Treasury's Bureau of Engraving and Printing awards $17.6M custodial contract to Goodwill Industrial Services

Contract Overview

Contract Amount: $17,636,731 ($17.6M)

Contractor: Goodwill Industrial Services of Fort Worth, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2022-03-30

End Date: 2027-04-01

Contract Duration: 1,828 days

Daily Burn Rate: $9.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WCF CUSTODIAL & GROUNDS MAINTENANCE SERVICES

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76131

State: Texas Government Spending

Plain-Language Summary

Department of the Treasury obligated $17.6 million to GOODWILL INDUSTRIAL SERVICES OF FORT WORTH, INC. for work described as: WCF CUSTODIAL & GROUNDS MAINTENANCE SERVICES Key points: 1. Contract awarded to a non-profit organization, potentially aligning with social impact goals. 2. The contract is a definitive contract with a firm fixed price, indicating predictable costs. 3. The duration of the contract is over 5 years, suggesting a long-term need for services. 4. The contract was not competed, raising questions about potential cost savings from competition. 5. The specific service category is janitorial, a common and essential facility support function. 6. The award amount is substantial for custodial services, warranting a close look at value.

Value Assessment

Rating: fair

Benchmarking custodial services can be challenging due to variations in scope and location. However, a 5-year contract of this magnitude for janitorial services warrants scrutiny. Without comparable bids or detailed performance metrics, it's difficult to definitively assess value for money. The firm fixed-price structure provides cost certainty, but the lack of competition means potential savings from a competitive bidding process may have been forgone. Further analysis of the specific service requirements and performance standards would be needed for a more robust valuation.

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. While specific justifications for sole-source awards are not provided in the data, common reasons include unique capabilities, urgent needs, or specific socio-economic program requirements. The lack of competition limits the government's ability to leverage market forces to drive down prices and ensure the best possible value. It also means fewer vendors had the opportunity to demonstrate their capabilities and propose solutions.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, potentially leading to a higher overall cost for these essential services compared to an open competition scenario.

Public Impact

The Bureau of Engraving and Printing facilities will receive essential custodial and grounds maintenance services, ensuring a clean and functional work environment. The primary beneficiary is the federal agency, which relies on these services to maintain its operational infrastructure. The contract supports the mission of Goodwill Industries, a non-profit organization focused on employment and training for individuals with disabilities and disadvantages. This contract likely provides employment opportunities for individuals served by Goodwill, contributing to workforce development and inclusion. The services are geographically focused within Texas, where Goodwill Industrial Services of Fort Worth, Inc. operates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a significant contract value could lead to suboptimal pricing.
The long contract duration may reduce flexibility to adapt to changing service needs or market conditions.
Performance metrics and oversight details are not readily available, making it hard to gauge service quality and efficiency.
The sole-source nature limits opportunities for other qualified vendors, including small businesses, to compete for this work.

Positive Signals

Award to a non-profit organization like Goodwill aligns with potential socio-economic objectives.
The firm fixed-price contract provides cost predictability for the agency.
The contract duration suggests a stable, long-term need for these services, indicating a well-defined requirement.
Goodwill Industrial Services has a mission-driven focus that may translate to dedicated service delivery.

Sector Analysis

The custodial and grounds maintenance sector is a significant part of the broader facilities management industry. This contract falls under the janitorial services sub-sector, which includes cleaning, sanitation, and general upkeep of commercial and government buildings. Spending in this area is generally stable, driven by the ongoing need to maintain physical infrastructure. While specific benchmarks for federal custodial contracts are not universally published, the value of this contract is substantial for a single facility's long-term needs. The market includes a wide range of providers, from large facility management corporations to smaller, specialized cleaning companies and non-profit organizations.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses explicitly stated. The award to Goodwill Industrial Services, a non-profit, further suggests that the primary focus was not on traditional small business contracting goals. This means that opportunities for small businesses to directly participate in this specific contract may be limited, unless they are part of Goodwill's supply chain or subcontracting network, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Bureau of Engraving and Printing's contracting officers and program managers. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency regarding specific performance metrics, quality assurance surveillance plans, and any Inspector General involvement would typically be detailed in the contract's administrative files. The firm fixed-price nature implies that the contractor bears the risk of cost overruns, simplifying some aspects of financial oversight.

Related Government Programs

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

Risk Flags

Sole-source award may limit cost savings.
Lack of detailed performance metrics in summary data.
Long contract duration could reduce flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $17.6 million to GOODWILL INDUSTRIAL SERVICES OF FORT WORTH, INC.. WCF CUSTODIAL & GROUNDS MAINTENANCE SERVICES

Who is the contractor on this award?

The obligated recipient is GOODWILL INDUSTRIAL SERVICES OF FORT WORTH, INC..

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: 2022-03-30. End: 2027-04-01.

What is the track record of Goodwill Industrial Services of Fort Worth, Inc. in performing similar federal contracts?

Information regarding the specific track record of Goodwill Industrial Services of Fort Worth, Inc. on federal contracts is not detailed in the provided data. To assess their performance history, one would typically need to consult federal procurement databases (like FPDS or SAM.gov) for past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or commendations. Without this external data, it's difficult to gauge their experience and reliability specifically within the federal contracting landscape beyond this current award. Their mission-driven nature suggests a commitment to service, but federal contract performance requires adherence to stringent requirements and reporting.

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

Directly comparing the awarded price of $17.6 million over approximately five years for custodial services to specific market rates in Texas is challenging without a detailed breakdown of the service scope, frequency, square footage serviced, and specific labor rates. Custodial services vary widely in cost based on these factors. However, given the contract's sole-source nature, it's difficult to ascertain if competitive market forces were fully leveraged to achieve the most economical price. A comprehensive market analysis, including obtaining quotes from multiple commercial providers for comparable services in the same geographic region, would be necessary to establish a robust benchmark for value.

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

The primary risks associated with a sole-source award for essential services like custodial maintenance include potential overpricing due to the absence of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency beyond contractually mandated levels, and a lack of transparency in the procurement process. Taxpayers may not be receiving the best possible value for their money. Furthermore, if the sole-source provider experiences performance issues or becomes unable to fulfill the contract, the government may face significant disruption and challenges in finding a replacement quickly, especially if specialized knowledge or equipment is involved.

What are the expected performance standards and quality metrics for this custodial contract?

The provided data does not specify the performance standards or quality metrics for this custodial contract. Typically, such details would be outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These documents would define the required level of cleanliness, frequency of services, specific tasks to be performed (e.g., dusting, vacuuming, trash removal, restroom sanitation), and the methods for measuring and evaluating the contractor's performance. Without access to these specifics, it's impossible to assess how the Bureau of Engraving and Printing will ensure satisfactory service delivery and hold the contractor accountable.

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

The provided data snippet focuses on a single, current contract and does not offer historical spending patterns for custodial services at the Bureau of Engraving and Printing (BEP). To analyze historical spending, one would need to access procurement data over multiple fiscal years, identifying all contracts awarded for similar services (NAICS code 561720) by the BEP. This would allow for an assessment of trends in contract values, durations, award types (competitive vs. sole-source), and contractor performance over time. Such an analysis could reveal if spending has increased, decreased, or remained stable, and whether the BEP has historically relied on competitive bidding or sole-source awards for these services.

Does the firm fixed-price contract type adequately mitigate risks for the government in this custodial service contract?

A firm fixed-price (FFP) contract type is generally considered advantageous for the government when the scope of work is well-defined and risks of cost overruns are relatively low or can be reasonably estimated. For custodial services, where the tasks are often routine and predictable, an FFP contract provides cost certainty. The contractor assumes the risk of cost increases, which incentivizes them to manage their resources efficiently. However, if the scope of work is not precisely defined or unforeseen circumstances arise (e.g., increased cleaning needs due to unforeseen events), the government might be locked into a price that becomes less favorable. The lack of competition in this sole-source award could mean the initial fixed price was not as aggressively negotiated as it might have been in a competitive scenario.

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

Solicitation ID: 2031ZA22R00010

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4005 CAMPUS DR, FORT WORTH, TX, 76119

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: $18,258,607

Exercised Options: $17,636,731

Current Obligation: $17,636,731

Actual Outlays: $12,424,463

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline