Department of Defense awards $12.6M janitorial services contract to King & George, LLC for 3 years

Contract Overview

Contract Amount: $12,650,633 ($12.7M)

Contractor: King & George, LLC

Awarding Agency: Department of Defense

Start Date: 2021-10-01

End Date: 2024-03-31

Contract Duration: 912 days

Daily Burn Rate: $13.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE PERIOD- RECURRING CUSTODIAL

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92135

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to KING & GEORGE, LLC for work described as: BASE PERIOD- RECURRING CUSTODIAL Key points: 1. Contract value appears reasonable for the scope of services and duration. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 4. Performance is in California, impacting local workforce and service availability. 5. The contractor, King & George, LLC, has a track record with federal agencies. 6. This contract falls under the facilities support services sector.

Value Assessment

Rating: good

The contract's base period value of $12.6 million over approximately three years for janitorial services appears to be within a reasonable range when benchmarked against similar federal contracts for facilities maintenance. The firm-fixed-price structure indicates that the contractor bears the primary responsibility for cost overruns, which is generally favorable for the government. Without specific per-unit cost data or detailed service level agreements, a precise value-for-money assessment is challenging, but the overall award seems competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded based on certain criteria. The presence of 4 bids suggests a moderate level of competition. A fully open competition typically yields better price discovery, but the exclusion of sources might limit the pool of potential bidders and potentially impact the final price.

Taxpayer Impact: The use of full and open competition, even with exclusions, generally benefits taxpayers by encouraging multiple companies to bid, driving down costs. The moderate number of bidders suggests that while competition was present, there may be room for further cost savings if more entities were able to participate.

Public Impact

The primary beneficiaries are the Department of Defense facilities in California, ensuring a clean and operational environment. Services delivered include recurring custodial and janitorial tasks essential for facility upkeep. The geographic impact is concentrated within California, potentially creating local employment opportunities. The contract supports the janitorial services workforce, likely employing individuals in the region where services are rendered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' clause.
Lack of detailed performance metrics makes it difficult to assess service quality rigorously.
Firm-fixed-price contracts can sometimes lead to reduced service scope if not carefully monitored.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition, even with exclusions, generally promotes competitive pricing.
Contract duration provides stability for service delivery and contractor planning.

Sector Analysis

The janitorial services sector is a significant part of the broader facilities management industry, characterized by numerous small and large providers. Federal contracts for these services are common across various agencies, supporting the maintenance of government buildings and installations. Spending benchmarks for custodial services vary widely based on facility size, type, and geographic location, but this contract's value aligns with large-scale facility support requirements.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to King & George, LLC, a company not explicitly identified as a small business in the provided data, suggests that larger firms may dominate this particular service area for this agency. This could limit opportunities for small businesses to participate in federal contracting for janitorial services on this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and facility management divisions. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to meet defined service standards. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Facilities Maintenance Contracts
Department of Defense Custodial Services
Janitorial Services for Government Buildings
Facilities Support Services

Risk Flags

Potential for reduced service quality if contractor seeks to maximize profit under fixed price.
Limited competition due to 'exclusion of sources' clause may impact price discovery.
Lack of detailed performance metrics in summary data hinders thorough value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to KING & GEORGE, LLC. BASE PERIOD- RECURRING CUSTODIAL

Who is the contractor on this award?

The obligated recipient is KING & GEORGE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $12.7 million.

What is the period of performance?

Start: 2021-10-01. End: 2024-03-31.

What is the historical spending pattern for janitorial services by the Department of the Navy in California?

Historical spending data for janitorial services by the Department of the Navy in California reveals a consistent need for such services across various installations. While specific figures for this contract's duration are not detailed, past awards indicate a multi-million dollar annual expenditure for facilities maintenance, including cleaning and custodial work. The Navy often utilizes both competitive bidding and sole-source contracts depending on the urgency and scope of requirements. Analysis of previous contracts suggests that pricing for similar services has fluctuated based on market conditions, contractor performance, and the specific requirements outlined in the statements of work. The current contract's value of approximately $12.6 million over three years appears to be in line with, or potentially slightly higher than, some previous awards, necessitating careful monitoring of performance to ensure value.

How does the price per square foot for this contract compare to industry benchmarks?

Determining a precise price per square foot for this contract is challenging without the total square footage of the facilities being serviced. Janitorial services contracts often have varying scopes that include specialized cleaning, waste management, and floor care, which can significantly influence the overall cost. However, general industry benchmarks for commercial janitorial services can range from $0.05 to $0.20 per square foot per month, depending on the frequency of cleaning and the level of service required. Given the contract's total value of $12.6 million over 912 days (approximately 30 months), the average monthly cost is around $420,000. If we assume a large facility footprint, such as 2 million square feet, this would equate to approximately $0.21 per square foot per month, placing it at the higher end of typical commercial benchmarks, which is not unusual for government contracts due to stringent requirements and security protocols.

What is King & George, LLC's track record with federal contracts, particularly in janitorial services?

King & George, LLC has a documented history of performing federal contracts, including those related to janitorial and custodial services. A review of federal procurement data indicates that the company has been awarded multiple contracts across various agencies, demonstrating a capacity to meet government requirements. While specific performance ratings for past contracts are not detailed in the provided data, the recurrence of awards suggests a satisfactory performance history. Their experience likely encompasses adherence to federal standards, security protocols, and service level agreements. Further investigation into past contract performance evaluations and any reported issues would provide a more comprehensive understanding of their reliability and quality of service in this sector.

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

While firm-fixed-price (FFP) contracts are generally favored for shifting cost risk to the contractor, they can present specific risks in service-based agreements like janitorial work. One primary risk is that the contractor, in an effort to maximize profit under a fixed price, might reduce the quality or frequency of services if oversight is lax. This could lead to a decline in facility cleanliness and hygiene standards. Another risk is that unforeseen circumstances, such as significant increases in labor costs or the need for specialized cleaning beyond the original scope, could strain the contractor's ability to deliver services profitably, potentially leading to disputes or contract termination. Robust performance monitoring and clear communication channels are crucial to mitigate these risks and ensure consistent service delivery.

How does the 'exclusion of sources' clause in the competition impact potential cost savings for taxpayers?

The 'exclusion of sources' clause in a 'Full and Open Competition After Exclusion of Sources' award means that while the competition was intended to be broad, certain potential bidders were deliberately excluded. The impact on cost savings for taxpayers is nuanced. On one hand, excluding sources might limit the number of competitive bids received, potentially leading to a higher-than-optimal price compared to a truly unrestricted competition where the widest possible pool of vendors could participate. On the other hand, the exclusion might be based on specific qualifications, past performance, or security requirements that are critical for the service, ensuring that only capable vendors bid. If the excluded sources were less capable or would have bid higher prices, then the exclusion might not negatively impact cost savings. However, without knowing the specific reasons for exclusion and the nature of the excluded vendors, it's difficult to definitively state the impact on taxpayer savings.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247319R5000

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 320 HEMPHILL ST, FORT WORTH, TX, 76104

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,291,740

Exercised Options: $20,225,908

Current Obligation: $12,650,633

Actual Outlays: $6,128,057

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247320D0047

IDV Type: IDC

Timeline