DoD's $145M Contract for Office Admin Services with Goodwill Industries Raises Questions on Competition and Value
Contract Overview
Contract Amount: $14,519,722 ($14.5M)
Contractor: Goodwill Industries of SAN Antonio
Awarding Agency: Department of Defense
Start Date: 2004-03-01
End Date: 2008-10-31
Contract Duration: 1,705 days
Daily Burn Rate: $8.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Place of Performance
Location: UNIVERSAL CITY, BEXAR County, TEXAS, 78148
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $14.5 million to GOODWILL INDUSTRIES OF SAN ANTONIO for work described as: Key points: 1. The contract awarded to Goodwill Industries of San Antonio for $145,197,220 represents a significant investment in office administrative services. 2. The absence of competition (NOT AVAILABLE FOR COMPETITION) is a major concern, potentially leading to inflated costs and reduced innovation. 3. The 'GOODWILL' designation may imply social impact, but the lack of competitive bidding obscures the true value for taxpayers. 4. The sector is office administrative services, a broad category where competitive bidding is typically expected to drive efficiency.
Value Assessment
Rating: questionable
The contract value of $145M over approximately 4 years is substantial. Without competitive benchmarks or detailed cost breakdowns, assessing the pricing fairness is difficult. The 'NOT AVAILABLE FOR COMPETITION' status strongly suggests the price may not reflect market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited competition award. This severely restricts price discovery and potentially allows for higher costs than would be achieved in an open market.
Taxpayer Impact: The lack of competition means taxpayers may be overpaying for office administrative services, as there was no pressure to offer the most cost-effective solution.
Public Impact
Taxpayers may be paying a premium for administrative services due to the lack of competitive bidding. The contract's duration and value suggest a long-term reliance on a single provider without exploring potentially more efficient alternatives. The 'GOODWILL' aspect, while potentially positive for social programs, needs to be evaluated against the core requirement of obtaining services at the best value for the government.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Uncertain Value for Money
- Potential for Overpricing
Positive Signals
- Potential Social Impact (Goodwill)
Sector Analysis
Office administrative services are a common requirement across government agencies. Benchmarks for such services typically rely on competitive solicitations to ensure fair pricing and efficient delivery. This contract's sole-source nature deviates from standard best practices.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Therefore, there is no direct benefit to small businesses from this specific award.
Oversight & Accountability
The lack of competition raises significant oversight concerns. Without a competitive process, it is harder to ensure accountability for performance and cost-effectiveness. Further review is needed to understand the justification for the sole-source award.
Related Government Programs
- Office Administrative Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in value assessment
- No small business participation
- Questionable justification for sole-source award
Tags
office-administrative-services, department-of-defense, tx, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.5 million to GOODWILL INDUSTRIES OF SAN ANTONIO. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is GOODWILL INDUSTRIES OF SAN ANTONIO.
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 $14.5 million.
What is the period of performance?
Start: 2004-03-01. End: 2008-10-31.
What was the specific justification for awarding this contract on a non-competitive basis, and how does it align with federal procurement regulations?
Federal procurement regulations generally favor full and open competition. A non-competitive award requires a strong justification, such as a unique capability, urgent need, or lack of available sources. Understanding this justification is crucial to assessing whether the government received fair value and followed proper procedures. Without this information, the award appears questionable.
How does the per-unit cost of these office administrative services compare to similar contracts awarded competitively within the DoD or other federal agencies?
Without competitive benchmarks, it is impossible to definitively assess the cost-effectiveness. If comparable services were procured competitively, a comparison could reveal if this contract's pricing is inflated. The absence of competition inherently limits the ability to establish a reliable cost benchmark, making value assessment difficult.
What performance metrics and oversight mechanisms are in place to ensure the effectiveness and efficiency of the services provided by Goodwill Industries under this contract?
Given the significant value and lack of competition, robust performance metrics and stringent oversight are critical. The government must actively monitor service delivery, quality, and cost control. Without clear performance standards and regular evaluations, there's a risk of complacency and potential degradation of service quality or cost efficiency over the contract's life.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4722 EISENHAUER, SAN ANTONIO, TX, 90
Business Categories: AbilityOne Program Participant, Category Business, Not Designated a Small Business, Special Designations
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-03-01
Current End Date: 2008-10-31
Potential End Date: 2008-10-31 00:00:00
Last Modified: 2008-10-24
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