HHS Awards $23.4M for Janitorial Services to CNI Construction, LLC, with No Competition

Contract Overview

Contract Amount: $23,424,740 ($23.4M)

Contractor: CNI Construction, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2005-07-01

End Date: 2011-03-01

Contract Duration: 2,069 days

Daily Burn Rate: $11.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 000HCH74-2005-26223 - OCS-2005-034

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341, UNITED STATES OF AMERICA

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.4 million to CNI CONSTRUCTION, LLC for work described as: 000HCH74-2005-26223 - OCS-2005-034 Key points: 1. Significant contract value of $23.4 million over six years. 2. Lack of competition raises concerns about price discovery and value for money. 3. Sole-source award for janitorial services may indicate limited market options or specific needs. 4. Contract duration of over six years suggests a long-term requirement.

Value Assessment

Rating: questionable

The contract value of $23.4 million for janitorial services over six years appears high without a competitive bidding process. Benchmarking against similar government contracts for janitorial services in the same region would be necessary to assess if this price is reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, meaning it was not open to competition. This method limits price discovery and may result in a higher cost to taxpayers compared to a fully competitive process.

Taxpayer Impact: The lack of competition for a contract of this magnitude could lead to inflated costs, impacting taxpayer funds negatively.

Public Impact

Taxpayers may be overpaying for janitorial services due to the absence of competitive bidding. Limited transparency in the procurement process raises questions about fairness and efficiency. The long-term nature of the contract could lock the government into a potentially suboptimal pricing structure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High contract value
Long contract duration
Lack of competition

Positive Signals

Contract awarded to a specific firm, potentially meeting unique needs.
Fixed price contract provides cost certainty.

Sector Analysis

Janitorial services fall under the facilities support sector. Government spending on facilities maintenance and support services is substantial, with benchmarks varying based on service scope, location, and contract type. This contract's value is significant for this service category.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or if the nature of the requirement precluded their participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure proper justification and that all avenues for competition were explored. Oversight should focus on the justification for the sole-source award and ongoing performance monitoring.

Related Government Programs

Janitorial Services
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Lack of competition
Potential for overpayment
Limited transparency
Long-term commitment without competitive validation

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.4 million to CNI CONSTRUCTION, LLC. 000HCH74-2005-26223 - OCS-2005-034

Who is the contractor on this award?

The obligated recipient is CNI CONSTRUCTION, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $23.4 million.

What is the period of performance?

Start: 2005-07-01. End: 2011-03-01.

What was the specific justification for awarding this janitorial services contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of qualified sources. Without detailed documentation, it's difficult to ascertain the precise reason. However, agencies are generally required to explore competitive options before resorting to sole-source procurement to ensure the best value for taxpayer dollars.

How does the per-unit cost or overall pricing of this $23.4 million contract compare to similar janitorial service contracts awarded competitively by the government?

A direct comparison is challenging without specific service details and regional cost data. However, contracts awarded through full and open competition often yield lower prices due to market forces. The absence of competition here suggests a potential for higher costs, making a detailed cost-benefit analysis crucial.

What mechanisms are in place to ensure the effectiveness and quality of janitorial services provided by CNI Construction, LLC under this long-term, sole-source contract?

Effective oversight mechanisms would include regular performance reviews, clear performance standards, and mechanisms for addressing deficiencies. Given the sole-source nature, the contracting agency must be particularly diligent in monitoring service quality and contractor performance to ensure the government receives the value it expects.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Janitorial Services

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2005N02214

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2020 ARLINGTON SUITE 4 A, ADA, OK, 74820

Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,043,899,704

Exercised Options: $1,782,320,679

Current Obligation: $23,424,740

Timeline