DoD's $26.5M janitorial contract awarded to ESCAB ENTERPRISES, INC. for services in Washington D.C

Contract Overview

Contract Amount: $26,516,535 ($26.5M)

Contractor: Escab Enterprises, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-04-28

End Date: 2011-09-30

Contract Duration: 1,981 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $26.5 million to ESCAB ENTERPRISES, INC. for work described as: Key points: 1. The contract's value of $26.5 million over approximately 5 years represents a significant investment in facility maintenance. 2. Awarded under full and open competition, this suggests a competitive bidding process was utilized. 3. The firm-fixed-price contract type indicates that the price is set and not subject to upward adjustment based on the contractor's costs. 4. The contract duration of 1981 days (approx. 5.4 years) provides a stable service period. 5. The contract was awarded to ESCAB ENTERPRISES, INC., a single entity, for janitorial services. 6. The base award value is $13,385,000, with potential for higher total obligation based on task orders. 7. The contract was awarded as 'Other Direct Costs' (ODC) which can indicate a flexible pricing structure for specific services.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the scope of services and square footage covered. However, a $26.5 million total contract value over five years for janitorial services in a major metropolitan area like Washington D.C. is substantial. Without comparable contract data for similar facilities and service levels, it is difficult to definitively assess value for money. The firm-fixed-price structure, while providing cost certainty, could lead to overpayment if the scope of work is less demanding than anticipated or underpayment if it is more demanding.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which is a complex designation. While it implies an initial intent for broad competition, the 'exclusion of sources' part suggests that certain potential bidders may have been excluded for specific reasons, potentially related to pre-qualification or specific requirements. The number of bids received (10) indicates a reasonable level of interest, but the exclusion clause warrants further investigation to understand its impact on the breadth of competition and potential price discovery.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by encouraging multiple bids, which can drive down prices. However, the exclusion of sources may have limited the competitive pressure, potentially resulting in a higher price than if all interested parties could have bid.

Public Impact

The primary beneficiaries are the personnel working within the Department of the Navy facilities in Washington D.C., who will experience improved cleanliness and hygiene. The contract ensures the delivery of essential janitorial and custodial services, maintaining the operational readiness and appearance of government buildings. The geographic impact is concentrated within Washington D.C., where the facilities requiring these services are located. The contract supports the janitorial services workforce, likely through direct employment by ESCAB ENTERPRISES, INC. or its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type requires further scrutiny to ensure it did not unduly restrict competition.
The total contract value of $26.5 million is significant, necessitating robust performance monitoring to ensure value for money.
The firm-fixed-price nature could lead to contractor profit if actual service delivery costs are lower than anticipated.
The contract's duration of over five years may present risks if service needs or facility conditions change significantly during that period.

Positive Signals

Awarded under full and open competition, indicating a structured procurement process.
The receipt of 10 bids suggests a healthy level of interest from potential contractors.
The firm-fixed-price contract type provides budget certainty for the Department of the Navy.
The contract ensures consistent janitorial services, contributing to a well-maintained government infrastructure.

Sector Analysis

Janitorial services represent a significant segment within the broader facilities management industry. This contract falls under the commercial and institutional cleaning services sector. The market is characterized by a mix of large national providers and smaller local businesses. Government contracts for janitorial services are substantial, driven by the need to maintain a vast array of federal buildings and installations. Benchmarking this contract's value would involve comparing its per-square-foot cost or per-employee cost against similar large-scale government or commercial contracts in the Washington D.C. metropolitan area.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. As the contract was awarded under full and open competition, it does not appear to have been specifically set aside for small businesses. The potential for small business participation would likely be through subcontracting opportunities if ESCAB ENTERPRISES, INC. engages in such practices. Further analysis would be needed to determine if subcontracting goals were established and met.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Performance standards and quality assurance surveillance plans (QASPs) would be crucial for monitoring service delivery. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Building Maintenance Contracts
Department of Defense Facilities Management
Government Cleaning Services
Janitorial Services Procurement
Commercial Cleaning Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Firm-fixed-price risk: contractor may over-earn if costs are lower than anticipated.
Contract duration: long-term contracts can be less adaptable to changing needs.
Scope definition: clarity on service scope is crucial for value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.5 million to ESCAB ENTERPRISES, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is ESCAB ENTERPRISES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $26.5 million.

What is the period of performance?

Start: 2006-04-28. End: 2011-09-30.

What is the specific scope of janitorial services covered under this $26.5 million contract?

The provided data indicates the contract is for 'Janitorial Services' (NAICS 561720) awarded to ESCAB ENTERPRISES, INC. by the Department of the Navy. However, the precise details of the scope of work, such as the square footage of facilities to be cleaned, frequency of services (daily, weekly, monthly), specific tasks (e.g., floor care, window cleaning, waste removal, disinfection), and any specialized cleaning requirements, are not detailed in the summary data. A comprehensive understanding of the value for money would necessitate a review of the Performance Work Statement (PWS) or Statement of Work (SOW) attached to the contract.

How does the awarded price compare to market rates for similar janitorial services in Washington D.C.?

Directly comparing the awarded price of $26.5 million to market rates is challenging without specific details on the scope of services, square footage, and service levels. However, the contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' with 10 bidders. This suggests a competitive environment, which typically helps align prices with market rates. To perform a robust comparison, one would need to analyze the contract's pricing structure (e.g., labor rates, material costs) against industry benchmarks for commercial cleaning services in the D.C. area, considering factors like building type, security requirements, and operating hours.

What are the key performance indicators (KPIs) used to evaluate ESCAB ENTERPRISES, INC.'s performance?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, government contracts for janitorial services include KPIs related to cleanliness standards, response times for service requests, adherence to schedules, and safety compliance. Performance would likely be monitored through a Quality Assurance Surveillance Plan (QASP) by a Contracting Officer's Representative (COR). These KPIs are crucial for ensuring the contractor meets the required service levels and for justifying continued payment and contract renewal.

What is the historical spending pattern for janitorial services by the Department of the Navy in Washington D.C.?

The provided data only pertains to this specific contract awarded on April 28, 2006, with an end date of September 30, 2011, for a total value of $26,516,534.55. To understand historical spending patterns, one would need to access broader federal procurement databases (like FPDS) to identify and aggregate all janitorial service contracts awarded by the Department of the Navy, and potentially other DoD components, within the Washington D.C. region over several fiscal years. This would reveal trends in contract values, awardees, competition levels, and service types.

What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?

This award type, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' is unusual. 'Full and open competition' is the standard preferred method, meaning all responsible sources are permitted to submit offers. The addition of 'after exclusion of sources' implies that while the intent was broad competition, certain potential offerors were excluded prior to the solicitation, possibly due to specific pre-qualification requirements, past performance issues, or other documented reasons. This exclusion needs careful justification to ensure it did not unduly limit competition and potentially impact price or innovation.

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: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9007 SHADY GROVE CT, GAITHERSBURG, MD, 90

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business

Parent Contract

Parent Award PIID: N4008005D0423

IDV Type: IDC

Timeline