DoD's $170.6M Janitorial Services Contract Awarded to CHIMES District of Columbia Inc. in 2003

Contract Overview

Contract Amount: $17,060,107 ($17.1M)

Contractor: Chimes District of Columbia Incorporated

Awarding Agency: Department of Defense

Start Date: 2003-11-07

End Date: 2008-02-29

Contract Duration: 1,575 days

Daily Burn Rate: $10.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

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 $17.1 million to CHIMES DISTRICT OF COLUMBIA INCORPORATED for work described as: Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract was sole-sourced, raising questions about potential price overruns and lack of competitive pressure. 3. Duration of over 4 years suggests a long-term need for these services. 4. The contract was awarded to a single vendor, potentially limiting opportunities for smaller businesses. 5. Services were provided in the Washington D.C. area, a high-cost region for labor and services. 6. The contract was awarded under the 'not competed' category, suggesting specific circumstances for the sole-source award.

Value Assessment

Rating: questionable

Benchmarking the value of this janitorial services contract is challenging without specific performance metrics or comparable contract data from the same period. However, a sole-source award of this magnitude ($170.6 million over approximately 4 years) for janitorial services warrants scrutiny. The lack of competition means there was no direct price comparison to ensure the government received the best possible value. Without knowing the scope of services and the specific facilities covered, it's difficult to assess if the per-unit cost was competitive. The firm-fixed-price structure offers cost certainty but does not inherently guarantee value for money in a non-competitive scenario.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning it was not competed among multiple vendors. The 'not competed' designation implies that only one vendor, CHIMES District of Columbia Incorporated, was considered for this award. This approach bypasses the standard competitive bidding process, which typically involves soliciting proposals from multiple qualified companies. While sole-source awards can be justified under specific circumstances (e.g., urgent need, unique capabilities), they generally lead to less price discovery and potentially higher costs for the government compared to fully competed contracts.

Taxpayer Impact: The lack of competition means taxpayers may have paid a premium for these janitorial services, as there was no market pressure to drive down prices. This also limits opportunities for other businesses to compete for and win government contracts.

Public Impact

The primary beneficiaries of this contract are the facilities and personnel within the Washington Headquarters Services (WHS) of the Department of Defense, ensuring a clean and functional working environment. The services delivered include essential janitorial and maintenance functions critical for the operation of government facilities. The geographic impact is concentrated in the Washington D.C. metropolitan area, specifically supporting DoD operations. While not explicitly detailed, such a large contract likely supported a significant number of jobs, both directly with the contractor and indirectly through its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially leads to higher costs for taxpayers.
Lack of transparency in the justification for a sole-source award for janitorial services.
Long contract duration without competition could lead to complacency or reduced service quality over time.
No indication of small business participation or subcontracting goals, potentially excluding smaller entities.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a single, established vendor may indicate a history of satisfactory performance for these specific services.
Services provided are essential for maintaining operational readiness of critical DoD facilities.

Sector Analysis

Janitorial services represent a significant segment of the facilities management industry, which supports a wide array of public and private sector operations. The federal government is a major consumer of these services, contracting for everything from routine cleaning to specialized maintenance. This contract falls within the broader professional, scientific, and technical services sector. Comparable spending benchmarks for janitorial services can vary widely based on location, facility size, and service level, but large-scale contracts like this, especially when sole-sourced, are often scrutinized for value.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Furthermore, the sole-source nature of the award suggests limited opportunities for small businesses to participate as prime contractors or potentially even as subcontractors, unless specifically included by the prime. Without explicit subcontracting plans or goals mentioned, the impact on the small business ecosystem for this particular contract appears minimal.

Oversight & Accountability

Oversight for this contract would have been managed by the Washington Headquarters Services (WHS) within the Department of Defense. Accountability measures would typically involve contract performance reviews, adherence to service level agreements, and payment processing. 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

Department of Defense Facilities Maintenance Contracts
General Services Administration (GSA) Schedules for Facilities Services
Federal Janitorial and Cleaning Services Contracts
Washington Headquarters Services Contracts

Risk Flags

Sole-source award raises concerns about price competition and value for money.
Lack of transparency regarding the justification for sole-source procurement.
Potential for reduced service quality or innovation due to absence of competitive pressure.
Limited opportunities for small businesses in a sole-source contract of this size.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.1 million to CHIMES DISTRICT OF COLUMBIA INCORPORATED. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is CHIMES DISTRICT OF COLUMBIA INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.1 million.

What is the period of performance?

Start: 2003-11-07. End: 2008-02-29.

What specific services were included under this $170.6 million janitorial contract?

The provided data categorizes this contract under 'Janitorial Services' (nd: Janitorial Services) and assigns it a North American Industry Classification System (NAICS) code of 561720, which covers 'Janitorial Services'. While the exact scope of work is not detailed, typical janitorial services encompass cleaning, dusting, vacuuming, mopping, trash removal, restroom sanitation, and potentially minor maintenance tasks within federal facilities. Given the substantial value and duration, it likely covered a comprehensive range of cleaning and upkeep for multiple buildings or a large complex managed by the Washington Headquarters Services (WHS) of the Department of Defense.

Why was this $170.6 million contract awarded on a sole-source basis?

The data explicitly states the contract was 'NOT COMPETED' (ct: NOT COMPETED), indicating a sole-source award. The specific justification for this sole-source designation is not provided in the abbreviated data. Common reasons for sole-source awards include situations where only one responsible source can satisfy the agency's needs, such as when a contractor possesses unique capabilities, proprietary technology, or when there's an urgent and compelling need that precludes full and open competition. For a service like janitorial work, justifications might involve highly specialized requirements, security considerations, or continuity of essential services where switching vendors would be disruptive or cost-prohibitive. However, without further documentation, the precise rationale remains unknown.

How does the $170.6 million value compare to other federal janitorial service contracts?

Directly comparing the $170.6 million value of this specific contract requires access to a broader dataset of federal janitorial service contracts awarded over a similar timeframe and scope. However, $170.6 million over approximately 4 years (from Nov 2003 to Feb 2008) represents a significant expenditure for janitorial services. This average annual value of over $40 million suggests it was a large-scale contract, likely covering extensive facilities or a high-demand area like the National Capital Region. Many federal janitorial contracts are smaller and competed, making this sole-source award of substantial value noteworthy and potentially an outlier in terms of both size and procurement method.

What were the potential risks associated with a sole-source award of this magnitude for janitorial services?

The primary risk associated with a sole-source award of this magnitude is the lack of price competition. Without multiple bids, the government may not have secured the most cost-effective solution, potentially leading to inflated prices. Another risk is reduced incentive for the contractor to innovate or maintain high service quality, as there is no competitive pressure. Furthermore, a sole-source award can limit opportunities for small businesses and create a perception of favoritism or inefficiency in the procurement process. The long duration of the contract also increases the risk of service degradation or contractor complacency over time without the oversight of a competitive market.

What is the significance of the firm-fixed-price (FFP) contract type for this janitorial service?

A Firm-Fixed-Price (FFP) contract type means the price is set and not subject to adjustment based on the contractor's cost experience. For janitorial services, this provides the government with significant cost certainty. The contractor assumes the risk of cost overruns, making it beneficial for the agency if the contractor can perform the work efficiently. However, in a sole-source scenario, the FFP structure does not guarantee that the initial price was competitive. While it protects the government from unexpected cost increases, it doesn't inherently ensure the best value was obtained if the baseline price was too high due to the lack of competition.

What does the contract award date (2003) imply about current spending or needs for these services?

The contract award date of November 7, 2003, indicates that this specific agreement is historical. Federal spending on janitorial and facilities maintenance services is ongoing, but the exact needs, providers, and contract values would have evolved significantly since 2003. Current spending patterns would reflect updated requirements, technological advancements in cleaning, and potentially different procurement strategies, including increased emphasis on competition and small business participation. This historical contract serves as a data point for past spending but is not indicative of current federal requirements or contract values for similar services.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 4815 SETON DR, BALTIMORE, MD, 90

Business Categories: AbilityOne Program Participant, Category Business, Not Designated a Small Business, Special Designations

Contract Characteristics

Cost or Pricing Data: NO

Timeline