DoD's $8.2M Laundry Services Contract with American West Laundry LLC Raises Questions on Competition and Value
Contract Overview
Contract Amount: $8,190,077 ($8.2M)
Contractor: American West Laundry LLC
Awarding Agency: Department of Defense
Start Date: 2021-07-01
End Date: 2026-06-30
Contract Duration: 1,825 days
Daily Burn Rate: $4.5K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: NON-PERSONAL LAUNDRY AND DRY CLEANING SERVICES TO INCLUDE LINEN EXCHG SERVICES FOR 802D FSS/JBSA LAK-RAN. SERVICES INCLUDE FACILITY, LABOR, SUPERVISION, MATERIALS, EQUIPMENT AND VEHICLES FOR TRANSPORT OF LAUNDRY TO AND FROM DESIGNATED AREAS IAW PWS.
Place of Performance
Location: JBSA LACKLAND, BEXAR County, TEXAS, 78236
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $8.2 million to AMERICAN WEST LAUNDRY LLC for work described as: NON-PERSONAL LAUNDRY AND DRY CLEANING SERVICES TO INCLUDE LINEN EXCHG SERVICES FOR 802D FSS/JBSA LAK-RAN. SERVICES INCLUDE FACILITY, LABOR, SUPERVISION, MATERIALS, EQUIPMENT AND VEHICLES FOR TRANSPORT OF LAUNDRY TO AND FROM DESIGNATED AREAS IAW PWS. Key points: 1. The contract for laundry and dry cleaning services at JBSA Lackland is valued at $8.2 million over five years. 2. Awarded to American West Laundry LLC, the contract's competitive nature under SAP warrants further scrutiny. 3. The firm-fixed-price contract type aims to control costs, but the lack of small business participation is noted. 4. The sector is Drycleaning and Laundry Services, with spending benchmarks to be assessed against similar DoD contracts.
Value Assessment
Rating: fair
The $8.2 million contract value over five years appears substantial for laundry services. Benchmarking against similar military laundry contracts is needed to determine if the pricing is competitive and reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under Simplified Acquisition Procedures (SAP), suggesting limited competition. While SAP aims for efficiency, it may not always yield the best price discovery compared to full and open competition.
Taxpayer Impact: The use of SAP for an $8.2 million contract could potentially lead to higher costs for taxpayers if robust competition was not achieved.
Public Impact
Military personnel and base residents rely on these essential laundry and dry cleaning services. The contract ensures the availability of clean linens and uniforms for the 802D FSS. Potential impacts on local small businesses in the laundry sector due to this federal contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition under SAP
- No small business participation
- Potential for inflated pricing due to limited competition
Positive Signals
- Firm-fixed-price contract type
- Long-term contract provides service stability
Sector Analysis
This contract falls within the Drycleaning and Laundry Services sector. Federal spending in this area typically supports essential operations for military bases and government facilities, with pricing influenced by labor costs, facility requirements, and transportation.
Small Business Impact
The contract was not awarded to a small business, and there is no indication of small business subcontracting. This represents a missed opportunity to support small business participation in federal contracting.
Oversight & Accountability
Oversight will focus on contract performance, adherence to the Performance Work Statement (PWS), and ensuring timely delivery of services. The Department of the Air Force is responsible for monitoring this contract.
Related Government Programs
- Drycleaning and Laundry Services (except Coin-Operated)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential lack of price competition due to SAP
- Absence of small business participation
- Risk of service quality issues without robust oversight
- Dependency on a single contractor for essential services
Tags
drycleaning-and-laundry-services-except-, department-of-defense, tx, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.2 million to AMERICAN WEST LAUNDRY LLC. NON-PERSONAL LAUNDRY AND DRY CLEANING SERVICES TO INCLUDE LINEN EXCHG SERVICES FOR 802D FSS/JBSA LAK-RAN. SERVICES INCLUDE FACILITY, LABOR, SUPERVISION, MATERIALS, EQUIPMENT AND VEHICLES FOR TRANSPORT OF LAUNDRY TO AND FROM DESIGNATED AREAS IAW PWS.
Who is the contractor on this award?
The obligated recipient is AMERICAN WEST LAUNDRY LLC.
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 $8.2 million.
What is the period of performance?
Start: 2021-07-01. End: 2026-06-30.
What specific criteria were used to justify competing this $8.2M contract under Simplified Acquisition Procedures (SAP) instead of a broader solicitation?
Justification for using SAP typically involves factors like estimated contract value falling below certain thresholds, urgency of need, or specific market conditions that limit the feasibility of full and open competition. A detailed review of the acquisition plan and any justifications for SAP use would be necessary to understand the specific rationale in this case.
How does the per-unit cost of laundry and dry cleaning services under this contract compare to industry benchmarks or similar government contracts?
Without specific per-unit cost data (e.g., cost per pound of laundry, cost per garment dry-cleaned), a direct comparison is difficult. However, the overall contract value of $8.2 million over five years suggests a significant operational scale. Benchmarking would require detailed cost breakdowns and comparison with contracts of similar scope and service levels within the DoD or other federal agencies.
What measures are in place to ensure the quality and timeliness of laundry and dry cleaning services, given the potential risks associated with a single limited-competition award?
Quality assurance is typically managed through a Quality Assurance Surveillance Plan (QASP) outlined in the contract. This plan details how the government will monitor contractor performance against the PWS requirements, including inspections, customer feedback mechanisms, and performance metrics. Timeliness is also a key performance indicator that would be tracked and potentially penalized if not met.
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: FA301621Q0062
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 14003 TOEPPERWEIN RD, SAN ANTONIO, TX, 78233
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $9,044,961
Exercised Options: $9,044,961
Current Obligation: $8,190,077
Actual Outlays: $235,068
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2021-07-01
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-12-23
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