DoD's $19.5M custodial services contract with JDD, Inc. awarded under full and open competition

Contract Overview

Contract Amount: $19,483,894 ($19.5M)

Contractor: JDD, Inc

Awarding Agency: Department of Defense

Start Date: 2011-10-03

End Date: 2019-02-28

Contract Duration: 2,705 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

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 $19.5 million to JDD, INC for work described as: ACADEMIC CUSTODIAL SERVICES Key points: 1. Value for money appears fair given the contract duration and fixed-price nature. 2. Competition dynamics indicate a robust bidding process, potentially driving competitive pricing. 3. Risk indicators are moderate, with a long contract duration presenting some performance management challenges. 4. Performance context shows a long-standing relationship for janitorial services. 5. Sector positioning places this contract within the broader facilities support services for the defense sector.

Value Assessment

Rating: fair

The contract's total value of approximately $19.5 million over its life suggests a reasonable annual spend for custodial services. Benchmarking against similar large-scale government custodial contracts is difficult without more specific service scope details. However, the firm fixed-price structure implies that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if performance was satisfactory. The duration of the contract (over 7 years) also suggests a stable, long-term need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while initial solicitations may have had restrictions, the final award was made after a broad competitive process. The presence of 10 bidders suggests a healthy level of competition for this service. This level of competition is generally expected to lead to more competitive pricing and a wider range of solutions offered by potential contractors.

Taxpayer Impact: A competitive bidding process for essential services like custodial support helps ensure that taxpayer dollars are used efficiently, preventing inflated costs and encouraging service providers to offer their best value.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, ensuring clean and sanitary facilities. Services delivered include comprehensive janitorial and custodial support. Geographic impact is concentrated at the Air Force facilities managed under this contract. Workforce implications include employment opportunities for custodial staff employed by JDD, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 7 years) could lead to complacency or reduced responsiveness if not actively managed.
Potential for scope creep if service requirements are not clearly defined and monitored.
Reliance on a single contractor for an extended period may limit flexibility to adopt new technologies or service models.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
High number of bidders (10) suggests a competitive market and potentially good pricing.
Long-term contract indicates a stable, ongoing need and potentially a proven service provider.

Sector Analysis

This contract falls within the facilities support services sector, a significant component of the broader commercial services industry. Government spending on custodial and maintenance services is substantial, driven by the need to maintain a vast inventory of federal buildings and installations. Comparable spending benchmarks would typically be found within government-wide contracts for facility maintenance and management, often aggregated by agencies like GSA or specific departments like Defense.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, JDD, Inc., is likely a larger entity capable of handling the scale of this requirement. The absence of a small business set-aside means opportunities for small business participation would depend on JDD, Inc.'s own subcontracting strategy.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the relevant program management office within the Department of the Air Force. Performance would be monitored against the terms and conditions of the definitive contract, likely including regular inspections and service reviews. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Facilities Maintenance
Government Janitorial Services
Air Force Base Operations Support
Federal Building Maintenance Contracts

Risk Flags

Long contract duration may reduce flexibility and incentivize complacency.
Firm Fixed Price could become misaligned with market cost fluctuations over time.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.5 million to JDD, INC. ACADEMIC CUSTODIAL SERVICES

Who is the contractor on this award?

The obligated recipient is JDD, 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 $19.5 million.

What is the period of performance?

Start: 2011-10-03. End: 2019-02-28.

What was the specific scope of services included in this $19.5 million custodial contract?

The provided data indicates the contract was for 'ACADEMIC CUSTODIAL SERVICES' with the North American Industry Classification System (NAICS) code 561720, which corresponds to 'Janitorial Services'. While the exact scope is not detailed, this typically encompasses routine cleaning, waste removal, floor care, restroom sanitation, and potentially specialized cleaning tasks within academic or administrative facilities managed by the Department of the Air Force. The total value of $19,483,893.72 over the contract's life (approximately 2705 days or over 7 years) suggests a comprehensive, long-term service agreement.

How does the per-unit cost of this contract compare to industry benchmarks for janitorial services?

A precise per-unit cost comparison is not feasible with the provided data alone, as 'per-unit' metrics for custodial services can vary widely (e.g., per square foot, per building, per hour). The contract's total value of approximately $19.5 million spread over more than seven years results in an average annual expenditure of roughly $2.6 million. To benchmark this, one would need to compare it against similar-sized facilities (square footage, number of occupants, types of spaces) and service levels within the federal government or large commercial contracts. The firm fixed-price nature suggests the contractor priced based on their assessment of these factors, and the competitive bidding process (10 bidders) implies market rates were likely considered.

What are the key performance indicators (KPIs) typically used to evaluate custodial service contracts of this magnitude?

For a contract of this scale and duration, key performance indicators (KPIs) would likely focus on service quality, timeliness, and compliance. Common KPIs include cleanliness ratings based on inspections (e.g., percentage of areas meeting cleanliness standards), response times for reported issues (e.g., spills, maintenance needs), adherence to schedules (e.g., completion of tasks within designated timeframes), proper waste management and recycling, and safety compliance (e.g., incident rates, use of appropriate cleaning agents). Customer satisfaction surveys from facility occupants might also be used. The contracting officer's representative (COR) would typically be responsible for monitoring these KPIs.

What is the historical spending pattern for custodial services by the Department of the Air Force or similar agencies?

The provided data reflects a single, long-term contract for custodial services awarded in 2011. To understand historical spending patterns, one would need to analyze broader contract data for the Department of the Air Force and other military branches over multiple fiscal years. This would involve looking at the total obligated amounts for NAICS code 561720 (Janitorial Services) and potentially related facility maintenance codes. Such an analysis could reveal trends in contract values, number of awards, average contract durations, and the prevalence of different contract types (e.g., fixed-price vs. cost-reimbursement) for these services.

What risks are associated with a definitive contract lasting over seven years for janitorial services?

A definitive contract spanning over seven years for janitorial services presents several risks. Firstly, the extended duration might lead to contractor complacency, potentially resulting in a decline in service quality if not actively managed through robust performance monitoring. Secondly, the fixed-price nature, while beneficial for budget certainty, could become misaligned with actual costs if market prices for labor or supplies increase significantly over the contract period, potentially impacting the contractor's profitability and motivation. Thirdly, the government may miss opportunities to adopt newer, more efficient cleaning technologies or sustainable practices that emerge during the contract's term. Finally, managing such a long-term relationship requires consistent oversight to ensure ongoing compliance with evolving regulations and performance standards.

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

Solicitation ID: FA700011R0013

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3615 SUPERIOR AVE E STE 3104A, CLEVELAND, OH, 44114

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,515,165

Exercised Options: $19,508,891

Current Obligation: $19,483,894

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline