DoD's $21M janitorial services contract awarded to ADA S. MCKINLEY COMMUNITY SERVICES, INC. raises value concerns

Contract Overview

Contract Amount: $21,030,130 ($21.0M)

Contractor: ADA S. Mckinley Community Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-06-19

End Date: 2011-02-28

Contract Duration: 1,715 days

Daily Burn Rate: $12.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL SERVICES

Place of Performance

Location: GREAT LAKES, LAKE County, ILLINOIS, 60088

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $21.0 million to ADA S. MCKINLEY COMMUNITY SERVICES, INC. for work described as: JANITORIAL SERVICES Key points: 1. The contract's value proposition appears questionable given the lack of competitive bidding and the extended duration. 2. Limited competition for janitorial services may lead to inflated pricing and reduced service quality. 3. The contract's duration and fixed-price nature could expose the government to risks if market conditions change. 4. Performance context is limited due to the 'NOT AVAILABLE FOR COMPETITION' status, hindering direct comparison. 5. This contract falls within the broader 'Facilities Support Services' sector, but specific benchmarks are difficult to ascertain without competition data.

Value Assessment

Rating: questionable

The awarded amount of over $21 million for janitorial services over a period of approximately 5.7 years (1715 days) warrants scrutiny. Without a competitive bidding process, it is challenging to benchmark the pricing against market rates or similar contracts. The fixed-price nature, while offering cost certainty, could be disadvantageous if service needs or market prices fluctuate significantly over the contract's long term. The lack of transparency in how this price was determined makes a definitive value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' status, indicating a sole-source procurement. This means only one vendor was solicited, and the rationale for not opening it to broader competition is not provided. Such a limited competition approach typically results in less favorable pricing and potentially fewer innovative solutions compared to a full and open competition with multiple bidders.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive pressure to drive down costs. The lack of multiple bids limits the government's ability to secure the best possible price and value.

Public Impact

The primary beneficiaries are the facilities and personnel within the Department of the Navy that require janitorial services. Essential cleaning and maintenance services are delivered to ensure a sanitary and functional environment. The geographic impact is localized to the areas where the Department of the Navy facilities are located in Illinois. Workforce implications include the direct employment of individuals by ADA S. MCKINLEY COMMUNITY SERVICES, INC. for service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Extended contract duration without competitive review increases risk of overpayment.
Sole-source award limits transparency and potential for better value.
Fixed-price contract could be disadvantageous if service needs change significantly.

Positive Signals

Contract provides essential janitorial services, contributing to operational readiness.
Award to a specific company ensures continuity of service for a defined period.

Sector Analysis

Janitorial services fall under the broader Facilities Support Services industry, which is a significant component of the commercial services sector. This sector includes a wide range of maintenance, cleaning, and support functions for government and commercial properties. While specific spending benchmarks for janitorial services within the Department of Defense are not readily available, the overall facilities management market is substantial. Contracts like this represent a consistent demand for essential operational support services.

Small Business Impact

The provided data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits to the small business ecosystem stemming from this particular award. The focus appears to be on fulfilling the service requirement rather than utilizing small business participation goals.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and the Defense Contract Management Agency (DCMA). Accountability measures would be tied to the performance standards outlined in the contract. Transparency is limited due to the sole-source nature of the award, with details on the justification for not competing the contract not publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Facilities Maintenance Services
Base Operations Support
Commercial Cleaning Services
Government Cleaning Contracts

Risk Flags

Sole-source award lacks competitive justification.
Extended contract duration without re-competition.
Potential for inflated pricing due to limited competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.0 million to ADA S. MCKINLEY COMMUNITY SERVICES, INC.. JANITORIAL SERVICES

Who is the contractor on this award?

The obligated recipient is ADA S. MCKINLEY COMMUNITY SERVICES, 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 $21.0 million.

What is the period of performance?

Start: 2006-06-19. End: 2011-02-28.

What is the track record of ADA S. MCKINLEY COMMUNITY SERVICES, INC. in performing similar government contracts?

Information regarding the specific track record of ADA S. MCKINLEY COMMUNITY SERVICES, INC. in performing similar government contracts is not detailed in the provided data. While the contract was awarded by the Department of Defense (DoD) and administered by the Department of the Navy, the data does not include performance reviews, past performance ratings, or a history of successful contract completions for this entity. Further investigation into federal procurement databases like SAM.gov or FPDS would be necessary to assess their historical performance, any past issues, and their capacity to deliver on large-scale janitorial service contracts.

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

Calculating a precise per-day cost for comparison is challenging without knowing the exact scope of services and the specific locations covered. However, the total contract value is approximately $21,030,130.30 over 1715 days. This equates to roughly $12,262 per day. Benchmarking this figure against industry standards for janitorial services is difficult because the contract was sole-sourced, meaning there was no competitive process to establish a market-driven price. Factors such as the size of the facilities, the level of service required (e.g., frequency of cleaning, specialized cleaning needs), and geographic location significantly influence per-day costs. Without comparable bids or detailed service level agreements, it's hard to definitively say if this daily rate represents good value.

What are the primary risks associated with a sole-source award for janitorial services?

The primary risks associated with a sole-source award for janitorial services include potential overpayment due to the lack of competitive pricing pressure, reduced incentive for the contractor to innovate or improve service quality, and a lack of transparency in the procurement process. Without competition, the government may not be securing the most cost-effective solution available in the market. Furthermore, if the sole-source contractor experiences performance issues or financial instability, the government has limited alternative options for service continuity without initiating a new, potentially lengthy, sole-source procurement. This can also lead to a perception of unfairness or cronyism, even if the award is justified.

What is the historical spending pattern for janitorial services by the Department of the Navy?

The provided data snippet focuses on a single contract and does not offer historical spending patterns for janitorial services by the Department of the Navy. To analyze historical spending, one would need to aggregate data on all janitorial service contracts awarded by the Navy over several fiscal years. This would involve querying procurement databases for relevant contract vehicles, identifying spending trends, and understanding the distribution of awards between competitive and sole-source procurements. Such an analysis could reveal whether spending on janitorial services has increased or decreased, and whether the Navy is effectively leveraging competition to manage costs in this category.

What justification was provided for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION' (CT: 'NOT AVAILABLE FOR COMPETITION'), which signifies a sole-source procurement. However, the specific justification or rationale for this sole-source award is not included in the data snippet. Typically, sole-source awards require a formal justification, such as the existence of only one responsible source, urgent and compelling needs, or specific statutory authority. Without access to the contract file or the official justification document, it is impossible to determine the precise reasons why this janitorial services contract was not competed.

Industry Classification

NAICS: Construction › Residential Building Construction › Residential Remodelers

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

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: 725 S WELLS ST, STE 1-A, CHICAGO, IL, 90

Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $21,136,534

Exercised Options: $21,136,534

Current Obligation: $21,030,130

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008306D4804

IDV Type: IDC

Timeline