Treasury's IRS awards $7.79M custodial and pest control contract to Six Mile, LLC

Contract Overview

Contract Amount: $7,790,982 ($7.8M)

Contractor: SIX Mile, LLC

Awarding Agency: Department of the Treasury

Start Date: 2023-01-18

End Date: 2027-01-17

Contract Duration: 1,460 days

Daily Burn Rate: $5.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CUSTODIAL AND PEST CONTROL SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20224

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $7.8 million to SIX MILE, LLC for work described as: CUSTODIAL AND PEST CONTROL SERVICES Key points: 1. Contract awarded to a single vendor, Six Mile, LLC, for custodial and pest control services. 2. The contract value is $7.79 million over a period of 4 years. 3. The contract is designated as 'NOT AVAILABLE FOR COMPETITION', raising questions about market research and justification. 4. The sector involves facility maintenance and operations, a common area for government spending.

Value Assessment

Rating: questionable

The contract's pricing is based on a firm fixed price structure. Without competitive bids, it's difficult to assess if this price represents fair market value compared to similar services obtained through competitive means.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION', indicating a limited competition approach. This lack of competition may hinder price discovery and potentially lead to higher costs for taxpayers.

Taxpayer Impact: The absence of competition could result in the government paying more than necessary for these essential services.

Public Impact

Taxpayers may be overpaying for custodial and pest control services due to a lack of competitive bidding. The IRS relies on these services to maintain its facilities, impacting operational efficiency. Transparency in the justification for non-competitive awards is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Limited justification for sole-source award

Positive Signals

Firm fixed price contract provides cost certainty
Services are essential for IRS facility maintenance

Sector Analysis

This contract falls within the facility support services sector, which includes janitorial and pest control. Government spending in this area is typically driven by the need to maintain federal buildings and grounds, with benchmarks varying based on location and service scope.

Small Business Impact

The data does not indicate whether small businesses were considered or involved in this contract. Further investigation would be needed to determine the extent of small business participation.

Oversight & Accountability

The justification for awarding this contract without competition needs thorough review by oversight bodies to ensure adherence to procurement regulations and to confirm that taxpayer funds are being used efficiently.

Related Government Programs

Janitorial Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Lack of competitive bidding
Potential for cost overruns
Limited transparency in award justification
No clear small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $7.8 million to SIX MILE, LLC. CUSTODIAL AND PEST CONTROL SERVICES

Who is the contractor on this award?

The obligated recipient is SIX MILE, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $7.8 million.

What is the period of performance?

Start: 2023-01-18. End: 2027-01-17.

What specific circumstances justified the 'NOT AVAILABLE FOR COMPETITION' designation for this contract?

The justification for a 'NOT AVAILABLE FOR COMPETITION' award typically involves unique circumstances such as urgent needs, proprietary technology, or the unavailability of other sources. A detailed review of the contracting officer's justification is required to understand the specific reasons Six Mile, LLC was the sole source considered for these custodial and pest control services.

How does the awarded price compare to industry benchmarks for similar services in the District of Columbia?

Benchmarking this contract's price against similar custodial and pest control services in the District of Columbia is challenging without competitive data. A thorough analysis would involve researching publicly available contract data for comparable services, considering factors like square footage, service frequency, and specific pest control needs to determine if the $7.79 million over four years is reasonable.

What is the potential risk of reduced service quality or inflated costs due to the lack of competition?

The primary risk of a non-competitive award is the potential for inflated costs and reduced service quality, as the vendor faces less pressure to be efficient or competitive. Without market checks, the IRS may be paying a premium for services that could be obtained at a lower cost or higher quality through a competitive process.

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

Address: 1001 E BENSON BLVD, ANCHORAGE, AK, 99508

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,338,158

Exercised Options: $9,937,086

Current Obligation: $7,790,982

Actual Outlays: $7,151,591

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $143,880

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline