Department of the Air Force awards $6.4M custodial services contract to MVW SERVICES INC for Minot AFB

Contract Overview

Contract Amount: $6,448,178 ($6.4M)

Contractor: MVW Services Inc

Awarding Agency: Department of Defense

Start Date: 2021-10-01

End Date: 2026-11-30

Contract Duration: 1,886 days

Daily Burn Rate: $3.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CUSTODIAL SERVICES AT MINOT AFB, ND - AWARD.

Place of Performance

Location: MINOT AFB, WARD County, NORTH DAKOTA, 58705

State: North Dakota Government Spending

Plain-Language Summary

Department of Defense obligated $6.4 million to MVW SERVICES INC for work described as: CUSTODIAL SERVICES AT MINOT AFB, ND - AWARD. Key points: 1. Contract awarded for janitorial services at Minot AFB, North Dakota. 2. The contract has a duration of 1886 days. 3. The contract type is Firm Fixed Price. 4. This contract was not competed. 5. The awardee is MVW SERVICES INC. 6. The total award amount is $6,448,178.03.

Value Assessment

Rating: fair

The total award amount of $6.45 million over approximately five years for custodial services at a single Air Force base appears to be within a reasonable range for such a contract. However, without specific details on the scope of services, square footage, or service levels required, a precise value-for-money assessment is difficult. Benchmarking against similar contracts for base custodial services across the Department of Defense would provide a clearer picture of whether this pricing is competitive or represents a fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach typically occurs when a specific vendor is deemed uniquely qualified or when circumstances prevent a competitive process. The lack of competition means that the government did not benefit from potential price reductions or service enhancements that could arise from a bidding process.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. A sole-source award limits the government's ability to leverage market forces to secure optimal value.

Public Impact

Provides essential custodial and janitorial services to maintain hygiene and operational readiness at Minot Air Force Base. Ensures a clean and safe working and living environment for military personnel and civilian staff stationed at the base. Supports the operational infrastructure of a key Department of Defense installation. The contract supports employment within the janitorial services sector in the North Dakota region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced incentive for service quality improvement.

Positive Signals

Firm Fixed Price contract structure provides cost certainty for the government.
Contract awarded to a single entity, potentially simplifying management and oversight.

Sector Analysis

The janitorial services sector is a mature and competitive market, often characterized by a mix of large and small businesses. Federal contracts for these services are common across various government agencies and installations. The market size for federal custodial services is substantial, driven by the need to maintain numerous government facilities nationwide. This contract represents a portion of that broader federal spending on facility maintenance and support services.

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 mentioned. This suggests that the primary awardee is likely a larger entity, and there may be limited direct opportunities for small businesses to participate in this specific contract, unless they are part of the prime contractor's supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and facility management divisions at Minot AFB. Accountability measures are inherent in the Firm Fixed Price contract type, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases, though detailed performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Base Operations Support Contracts
Facility Maintenance Services
Department of Defense Custodial Contracts

Risk Flags

Sole-source award limits price competition.
Lack of detailed scope of work makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.4 million to MVW SERVICES INC. CUSTODIAL SERVICES AT MINOT AFB, ND - AWARD.

Who is the contractor on this award?

The obligated recipient is MVW SERVICES 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 $6.4 million.

What is the period of performance?

Start: 2021-10-01. End: 2026-11-30.

What is the specific scope of work and service level agreement for these custodial services?

The provided data does not detail the specific scope of work or the service level agreement (SLA) for the custodial services at Minot AFB. Typically, such contracts would outline requirements for cleaning frequency, areas to be cleaned (e.g., barracks, offices, restrooms, common areas), types of cleaning products to be used, waste removal, and specific performance standards. Without this information, it is challenging to fully assess the value and appropriateness of the $6.45 million award. The duration of the contract (1886 days, approximately 5 years) suggests a comprehensive and ongoing service requirement.

Why was this contract awarded on a sole-source basis instead of being competed?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. Common reasons for sole-source awards include situations where only one vendor possesses the necessary unique capabilities, technical expertise, or proprietary technology required for the service. Other justifications can include urgent and compelling needs where competition is impractical, or if the contract is a follow-on to a previous sole-source award where the original justification still holds. Without further documentation or justification from the Department of the Air Force, the precise reason for this sole-source determination remains unknown.

How does the award amount compare to similar custodial service contracts at other Air Force bases?

Benchmarking this $6.45 million award against similar contracts requires access to a broader dataset of federal custodial service contracts, ideally for facilities of comparable size and scope within the Air Force or Department of Defense. Factors such as geographic location (affecting labor costs), specific service requirements (e.g., specialized cleaning, security protocols), and contract duration significantly influence pricing. Given the lack of competitive bidding, it is difficult to ascertain if this price represents optimal value without such comparisons. A preliminary assessment suggests the amount is substantial, necessitating a detailed review against peer contracts.

What is the track record of MVW SERVICES INC. in performing federal custodial contracts?

Information regarding the specific track record of MVW SERVICES INC. in performing federal custodial contracts is not provided in the summary data. To assess their performance history, one would typically look at past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. A positive performance history with the government would generally indicate a lower risk for this new award. Conversely, any past issues could raise concerns about the contractor's ability to meet the requirements of this new $6.45 million contract.

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

The primary risk associated with a sole-source award for essential services like custodial is the potential for inflated pricing due to the absence of competitive pressure. Without competing bids, the government may pay more than necessary. Additionally, there's a reduced incentive for the sole-source provider to innovate or significantly enhance service quality beyond the minimum contractual requirements, as they face no direct competition. This can also limit flexibility if the government later decides different services or approaches are needed, as renegotiating with a sole provider can be more challenging.

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: FA452821R0004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 605 27TH ST SE, MINOT, ND, 58701

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: $7,171,510

Exercised Options: $7,171,510

Current Obligation: $6,448,178

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline