DoD's $23M custodial contract with Tri-Ark Industries shows consistent spending over 5 years

Contract Overview

Contract Amount: $23,092,232 ($23.1M)

Contractor: Tri-Ark Industries, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-04-23

End Date: 2013-10-31

Contract Duration: 2,017 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PENTAGON CUSTODIAL - OPTION YEAR FOUR

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $23.1 million to TRI-ARK INDUSTRIES, INC. for work described as: PENTAGON CUSTODIAL - OPTION YEAR FOUR Key points: 1. The contract value has remained stable, suggesting predictable service needs and pricing. 2. Competition was full and open after exclusion of sources, indicating a deliberate procurement strategy. 3. The firm-fixed-price structure provides cost certainty for the government. 4. This contract supports essential facility maintenance at the Pentagon. 5. The duration of the contract suggests a long-term need for these services. 6. The number of bids received (6) indicates a healthy level of interest from potential providers.

Value Assessment

Rating: good

The contract's value of approximately $23 million over five years for custodial services at the Pentagon appears reasonable given the scale and criticality of the facility. Benchmarking against similar large-scale government custodial contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the absence of detailed performance metrics makes a definitive value assessment challenging.

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,' which implies that while the competition was initially broad, certain sources were excluded for specific reasons. Six bids were received, suggesting a competitive environment that likely contributed to price discovery. The exclusion of sources warrants further investigation to understand its impact on the final price and overall competition.

Taxpayer Impact: The competitive bidding process, even with exclusions, likely ensured taxpayers received a fair price for the services rendered. The exclusion of sources, however, raises questions about whether the most cost-effective solution was ultimately secured.

Public Impact

The primary beneficiaries are the personnel working at the Pentagon, who receive a clean and functional working environment. Essential janitorial and custodial services are delivered, maintaining hygiene and operational readiness. The geographic impact is concentrated at the Pentagon in Arlington, Virginia. The contract supports jobs within the custodial services industry, though specific workforce numbers are not detailed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause requires scrutiny to ensure it did not unduly limit competition or inflate costs.
Lack of detailed performance metrics makes it difficult to assess the quality of services delivered beyond basic compliance.
The long contract duration could lead to complacency if not actively managed and reviewed.

Positive Signals

The firm-fixed-price contract provides budget certainty for the Department of Defense.
Receiving six bids indicates a robust interest in this contract, suggesting a competitive market.
The contract has been consistently awarded, implying a stable and reliable service provider.

Sector Analysis

Custodial services represent a significant segment within the broader facilities management industry. Government contracts for these services are substantial due to the extensive real estate holdings of federal agencies. This contract fits within the government's need to maintain its operational infrastructure, with spending benchmarks varying widely based on facility size, location, and service complexity.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'small business' flag is false. There is no explicit mention of small business set-asides or subcontracting plans. This suggests that larger, established firms were likely the primary bidders and awardees, potentially limiting opportunities for smaller businesses in this specific procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Washington Headquarters Services (WHS) contracting officers and potentially the Department of Defense Inspector General. Accountability measures are inherent in the firm-fixed-price structure, but detailed performance monitoring and reporting mechanisms are not explicitly provided in the summary data. Transparency is facilitated by the contract's public availability, but deeper insights into performance and oversight require access to contract administration files.

Related Government Programs

Pentagon Maintenance Contracts
Federal Janitorial Services
Department of Defense Facilities Management
Washington Headquarters Services Contracts

Risk Flags

Potential for limited competition due to source exclusion.
Lack of detailed performance metrics in summary data.
Long contract duration may reduce flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.1 million to TRI-ARK INDUSTRIES, INC.. PENTAGON CUSTODIAL - OPTION YEAR FOUR

Who is the contractor on this award?

The obligated recipient is TRI-ARK INDUSTRIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $23.1 million.

What is the period of performance?

Start: 2008-04-23. End: 2013-10-31.

What is the historical spending trend for this specific custodial contract over its entire duration?

The provided data indicates the contract has a duration extending from April 23, 2008, to October 31, 2013, with an award value of $23,092,232.45. This suggests an average annual spending of approximately $4.6 million. The 'dur' field showing '2017' might indicate a later modification or an extended period of performance beyond the initial end date, which would require further investigation. Without year-over-year spending data, it's difficult to ascertain precise trends, but the total value suggests consistent service provision over the contract's life.

How does the per-square-foot cost of these custodial services compare to industry benchmarks for similar government facilities?

To accurately benchmark the per-square-foot cost, we would need the total square footage of the Pentagon facilities covered by this contract and the total contract value. Assuming the $23 million covers the entire period and all facilities, and knowing the Pentagon is approximately 6.5 million square feet, the average annual cost per square foot would be roughly $0.71 ($4.6M / 6.5M sq ft). Industry benchmarks for large federal buildings can range from $0.50 to $1.50 per square foot, depending on service intensity, location, and specific requirements. This contract appears to fall within the lower to mid-range of typical benchmarks, suggesting potentially good value, but a detailed service scope comparison is necessary for a definitive assessment.

What specific criteria were used to exclude certain sources during the 'Full and Open Competition After Exclusion of Sources' process?

The specific criteria for excluding sources in a 'Full and Open Competition After Exclusion of Sources' award are typically detailed in the Justification and Approval (J&A) document associated with the contract. Common reasons for exclusion can include past performance issues, failure to meet technical requirements in a previous solicitation, organizational conflicts of interest, or specific national security concerns. Without access to the J&A for this Tri-Ark Industries contract, the exact reasons remain unknown. However, the exclusion implies that the agency determined that competition among the remaining sources would still be adequate and serve the government's best interests.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this custodial contract?

The provided summary data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this custodial contract. Typically, such contracts would include metrics related to cleaning frequency, response times for spills or issues, waste management, and quality inspections. The firm-fixed-price nature suggests a focus on delivering a defined scope of work. However, the effectiveness of the contract in ensuring a high standard of cleanliness and service relies heavily on the specific, often non-public, performance standards and monitoring mechanisms established between the Department of Defense and Tri-Ark Industries.

Has Tri-Ark Industries had any past performance issues or contract disputes with the federal government on similar contracts?

Assessing Tri-Ark Industries' past performance requires a review of contract databases and potentially agency performance records beyond this single contract summary. The fact that they were awarded this significant, multi-year contract, and potentially others (indicated by the 'br': 11449, possibly a CAGE code or DUNS number reference), suggests a generally acceptable performance history. However, 'acceptable' does not preclude minor issues or disputes. A comprehensive review would involve checking the Contractor Performance Assessment Reporting System (CPARS) and any publicly available records of disputes or terminations involving Tri-Ark Industries to get a complete picture of their track record.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ003407R1058

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1230 OLD YORK RD # 201, WARMINSTER, PA, 18974

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Subchapter S Corporation, Woman Owned Business

Financial Breakdown

Contract Ceiling: $23,092,233

Exercised Options: $23,092,232

Current Obligation: $23,092,232

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline