Naval Medical Center contract for janitorial services awarded to Coastal Enterprises for over $14.8M

Contract Overview

Contract Amount: $14,894,766 ($14.9M)

Contractor: Coastal Enterprises of Jacksonville Inc

Awarding Agency: Department of Defense

Start Date: 2024-07-01

End Date: 2025-06-30

Contract Duration: 364 days

Daily Burn Rate: $40.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPTION YR 1 FUNDS FOR NAVAL MEDICAL CENTER AND CLINICS

Place of Performance

Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $14.9 million to COASTAL ENTERPRISES OF JACKSONVILLE INC for work described as: OPTION YR 1 FUNDS FOR NAVAL MEDICAL CENTER AND CLINICS Key points: 1. Contract value appears high for janitorial services, warranting a close look at the scope and deliverables. 2. The lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds. 3. Performance history of Coastal Enterprises needs to be reviewed to assess reliability and quality. 4. This contract represents a significant portion of spending within the facilities maintenance category for the Navy. 5. The fixed-price nature of the contract shifts risk to the contractor, but oversight is still crucial.

Value Assessment

Rating: questionable

The awarded amount of over $14.8 million for a one-year janitorial services contract for a naval medical center and clinics is substantial. Benchmarking against similar contracts for large healthcare facilities is necessary to determine if this represents fair market value. Without comparative data, it is difficult to definitively assess value for money, but the scale suggests a need for rigorous justification of costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits the government's ability to solicit bids from multiple vendors and potentially secure a lower price through competitive bidding. The justification for a sole-source award needs to be thoroughly examined to ensure it was appropriate and that alternatives were not overlooked.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the absence of competition removes a key driver for price reduction.

Public Impact

Beneficiaries include naval personnel, their families, and civilian staff at the medical center and associated clinics. Services delivered are essential for maintaining a sanitary and safe healthcare environment. Geographic impact is concentrated in Jacksonville, Florida, where the Naval Medical Center is located. Workforce implications may include the direct employment of cleaning staff by the contractor, potentially impacting local job markets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source justification requires scrutiny to ensure necessity.
High contract value necessitates robust performance monitoring.
Scope of services needs clear definition to prevent scope creep.

Positive Signals

Fixed-price contract structure can provide cost certainty if well-defined.
Award to an established entity may indicate prior satisfactory performance.
Essential service provision ensures operational continuity for medical facilities.

Sector Analysis

This contract falls within the facilities support services sector, specifically janitorial and maintenance for government facilities. The market for such services is competitive, with numerous providers ranging from small businesses to large corporations. The significant value of this contract suggests it covers a large or complex facility, potentially including specialized cleaning requirements for a medical environment. Comparable spending benchmarks for large-scale janitorial contracts in the public sector would be useful for context.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any subcontracting requirements for small businesses. This suggests that opportunities for small businesses to participate in this specific contract are limited. Further investigation into the contractor's subcontracting plans would be needed to understand the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be tied to the contract's performance standards and delivery requirements. Transparency may be limited due to the sole-source nature, but contract award details should be publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Naval Medical Facilities Maintenance
Department of Defense Facilities Services
Healthcare Environmental Services Contracts
Federal Janitorial Services

Risk Flags

Sole-source award lacks competitive justification.
High contract value requires detailed cost breakdown and validation.
Potential for overpricing due to lack of competition.
Need for robust performance monitoring in a sensitive medical environment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.9 million to COASTAL ENTERPRISES OF JACKSONVILLE INC. OPTION YR 1 FUNDS FOR NAVAL MEDICAL CENTER AND CLINICS

Who is the contractor on this award?

The obligated recipient is COASTAL ENTERPRISES OF JACKSONVILLE 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 $14.9 million.

What is the period of performance?

Start: 2024-07-01. End: 2025-06-30.

What is the specific justification provided for awarding this janitorial services contract on a sole-source basis?

The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' which is a common designation for sole-source procurements. The specific justification would typically be detailed in the contract's Justification and Approval (J&A) document. This document would outline why full and open competition was not feasible or not in the government's best interest. Reasons could include urgency, unique capabilities of the sole contractor, or a lack of market research indicating other capable sources. Without access to the J&A, it's impossible to verify the validity of the sole-source determination. However, the absence of competition inherently raises concerns about potential price inflation and reduced value for taxpayer dollars, as competitive pressure is a primary mechanism for ensuring fair pricing.

How does the $14.8 million contract value compare to similar janitorial services contracts for large federal medical facilities?

The $14.8 million contract value for one year of janitorial services at a naval medical center is substantial. To benchmark this, one would need to compare it against contracts for similar-sized and complexity federal medical facilities, such as VA hospitals or other large military treatment centers. Factors influencing cost include square footage, frequency of cleaning, specialized cleaning requirements (e.g., for operating rooms, biohazard areas), and the number of buildings covered. A preliminary assessment suggests this figure is on the higher end, especially for a single year, underscoring the need for a detailed review of the contract's scope of work and the justification for its cost. Without specific comparable contract data, a definitive value assessment is challenging, but the amount warrants scrutiny.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a janitorial services contract at a medical facility, critical KPIs would likely include cleanliness standards (e.g., microbial counts, visual inspection scores), response times for emergency cleaning requests, waste management efficiency, and adherence to infection control protocols. SLAs would define the expected frequency and quality of services, such as daily cleaning of patient areas, weekly deep cleaning of specific zones, and regular disinfection schedules. Robust KPIs and SLAs are crucial for ensuring the contractor meets the high standards required in a healthcare environment and for holding them accountable for performance, especially given the contract's significant value and sole-source nature.

What is the track record of Coastal Enterprises of Jacksonville Inc. in performing similar government contracts?

The provided data does not include information on the track record of Coastal Enterprises of Jacksonville Inc. To assess their performance history, one would need to consult federal procurement databases like SAM.gov (System for Award Management) or FPDS (Federal Procurement Data System) for past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations. A review of their past performance on similar contracts, particularly for government facilities or healthcare settings, would be essential to gauge their reliability, quality of service, and ability to manage contracts of this magnitude. Without this information, evaluating the risk associated with awarding this contract is incomplete.

Are there any specific risks associated with providing janitorial services in a medical environment that this contract addresses?

Yes, providing janitorial services in a medical environment carries significant risks related to infection control and patient safety. This contract likely addresses these risks through stringent requirements for cleaning protocols, use of specific disinfectants, waste disposal procedures (including biohazardous waste), and staff training on healthcare-associated infection prevention. The contract's specifications should detail compliance with regulations from bodies like the CDC (Centers for Disease Control and Prevention) and OSHA (Occupational Safety and Health Administration). Given the sole-source award and high value, it is critical that the contract explicitly outlines these specialized requirements and the contractor's demonstrated capability to meet them to mitigate risks of contamination and ensure a safe healing environment.

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: N4008523R2691

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 224 WHITE ST, JACKSONVILLE, NC, 28546

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,894,766

Exercised Options: $14,894,766

Current Obligation: $14,894,766

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008523D0065

IDV Type: IDC

Timeline