DoD Awards $8.26M Firm Fixed Price Contract for Janitorial Services to ServiceSource Inc
Contract Overview
Contract Amount: $8,260,995 ($8.3M)
Contractor: Servicesource Inc
Awarding Agency: Department of Defense
Start Date: 2023-11-01
End Date: 2026-10-31
Contract Duration: 1,095 days
Daily Burn Rate: $7.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CUSTODIAL SERVICES
Place of Performance
Location: DAHLGREN, KING GEORGE County, VIRGINIA, 22448
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $8.3 million to SERVICESOURCE INC for work described as: CUSTODIAL SERVICES Key points: 1. Contract awarded to ServiceSource Inc. for custodial services. 2. The contract has a total value of $8.26 million. 3. The contract duration is 1095 days (3 years). 4. The contract is for janitorial services within the Department of the Navy. 5. The contract type is Firm Fixed Price.
Value Assessment
Rating: fair
The contract is firm fixed price, which provides cost certainty. However, without a benchmark or more detailed cost breakdown, assessing the overall value for money is difficult. The awarded amount of $8.26 million over three years suggests an average annual cost of approximately $2.75 million.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection. This limits price discovery and potentially leads to higher costs than if a competitive process were employed. The specific reasons for the limited competition are not detailed.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these custodial services. Without competitive bidding, there's less pressure on the contractor to offer the most cost-effective solution.
Public Impact
Ensures essential cleaning and maintenance services for Navy facilities. Supports the operational readiness of naval installations. Potential for job creation through the contractor's service provision. Impact on the local economy where services are performed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of detailed cost justification
- Potential for inflated pricing due to sole-source nature
Positive Signals
- Firm Fixed Price contract provides cost predictability
- Long-term contract ensures service continuity
Sector Analysis
Custodial services fall under the broader facilities maintenance and management sector. Spending in this sector is generally stable, driven by the ongoing need for building upkeep across government agencies. Benchmarks for janitorial services can vary significantly based on facility size, type, and location.
Small Business Impact
The contract was awarded to ServiceSource Inc., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, which could be an area for future consideration.
Oversight & Accountability
Oversight would typically be managed by the contracting officer's representative (COR) within the Department of the Navy to ensure service delivery meets contract requirements. Accountability for performance rests with ServiceSource Inc.
Related Government Programs
- Janitorial Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition
- Potential for overpricing
- Lack of transparency in award justification
- No small business participation noted
Tags
janitorial-services, department-of-defense, va, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.3 million to SERVICESOURCE INC. CUSTODIAL SERVICES
Who is the contractor on this award?
The obligated recipient is SERVICESOURCE 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 $8.3 million.
What is the period of performance?
Start: 2023-11-01. End: 2026-10-31.
What specific factors justified the limited competition for this custodial services contract?
The provided data does not specify the reasons for limited competition. Typically, justifications might include unique capabilities of the contractor, urgent needs, or specific socio-economic program requirements. Further investigation into the contract file or justification for other than full and open competition (JOFOC) would be necessary to understand the rationale.
How does the $8.26 million contract value compare to industry benchmarks for similar janitorial services at Department of Defense facilities?
Without specific details on the scope of services, square footage, frequency of cleaning, and geographic location, a precise benchmark comparison is challenging. However, $8.26 million over three years for custodial services at potentially multiple Navy facilities suggests a significant contract. Industry benchmarks vary widely, but this amount warrants scrutiny to ensure cost-effectiveness relative to the services provided.
What mechanisms are in place to ensure the quality and effectiveness of custodial services provided by ServiceSource Inc. under this contract?
Quality assurance would typically be managed through a Quality Assurance Surveillance Plan (QASP) outlined in the contract. This plan details how the government will monitor performance, identify deficiencies, and ensure services meet the specified standards. The Contracting Officer's Representative (COR) is usually responsible for overseeing this process and ensuring contractor accountability.
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: N0017822R4408
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10467 WHITE GRANITE DR, OAKTON, VA, 22124
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: $14,059,128
Exercised Options: $8,260,995
Current Obligation: $8,260,995
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-11-01
Current End Date: 2026-10-31
Potential End Date: 2028-10-31 00:00:00
Last Modified: 2025-12-16
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