DoD's $10.1M Janitorial Services Contract Awarded to Goodwill of Colorado Raises Value Questions

Contract Overview

Contract Amount: $10,112,068 ($10.1M)

Contractor: Goodwill of Colorado

Awarding Agency: Department of Defense

Start Date: 2004-10-01

End Date: 2010-01-31

Contract Duration: 1,948 days

Daily Burn Rate: $5.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: USAF ACADEMY, EL PASO County, COLORADO, 80840

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $10.1 million to GOODWILL OF COLORADO for work described as: Key points: 1. The contract's value proposition appears questionable given the lack of competition and extended duration. 2. Limited competition dynamics suggest potential for suboptimal pricing and reduced market responsiveness. 3. The contract's long duration (1948 days) and sole-source nature present significant risk indicators. 4. Performance context is limited, but the service type (janitorial) is generally commoditized. 5. This contract falls within the broad 'Other Services' category, with specific NAICS code 561720. 6. The absence of small business set-aside raises concerns about broader economic impact.

Value Assessment

Rating: questionable

The contract's value is difficult to assess without comparable data, especially given its sole-source nature and long duration. A 1948-day contract for janitorial services, awarded without competition, suggests a potential lack of aggressive pricing. Benchmarking against similar janitorial contracts, particularly those competed openly, would be necessary to determine if the $10.1 million price tag represents fair market value. The fixed-price structure offers some cost certainty, but the lack of competitive pressure could lead to inflated costs over time.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. The data indicates only one offer was solicited and received. This lack of competition limits the government's ability to explore a wider range of service providers and potentially secure more favorable pricing through a competitive bidding process. It also raises questions about why full and open competition was not pursued.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's purchasing power and potentially diverts funds that could be used more effectively elsewhere.

Public Impact

The primary beneficiary is Goodwill of Colorado, which receives significant federal funding. The contract delivers essential janitorial and maintenance services, contributing to the upkeep of federal facilities. The geographic impact is localized to Colorado, where the services are performed. The contract supports employment within Goodwill of Colorado, potentially including individuals with employment barriers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Long contract duration (over 5 years) limits flexibility and potential for cost savings through re-competition.
Sole-source award raises concerns about transparency and fairness in the procurement process.
Absence of small business participation could limit economic opportunities for smaller firms.

Positive Signals

Contract supports a mission-driven organization (Goodwill) that provides employment and training opportunities.
Fixed-price contract provides cost certainty for the government.
Services provided are essential for facility maintenance and operational readiness.

Sector Analysis

Janitorial services fall under the broader facilities support services sector. This sector is characterized by a mix of large, established providers and numerous smaller, specialized firms. Government contracts for janitorial services are common across various agencies, often awarded through competitive bidding processes. The market size for federal janitorial contracts is substantial, but specific benchmarks for sole-source awards of this magnitude are scarce, making direct comparison difficult.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The sole-source nature further limits opportunities for small businesses to participate, either as prime contractors or potentially as subcontractors, unless specifically included by the prime. This could represent a missed opportunity to foster small business growth and participation in federal contracting.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) at the Department of the Air Force, responsible for monitoring performance and ensuring compliance with contract terms. Transparency is limited due to the sole-source nature. Accountability would stem from performance reviews and the potential for contract termination if services are not met. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Federal Facilities Maintenance Contracts
Government Janitorial Services
Department of Defense Service Contracts
Goodwill Industries Federal Contracts

Risk Flags

Sole-source award
Long contract duration
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.1 million to GOODWILL OF COLORADO. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is GOODWILL OF COLORADO.

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 $10.1 million.

What is the period of performance?

Start: 2004-10-01. End: 2010-01-31.

What is the track record of Goodwill of Colorado in performing similar federal janitorial contracts?

Information regarding Goodwill of Colorado's specific track record on similar federal janitorial contracts is not detailed in the provided data. However, as a large non-profit organization, Goodwill typically has extensive experience in providing services, often including janitorial and facilities maintenance, as part of its mission to create employment and training opportunities. Federal agencies often contract with Goodwill due to its social mission and established operational capacity. A deeper dive into past performance reviews and contract history with the Department of Defense or other federal agencies would be necessary to fully assess their capabilities and reliability for this specific $10.1 million contract.

How does the $10.1 million value compare to market rates for janitorial services of this duration and scope?

Directly comparing the $10.1 million value to market rates is challenging without more specific details on the scope of services, square footage, frequency, and specific locations covered by the contract. However, a contract duration of 1948 days (over 5 years) for janitorial services awarded on a sole-source basis raises potential value concerns. Typically, competitive bidding drives down prices. If this contract were competed, it's plausible that multiple bids would reveal a lower average cost per year or per square foot than what might be implied by this sole-source award. Further analysis would require benchmarking against similar government contracts or commercial service agreements in the Colorado region.

What are the primary risks associated with awarding a long-term, sole-source janitorial contract?

The primary risks associated with a long-term, sole-source janitorial contract include: 1) **Cost Inefficiency:** Without competition, the contractor may not be incentivized to offer the lowest possible price, potentially leading to overpayment by the government. 2) **Stagnation of Service Quality:** The lack of competitive pressure could reduce the incentive for the contractor to innovate or improve service quality over the contract's lifespan. 3) **Reduced Flexibility:** A long-term commitment limits the government's ability to adapt to changing needs, incorporate new technologies, or switch providers if a better option emerges. 4) **Limited Transparency:** Sole-source awards can obscure the true market value of the services and raise questions about the fairness of the procurement process. 5) **Contractor Dependency:** The agency becomes reliant on a single provider, which can be problematic if the contractor experiences financial difficulties or performance issues.

What is the historical spending pattern for janitorial services by the Department of the Air Force?

Historical spending patterns for janitorial services by the Department of the Air Force (DoD) are generally substantial, reflecting the vast number of facilities requiring maintenance. While the specific data for this $10.1 million contract is provided, broader trends indicate that the Air Force, like other major military branches, utilizes a mix of contract types and competition levels for these services. Spending can fluctuate based on base closures/openings, infrastructure upgrades, and shifts in contracting strategies (e.g., increased use of small business set-asides or performance-based contracts). Analyzing historical data would reveal the typical contract values, durations, and the prevalence of competitive versus sole-source awards for janitorial services across the Air Force enterprise.

Does the 'NOT COMPETED' status indicate a specific justification, such as urgency or unique capabilities?

The 'NOT COMPETED' status indicates that the contract was awarded without seeking offers from multiple sources. Federal Acquisition Regulation (FAR) Part 6 outlines the policies for full and open competition, but also provides exceptions. Common justifications for not competing include: 1) **Urgent and Compelling Needs:** When a critical need arises that cannot be met through competitive means in time. 2) **Unique Capabilities:** When only one source possesses the necessary specialized skills, technology, or resources. 3) **Small Business Concerns:** In certain cases, sole-sourcing might be used to meet small business goals, though this contract does not appear to be set aside. 4) **Follow-on Contracts:** When a follow-on contract is necessary and only the original contractor can provide it due to specific reasons (e.g., proprietary data, integration). Without further details on this specific award, it's impossible to confirm the exact justification, but it would have been documented by the agency at the time of award.

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: 2320 W COLORADO AVE, COLORADO SPRIN, CO

Business Categories: AbilityOne Program Participant, Category Business, Not Designated a Small Business, Special Designations

Contract Characteristics

Cost or Pricing Data: NO

Timeline