Missile Defense Agency awards $5.6M janitorial contract to Huntsville Rehabilitation Foundation, Inc

Contract Overview

Contract Amount: $5,607,766 ($5.6M)

Contractor: Huntsville Rehabilitation Foundation, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-07-01

End Date: 2026-06-30

Contract Duration: 364 days

Daily Burn Rate: $15.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE CONTRACTOR SHALL PROVIDE ALL LABOR, MANAGEMENT, SUPERVISION, EQUIPMENT, TOOLS AND SUPPLIES REQUIRED TO OPERATE MDA CUSTODIAL SERVICES IN MULTIPLE LOCATIONS TO MAINTAIN FACILITIES WHICH PRESENT A CLEAN, NEAT, AND PROFESSIONAL APPEARANCE.

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $5.6 million to HUNTSVILLE REHABILITATION FOUNDATION, INC. for work described as: THE CONTRACTOR SHALL PROVIDE ALL LABOR, MANAGEMENT, SUPERVISION, EQUIPMENT, TOOLS AND SUPPLIES REQUIRED TO OPERATE MDA CUSTODIAL SERVICES IN MULTIPLE LOCATIONS TO MAINTAIN FACILITIES WHICH PRESENT A CLEAN, NEAT, AND PROFESSIONAL APPEARANCE. Key points: 1. Contract focuses on maintaining facilities across multiple locations for a clean appearance. 2. The contract is a firm-fixed-price definitive contract, indicating predictable costs. 3. Awarded to Huntsville Rehabilitation Foundation, Inc., an organization with a mission to employ individuals with disabilities. 4. The contract duration is one year, with a potential for renewal. 5. This contract is not competed, raising questions about price discovery and value. 6. The contract value is approximately $5.6 million over its one-year term.

Value Assessment

Rating: fair

The contract value of $5.6 million for one year of janitorial services across multiple locations appears to be within a reasonable range for large-scale facility maintenance. However, without specific details on the square footage, number of locations, and service intensity, a precise benchmark is difficult. The firm-fixed-price structure helps control costs, but the lack of competition prevents a direct comparison to market-driven pricing. The historical spending on similar services by the Missile Defense Agency or other Department of Defense entities would provide a more robust comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, meaning it was awarded directly to Huntsville Rehabilitation Foundation, Inc. without soliciting bids from other potential vendors. While this can sometimes be justified for specialized services or specific socio-economic goals, it limits the opportunity for price discovery through market competition. The absence of multiple bidders means the agency did not benefit from a competitive bidding process that could potentially drive down costs or encourage innovation.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the most cost-effective service available, as there was no pressure from competing offers to optimize pricing.

Public Impact

The primary beneficiaries are the personnel working within the Missile Defense Agency facilities, who will experience improved cleanliness and a more professional environment. The contract ensures the maintenance of facilities, contributing to the operational readiness and morale of the agency. The services delivered include comprehensive custodial duties to maintain a clean, neat, and professional appearance of facilities. The geographic impact is concentrated at the multiple MDA locations where the services will be performed. This contract supports the employment mission of Huntsville Rehabilitation Foundation, Inc., which aims to provide employment opportunities for individuals with disabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits potential cost savings for taxpayers.
Absence of competitive bidding may reduce incentives for contractor efficiency and innovation.
Limited transparency into the justification for a sole-source award.

Positive Signals

Supports the mission of Huntsville Rehabilitation Foundation, Inc. to employ individuals with disabilities.
Firm-fixed-price contract provides cost certainty for the agency.
Ensures essential facility maintenance for a critical defense agency.

Sector Analysis

The janitorial services sector is a mature and competitive market, with numerous providers ranging from small local businesses to large national corporations. Federal agencies often contract for these services to maintain a wide array of facilities. Benchmarking janitorial services can be complex due to variations in scope, frequency, and specific requirements. However, the overall federal spending on facilities maintenance and support services is substantial, with contracts like this representing a segment of that larger expenditure.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The awardee, Huntsville Rehabilitation Foundation, Inc., is a non-profit organization focused on employing individuals with disabilities, which aligns with certain socio-economic contracting goals, but not directly with small business set-aside provisions. The impact on the broader small business ecosystem for janitorial services is likely minimal given the sole-source nature of this award.

Oversight & Accountability

Oversight of this contract would typically fall under the purview of the Missile Defense Agency's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified services. Transparency regarding the justification for the sole-source award and performance metrics would be key areas for oversight. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule contracts for cleaning and custodial services
Department of Defense facilities maintenance contracts
Janitorial services contracts across federal agencies

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for higher costs due to lack of competition.
Limited transparency on justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.6 million to HUNTSVILLE REHABILITATION FOUNDATION, INC.. THE CONTRACTOR SHALL PROVIDE ALL LABOR, MANAGEMENT, SUPERVISION, EQUIPMENT, TOOLS AND SUPPLIES REQUIRED TO OPERATE MDA CUSTODIAL SERVICES IN MULTIPLE LOCATIONS TO MAINTAIN FACILITIES WHICH PRESENT A CLEAN, NEAT, AND PROFESSIONAL APPEARANCE.

Who is the contractor on this award?

The obligated recipient is HUNTSVILLE REHABILITATION FOUNDATION, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $5.6 million.

What is the period of performance?

Start: 2025-07-01. End: 2026-06-30.

What is the specific justification for awarding this janitorial services contract on a sole-source basis to Huntsville Rehabilitation Foundation, Inc.?

The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source award. While the specific justification is not detailed, federal agencies can award sole-source contracts under certain circumstances, such as when only one responsible source can provide the required services, or for socio-economic reasons like supporting organizations that employ individuals with disabilities. Huntsville Rehabilitation Foundation, Inc. is known for its mission to employ individuals with disabilities. Without further documentation from the agency, the precise rationale remains unconfirmed, but it likely relates to either a unique capability or a specific socio-economic objective that the agency sought to fulfill through this award.

How does the annual cost of this contract compare to similar janitorial services contracts awarded by the Department of Defense or other federal agencies?

Direct comparison is challenging without detailed scope of work, square footage, and service levels for other contracts. However, the annual value of $5.6 million for janitorial services suggests a significant scope, likely encompassing multiple large facilities or a high level of service intensity. Federal contracts for custodial services can range widely, from tens of thousands for smaller installations to millions for large bases or complex facilities. Given the Missile Defense Agency's critical mission and potentially specialized facilities, this cost may be justified. A comprehensive analysis would require benchmarking against contracts with similar facility sizes, locations, and service requirements, ideally within the DoD.

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

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. Typically, janitorial service contracts include detailed requirements regarding cleanliness standards, response times for issues, frequency of specific tasks (e.g., floor waxing, window cleaning), and inspection protocols. Performance is often evaluated through regular inspections, customer feedback, and adherence to schedules. The firm-fixed-price nature implies that the contractor is responsible for meeting these undefined standards to receive full payment, but the absence of explicit KPIs makes objective performance assessment difficult from the available information.

What is the track record of Huntsville Rehabilitation Foundation, Inc. in performing similar large-scale federal custodial contracts?

Huntsville Rehabilitation Foundation, Inc. (HRF) has a history of performing custodial and maintenance services for federal agencies, often leveraging its mission to employ individuals with disabilities. While specific details on the scale and duration of past contracts are not provided in this data, HRF has been a recipient of federal contracts for similar services. Their established presence and focus suggest experience in managing such operations. A deeper dive into their contract history, performance reviews, and client feedback would provide a more comprehensive understanding of their track record for large-scale federal custodial work.

What is the potential risk associated with a sole-source award for essential facility maintenance services?

The primary risk associated with a sole-source award for essential facility maintenance is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the contractor may not be incentivized to offer the lowest possible price. Additionally, there's a risk of complacency or reduced service quality over time if performance monitoring is not rigorous, as the agency has limited alternative options. For essential services like facility maintenance, a lack of competition can also pose a risk if the sole provider experiences operational difficulties or decides to exit the market, potentially disrupting critical functions.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2939 JOHNSON RD SW, HUNTSVILLE, AL, 35805

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $51,862,714

Exercised Options: $10,313,446

Current Obligation: $5,607,766

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline