Interior Department awards $3.3M laundry services contract to Elite Laundry Company for Dennehotso Boarding School
Contract Overview
Contract Amount: $33,130 ($33.1K)
Contractor: Elite Laundry Company
Awarding Agency: Department of the Interior
Start Date: 2024-08-27
End Date: 2027-07-31
Contract Duration: 1,068 days
Daily Burn Rate: $31/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LAUNDRY SERVICES FOR DENNEHOTSO BOARDING SCHOOL
Place of Performance
Location: GALLUP, MCKINLEY County, NEW MEXICO, 87301
Plain-Language Summary
Department of the Interior obligated $33,130 to ELITE LAUNDRY COMPANY for work described as: LAUNDRY SERVICES FOR DENNEHOTSO BOARDING SCHOOL Key points: 1. Contract awarded to Elite Laundry Company for $3.31 million. 2. Services include laundry and drycleaning for Dennehotso Boarding School. 3. The contract duration is approximately 3 years. 4. The award was made under the Simplified Acquisition Procedures (SAP). 5. This is a firm-fixed-price contract.
Value Assessment
Rating: fair
The contract value of $3.31 million over three years appears reasonable for laundry services at a boarding school. Benchmarking against similar contracts for institutional laundry services would provide a clearer assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was competed under SAP, suggesting it was likely a small business set-aside or a limited competition. The specific competition method is not detailed, but SAP generally aims for fair pricing through simplified procedures.
Taxpayer Impact: Taxpayer funds are being used for essential services at an educational institution. The firm-fixed-price structure helps control costs, but the level of competition impacts the ultimate value for taxpayers.
Public Impact
Ensures essential laundry services for students and staff at Dennehotso Boarding School. Supports the operational needs of the Bureau of Indian Affairs and Bureau of Indian Education. Provides employment opportunities through Elite Laundry Company. Impacts the local economy in New Mexico where the school is located.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed competition information
- Potential for higher pricing due to limited competition under SAP
Positive Signals
- Firm-fixed-price contract provides cost certainty
- Longer-term contract ensures service continuity
Sector Analysis
This contract falls under the 'Drycleaning and Laundry Services' sector. Spending in this sector for government services is generally consistent, with pricing influenced by labor costs, facility overhead, and transportation.
Small Business Impact
The contract was competed under SAP, which often includes provisions for small business participation. However, it is not explicitly stated if this was a small business set-aside, and Elite Laundry Company's size is not provided.
Oversight & Accountability
The Bureau of Indian Affairs and Bureau of Indian Education are responsible for overseeing this contract to ensure service quality and adherence to terms. Standard procurement regulations and oversight mechanisms apply.
Related Government Programs
- Drycleaning and Laundry Services (except Coin-Operated)
- Department of the Interior Contracting
- Bureau of Indian Affairs and Bureau of Indian Education Programs
Risk Flags
- Limited transparency on competition details
- Potential for unoptimized pricing due to SAP
- No explicit small business set-aside mentioned
- Need for detailed performance metrics and oversight
Tags
drycleaning-and-laundry-services-except-, department-of-the-interior, nm, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $33,130 to ELITE LAUNDRY COMPANY. LAUNDRY SERVICES FOR DENNEHOTSO BOARDING SCHOOL
Who is the contractor on this award?
The obligated recipient is ELITE LAUNDRY COMPANY.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).
What is the total obligated amount?
The obligated amount is $33,130.
What is the period of performance?
Start: 2024-08-27. End: 2027-07-31.
What was the specific competition method used under SAP, and were small businesses solicited?
The data indicates the contract was 'COMPETED UNDER SAP' but does not specify the exact method (e.g., set-aside, open to all eligible). Further investigation into the solicitation details would clarify if small businesses were specifically targeted or if it was a broader competition within the SAP framework.
How does the per-unit cost of laundry services compare to industry benchmarks for similar institutions?
Without specific per-unit cost data (e.g., cost per pound of laundry), a direct comparison is difficult. A benchmark analysis would require detailed operational data from Elite Laundry Company and comparison with similar contracts for boarding schools or other institutions with comparable laundry needs.
What is the potential risk of service disruption or quality issues given the contract duration and provider?
The risk of service disruption is moderate, typical for a three-year contract. Quality issues would depend on Elite Laundry Company's performance history and the oversight provided by the Bureau of Indian Affairs/Education. Regular performance reviews and clear service level agreements are crucial to mitigate these risks.
Industry Classification
NAICS: Other Services (except Public Administration) › Drycleaning and Laundry Services › Drycleaning and Laundry Services (except Coin-Operated)
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 140A2324Q0401
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 208 E HIGHWAY 66, GALLUP, NM, 87301
Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $84,880
Exercised Options: $49,630
Current Obligation: $33,130
Actual Outlays: $25,295
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2024-08-27
Current End Date: 2027-07-31
Potential End Date: 2029-07-31 00:00:00
Last Modified: 2026-04-07
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