DoD awards $7M+ healthcare cleaning contract to HHI Services, Inc. for Joint Base Lewis-McChord

Contract Overview

Contract Amount: $7,065,834 ($7.1M)

Contractor: HHI Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $19.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HEALTHCARE ENVIRONMENTAL CLEANING (HEC) SERVICES FOR JOINT BASE LEWIS-MCCHORD/MADIGAN ARMY MEDICAL CENTER AND OUTLYING CLINICS

Place of Performance

Location: JOINT BASE LEWIS MCCHORD, PIERCE County, WASHINGTON, 98431

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $7.1 million to HHI SERVICES, INC. for work described as: HEALTHCARE ENVIRONMENTAL CLEANING (HEC) SERVICES FOR JOINT BASE LEWIS-MCCHORD/MADIGAN ARMY MEDICAL CENTER AND OUTLYING CLINICS Key points: 1. Contract focuses on essential healthcare environmental cleaning services, critical for patient safety and infection control. 2. The contract is a delivery order under an unspecified basic ordering agreement, indicating potential for future task orders. 3. Pricing appears to be firm-fixed-price, which transfers some cost risk to the contractor. 4. The contract duration is approximately one year, suggesting a need for ongoing services. 5. Geographic focus is Washington state, specifically Joint Base Lewis-McChord and associated medical facilities.

Value Assessment

Rating: fair

The contract value of $7,065,834.36 for a one-year period for healthcare environmental cleaning services at a major military medical installation appears within a reasonable range for such specialized services. Benchmarking against similar contracts for large medical facilities is difficult without more specific details on the scope of work and service levels. However, the firm-fixed-price structure suggests a degree of cost certainty for the government. Further analysis would require comparison with other DoD or VA healthcare cleaning contracts of similar scale and complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The data indicates it is 'NOT AVAILABLE FOR COMPETITION'. This approach is typically used when only one vendor can provide the required services, often due to unique capabilities, existing infrastructure, or specific security requirements. The lack of competition means the government did not benefit from a bidding process that could drive down prices through market forces.

Taxpayer Impact: For taxpayers, a sole-source award means there is a higher risk of paying a premium compared to a competitively bid contract. Without competing offers, the government has less leverage to negotiate the lowest possible price.

Public Impact

Patients and staff at Joint Base Lewis-McChord and Madigan Army Medical Center benefit from a clean and safe healthcare environment. Essential janitorial and environmental cleaning services are delivered to maintain hygiene standards in medical facilities. The geographic impact is concentrated in Washington state, supporting the operational readiness of military healthcare services in the region. The contract supports employment for cleaning staff, likely through HHI Services, Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
Lack of competition may reduce incentives for the contractor to innovate or improve service efficiency.
Contract duration is relatively short (one year), which might lead to frequent re-procurement efforts and associated administrative costs.

Positive Signals

Firm-fixed-price contract structure shifts some cost risk to the contractor.
Focus on healthcare environmental cleaning is critical for maintaining public health and safety within military medical facilities.
Contract ensures continuity of essential services for a major military medical installation.

Sector Analysis

The healthcare environmental cleaning sector is a vital part of the broader facilities management and support services industry. This contract falls under the janitorial services NAICS code 561720. The market for healthcare cleaning is specialized due to stringent hygiene and infection control requirements, often demanding specific certifications and protocols. Spending in this area is driven by the operational needs of hospitals, clinics, and medical centers, including those within the federal government. Comparable spending benchmarks would typically be found within the Defense Health Agency's overall facilities maintenance and healthcare support budgets.

Small Business Impact

The provided data indicates that small business participation is not a stated requirement for this contract (ss: false, sb: false). There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the primary contractor, HHI Services, Inc., is not obligated to subcontract a specific portion of the work to small businesses. Consequently, the direct impact on the small business ecosystem for this particular award appears minimal, unless HHI Services voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Health Agency (DHA) and the Department of Defense. As a delivery order, it is likely managed under an existing contract vehicle with established oversight mechanisms. Accountability measures would include performance metrics, quality assurance surveillance plans (QASPs), and adherence to the firm-fixed-price terms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Health Agency Contracts
Joint Base Lewis-McChord Operations
Medical Facility Maintenance Services
Federal Janitorial Services Contracts
Healthcare Support Services

Risk Flags

Sole-source award limits price competition.
Lack of detailed performance metrics in provided data.
Potential for cost overruns if scope is not tightly managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.1 million to HHI SERVICES, INC.. HEALTHCARE ENVIRONMENTAL CLEANING (HEC) SERVICES FOR JOINT BASE LEWIS-MCCHORD/MADIGAN ARMY MEDICAL CENTER AND OUTLYING CLINICS

Who is the contractor on this award?

The obligated recipient is HHI 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 $7.1 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

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

Information regarding HHI Services, Inc.'s specific track record on similar federal contracts is not detailed in the provided data snippet. To assess their performance history, one would typically consult contract databases (like FPDS) to review past awards, performance evaluations (e.g., CPARS reports), and any history of contract disputes or terminations. A review of their past performance on healthcare cleaning contracts, particularly for large medical facilities or within the Department of Defense, would be crucial to understanding their capability, reliability, and adherence to quality standards. Without this specific data, it's difficult to definitively assess their suitability beyond the current award.

How does the awarded price compare to market rates for similar healthcare cleaning services in the Washington state region?

Directly comparing the awarded price of $7,065,834.36 for a one-year period to specific market rates is challenging without a detailed breakdown of the services provided (e.g., square footage cleaned, frequency, specialized disinfection protocols) and the specific geographic sub-market within Washington. Healthcare environmental cleaning is a specialized service with pricing influenced by labor costs, regulatory compliance, and the unique demands of medical environments. To benchmark effectively, one would need to gather quotes from multiple commercial cleaning companies specializing in healthcare for comparable facilities in the same region, or analyze historical data from similar federal contracts awarded competitively.

What are the primary risks associated with this sole-source contract award, and how are they being mitigated?

The primary risk associated with this sole-source award is the potential for inflated pricing due to the lack of competition, which could lead to reduced value for taxpayer money. Another risk is the contractor's potential complacency in service quality or efficiency, as competitive pressures are absent. Mitigation strategies, though not explicitly detailed here, typically involve robust government oversight, clearly defined performance standards and metrics within the contract, and regular performance evaluations. The firm-fixed-price structure also mitigates some financial risk by capping the government's liability. However, the government's ability to negotiate favorable terms is inherently limited in a sole-source scenario.

What is the expected effectiveness of these cleaning services in preventing healthcare-associated infections (HAIs) at Madigan Army Medical Center?

The effectiveness of these cleaning services in preventing HAIs is contingent upon several factors beyond the contract value itself. Key determinants include the specific protocols and standards HHI Services, Inc. adheres to, the frequency and thoroughness of cleaning, the use of appropriate disinfectants, and the training of the cleaning staff. The contract likely specifies certain performance standards and infection control measures. However, measuring the direct impact on HAI rates requires ongoing surveillance and analysis by the medical facility's infection control department, correlating cleaning quality with infection data. The contract's success relies heavily on the contractor's execution and the facility's own infection prevention programs.

What has been the historical spending trend for healthcare environmental cleaning services at Joint Base Lewis-McChord or similar DoD facilities?

Historical spending data for healthcare environmental cleaning at Joint Base Lewis-McChord or similar Department of Defense facilities is not provided in the current data. To analyze this, one would need to access historical contract databases (e.g., FPDS) and filter for relevant NAICS codes (like 561720) and agencies (DoD, Defense Health Agency) over several fiscal years. This would reveal trends in contract values, number of awards, and potentially identify any shifts towards sole-source versus competitive procurements. Understanding past spending patterns is crucial for assessing the reasonableness of the current award and identifying potential budget fluctuations or changes in procurement strategies.

Industry Classification

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

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5410 W MILITARY DR, SAN ANTONIO, TX, 78242

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: $118,295,217

Exercised Options: $21,197,503

Current Obligation: $7,065,834

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT940824D0017

IDV Type: IDC

Timeline