Air Force awards $17.8M janitorial services contract to Kentucky Building Maintenance Inc. at Wright-Patterson AFB

Contract Overview

Contract Amount: $17,796,189 ($17.8M)

Contractor: Kentucky Building Maintenance Inc

Awarding Agency: Department of Defense

Start Date: 2006-10-01

End Date: 2011-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HOSPITAL ASEPTIC MANAGEMENT SERVICES (HAMS) WRIGHT-PATTERSON AFB

Place of Performance

Location: BATAVIA, CLERMONT County, OHIO, 45103

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $17.8 million to KENTUCKY BUILDING MAINTENANCE INC for work described as: HOSPITAL ASEPTIC MANAGEMENT SERVICES (HAMS) WRIGHT-PATTERSON AFB Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 5 years (1825 days) indicates a long-term need for these services. 3. The firm-fixed-price contract type shifts cost risk to the contractor. 4. The base award amount is substantial, reflecting the scale of facilities at a major Air Force base. 5. The contractor, Kentucky Building Maintenance Inc., has secured this significant award. 6. The North American Industry Classification System (NAICS) code 561720 points to janitorial services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed service scope. The award amount of $17.8 million over five years averages to approximately $3.56 million annually. This figure needs to be compared against the square footage of facilities managed and the specific services provided at Wright-Patterson AFB. Without comparable contract data for similar-sized Air Force bases or detailed cost breakdowns, assessing whether this represents excellent value for money is difficult. The firm-fixed-price structure, however, provides budget certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 6 bidders suggests a reasonably competitive environment for janitorial services at this installation. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The fact that multiple companies vied for this contract implies that the market for such services is active and that the terms of the solicitation were attractive enough to draw significant interest.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award. This process ensures that the government receives proposals from various providers, driving down costs through market forces.

Public Impact

The primary beneficiaries are the personnel and operations at Wright-Patterson Air Force Base, ensuring a clean and sanitary environment. The contract delivers essential janitorial and maintenance services across the base's facilities. The geographic impact is localized to Wright-Patterson AFB in Ohio. The contract supports jobs within the janitorial services industry, likely benefiting the local workforce in Ohio.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if service requirements are not clearly defined and managed.
Dependence on a single contractor for a critical base service could pose a risk if performance falters.
Ensuring consistent quality of service across a large military installation requires robust oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm-fixed-price contract type provides cost certainty for the government.
Long contract duration suggests a stable, ongoing need and potential for contractor efficiency.
Multiple bidders (6) indicate market interest and potential for competitive pricing.

Sector Analysis

The janitorial services sector is a significant part of the facilities management industry, characterized by a mix of large national providers and numerous smaller, regional companies. Government contracts, particularly for large installations like military bases, represent substantial opportunities within this sector. The NAICS code 561720, Janitorial Services, encompasses a wide range of cleaning and maintenance activities. Spending benchmarks for such services can vary widely based on facility type, size, and location, but large military bases typically require extensive and specialized cleaning protocols, driving higher contract values.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates the awardee, Kentucky Building Maintenance Inc., is not a small business. There is no explicit information regarding subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem from this specific contract appears limited, though the prime contractor's overall business practices may involve small business participation in other areas.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant contracting command within the Department of the Air Force. Performance monitoring, quality assurance checks, and invoice verification are standard oversight mechanisms. Transparency is generally maintained through contract award databases, but detailed performance reports or specific oversight findings may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support (BOS)
Facilities Maintenance Contracts
Logistics and Support Services
Government Cleaning Services

Risk Flags

Potential for performance issues if not adequately managed.
Risk associated with reliance on a single contractor for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.8 million to KENTUCKY BUILDING MAINTENANCE INC. HOSPITAL ASEPTIC MANAGEMENT SERVICES (HAMS) WRIGHT-PATTERSON AFB

Who is the contractor on this award?

The obligated recipient is KENTUCKY BUILDING MAINTENANCE INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $17.8 million.

What is the period of performance?

Start: 2006-10-01. End: 2011-09-30.

What is the historical spending pattern for janitorial services at Wright-Patterson AFB?

Historical spending data for janitorial services at Wright-Patterson AFB prior to this $17.8 million award is not detailed in the provided data. However, the duration of this contract (5 years) and its substantial value suggest a consistent and significant requirement for these services over time. To understand historical patterns, one would need to examine previous contracts for similar services at the base, looking at award amounts, durations, and contractors. This would reveal trends in cost, competition, and service providers over different periods, potentially highlighting any significant increases or decreases in spending or shifts in contracting strategies.

How does the price per square foot for this contract compare to industry benchmarks?

Determining a precise price per square foot for this contract is not feasible with the given data, as the total square footage of facilities managed at Wright-Patterson AFB is not provided. Janitorial service costs are highly dependent on the type of facility (e.g., office space, hangars, barracks), the frequency of cleaning, and the specific services required (e.g., standard cleaning, deep cleaning, specialized disinfection). Without these details and the total square footage, a meaningful comparison to industry benchmarks for price per square foot cannot be made. Such analysis would require a detailed breakdown of the contract's scope of work and the physical inventory of the base.

What is the track record of Kentucky Building Maintenance Inc. with federal contracts?

The provided data indicates that Kentucky Building Maintenance Inc. was awarded this $17.8 million contract for janitorial services. To assess their track record with federal contracts, a broader search of federal procurement databases (like SAM.gov or FPDS) would be necessary. This would reveal the number of previous federal awards, their values, the agencies involved, and the types of services provided. It would also be important to look for any past performance reviews, contract terminations, or disputes associated with their federal awards to gauge their reliability and performance history.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate Kentucky Building Maintenance Inc.'s performance under this contract. Typically, for janitorial services, KPIs might include cleanliness ratings, response times for reported issues, adherence to schedules, proper waste management, and safety compliance. The contract documents themselves would outline these specific metrics, along with the methods for measurement and any associated award fees or penalties. Robust oversight would involve regular inspections and feedback mechanisms to ensure these KPIs are met.

What is the potential impact of this contract on the local Ohio economy?

This contract is likely to have a positive impact on the local Ohio economy, primarily through job creation within the janitorial services sector. Kentucky Building Maintenance Inc. will need to employ staff to perform the services at Wright-Patterson AFB, potentially hiring locally. Additionally, the company may procure supplies and equipment from local vendors, further stimulating economic activity. The presence of a large federal contract can also indirectly support other businesses that cater to the base or its employees.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 950 KENT RD, BATAVIA, OH, 02

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $17,796,189

Exercised Options: $17,796,189

Current Obligation: $17,796,189

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA701406D0028

IDV Type: IDC

Timeline