Air Force awards $8M+ custodial services contract to Training, Rehabilitation & Development Institute, Inc. for 6 months

Contract Overview

Contract Amount: $8,036,476 ($8.0M)

Contractor: Training, Rehabilitation, & Development Institute, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-04-01

End Date: 2026-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $4.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE CUSTODIAL SERVICES. FUNDING FOR FIRST 6 MONTHS (APR-SEP30)

Place of Performance

Location: HOLLOMAN AFB, OTERO County, NEW MEXICO, 88330

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $8.0 million to TRAINING, REHABILITATION, & DEVELOPMENT INSTITUTE, INC. for work described as: BASE CUSTODIAL SERVICES. FUNDING FOR FIRST 6 MONTHS (APR-SEP30) Key points: 1. Contract awarded for essential custodial services to support Air Force operations. 2. The contract is for a 6-month period, indicating a potential for future re-competition or extension. 3. The award value suggests a significant operational need for these services. 4. The lack of competition raises questions about potential cost efficiencies and market availability.

Value Assessment

Rating: fair

The contract value of over $8 million for six months, averaging approximately $1.34 million per month, needs to be benchmarked against similar custodial service contracts for government facilities of comparable size and scope. Without this comparison, it's difficult to definitively assess if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a limited source justification. This limits price discovery and may prevent the government from securing the most cost-effective solution available in the market.

Taxpayer Impact: The lack of competition could lead to higher costs for taxpayers compared to a fully competitive procurement.

Public Impact

Ensures a clean and safe environment for Air Force personnel and operations. Supports the mission of the Training, Rehabilitation & Development Institute, Inc. through contract funding. Potential for job creation within the service provider's organization. Highlights the government's reliance on private sector services for essential functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for higher costs due to lack of competition
Contract duration and value require further justification for limited competition

Positive Signals

Provides essential services for Air Force operations
Supports a specific institute's mission

Sector Analysis

The custodial services sector is a significant part of government contracting, encompassing a wide range of maintenance and cleaning needs. Spending benchmarks for janitorial services vary greatly based on facility size, location, and specific requirements, but typically represent a consistent operational expense for federal agencies.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if small business set-asides were considered or if the nature of the requirement precluded small business participation.

Oversight & Accountability

The contract's limited competition status warrants oversight to ensure the justification for other than full and open competition is sound and that the pricing remains fair and reasonable throughout the contract period. Regular performance reviews will be crucial.

Related Government Programs

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

Risk Flags

Lack of competition may lead to higher costs.
Potential for reduced contractor incentive to innovate or improve service.
Need for strong government oversight to ensure performance and fair pricing.
Absence of small business participation requires further investigation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.0 million to TRAINING, REHABILITATION, & DEVELOPMENT INSTITUTE, INC.. BASE CUSTODIAL SERVICES. FUNDING FOR FIRST 6 MONTHS (APR-SEP30)

Who is the contractor on this award?

The obligated recipient is TRAINING, REHABILITATION, & DEVELOPMENT INSTITUTE, 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 $8.0 million.

What is the period of performance?

Start: 2021-04-01. End: 2026-03-31.

What is the justification for limiting competition on this custodial services contract?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. A thorough review of the specific justification document (e.g., J&A) is necessary to understand the rationale. Common reasons include unique capabilities of the contractor, urgent and compelling needs, or specific statutory authority. Without this justification, it's difficult to assess the validity of the limited competition.

How does the awarded price compare to market rates for similar custodial services?

The contract value is $8,036,476.46 for 1825 days (approximately 5 years). This averages to about $4,392,590 annually. Benchmarking this against similar government or commercial custodial contracts in New Mexico, considering facility size and service scope, is crucial. Without comparative data, assessing price reasonableness is challenging.

What is the expected impact on service quality given the limited competition?

Limited competition can sometimes reduce the incentive for a contractor to maintain high service quality if there are few alternatives. However, contract performance standards, service level agreements, and regular oversight by the Department of the Air Force are critical to ensuring quality. The government should actively monitor performance metrics.

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: FA480121R0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 425 SOLEDAD STE 800, SAN ANTONIO, TX, 78205

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: $9,323,743

Exercised Options: $8,462,935

Current Obligation: $8,036,476

Actual Outlays: $3,360,860

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline