DoD's $17M Janitorial Services Contract Awarded to LIFEROOTS, INC. with Limited Competition

Contract Overview

Contract Amount: $17,006,934 ($17.0M)

Contractor: Liferoots, Inc

Awarding Agency: Department of Defense

Start Date: 2003-10-01

End Date: 2009-04-30

Contract Duration: 2,038 days

Daily Burn Rate: $8.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to LIFEROOTS, INC for work described as: Key points: 1. Contract awarded under a 'not available for competition' basis, raising questions about potential cost savings through broader bidding. 2. The duration of the contract (2038 days) suggests a long-term need for janitorial services. 3. Fixed-price contract type may offer cost certainty but could limit flexibility if service needs change significantly. 4. Awarded by the Department of the Air Force, indicating a focus on maintaining facilities within this branch. 5. The contract's value of $17,007,000 over its term warrants scrutiny for efficiency and market alignment. 6. Geographic focus on New Mexico is noted, potentially impacting local service providers and workforce.

Value Assessment

Rating: fair

Benchmarking the value of this $17M janitorial services contract is challenging without specific performance metrics or detailed service scope. However, the award to LIFEROOTS, INC. for a period spanning over 5 years (2038 days) suggests a substantial, ongoing requirement. The firm fixed-price structure provides budget predictability for the Department of the Air Force. Without comparable contract data for similar-sized facilities or service levels, it's difficult to definitively assess if the pricing represents excellent value for money. Further analysis would require understanding the specific square footage cleaned, frequency of service, and any specialized cleaning requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'not available for competition' basis, indicating that the Department of the Air Force did not solicit bids from multiple vendors. This approach is typically used when only one source is capable of meeting the requirement, or in specific circumstances like follow-on contracts where it's deemed most efficient. The lack of open competition means that price discovery through market forces was limited, potentially leading to higher costs than if multiple bids had been received and evaluated.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without a competitive process, there's less assurance that the government secured the most cost-effective solution available in the market.

Public Impact

The primary beneficiaries are the personnel and operations within the Department of the Air Force facilities in New Mexico, ensuring a clean and sanitary working environment. Essential janitorial and maintenance services are delivered, contributing to the upkeep and operational readiness of Air Force installations. The geographic impact is concentrated within New Mexico, potentially supporting local employment through LIFEROOTS, INC.'s operations. Workforce implications include job creation and maintenance within the janitorial services sector in the New Mexico region, directly employed or subcontracted by LIFEROOTS, INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpayment and lack of cost-efficiency.
The long contract duration could lead to complacency or reduced service quality if not actively managed.
Lack of transparency in the 'not available for competition' justification requires further investigation.
Fixed-price contracts can be disadvantageous if unforeseen circumstances require significant scope changes.

Positive Signals

Award to a single vendor can streamline management and ensure consistent service delivery.
Firm fixed-price contract provides budget certainty for the agency.
The contract's duration suggests a stable, long-term partnership for essential services.

Sector Analysis

The janitorial services sector is a significant component of the broader facilities management industry, characterized by a mix of large corporations and numerous small businesses. Federal spending in this area supports the maintenance of government buildings, military installations, and other public facilities. While specific market size data for federal janitorial contracts is not readily available, the overall facilities management market is valued in the hundreds of billions of dollars globally. This contract represents a portion of the Department of Defense's extensive real property maintenance budget, ensuring operational readiness and a safe working environment for personnel.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' (small business) indicator is also false. This suggests that the primary award was not specifically targeted towards small businesses, nor does it appear to be a contract where small business participation is a primary focus of the award itself. However, LIFEROOTS, INC., as the prime contractor, may still engage small businesses for subcontracting opportunities to fulfill the service requirements, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency regarding the 'not available for competition' justification would be managed by the awarding agency, and potentially subject to review by the Government Accountability Office (GAO) if challenged. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Department of Defense Facilities Maintenance
General Services Administration (GSA) Building Operations and Maintenance
Federal Facilities Support Services
Air Force Base Operations Support

Risk Flags

Limited Competition
Potential for Overpricing
Lack of Performance Benchmarks
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 million to LIFEROOTS, INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is LIFEROOTS, 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 $17.0 million.

What is the period of performance?

Start: 2003-10-01. End: 2009-04-30.

What is the track record of LIFEROOTS, INC. with federal contracts, particularly with the Department of Defense?

Information regarding LIFEROOTS, INC.'s specific track record with federal contracts, especially with the Department of Defense, is not detailed in the provided data snippet. A comprehensive analysis would require accessing federal procurement databases like SAM.gov or FPDS-NG to review past awards, performance evaluations (e.g., CPARS), and any history of contract disputes or terminations. Without this historical data, it's difficult to assess their experience, reliability, and past performance in delivering services similar in scope and value to this $17 million janitorial contract.

How does the awarded price compare to market rates for similar janitorial services in New Mexico?

Directly comparing the awarded price to market rates for similar janitorial services in New Mexico is challenging without detailed service scope and performance metrics. The contract value of $17,006,934.11 over approximately 5.5 years (2038 days) averages to roughly $3.1 million per year. This figure needs to be contextualized by the square footage of facilities serviced, frequency of cleaning, types of services (e.g., standard janitorial, deep cleaning, specialized disinfection), and labor costs in the specific New Mexico region. A thorough benchmark would involve analyzing pricing data from other federal or large commercial contracts for comparable services in the same geographic area, considering factors like prevailing wages and overhead costs.

What are the specific risks associated with awarding a long-term contract on a sole-source basis?

Awarding a long-term contract on a sole-source basis, as seen with this $17M janitorial services contract, carries several risks. Primarily, the lack of competition means the government may not be achieving the best possible price, potentially leading to overspending. There's also a risk of contractor complacency; without the threat of losing future business to competitors, the contractor might be less incentivized to maintain high service quality or innovate. Furthermore, the justification for 'not available for competition' needs to be robust; if it's not truly justified, it undermines fair and open competition principles. Long-term sole-source awards can also stifle market entry for other capable vendors, reducing future competition.

What are the potential implications for program effectiveness given the limited competition?

The limited competition for this $17M janitorial services contract could have mixed implications for program effectiveness. On one hand, a single, established provider might offer consistency and a deep understanding of the specific facility needs over the contract's long duration. This could lead to reliable service delivery. However, the absence of competitive pressure might reduce the incentive for LIFEROOTS, INC. to proactively improve service quality, efficiency, or adopt new cleaning technologies. The effectiveness will largely depend on the agency's contract management, performance monitoring, and the contractor's internal commitment to quality, rather than being driven by market forces.

How does this contract's value compare to historical federal spending on janitorial services?

Comparing this $17 million contract to historical federal spending on janitorial services requires access to broader spending data. Federal agencies, including the Department of Defense, consistently spend significant amounts on facilities maintenance and janitorial services across numerous installations nationwide. While this specific contract represents a substantial investment for the Air Force in New Mexico, it is likely one of many similar contracts supporting federal operations. Analyzing trends would involve looking at the total federal outlay for janitorial services over several fiscal years, identifying average contract values, and noting any shifts in procurement strategies, such as increased use of sole-source awards versus competitive bidding.

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: 1023 STANFORD NE, ALBUQUERQUE, NM, 01

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

Contract Characteristics

Cost or Pricing Data: NO

Timeline