Social Security Administration awards $19.4M custodial services contract to Goodwill Industries of the Chesapeake, Inc

Contract Overview

Contract Amount: $19,381,062 ($19.4M)

Contractor: Goodwill Industries of the Chesapeake, Inc

Awarding Agency: Social Security Administration

Start Date: 2003-02-15

End Date: 2008-02-29

Contract Duration: 1,840 days

Daily Burn Rate: $10.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CUSTODIAL SERVICES FOR THE OPERATIONS, ANNEX AND SUPPLY BUILDINGS

Place of Performance

Location: MARYLAND

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $19.4 million to GOODWILL INDUSTRIES OF THE CHESAPEAKE, INC for work described as: CUSTODIAL SERVICES FOR THE OPERATIONS, ANNEX AND SUPPLY BUILDINGS Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract duration of 1840 days suggests a long-term need for these services. 3. Awarded to a single source, raising questions about potential cost savings through competition. 4. The services provided are essential for maintaining government facilities. 5. The contractor, Goodwill Industries, has a mission aligned with social impact. 6. The contract value is substantial, reflecting the scale of custodial needs.

Value Assessment

Rating: fair

Benchmarking the value of this custodial services contract is challenging without comparable data for similar facilities and service scopes. The firm-fixed-price structure provides cost certainty, but the absence of competition limits the ability to assess if the price reflects optimal market value. The total award amount of $19.4 million over approximately five years suggests a significant investment in facility maintenance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. Without a competitive bidding process, it is difficult to ascertain the level of competition or the number of potential bidders. This approach may be justified by specific circumstances, but it bypasses the opportunity for price discovery and potentially better value through market forces.

Taxpayer Impact: Taxpayers may not have received the most cost-effective pricing due to the lack of a competitive bidding process.

Public Impact

The primary beneficiaries are the Social Security Administration employees and visitors who will work and interact in clean and well-maintained facilities. The services delivered include custodial operations for the main operations, annex, and supply buildings. The geographic impact is localized to the facilities managed by the Social Security Administration in Maryland. The contract supports employment through Goodwill Industries of the Chesapeake, Inc., aligning with their mission to employ individuals with barriers to employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs than a competed contract.
Sole-source awards can reduce transparency and accountability in the procurement process.
Reliance on a single contractor for essential services poses a risk if performance issues arise.

Positive Signals

Contract awarded to an organization with a strong social mission, potentially creating employment opportunities for disadvantaged individuals.
Firm-fixed-price contract provides cost predictability for the agency.
Long contract duration indicates a stable, ongoing need for these services.

Sector Analysis

Custodial services fall under the broader facilities management and commercial services sector. This sector is characterized by a wide range of providers, from large corporations to specialized local businesses. Government contracts for these services are common and essential for maintaining federal properties. Benchmarking spending in this area often involves comparing per-square-foot cleaning costs or contract values for similar facility sizes and types.

Small Business Impact

This contract was awarded to Goodwill Industries of the Chesapeake, Inc., which is not typically categorized as a small business. There is no indication of small business set-aside provisions or subcontracting requirements in the provided data. Therefore, this award does not appear to directly benefit the small business ecosystem through set-asides, though Goodwill's mission may indirectly support community employment.

Oversight & Accountability

Oversight of this contract would primarily fall under the Social Security Administration's contracting officers and program managers. Accountability measures would be defined in the contract terms and conditions, including performance standards and payment clauses. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Custodial Services Contracts
Social Security Administration Facility Management
Government Building Maintenance
Commercial Cleaning Services Procurement

Risk Flags

Sole-source award limits competition and price discovery.
Potential for higher costs compared to a competed contract.
Lack of transparency in the procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $19.4 million to GOODWILL INDUSTRIES OF THE CHESAPEAKE, INC. CUSTODIAL SERVICES FOR THE OPERATIONS, ANNEX AND SUPPLY BUILDINGS

Who is the contractor on this award?

The obligated recipient is GOODWILL INDUSTRIES OF THE CHESAPEAKE, INC.

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $19.4 million.

What is the period of performance?

Start: 2003-02-15. End: 2008-02-29.

What is the track record of Goodwill Industries of the Chesapeake, Inc. in performing federal custodial contracts?

Information regarding the specific track record of Goodwill Industries of the Chesapeake, Inc. in performing federal custodial contracts is not detailed in the provided data. However, as a large non-profit organization with a mission focused on employment for individuals facing barriers, their operational capacity for such services is likely substantial. Federal agencies often contract with such organizations for janitorial and custodial services, leveraging their workforce development goals. A deeper dive would require reviewing past performance evaluations, any past performance questionnaires (PPQs), and contract administration records specifically for this contractor on similar federal agreements to assess their reliability, quality of service, and adherence to contract terms.

How does the awarded price compare to market rates for similar custodial services?

Directly comparing the awarded price of $19.4 million for custodial services to market rates is difficult without more specific details about the scope of work, square footage of the facilities, frequency of services, and specific cleaning standards required. The contract is a firm-fixed-price award to a sole-source provider, which inherently limits the ability to benchmark against competitive market pricing. To perform a robust comparison, one would need to gather data on similar-sized federal or commercial facilities in the Maryland region, analyze their custodial service contracts, and assess the pricing structures (e.g., per square foot, per hour, or per service). Without this comparative data, it's challenging to definitively state whether the price represents excellent, fair, or questionable value.

What are the primary risks associated with a sole-source award for essential custodial services?

The primary risks associated with a sole-source award for essential custodial services include potential overpricing due to the lack of competition, reduced incentive for the contractor to innovate or improve service quality beyond the contract minimums, and a lack of transparency in the procurement process. Taxpayers may bear a higher cost than if the contract had been competed. Furthermore, if the sole-source contractor experiences performance issues or financial instability, the agency has limited immediate alternatives for service continuity without potentially lengthy and costly re-procurement processes. This dependence on a single provider can also reduce the agency's leverage in negotiating future contract modifications or renewals.

How effective are custodial services in supporting the overall mission of the Social Security Administration?

Effective custodial services are crucial for supporting the overall mission of the Social Security Administration by ensuring a safe, healthy, and professional working environment for its employees and a welcoming atmosphere for the public interacting with its services. Clean and well-maintained facilities contribute to employee morale, productivity, and reduced health risks. For an agency handling sensitive personal information and providing critical public services, maintaining the integrity and appearance of its operational spaces is paramount. Poor custodial care could lead to disruptions, health concerns, and a negative perception of the agency's operational standards.

What has been the historical spending pattern for custodial services by the Social Security Administration?

The provided data only details a single contract award from February 15, 2003, to February 29, 2008, for $19.4 million. This does not provide a comprehensive view of the Social Security Administration's historical spending patterns for custodial services. To understand historical trends, one would need to analyze spending across multiple contracts over several fiscal years, identify the number and types of contracts awarded (e.g., competed vs. sole-source), track spending by facility or region, and note any significant fluctuations or changes in procurement strategies. This single data point suggests a consistent need for these services over a five-year period but does not reveal broader historical patterns or budget allocations.

What are the implications of awarding custodial services to an organization like Goodwill Industries?

Awarding custodial services to an organization like Goodwill Industries of the Chesapeake, Inc. carries dual implications. On one hand, it aligns with federal objectives to support social impact organizations and promote employment for individuals facing barriers. This can be seen as a positive social return on investment, leveraging federal spending to achieve community and workforce development goals. On the other hand, the agency must ensure that the primary objective—receiving high-quality, cost-effective custodial services—is met. The performance and pricing must be rigorously managed to ensure that the social mission does not compromise operational efficiency or taxpayer value. It requires careful contract management to balance mission support with service delivery expectations.

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: FIRM FIXED PRICE (J)

Contractor Details

Address: 222 E REDWOOD STREET, BALTIMORE, MD, 90

Business Categories: AbilityOne Program Participant, Category Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $19,381,062

Exercised Options: $19,381,062

Current Obligation: $19,381,062

Timeline