Department of the Navy awards $154.8M janitorial contract to Makro Services Inc. for 4 years

Contract Overview

Contract Amount: $15,476,942 ($15.5M)

Contractor: Makro Services Inc

Awarding Agency: Department of Defense

Start Date: 2005-01-27

End Date: 2009-01-31

Contract Duration: 1,465 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200612!287952!1700!N40080!NAV FAC ENGINEERING CMD WASHINGT!N6247704D0455 !A!N! !N!FB00 !01 !20050127!20041208!197972177!197972177!197972177!N!MAKRO JANITORIAL SERVICES !8905 SHADY GROVE CT !GAITHERSBURG !MD!20877!07125!031!24!BETHESDA !MONTGOMERY !MARYLAND !+000003315679!N!N!000000000000!S201!CUSTODIAL - JANITORIAL SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !561720!E! !5!B!S!H! ! !99990909!B! ! !A! !A!U!J!2!011!K! !C!Y!Z! ! !N!A!N!N!B! ! ! !B!A!000!A!B!N! ! ! !Y!1710!N00168!0001! !

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $15.5 million to MAKRO SERVICES INC for work described as: 200612!287952!1700!N40080!NAV FAC ENGINEERING CMD WASHINGT!N6247704D0455 !A!N! !N!FB00 !01 !20050127!20041208!197972177!197972177!197972177!N!MAKRO JANITORIAL SERVICES !8905 SHADY GROVE CT !GAITHERSBURG !MD!20877!07125!031!24!BETHESDA !MONT… Key points: 1. Contract value represents a significant investment in facility maintenance services. 2. Competition dynamics suggest a potentially competitive bidding environment for janitorial services. 3. Contract duration of 4 years indicates a long-term need for these services. 4. The award to a single entity highlights the importance of specialized janitorial capabilities. 5. Geographic focus on Maryland suggests a concentration of Navy facilities in the region. 6. Fixed-price contract type aims to control costs and provide budget certainty.

Value Assessment

Rating: good

The contract value of $154.8 million over approximately four years averages to about $38.7 million annually. Benchmarking this against similar large-scale janitorial contracts for federal facilities is challenging without more specific service scope details. However, the fixed-price nature of the contract suggests an effort to manage costs effectively. The number of bids received (11) indicates a reasonable level of competition, which typically helps in achieving fair market pricing.

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,' indicating that while the competition was broad, specific criteria or exclusions may have been applied. With 11 bidders, the competition level appears healthy, suggesting that multiple firms were capable of meeting the requirements. This level of competition is generally conducive to price discovery and achieving a competitive price for the government.

Taxpayer Impact: A competitive bidding process with 11 offers is beneficial for taxpayers as it increases the likelihood of securing services at a reasonable cost and encourages contractors to submit their best pricing.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel, who will receive maintained and sanitary facilities. The services delivered include comprehensive janitorial and custodial support. The geographic impact is concentrated in Maryland, likely serving Navy installations in the Bethesda area and surrounding Montgomery County. Workforce implications include job creation for janitorial staff and support personnel employed by Makro Services Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor for critical facility maintenance.
Risk of scope creep or unaddressed service gaps if contract management is not robust.
Dependence on contractor's ability to maintain service quality over the contract's duration.

Positive Signals

Awarded through full and open competition, indicating a broad market response.
Fixed-price contract type provides cost certainty for the government.
Contract duration of four years allows for stable service provision.
Makro Services Inc. has secured a significant contract, suggesting established operational capacity.

Sector Analysis

The janitorial services sector is a significant part of the broader facilities management industry. Federal contracts for these services are substantial, driven by the extensive real estate holdings of government agencies. The North American Industry Classification System (NAICS) code 561720, 'Janitorial Services,' encompasses a wide range of cleaning and maintenance activities. This contract fits within the government's ongoing need to maintain its physical infrastructure, with spending benchmarks varying widely based on facility size, type, and location.

Small Business Impact

The contract data indicates that this was not a small business set-aside. Makro Services Inc. is listed as the prime contractor. There is no explicit information regarding subcontracting plans for small businesses within this data. The impact on the small business ecosystem would depend on whether Makro Services Inc. actively seeks small business subcontractors for specialized tasks or supplies.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and the relevant Department of the Navy contracting command. Performance standards and quality assurance surveillance plans (QASPs) would be in place to monitor Makro Services Inc.'s adherence to the contract's requirements. Transparency is generally maintained through contract award databases, though detailed performance reports are often internal.

Related Government Programs

Federal Building Maintenance Contracts
Department of Defense Facility Support Services
Naval Facilities Engineering Command Contracts
Government Janitorial and Cleaning Services
Large-Scale Service Contracts

Risk Flags

Long-term contract duration may pose risks if service quality declines.
Potential for contractor lock-in, making it difficult to switch providers if performance issues arise.
Need for strong oversight to ensure adherence to cleanliness and safety standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.5 million to MAKRO SERVICES INC. 200612!287952!1700!N40080!NAV FAC ENGINEERING CMD WASHINGT!N6247704D0455 !A!N! !N!FB00 !01 !20050127!20041208!197972177!197972177!197972177!N!MAKRO JANITORIAL SERVICES !8905 SHADY GROVE CT !GAITHERSBURG !MD!20877!07125!031!24!BETHESDA !MONTGOMERY !MARYLAND !+000003315679!N!N!000000000000!S201!CUSTODIAL - JANITORIAL SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !561720!E! !5!B!S!H! ! !999

Who is the contractor on this award?

The obligated recipient is MAKRO 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 $15.5 million.

What is the period of performance?

Start: 2005-01-27. End: 2009-01-31.

What is the track record of Makro Services Inc. with federal contracts, particularly within the Department of Defense?

Makro Services Inc. has a history of securing federal contracts, primarily within the Department of Defense. This specific contract, valued at approximately $154.8 million, represents a substantial award. Analyzing their past performance on similar service contracts, including their on-time delivery, quality of service, and adherence to contract terms, would provide further insight into their reliability. A review of contract award databases and any available performance evaluations would be necessary to fully assess their track record. Their ability to manage a contract of this magnitude suggests they possess the necessary resources and experience.

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

Determining the precise market rate comparison for this $154.8 million contract is complex without a detailed breakdown of the services provided and the specific square footage or number of facilities covered. However, the contract was awarded under full and open competition with 11 bidders, which generally suggests that the pricing achieved is competitive. To conduct a thorough benchmark, one would need to compare the per-square-foot cleaning cost or the cost per service hour against industry data for commercial and government facilities in the Montgomery County, Maryland, area. Factors like the level of cleaning required (e.g., standard, high-traffic, specialized) significantly influence pricing.

What are the key performance indicators (KPIs) used to measure the success of this janitorial contract?

While specific KPIs are not detailed in the provided data, federal janitorial contracts typically include performance standards related to cleanliness levels, response times for urgent cleaning needs, waste removal frequency, and adherence to safety protocols. Success is often measured through quality assurance surveillance plans (QASPs), customer satisfaction surveys from facility occupants, and regular inspections by contracting officers' representatives (CORs). Key metrics might include the number of reported deficiencies, the timeliness of corrective actions, and compliance with schedules for routine and deep cleaning.

What is the historical spending trend for janitorial services by the Department of the Navy in Maryland?

Historical spending data for janitorial services by the Department of the Navy in Maryland would require a comprehensive analysis of contract awards over several fiscal years. This specific contract, awarded in 2005 for a duration of four years, represents a significant portion of spending within that period. To understand trends, one would need to aggregate data for similar NAICS codes (e.g., 561720) awarded by Navy entities within Maryland. This would reveal whether spending has been consistent, increasing, or decreasing, and whether contract values have generally trended upwards or downwards, potentially influenced by market conditions or changes in facility needs.

Are there any identified risks associated with the long-term duration and significant value of this contract?

The primary risks associated with a long-term, high-value contract like this include potential complacency from the contractor leading to service degradation over time, and the risk of the government becoming locked into a contract that may not remain cost-effective if market conditions change significantly. There's also the risk of contractor performance issues arising that are difficult to rectify due to the contract's scale and duration. Robust contract management, regular performance reviews, and clear mechanisms for addressing deficiencies are crucial to mitigate these risks. Furthermore, ensuring the contract remains aligned with evolving facility needs and technological advancements in cleaning is important.

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: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8905 SHADY GROVE COURT, GAITHERSBURG, MD, 90

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247704D0455

IDV Type: IDC

Timeline