Air Force awards $30M for Janitorial Services to Goodwill Industries of Central Oklahoma

Contract Overview

Contract Amount: $29,700,118 ($29.7M)

Contractor: Goodwill Industries of Central Oklahoma Inc

Awarding Agency: Department of Defense

Start Date: 2002-12-09

End Date: 2012-10-31

Contract Duration: 3,614 days

Daily Burn Rate: $8.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200303!000170!5700!GD20 !OKLAHOMA CITY ALC/PKO !F3465003C0005 !A!N! !Y!P00003 !20021209!20030930!074289430!074289430!074289430!N!OKLAHOMA GOODWILL INDUSTRIES I!410 SW 3RD STREET !OKLAHOMA CITY !OK!73109!55000!017!40!OKLAHOMA CITY !CANADIAN !OKLAHOMA !+000002622976!N!N!000000000000!S201!CUSTODIAL - JANITORIAL SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !561720!E! !3!A!S!C! ! !99990909!B! ! !N!Z!D!N!J!1!001!N!5A!C!N!Z! ! !N!D!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: TINKER AFB, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $29.7 million to GOODWILL INDUSTRIES OF CENTRAL OKLAHOMA INC for work described as: 200303!000170!5700!GD20 !OKLAHOMA CITY ALC/PKO !F3465003C0005 !A!N! !Y!P00003 !20021209!20030930!074289430!074289430!074289430!N!OKLAHOMA GOODWILL INDUSTRIES I!410 SW 3RD STREET !OKLAHOMA CITY !OK!73109!55000!017!40!OKLAHOMA CITY !CANAD… Key points: 1. Contract awarded for janitorial services, a common government need. 2. Goodwill Industries of Central Oklahoma is the sole awardee, raising competition questions. 3. The contract value is substantial at $30 million, requiring careful oversight. 4. The sector is Facilities Support Services, with many potential providers.

Value Assessment

Rating: fair

The contract value of $30 million for janitorial services appears high for a single provider without clear justification for the price. Benchmarking against similar contracts for janitorial services in the region or for similar facility sizes would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded sole-source, indicating a lack of competition. This method limits price discovery and may result in a higher cost to the government than if multiple vendors had competed.

Taxpayer Impact: The sole-source award limits competitive pressure, potentially leading to higher costs for taxpayers compared to a fully competed contract.

Public Impact

Potential for higher costs due to lack of competition. Opportunity for social impact through support of a non-profit organization. Ensures essential janitorial services for a government facility. Requires robust oversight to ensure service quality and fair pricing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
High contract value requires scrutiny
Potential for price inefficiency

Positive Signals

Supports a non-profit organization
Provides essential services

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically janitorial services. Government spending in this area is consistent, but competition is typically robust, making a sole-source award unusual and warranting further investigation.

Small Business Impact

The awardee, Goodwill Industries of Central Oklahoma, is a non-profit organization, not a small business. The contract was not set aside for small businesses, and the sole-source nature further limits opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this award necessitates strong oversight to ensure the government receives fair value and that the services meet all specified requirements. Performance monitoring and regular reviews are crucial.

Related Government Programs

Janitorial Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competition
Potential for overpricing
Limited transparency in award justification
Requires strong performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.7 million to GOODWILL INDUSTRIES OF CENTRAL OKLAHOMA INC. 200303!000170!5700!GD20 !OKLAHOMA CITY ALC/PKO !F3465003C0005 !A!N! !Y!P00003 !20021209!20030930!074289430!074289430!074289430!N!OKLAHOMA GOODWILL INDUSTRIES I!410 SW 3RD STREET !OKLAHOMA CITY !OK!73109!55000!017!40!OKLAHOMA CITY !CANADIAN !OKLAHOMA !+000002622976!N!N!000000000000!S201!CUSTODIAL - JANITORIAL SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !561720!E! !3!A!S!C! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is GOODWILL INDUSTRIES OF CENTRAL OKLAHOMA INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $29.7 million.

What is the period of performance?

Start: 2002-12-09. End: 2012-10-31.

What is the justification for awarding this substantial janitorial contract sole-source to Goodwill Industries of Central Oklahoma, and how does the pricing compare to market rates for similar service

The justification for a sole-source award typically involves unique capabilities or circumstances. Without further details, it's difficult to assess the pricing. A thorough review would involve comparing the contract's per-unit costs, labor rates, and overhead against industry benchmarks for janitorial services of similar scope and scale, considering the specific facility requirements and any unique service demands.

What are the potential risks associated with a sole-source contract for janitorial services, particularly regarding cost control and service quality?

The primary risk of a sole-source contract is the lack of competitive pressure, which can lead to inflated prices and reduced incentive for the contractor to innovate or improve service quality. Without competition, the government has less leverage to negotiate favorable terms. There's also a risk that the chosen contractor may not be the most efficient or effective provider available in the market.

How does this contract contribute to the government's overall objectives, considering it supports a non-profit organization while potentially incurring higher costs?

This contract likely aligns with government objectives to support community organizations and provide employment opportunities through entities like Goodwill. While there's a potential for higher costs due to the sole-source nature, the social return on investment, such as job creation and support for individuals with barriers to employment, may be considered a valuable offset by the awarding agency.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 410 SW 3RD STREET, OKLAHOMA CITY, OK, 90

Business Categories: AbilityOne Program Participant, Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline