DoD's $13.8M Custodial Services Contract Awarded to Wincor Management Group Raises Questions on Value and Competition
Contract Overview
Contract Amount: $13,840,251 ($13.8M)
Contractor: Wincor Management Group, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-11-01
End Date: 2011-10-31
Contract Duration: 1,825 days
Daily Burn Rate: $7.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 20
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ACADEMIC CUSTODIAL SERVICES
Place of Performance
Location: USAF ACADEMY, EL PASO County, COLORADO, 80840
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $13.8 million to WINCOR MANAGEMENT GROUP, INC. for work described as: ACADEMIC CUSTODIAL SERVICES Key points: 1. The contract value of $13.8 million over five years for custodial services appears high, warranting further investigation into the per-unit cost. 2. While listed as 'Full and Open Competition After Exclusion of Sources,' the specific exclusion details are unclear, potentially limiting true competition. 3. The contract's duration of five years (1825 days) is standard for services, but the lack of small business participation is a concern. 4. The 'CO' award type suggests a contract modification, which could indicate a deviation from initial competitive intent.
Value Assessment
Rating: questionable
The total award value of $13.8 million over five years for janitorial services is substantial. Benchmarking against similar government or commercial contracts for custodial services is crucial to determine if this represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while competition was sought, certain sources were excluded. The rationale for exclusion needs to be examined to ensure it was justified and did not unduly restrict competition, potentially impacting price discovery.
Taxpayer Impact: The significant expenditure on custodial services necessitates scrutiny to ensure taxpayer funds are used efficiently and that the contract achieved competitive pricing.
Public Impact
Taxpayers may be overpaying for janitorial services if the contract was not competitively priced due to source exclusions. The lack of small business participation in a contract of this size misses an opportunity to support smaller enterprises. The Department of the Air Force's spending on facilities maintenance highlights the ongoing need for such services, but efficiency is key.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation
- Ambiguous competition method ('Exclusion of Sources')
- High total contract value for custodial services
Positive Signals
- Contract awarded to a single entity, potentially indicating specialized capability
- Firm Fixed Price contract type provides cost certainty
Sector Analysis
The facilities maintenance sector, including custodial services, represents a significant portion of government spending. Benchmarks for janitorial services vary widely based on scope, location, and service level, but $13.8 million over five years for a single contract warrants careful review.
Small Business Impact
The contract data indicates that small businesses were not involved in this award ('sb': false). For a contract valued at $13.8 million, this represents a missed opportunity to engage and support small business contractors in the facilities management sector.
Oversight & Accountability
The 'CO' (Contracting Officer) designation suggests this might be a modification or a specific type of award. Further oversight is needed to understand the procurement process, justification for source exclusion, and whether adequate price negotiation occurred.
Related Government Programs
- Janitorial Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential lack of robust competition due to source exclusion.
- High total contract value requires validation against benchmarks.
- Absence of small business participation.
- Unclear procurement history indicated by 'CO' award type.
Tags
janitorial-services, department-of-defense, co, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.8 million to WINCOR MANAGEMENT GROUP, INC.. ACADEMIC CUSTODIAL SERVICES
Who is the contractor on this award?
The obligated recipient is WINCOR MANAGEMENT GROUP, 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 $13.8 million.
What is the period of performance?
Start: 2006-11-01. End: 2011-10-31.
What was the specific justification for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' contract, and how did this impact the final price?
The justification for excluding sources is critical for understanding the competitive landscape. If exclusions were not well-founded, it could have limited the number of bidders, potentially leading to a higher price than achievable through truly open competition. A thorough review of the procurement file is necessary to assess the validity of these exclusions and their financial implications for the government.
How does the per-unit cost of the custodial services under this $13.8 million contract compare to industry benchmarks for similar government or commercial contracts?
Benchmarking the per-unit cost is essential for assessing value for money. Without specific details on the scope of services (e.g., square footage cleaned, frequency, specialized tasks), a precise comparison is difficult. However, the overall contract value suggests a need to analyze metrics like cost per square foot or cost per man-hour against established industry standards to identify potential overspending.
What oversight mechanisms were in place to ensure the quality and effectiveness of custodial services provided by Wincor Management Group throughout the contract's five-year duration?
Effective oversight is crucial for service contracts. The government should have had performance metrics and quality assurance surveillance plans to monitor Wincor Management Group's service delivery. Regular performance reviews, site inspections, and feedback mechanisms would ensure the services met the required standards and that the contractor was held accountable for performance throughout the contract period.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 20
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 701 E BROAD ST, DUNN, NC, 90
Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $13,848,588
Exercised Options: $13,848,588
Current Obligation: $13,840,251
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-11-01
Current End Date: 2011-10-31
Potential End Date: 2011-10-31 00:00:00
Last Modified: 2012-01-17
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