DoD's $30M Contract for Office Admin Services with Goodwill Raises Questions on Competition and Value
Contract Overview
Contract Amount: $30,068,224 ($30.1M)
Contractor: Goodwill Industries of Southeastern Wisconsin, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-10-01
End Date: 2011-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $16.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ADMINISTRATIVE AND CLERICAL SUPPORT SERVICES
Place of Performance
Location: GREAT LAKES, LAKE County, ILLINOIS, 60088
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $30.1 million to GOODWILL INDUSTRIES OF SOUTHEASTERN WISCONSIN, INC. for work described as: ADMINISTRATIVE AND CLERICAL SUPPORT SERVICES Key points: 1. Significant spending of $30M on administrative services. 2. Sole-source award limits competitive pricing. 3. Long contract duration (5 years) may reduce flexibility. 4. Lack of competition raises concerns about best value. 5. No small business participation noted.
Value Assessment
Rating: questionable
The contract value of $30M for administrative and clerical support services is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar services procured through open competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method bypasses the typical price discovery mechanisms inherent in competitive procurements, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a $30M contract suggests taxpayers may not be receiving the best possible price or service quality.
Public Impact
Taxpayers may be overpaying for administrative support due to the lack of competition. The long contract duration could mean outdated services or processes are being used. Focus on administrative services might divert resources from core defense missions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- No small business participation
Positive Signals
- Supports a non-profit organization
- Provides administrative services
Sector Analysis
Administrative and clerical support services are essential for government operations but are often subject to competitive bidding to ensure cost-effectiveness. Benchmarks for these services vary widely based on scope and location.
Small Business Impact
The contract explicitly states no small business participation (ss: false, sb: false). This represents a missed opportunity to support small businesses and leverage their specialized capabilities in administrative services.
Oversight & Accountability
The sole-source nature of this award warrants further review to ensure the justification for bypassing competition was robust and that the pricing is reasonable and represents best value.
Related Government Programs
- Office Administrative Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for overpayment due to lack of competition.
- Limited transparency in pricing justification.
- Missed opportunity for small business engagement.
- Risk of service stagnation over the 5-year term.
Tags
office-administrative-services, department-of-defense, il, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.1 million to GOODWILL INDUSTRIES OF SOUTHEASTERN WISCONSIN, INC.. ADMINISTRATIVE AND CLERICAL SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is GOODWILL INDUSTRIES OF SOUTHEASTERN WISCONSIN, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $30.1 million.
What is the period of performance?
Start: 2006-10-01. End: 2011-09-30.
What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?
The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION' (ct: NOT AVAILABLE FOR COMPETITION). A thorough review would require accessing the contract file to understand the specific circumstances and justification cited by the Department of the Navy for bypassing competitive procedures. This could include factors like unique capabilities, urgent needs, or limited sources.
How does the $30M contract value compare to industry benchmarks for similar administrative and clerical support services, considering the duration and scope?
Without detailed scope of work and specific service requirements, a direct benchmark is challenging. However, $30M over five years for office administrative services is a significant sum. Industry benchmarks for similar services procured competitively often show lower per-unit costs, especially when economies of scale and market competition are leveraged.
What mechanisms were in place to ensure accountability and performance quality given the sole-source nature and long duration of the contract?
Accountability and performance quality are typically managed through contract clauses, performance metrics, and government oversight. For a sole-source contract, the government's ability to negotiate favorable terms and monitor performance is crucial. The contract type (Firm Fixed Price) suggests a defined scope, but effective oversight by the Department of the Navy would be essential to ensure deliverables meet expectations.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6055 N 91ST ST, MILWAUKEE, WI, 53225
Business Categories: AbilityOne Program Participant, Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,870,798
Exercised Options: $30,068,225
Current Obligation: $30,068,224
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2006-10-01
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2023-08-11
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