Treasury's $17.6M janitorial contract awarded to Davis Memorial Goodwill Industries for 4 years

Contract Overview

Contract Amount: $17,597,719 ($17.6M)

Contractor: Davis Memorial Goodwill Industries

Awarding Agency: Department of the Treasury

Start Date: 2022-06-01

End Date: 2026-11-30

Contract Duration: 1,643 days

Daily Burn Rate: $10.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL, FREIGHT ELEVATOR OPERATIONS FOR THE MAIN, ANNEX AND LANDOVER FACILITIES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20228

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $17.6 million to DAVIS MEMORIAL GOODWILL INDUSTRIES for work described as: JANITORIAL, FREIGHT ELEVATOR OPERATIONS FOR THE MAIN, ANNEX AND LANDOVER FACILITIES. Key points: 1. Contract awarded to a single, non-profit provider, raising questions about competitive pricing. 2. The firm fixed-price structure offers cost certainty but may limit savings from efficiency gains. 3. Long-term contract duration (over 4 years) could lead to price escalation if not managed. 4. Geographic concentration in Washington D.C. limits broader market competition. 5. Lack of competition suggests potential for higher costs compared to a more open market. 6. The contract's value is significant for janitorial services, warranting scrutiny of performance metrics.

Value Assessment

Rating: fair

Benchmarking janitorial services is challenging due to varying scopes and locations. However, a $17.6 million contract over four years for facilities in the D.C. area, awarded without competition, suggests a potentially higher per-unit cost than if multiple bids were solicited. The fixed-price nature provides budget predictability for the Bureau of Engraving and Printing, but it's crucial to ensure the contractor is delivering services efficiently to justify the price. Without comparable bids, it's difficult to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. Davis Memorial Goodwill Industries was likely selected due to specific capabilities or a pre-existing relationship, or potentially as a designated provider for certain types of organizations. The absence of multiple bidders means there was no direct price comparison through a competitive process, which can sometimes lead to less favorable pricing for the government.

Taxpayer Impact: The lack of competition means taxpayers may not be benefiting from the lowest possible price that could have been achieved through a bidding process. This could result in a higher overall expenditure for these essential services.

Public Impact

The primary beneficiary is the Bureau of Engraving and Printing, which receives essential janitorial and freight elevator operations for its main, annex, and Landover facilities. The contract ensures the cleanliness and operational readiness of critical government infrastructure. Services are geographically concentrated in the Washington D.C. metropolitan area. The contract supports employment opportunities through Davis Memorial Goodwill Industries, a non-profit organization focused on job training and placement for individuals facing barriers to employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overpayment due to sole-source award and lack of competitive pressure.
Risk of service quality degradation over the long contract term if performance is not rigorously monitored.
Limited transparency into the cost structure and profit margins given the non-competitive nature.

Positive Signals

Award to a non-profit organization aligns with potential social impact goals.
Firm fixed-price contract provides budget certainty for the agency.
Long-term contract offers stability and continuity of essential services.

Sector Analysis

The janitorial services sector is highly fragmented, with numerous small and large providers. Government contracts for these services are common across many agencies and facilities. While specific benchmarks for large-scale federal janitorial operations are not readily available, the value of this contract suggests it covers extensive square footage and complex operational needs, including freight elevator maintenance. The market typically sees a mix of competitive bidding and, in some cases, sole-source awards for specialized or mission-aligned providers.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Davis Memorial Goodwill Industries, is a large non-profit organization. There is no indication of subcontracting requirements for small businesses within the provided data. The focus appears to be on the primary mission of the awardee rather than fostering small business participation through this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Engraving and Printing's contracting officer and program managers. Performance standards and payment schedules are defined in the contract. While the contract type (firm fixed-price) simplifies financial oversight, monitoring service delivery quality and adherence to terms is crucial. Transparency is limited by the sole-source nature, but contract award details are publicly available through federal procurement databases.

Related Government Programs

Federal Janitorial Services Contracts
Government Facility Maintenance
Bureau of Engraving and Printing Operations
Non-Profit Contracting

Risk Flags

Sole-source award may lead to higher costs.
Lack of competitive benchmarking makes value assessment difficult.
Long contract duration could mask inefficiencies.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $17.6 million to DAVIS MEMORIAL GOODWILL INDUSTRIES. JANITORIAL, FREIGHT ELEVATOR OPERATIONS FOR THE MAIN, ANNEX AND LANDOVER FACILITIES.

Who is the contractor on this award?

The obligated recipient is DAVIS MEMORIAL GOODWILL INDUSTRIES.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of Engraving and Printing).

What is the total obligated amount?

The obligated amount is $17.6 million.

What is the period of performance?

Start: 2022-06-01. End: 2026-11-30.

What is the track record of Davis Memorial Goodwill Industries in performing similar government contracts?

Davis Memorial Goodwill Industries has a history of providing services, including janitorial and facilities support, often through government contracts. As a non-profit organization, its mission extends beyond purely commercial objectives to include workforce development and employment for individuals facing barriers. While specific details on past government contract performance metrics for janitorial services are not provided here, their longevity and status as a recipient of significant contracts suggest a capacity to meet contractual obligations. Further investigation into past performance reviews and any reported issues would be necessary for a comprehensive assessment.

How does the pricing of this contract compare to similar janitorial services procured by the government?

Direct comparison is difficult due to the sole-source nature of this award and the lack of publicly available detailed pricing structures for janitorial services. Typically, competitive bidding allows for price discovery and ensures the government receives market-based rates. Without competing bids, it's presumed that the Bureau of Engraving and Printing negotiated the best possible price with Davis Memorial Goodwill Industries based on their understanding of costs and the organization's mission. However, without benchmarks from similar-sized contracts awarded competitively in the D.C. area, it's challenging to definitively state if this represents optimal value for money.

What are the key performance indicators (KPIs) and service level agreements (SLAs) for this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. However, for a janitorial and freight elevator operations contract of this magnitude, typical KPIs would likely include cleanliness standards (e.g., frequency of cleaning, specific area cleanliness ratings), response times for issues, adherence to safety protocols, and operational uptime for freight elevators. SLAs would define the expected level of service and potential remedies or penalties for non-performance. Rigorous monitoring of these metrics by the Bureau of Engraving and Printing is essential to ensure service quality and value.

What is the historical spending pattern for janitorial services at the Bureau of Engraving and Printing?

Historical spending data for janitorial services at the Bureau of Engraving and Printing (BEP) prior to this $17.6 million contract is not detailed in the provided information. This current contract, spanning from June 1, 2022, to November 30, 2026, represents a significant investment. Understanding past spending would involve analyzing previous contracts for similar services, their duration, value, and whether they were awarded competitively or sole-source. Such analysis could reveal trends in cost escalation, changes in service scope, or shifts in procurement strategies over time.

What are the potential risks associated with a long-term, sole-source janitorial contract?

A primary risk of a long-term, sole-source contract is the potential for reduced cost efficiency and price inflation over time, as the contractor faces less pressure to innovate or reduce costs compared to a competitive environment. There's also a risk that service quality could decline if performance monitoring is lax. Furthermore, the government may miss out on opportunities to leverage new technologies or more cost-effective solutions that emerge in the market but are not accessible due to the exclusive arrangement. Ensuring robust contract management and performance oversight is critical to mitigate these risks.

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

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Davis Memorial Goodwill Industries Inc

Address: 1140 3RD ST NE STE 350, WASHINGTON, DC, 20002

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,602,719

Exercised Options: $17,597,719

Current Obligation: $17,597,719

Actual Outlays: $14,181,364

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline