The ISSA announced that it recenlty participated in the General Services Administration’s (GSA) Industry Day, where the agency unveiled its plans to introduce a potential federal strategic sourcing program on Building Maintenance and Operations (BMO) services, which among other things includes cleaning or janitorial services.

ISSA is closely monitoring this issue because of its potential economic impact on the contract cleaning services segment of the market, and will be a strong advocate for the industry in this process, the association says.

In implementing strategic sourcing for BMO services (including but not limited to cleaning services), GSA seeks to cut its spending by 15 to 20 percent over the next five years. Specifically, GSA indicated at the January 29 meeting that it hopes to use strategic sourcing cost reduction levers such as smart contracting, performance management, and demand management.

In its presentation, GSA stated that it is approaching the strategic sourcing of BMO services in two phases: the first of which is developing a menu of “best practices” in early 2014, with implementation throughout the year; the second phase will address the agency’s acquisition strategy, which it plans on beginning to develop by the end of 2014 with implementation occurring in 2015-16.

Best Practices. Under the first phase of BMO strategic sourcing, GSA has compiled a list of best practices for which it has requested industry’s feedback and comments. In regard to janitorial or cleaning service standards, GSA has listed the following as best practices:

 — Reduction in service levels in order to align with budgetary realities
 — Custodial standards defining levels of service across the agency
 — Reduce variances in service between installations

Reduction in Service Levels in order to align with Budgetary Realities. In its comments to the Agency, ISSA strongly objected to GSA’s recommended reduction in cleaning service levels as a measure that would decrease costs associated with routine cleaning and maintenance. Moreover, ISSA vociferously objected to GSA’s characterization of such an approach as a “best practice.”

In its comments, ISSA observed that while this measure may save a few dollars on the front end of the procurement process, ultimately reduced levels of cleaning service will cost GSA more in the long run, and therefore is not a prudent course or a best practice. ISSA further pointed out that cleaning is not merely a cost to be reduced in times of economic downturn, but rather represents an important investment in a facility that yields benefits that exceed the cost of the services.

Proper and effective cleaning is critical in contributing to the quality of the indoor environment, ISSA observed, and thus the health and well being of occupants of that facility. In naively suggesting reduced levels of cleaning, GSA reflects a common misperception about cleaning.

 Historically, cleaning has been viewed by facility managers and building owners as a cost center. Consequently, decisions about cleaning expenditures have been one-dimensional and focused on the amount spent to clean the facility.

However, a thorough review of the studies and empirical data reveals that cleaning activities impact a business’s bottom line in numerous ways and that developing a deeper understanding of cleaning’s economic benefits will produce greater savings in terms of:

 — Occupant wellness: reduced absenteeism
 — Improved worker productivity
 — Asset preservation
 — Energy savings
 — Reducing the transmission of infections

Therefore, in recognition of the value cleaning provides, ISSA urged GSA to reject the notion of reducing levels of cleaning as a cost saving measure or best practice.

Custodial Standards Defining Levels of Service. In establishing best practices, GSA indicated it is looking for a credible method of identifying responsible contractors. As a consequence, ISSA recommended in its comments that GSA require cleaning service providers to be certified pursuant to the ISSA Cleaning Industry Management Standard—Green Building (CIMS-GB) as a way of qualifying companies who bid on GSA cleaning service contracts. In so doing, ISSA observed that GSA will ensure it receives high-quality cleaning services provided consistently across all facilities.

In its comments, ISSA noted that CIMS-GB provides facility managers and purchasers of cleaning services with a powerful, pre-qualification tool that provides a level of assurance that a cleaning organization’s management systems and operations are structured to deliver consistently high-quality services and overall best value to the customer.

Furthermore, ISSA observed that qualifying cleaning service providers based on CIMS-GB certification will also help GSA achieve its sustainability and environmental objectives, noting that CIMS-GB has a robust set of environmental criteria related to the implementation of a “green” cleaning program.

Suggested Geographic Coverage. GSA also requested feedback on the suggested geographic coverage of potential cleaning service providers (i.e., national, regional, metro).

In this regard, ISSA encouraged GSA to adopt an approach that relies on a regional or metropolitan basis given the makeup and composition of the commercial cleaning services industry.

ISSA noted that the US commercial cleaning services industry consists of about 50,000 janitorial companies. While there are a number of major or large companies and franchises, the industry is fragmented. To illustrate, the 50 largest companies generate about 30 percent of the industry’s revenue, while the remainder are small to mid-size businesses that tend to serve regional or metro markets. Large companies have an advantage in that they can serve customers in multiple locations. Small companies can compete effectively in local markets.

Based on these demographics, ISSA urged GSA to avoid strictly national contracts, and encouraged an approach that would afford both small and large businesses alike with the opportunity to compete for GSA’s business.