DoD's $31.2M custodial services contract awarded to Davis Memorial Goodwill Industries raises value concerns

Contract Overview

Contract Amount: $31,254,990 ($31.3M)

Contractor: Davis Memorial Goodwill Industries

Awarding Agency: Department of Defense

Start Date: 2006-10-01

End Date: 2010-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $21.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASEWIDE CUSTODIAL SERVICES

Place of Performance

Location: BOLLING AFB, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20032

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $31.3 million to DAVIS MEMORIAL GOODWILL INDUSTRIES for work described as: BASEWIDE CUSTODIAL SERVICES Key points: 1. The contract's value proposition is questionable given the lack of competitive bidding and the extended duration. 2. Competition dynamics are absent, as the contract was not competed, potentially leading to suboptimal pricing. 3. Risk indicators include the sole-source award and the absence of a clear performance benchmark. 4. Performance context is limited due to the lack of detailed performance metrics or comparisons. 5. Sector positioning is within facility maintenance services, a common area for government contracting. 6. The contract's duration of four years suggests a long-term commitment without demonstrated market testing.

Value Assessment

Rating: questionable

Benchmarking the value of this custodial services contract is challenging due to the absence of competitive pricing data. The contract was awarded sole-source, preventing a direct comparison with market rates or other bids. While the total value is $31.2 million over four years, the lack of competition makes it difficult to ascertain if this represents a fair price for the services rendered. Without a competitive process, there's a risk that the government may be overpaying compared to what could have been achieved through open bidding.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from multiple vendors. The data indicates it was 'NOT AVAILABLE FOR COMPETITION.' This approach bypasses the standard procurement process designed to solicit bids from various qualified contractors. Consequently, there was no opportunity for price discovery through a competitive bidding environment, which typically drives down costs and encourages innovation.

Taxpayer Impact: The lack of competition means taxpayers did not benefit from potential cost savings that a competitive bidding process might have yielded. This award method limits the government's ability to ensure it is receiving the best possible value for taxpayer dollars.

Public Impact

The primary beneficiary of this contract is Davis Memorial Goodwill Industries, a non-profit organization. The services delivered include essential custodial and janitorial support for Department of Defense facilities. The geographic impact is concentrated in the District of Columbia, where the services are performed. Workforce implications include employment opportunities for individuals employed by Davis Memorial Goodwill Industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits transparency and accountability in pricing.
Extended contract duration without re-competition raises concerns about sustained value.
Absence of detailed performance metrics makes it difficult to assess service quality.
Potential for complacency from the contractor due to lack of competitive pressure.

Positive Signals

Award to a Goodwill organization supports social and employment missions.
Consistent provider for custodial services, potentially ensuring continuity.
Firm Fixed Price contract type provides cost certainty for the government.

Sector Analysis

This contract falls within the broader facility support services sector, specifically janitorial and custodial services. The federal government is a significant consumer of such services across numerous agencies and installations. While specific market size data for federal custodial services is not readily available, the sector is generally characterized by a mix of large, established companies and smaller, specialized firms, including non-profits like Goodwill. This contract represents a substantial, long-term commitment for a single provider within this niche.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, there is no explicit mention of subcontracting requirements for small businesses. The award to Davis Memorial Goodwill Industries, a large non-profit, suggests that the primary focus was not on stimulating the small business ecosystem through this particular procurement. Therefore, the direct impact on small businesses, either as prime contractors or subcontractors, is likely minimal for this specific award.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) responsible for monitoring performance and ensuring compliance with the contract terms. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver services at the agreed-upon price. Transparency is limited due to the sole-source nature of the award, which restricts public visibility into the negotiation process. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

BASEWIDE CUSTODIAL SERVICES
Janitorial Services
Facility Support Services
Department of Defense Contracts
Non-Profit Contractor Awards

Risk Flags

Sole-source award
Lack of competition
Extended contract duration
Absence of performance benchmarks
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.3 million to DAVIS MEMORIAL GOODWILL INDUSTRIES. BASEWIDE CUSTODIAL SERVICES

Who is the contractor on this award?

The obligated recipient is DAVIS MEMORIAL GOODWILL INDUSTRIES.

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 $31.3 million.

What is the period of performance?

Start: 2006-10-01. End: 2010-09-30.

What is the track record of Davis Memorial Goodwill Industries as a federal contractor, particularly for custodial services?

Davis Memorial Goodwill Industries has a history of serving as a federal contractor, often through specific programs designed to employ individuals with disabilities or other barriers to employment. Their involvement in providing custodial and janitorial services is consistent with their mission. However, detailed performance reviews or specific metrics from past federal contracts are not publicly available through standard contract databases. The longevity of this specific contract (awarded in 2006 and ending in 2010) suggests a level of satisfaction or a lack of viable alternatives at the time of award. Further investigation into past performance evaluations or any documented issues would be necessary for a comprehensive assessment.

How does the pricing of this contract compare to similar custodial service contracts awarded by the federal government?

Direct price comparison is difficult because this contract was awarded sole-source, meaning there were no competing bids to establish a market-driven price. Without knowing the specific scope of work, square footage, service frequency, and labor rates, a precise benchmark is impossible. However, sole-source contracts often carry a higher risk of being priced above market value compared to competitively awarded contracts. To assess value, one would need to compare the per-square-foot cost or cost per service hour against similar-sized facilities in the same geographic region that were procured through competitive means. The absence of such comparative data makes a definitive value assessment challenging.

What are the primary risks associated with awarding a large, multi-year custodial contract on a sole-source basis?

The primary risks associated with a sole-source, multi-year custodial contract include potential overpayment due to the lack of competitive pressure, which can lead to suboptimal pricing. There's also a risk of complacency from the contractor, as they face no immediate threat of losing the business to a competitor, potentially impacting service quality or innovation over time. Furthermore, the government loses the opportunity to benefit from new technologies or more efficient service delivery methods that might be introduced by other vendors in a competitive environment. Finally, the lack of transparency in the award process can raise concerns about fairness and the best use of taxpayer funds.

How effective has this contract been in achieving its stated objectives of providing custodial services?

The effectiveness of this contract in achieving its stated objectives is difficult to definitively assess from the provided data alone. The contract's primary objective is to ensure the cleanliness and maintenance of Department of Defense facilities. While the contract was awarded and presumably services were rendered, the lack of detailed performance metrics, quality assurance reports, or user feedback makes it impossible to quantify effectiveness. The fact that it was a sole-source award and lasted for four years suggests a baseline level of acceptance, but does not necessarily indicate optimal performance or value for money compared to what could have been achieved through competition.

What are the historical spending patterns for custodial services within the Department of Defense or similar agencies?

Historical spending patterns for custodial services within the Department of Defense and similar large federal agencies typically show significant and consistent expenditure. These services are essential for maintaining operational readiness and personnel well-being across numerous installations. Spending can fluctuate based on facility upgrades, changes in service requirements, and the number of facilities managed. Contracts for such services are often long-term due to the nature of the work and the desire for provider stability. While specific aggregate data requires deeper analysis of federal procurement databases, it is understood that billions are spent annually across the government on facility maintenance and custodial support, with contracts ranging from small, localized services to large, base-wide operations like this one.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2200 S DAKOTA AVE NE, WASHINGTON, DC, 98

Business Categories: AbilityOne Program Participant, Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,662,251

Exercised Options: $31,254,990

Current Obligation: $31,254,990

Contract Characteristics

Cost or Pricing Data: NO

Timeline