DoD's $10M Contract for Shelf Stocking and Custodial Services Awarded to Trusted Hand Service, Inc
Contract Overview
Contract Amount: $10,023,158 ($10.0M)
Contractor: Trusted Hand Service, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-03-29
End Date: 2012-04-30
Contract Duration: 1,859 days
Daily Burn Rate: $5.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 15
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SHELF STOCKING, RECEIVING/STORATE/HOLDING AREA AND CUSTODIAL OPERATIONS
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $10.0 million to TRUSTED HAND SERVICE, INC. for work described as: SHELF STOCKING, RECEIVING/STORATE/HOLDING AREA AND CUSTODIAL OPERATIONS Key points: 1. The contract value of $10M over 5 years indicates a significant investment in support services. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 3. The firm-fixed-price contract type aims to control costs for the Department of Defense. 4. Services include shelf stocking, receiving, storage, and custodial operations, crucial for commissary efficiency.
Value Assessment
Rating: fair
The contract value of $10M over 5 years for shelf stocking and custodial services appears reasonable given the scope. Benchmarking against similar support service contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The procurement utilized full and open competition after exclusion of sources, indicating an effort to ensure a competitive process while potentially addressing specific source requirements. This method aims for price discovery through multiple bids.
Taxpayer Impact: The firm-fixed-price contract aims to provide cost certainty for taxpayers by capping the government's liability.
Public Impact
Ensures efficient operations within Defense Commissary Agency facilities. Supports military families by maintaining stocked shelves and clean environments. Provides essential services that contribute to the morale and well-being of service members.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price creep if scope expands beyond initial contract.
- Reliance on a single contractor for critical operational support.
- Ensuring consistent service quality across all commissary locations.
Positive Signals
- Firm-fixed-price contract provides cost predictability.
- Full and open competition promotes competitive pricing.
- Long-term contract ensures service continuity.
Sector Analysis
This contract falls under 'All Other Support Services' within the broader service sector. Spending benchmarks for custodial and logistics support services vary widely based on location and scope, but $10M over five years for a large agency like the Defense Commissary Agency suggests a substantial operational requirement.
Small Business Impact
The contract was awarded to Trusted Hand Service, Inc. and the data indicates the small business status was 'false' (ss: false, sb: false). Therefore, this contract did not appear to directly benefit small businesses through set-asides or subcontracting opportunities.
Oversight & Accountability
The firm-fixed-price contract type and the use of full and open competition suggest mechanisms for oversight and accountability. However, ongoing performance monitoring and quality assurance are crucial to ensure taxpayer funds are used effectively.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- Defense Commissary Agency Programs
Risk Flags
- Potential for service degradation if contractor faces financial or operational difficulties.
- Risk of scope creep leading to cost overruns.
- Dependence on contractor performance for essential commissary functions.
- Ensuring fair labor practices by the contractor.
Tags
all-other-support-services, department-of-defense, md, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.0 million to TRUSTED HAND SERVICE, INC.. SHELF STOCKING, RECEIVING/STORATE/HOLDING AREA AND CUSTODIAL OPERATIONS
Who is the contractor on this award?
The obligated recipient is TRUSTED HAND SERVICE, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Commissary Agency).
What is the total obligated amount?
The obligated amount is $10.0 million.
What is the period of performance?
Start: 2007-03-29. End: 2012-04-30.
What is the specific definition of 'All Other Support Services' in the context of this contract, and how does it compare to industry standards?
In this context, 'All Other Support Services' encompasses a range of non-specific support functions, including shelf stocking, receiving, storage, holding area management, and custodial operations for the Defense Commissary Agency. This broad categorization allows for flexibility but can make direct industry benchmarking challenging. Standard industry definitions often segment these services more granularly, such as dedicated logistics support, facilities maintenance, or specialized cleaning services.
How was the 'exclusion of sources' justified in the full and open competition process, and what impact did it have on the final price?
The justification for excluding specific sources in a full and open competition typically relates to ensuring fair access while meeting unique agency needs or addressing past performance issues. The impact on price is intended to be positive, as it still allows multiple bidders to compete, driving down costs. However, if the exclusion significantly limits the pool of qualified bidders, it could potentially reduce competitive pressure and lead to a higher price than a truly unrestricted competition.
What performance metrics are in place to ensure the quality and efficiency of shelf stocking and custodial operations, and how are they measured?
Performance metrics for such contracts often include on-time stocking rates, inventory accuracy, cleanliness standards (e.g., frequency of cleaning, absence of debris), and response times for custodial issues. Measurement typically involves government inspections, customer feedback surveys, and contractor self-reporting against established Key Performance Indicators (KPIs) outlined in the contract's Performance Work Statement (PWS).
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support 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
Solicitation ID: HDEC0806R0005
Offers Received: 15
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1010 N DAVIS ST STE 201, JACKSONVILLE, FL, 90
Business Categories: Asian Pacific American Owned Business, Category Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $10,239,345
Exercised Options: $10,239,345
Current Obligation: $10,023,158
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-03-29
Current End Date: 2012-04-30
Potential End Date: 2012-04-30 00:00:00
Last Modified: 2014-06-27
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