DoD's $13.7M Janitorial Services Contract Awarded to NIKKEN SOGYO CO., LTD

Contract Overview

Contract Amount: $13,699,686 ($13.7M)

Contractor: Nikken Sogyo CO., Ltd.

Awarding Agency: Department of Defense

Start Date: 2008-02-01

End Date: 2013-01-31

Contract Duration: 1,826 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ADD/DELETE CUSTODIAL REQUIREMENTS

Plain-Language Summary

Department of Defense obligated $13.7 million to NIKKEN SOGYO CO., LTD. for work described as: ADD/DELETE CUSTODIAL REQUIREMENTS Key points: 1. Contract value of $13.7 million over 5 years. 2. Awarded under full and open competition. 3. No small business participation noted. 4. Sector: Facilities Support Services.

Value Assessment

Rating: fair

The contract's total value of $13.7 million over five years suggests a moderate annual spend. Without specific per-unit cost data or benchmarks for janitorial services of this scale, a precise value assessment is difficult. However, the firm fixed-price structure provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offer.

Taxpayer Impact: The competitive nature of the award is intended to ensure taxpayer funds are used efficiently for janitorial services.

Public Impact

Ensures cleanliness and maintenance of facilities. Supports operational readiness of naval installations. Provides employment opportunities within the service area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Limited data on performance metrics.
Potential for price creep if scope changes.

Positive Signals

Firm fixed-price contract.
Full and open competition.
Long-term contract provides stability.

Sector Analysis

This contract falls within the facilities support services sector, which includes a wide range of maintenance and custodial operations. Spending in this sector can vary significantly based on the size and type of facilities managed by government agencies.

Small Business Impact

The data indicates no small business participation in this contract. Agencies should actively seek opportunities to include small businesses in contracting to promote economic growth and competition.

Oversight & Accountability

The Department of the Navy managed this contract, with oversight expected to ensure service delivery and adherence to contract terms. The firm fixed-price nature simplifies some aspects of financial oversight.

Related Government Programs

Janitorial Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

No small business utilization.
Potential for unaddressed scope creep.
Limited performance data available.
Dependence on a single contractor for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.7 million to NIKKEN SOGYO CO., LTD.. ADD/DELETE CUSTODIAL REQUIREMENTS

Who is the contractor on this award?

The obligated recipient is NIKKEN SOGYO CO., LTD..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.7 million.

What is the period of performance?

Start: 2008-02-01. End: 2013-01-31.

What specific janitorial services are included in this contract?

The provided data does not detail the specific janitorial services covered. Typically, such contracts encompass routine cleaning, waste removal, floor care, restroom sanitation, and potentially specialized services like window washing or carpet cleaning, depending on the facility's needs and the contract's scope of work.

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

Without specific details on the scope of services, facility size, and geographic location, a direct comparison to market rates is challenging. However, the firm fixed-price structure and full and open competition suggest an effort to secure competitive pricing. Further analysis would require benchmarking against similar government or commercial contracts.

What mechanisms are in place to ensure service quality and contractor performance?

While the data confirms a firm fixed-price contract awarded through competition, it doesn't specify performance monitoring mechanisms. Government contracts typically include performance standards, inspection protocols, and contractor performance evaluation systems (like CPARS) to ensure quality and accountability.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3-33-19, NISHIIKEBUKURO, TOSHIMA-KU

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,902,006

Exercised Options: $13,976,967

Current Obligation: $13,699,686

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008408D0403

IDV Type: IDC

Timeline