concerns about whether the VA secured the best possible value and price for taxpayers.

How does the per-unit cost of cleaning services compare to industry benchmarks for similar-sized VA facilities?

A detailed per-unit cost analysis, comparing metrics like cost per square foot or cost per service hour against industry and government benchmarks, is essential. This would reveal if the $17.6 million award represents a fair market price or if there's potential for cost savings. Benchmarking helps ensure the VA is not overpaying for janitorial services.

What is the track record of DB & W SERVICES, CORP in delivering janitorial services to government facilities?

Assessing the contractor's past performance is crucial for evaluating effectiveness and risk. A review of DB & W SERVICES, CORP's history with similar government contracts, including client satisfaction, on-time delivery, and adherence to specifications, would provide insight into their reliability. Positive past performance suggests a lower risk of service disruption or quality issues.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFP672-466-05

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: EDIF MEDICAL CTR PLZ LOC C4 3 ST SE, SAN JUAN, PR, 98

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $17,598,183

Exercised Options: $17,598,183

Current Obligation: $17,598,183

Timeline