DoD's $41M healthcare environmental cleaning contract awarded to Professional Contract Services, Inc. raises value and competition questions

Contract Overview

Contract Amount: $40,994,099 ($41.0M)

Contractor: Professional Contract Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-10-01

End Date: 2025-03-31

Contract Duration: 1,277 days

Daily Burn Rate: $32.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FORT BELVOIR COMMUNITY HOSPITAL HEALTHCARE ENVIRONMENTAL CLEANING SERVICES

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $41.0 million to PROFESSIONAL CONTRACT SERVICES, INC. for work described as: FORT BELVOIR COMMUNITY HOSPITAL HEALTHCARE ENVIRONMENTAL CLEANING SERVICES Key points: 1. The contract's value appears high relative to the scope of janitorial services. 2. Limited competition raises concerns about price discovery and potential overpayment. 3. The firm-fixed-price structure may shift some risk to the government. 4. Performance context is limited without specific metrics on cleaning quality or frequency. 5. This contract positions the Defense Health Agency within the broader healthcare support services sector. 6. The duration of the contract suggests a long-term need for these services.

Value Assessment

Rating: questionable

Benchmarking this contract's value is challenging without detailed service level agreements and performance data. However, a $41 million award for environmental cleaning services over approximately four years (1277 days) suggests a significant per-diem or per-facility cost. Comparing this to similar contracts for healthcare environmental cleaning, especially those with robust competition, would be necessary to definitively assess value for money. The lack of readily available comparable data makes a precise valuation difficult, but the scale warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating a sole-source procurement. This means that only one vendor, Professional Contract Services, Inc., was solicited. While sole-source awards can be justified under specific circumstances (e.g., urgency, unique capabilities), they inherently limit the opportunity for market competition. Without a competitive bidding process, it is difficult to ascertain if the government received the best possible pricing and terms.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from competitive pricing, potentially leading to higher costs than if multiple vendors had vied for the contract.

Public Impact

Beneficiaries include patients, staff, and visitors at Fort Belvoir Community Hospital, ensuring a sanitary environment. Services delivered encompass comprehensive environmental cleaning and janitorial support. Geographic impact is localized to Fort Belvoir Community Hospital in Virginia. Workforce implications include employment opportunities for cleaning staff managed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award limits transparency in the procurement process.
Firm-fixed-price contract could expose the government to risks if costs escalate unexpectedly.
Absence of detailed performance metrics makes assessing service quality difficult.

Positive Signals

Ensures essential healthcare environmental services are continuously provided.
Long-term contract provides stability for service delivery.
Firm-fixed-price contract can offer budget predictability if managed effectively.

Sector Analysis

The healthcare environmental cleaning services sector is a critical component of healthcare facility operations, ensuring infection control and patient safety. This contract falls within the broader facilities support services industry, which is substantial. The market includes numerous providers specializing in janitorial and specialized cleaning for healthcare settings. Benchmarking this contract's value against industry standards for similar facilities and service scopes is essential for evaluating its cost-effectiveness.

Small Business Impact

The data indicates that small business participation was not a primary consideration for this contract, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the contract was not structured to specifically benefit small businesses, and their role in fulfilling this requirement is likely minimal unless subcontracted by the prime vendor.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Health Agency's contracting and program management offices. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Health Agency Contracts
Fort Belvoir Community Hospital Operations
Environmental Services in Federal Facilities
Healthcare Support Services

Risk Flags

Sole-source award raises concerns about price competition.
Lack of detailed performance metrics hinders value assessment.
Contract value appears high for janitorial services without further context.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.0 million to PROFESSIONAL CONTRACT SERVICES, INC.. FORT BELVOIR COMMUNITY HOSPITAL HEALTHCARE ENVIRONMENTAL CLEANING SERVICES

Who is the contractor on this award?

The obligated recipient is PROFESSIONAL CONTRACT SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $41.0 million.

What is the period of performance?

Start: 2021-10-01. End: 2025-03-31.

What is the track record of Professional Contract Services, Inc. in performing similar healthcare environmental cleaning contracts for the federal government?

Assessing the track record of Professional Contract Services, Inc. (PCS) requires a review of their past performance on federal contracts, particularly those involving healthcare environmental cleaning. Information on past performance is often available through sources like the Federal Procurement Data System (FPDS) or agency-specific performance evaluation systems. Key indicators to examine would include contract awards, completion history, any documented performance issues, and customer satisfaction ratings. Without specific data on PCS's history with the Defense Health Agency or similar entities, it's difficult to definitively state their capabilities. However, the award of a significant contract like this suggests they have met certain baseline requirements, though a deeper dive into their performance history is warranted to ensure consistent quality and reliability.

How does the pricing of this contract compare to similar environmental cleaning contracts awarded by the Defense Health Agency or other federal agencies for comparable facilities?

Directly comparing the pricing of this $41 million contract to similar environmental cleaning contracts is challenging without access to detailed service level agreements, facility size, and specific cleaning frequencies. However, the 'NOT AVAILABLE FOR COMPETITION' status raises a red flag regarding potential price overruns. A competitive bidding process typically drives prices down as contractors vie for the award. If comparable contracts awarded through full and open competition exist, they would serve as a benchmark. For instance, if similar-sized military hospitals have had cleaning contracts awarded for significantly less, it would indicate this contract may be overpriced. Further analysis would require identifying comparable contracts and scrutinizing their scope and pricing structures to determine if this award represents good value for taxpayers.

What are the specific performance metrics and quality standards outlined in the contract, and how is compliance monitored?

The provided data does not detail the specific performance metrics or quality standards for this environmental cleaning contract. Typically, such contracts include a Statement of Work (SOW) and Performance Work Statement (PWS) that outline required services, frequencies, and quality expectations (e.g., cleanliness levels, response times for spills). Compliance is usually monitored through regular inspections, user feedback, and performance reports submitted by the contractor. The effectiveness of oversight depends on the rigor of these monitoring processes and the clarity of the defined metrics. Without this information, it's difficult to assess how effectively the contractor's performance is being managed and whether the required standards are being met to ensure a sanitary environment at Fort Belvoir Community Hospital.

What is the historical spending pattern for environmental cleaning services at Fort Belvoir Community Hospital or similar military treatment facilities?

Historical spending data for environmental cleaning services at Fort Belvoir Community Hospital or comparable military treatment facilities is not provided in the current data. To establish a historical context, one would need to examine past contracts for these services at this specific facility or at other Defense Health Agency (DHA) facilities of similar size and scope. Analyzing trends in spending over time can reveal whether costs have increased, decreased, or remained stable. It can also highlight any significant shifts in contract values or durations. Understanding this historical spending pattern is crucial for evaluating whether the current $41 million award is an anomaly, a reasonable escalation, or potentially indicative of overspending compared to previous periods or similar facilities.

What are the potential risks associated with a sole-source award for essential healthcare environmental cleaning services?

The primary risks associated with a sole-source award for essential healthcare environmental cleaning services include lack of competitive pricing, reduced incentive for innovation, and potential for complacency by the contractor. Without competition, the government may pay a premium for the services, as the contractor faces no pressure to offer the lowest possible price. Furthermore, a sole-source provider might have less incentive to innovate or improve service quality over time, knowing that the government has limited alternatives. This can also lead to a lack of transparency in the procurement process, making it harder to justify the expenditure to taxpayers. While sole-source awards can be necessary in specific situations, they necessitate robust oversight to mitigate these inherent risks and ensure value is still achieved.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HT001421R0011

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 718 W FM 1626, AUSTIN, TX, 78748

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

Financial Breakdown

Contract Ceiling: $40,994,099

Exercised Options: $40,994,099

Current Obligation: $40,994,099

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline