DoD's $18.8M Janitorial Services Contract Awarded to TRI-ARK INDUSTRIES, INC. Under Full and Open Competition

Contract Overview

Contract Amount: $18,800,865 ($18.8M)

Contractor: Tri-Ark Industries, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-10-01

End Date: 2008-04-30

Contract Duration: 2,038 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to TRI-ARK INDUSTRIES, INC. for work described as: Key points: 1. Value for money appears reasonable given the contract duration and fixed-price nature. 2. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 3. Risk indicators are moderate, with a long duration potentially increasing exposure to market fluctuations. 4. Performance context is for janitorial services, a common and essential government function. 5. Sector positioning is within government administrative support services. 6. The contract's value is significant but within the expected range for multi-year service contracts.

Value Assessment

Rating: good

The contract's total value of $18.8 million over approximately 5.5 years suggests an average annual value of around $3.4 million. This is a substantial amount for janitorial services, but the firm fixed-price structure provides cost certainty. Benchmarking against similar large-scale government janitorial contracts would be necessary for a precise value-for-money assessment, but the competitive award process implies a degree of market validation.

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,' indicating that the solicitation was broadly advertised, and multiple bids were likely considered. The presence of 6 bids suggests a healthy level of competition, which typically drives down prices and encourages better service offerings. This method is designed to ensure the government receives the best value through market forces.

Taxpayer Impact: The robust competition in this procurement process is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition award. It ensures that taxpayer funds are used efficiently by leveraging market dynamics.

Public Impact

The primary beneficiaries are the Department of Defense personnel and facilities that receive janitorial services. Essential services such as cleaning, sanitation, and maintenance of government buildings are delivered. The geographic impact is concentrated within the areas served by Washington Headquarters Services. Workforce implications include the creation or maintenance of jobs for cleaning staff and supervisors, potentially supporting local economies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 5 years) may lead to price escalation risks if not managed.
Reliance on a single contractor for an extended period could reduce flexibility in adopting new cleaning technologies or standards.
The 'after exclusion of sources' clause warrants review to ensure no viable sources were unduly excluded.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Firm Fixed Price contract type provides cost predictability for the government.
Contractor has a long-standing relationship with the agency, suggesting potential for stable performance.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically focusing on facilities support and janitorial services. The market for government janitorial services is substantial, with numerous providers ranging from small businesses to large corporations. Comparable spending benchmarks for similar-sized facilities or agencies would place this contract within a significant tier of service procurement. The government's consistent need for these services makes it a stable market segment.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While TRI-ARK INDUSTRIES, INC. is the prime contractor, there is no explicit information on subcontracting plans for small businesses within this award. The absence of a small business set-aside means opportunities for small businesses to directly compete for this prime contract were limited. Future analysis could explore subcontracting performance if data becomes available.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program managers within Washington Headquarters Services. Accountability measures are inherent in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Federal Building Maintenance Contracts
Government Cleaning Services
Washington Headquarters Services Contracts
Department of Defense Facilities Management
General Services Administration (GSA) Schedules for Cleaning

Risk Flags

Long-term contract duration
Potential for price escalation in fixed-price contracts over extended periods
Need for clear performance standards and monitoring
Absence of small business set-aside noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to TRI-ARK INDUSTRIES, INC.. See the official description on USAspending.

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 $18.8 million.

What is the period of performance?

Start: 2002-10-01. End: 2008-04-30.

What is the historical spending trend for janitorial services by the Department of Defense over the last five years?

Analyzing historical spending trends for janitorial services by the Department of Defense (DoD) reveals a consistent and significant investment in maintaining its vast infrastructure. While specific figures fluctuate annually due to budget allocations, contract renewals, and the scope of services required, the overall expenditure remains substantial. Factors influencing these trends include the number of facilities managed, the size and complexity of those facilities, and the prevailing market rates for cleaning and maintenance services. The DoD often utilizes a mix of contract types, including firm fixed-price and time-and-materials, depending on the service requirements and risk assessment. Data from sources like the Federal Procurement Data System (FPDS) indicates that billions are spent annually across various defense agencies on facility support services, with janitorial services being a core component. This consistent spending underscores the critical nature of maintaining a clean and sanitary environment for military personnel and operations.

How does the per-square-foot cost of janitorial services in this contract compare to industry benchmarks for similar government facilities?

Determining the precise per-square-foot cost for janitorial services in this specific $18.8 million contract requires detailed service level agreements and facility square footage, which are not provided in the summary data. However, we can infer potential value by considering the contract's duration and total value. The contract spans approximately 2038 days (about 5.5 years), with a total award of $18.8 million. This averages to roughly $3.4 million per year. Industry benchmarks for government janitorial services vary widely based on location, security requirements, and the specific services included (e.g., daily cleaning, deep cleaning, waste management, specialized disinfection). Generally, government contracts aim for competitive pricing. If this contract covers a large complex of buildings, the per-square-foot cost might fall within a reasonable range, potentially between $1.50 to $5.00 per square foot annually, depending on the intensity of services. Without more granular data on the scope of work and the total area serviced, a definitive comparison is challenging, but the competitive award suggests an effort to achieve market-aligned pricing.

What is TRI-ARK INDUSTRIES, INC.'s track record with government contracts, particularly in janitorial or facility maintenance services?

TRI-ARK INDUSTRIES, INC. has a significant track record with government contracts, as evidenced by this substantial award from the Department of Defense. The data indicates this is a 'DEFINITIVE CONTRACT' with a long duration (2038 days, approx. 5.5 years), suggesting a history of performance and potentially successful prior engagements. While the provided summary doesn't detail all past contracts, the award of a large, long-term service contract like this typically implies that the contractor has met performance expectations on previous agreements. Government agencies conduct pre-award reviews and assess past performance when making significant contract decisions. A firm receiving a contract of this magnitude, especially under full and open competition, generally possesses a documented history of reliability, quality service delivery, and compliance with federal acquisition regulations. Further investigation into FPDS or other contract databases would reveal the full scope and success rate of TRI-ARK's prior government work.

What are the potential risks associated with a firm fixed-price contract of this duration for janitorial services?

Firm fixed-price (FFP) contracts offer cost certainty to the government, but a long duration, such as the 2038 days (approx. 5.5 years) for this janitorial services contract, introduces specific risks. Primarily, there's the risk of inflation impacting the contractor's costs for labor, supplies, and equipment over time. If the fixed price does not adequately account for potential cost increases, the contractor might struggle to maintain profitability, potentially leading to reduced service quality or requests for contract modifications. Conversely, if the initial price was set too high to buffer against unforeseen costs, the government might end up overpaying. Another risk is technological obsolescence; newer, more efficient cleaning methods or equipment might emerge during the contract period, but the FFP structure may disincentivize the contractor from adopting them unless explicitly required and funded. The long term also means less flexibility for the government to adapt to changing needs or standards without formal contract changes.

How does the number of bidders (6) in this procurement influence the final contract price and service quality?

A procurement process involving six bidders, as indicated for this Department of Defense janitorial services contract, generally signifies a healthy level of competition. When multiple companies vie for a contract, they are incentivized to offer competitive pricing to win the award. This competitive pressure typically drives down the price the government pays compared to a situation with fewer bidders or a sole-source award. Furthermore, competition encourages bidders to differentiate themselves not only on price but also on the quality of services, proposed methodologies, and responsiveness to the government's requirements. A higher number of bidders increases the likelihood that the government will receive proposals that meet or exceed its needs at a favorable cost. The final price is a result of these competing offers, and the selection process usually involves evaluating both price and non-price factors to ensure the best overall value is achieved.

Industry Classification

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

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › QUALITY CONTROL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 107 EAST MAIN STREET, NORRISTOWN, PA, 19401

Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations, Woman Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline