Department of Defense awards $19.1M custodial services contract to Licking-Knox Goodwill Industries, Inc

Contract Overview

Contract Amount: $19,125,105 ($19.1M)

Contractor: Licking-Knox Goodwill Industries, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-03-04

End Date: 2027-03-31

Contract Duration: 1,122 days

Daily Burn Rate: $17.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CUSTODIAL SERVICES AT THE DEFENSE SUPPLY CENTER COLUMBUS (DSCC).

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43218

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $19.1 million to LICKING-KNOX GOODWILL INDUSTRIES, INC. for work described as: CUSTODIAL SERVICES AT THE DEFENSE SUPPLY CENTER COLUMBUS (DSCC). Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract duration of 1122 days suggests a stable, long-term need for these services. 3. Awarded by the Defense Logistics Agency, a key component of the DoD's supply chain. 4. The North American Industry Classification System (NAICS) code 561720 points to a standard service offering. 5. The contract was not competed, raising questions about potential cost savings through broader bidding. 6. The absence of small business set-aside flags suggests this was not specifically targeted for smaller enterprises.

Value Assessment

Rating: fair

Benchmarking the value of this custodial services contract is challenging without comparable contract data for similar facilities within the Defense Supply Center Columbus (DSCC) or other DoD installations. The firm-fixed-price structure helps control costs, but the lack of competition means there's no direct market comparison to assess if the pricing is optimal. Without more data on the scope of services, square footage, and specific requirements, it's difficult to definitively state if the $19.1 million over approximately three years represents excellent value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to full and open competition. The data indicates it was 'NOT AVAILABLE FOR COMPETITION.' This approach is typically used when only one source is capable of meeting the requirement, or in specific circumstances like urgent needs or when a previous contract is being extended. The lack of multiple bidders means there was no opportunity for price discovery through a competitive bidding process, potentially leading to higher costs than if multiple firms had vied for the contract.

Taxpayer Impact: Taxpayers may not benefit from the cost savings that typically arise from a competitive bidding process. Without competition, there is less pressure on the contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are the personnel and operations at the Defense Supply Center Columbus (DSCC), ensuring a clean and functional working environment. Essential custodial and janitorial services are delivered, contributing to the overall operational readiness and maintenance of the facility. The geographic impact is localized to the DSCC facility in Ohio. The contract supports jobs within Licking-Knox Goodwill Industries, Inc., which may have implications for workforce development and employment opportunities, particularly for individuals with barriers to employment, given the organization's mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in a higher price than a competed contract.
Sole-source awards can limit opportunities for other capable vendors to secure government contracts.
Transparency regarding the justification for the sole-source award could be enhanced.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to Licking-Knox Goodwill Industries, Inc. aligns with potential social impact objectives if the organization prioritizes employment for individuals with disabilities or other disadvantages.
Longer contract duration suggests a stable and reliable service provision.

Sector Analysis

The custodial services sector is a significant part of the broader facilities management industry. Government contracts for these services are common across various agencies, supporting the maintenance of federal buildings and installations. While specific market size data for federal custodial services is not readily available, the industry is characterized by a mix of large facility management companies and smaller, specialized providers. This contract, valued at approximately $19.1 million over three years, represents a substantial award within this service category, indicating a significant operational footprint at the Defense Supply Center Columbus.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and the awardee, Licking-Knox Goodwill Industries, Inc., while potentially having a social mission, is not explicitly flagged as a small business in this context. Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside requirement. The absence of such provisions means that opportunities for small businesses to participate in this specific contract through subcontracting are not mandated.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Logistics Agency (DLA) contracting officers and program managers responsible for the Defense Supply Center Columbus (DSCC). Accountability measures are inherent in the firm-fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or reported.

Related Government Programs

Department of Defense Facilities Maintenance
Defense Supply Center Columbus Operations
Federal Janitorial Services Contracts
Logistics Agency Support Services

Risk Flags

Sole-source award lacks competitive pricing.
Potential for higher costs due to lack of competition.
Limited transparency on justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.1 million to LICKING-KNOX GOODWILL INDUSTRIES, INC.. CUSTODIAL SERVICES AT THE DEFENSE SUPPLY CENTER COLUMBUS (DSCC).

Who is the contractor on this award?

The obligated recipient is LICKING-KNOX GOODWILL INDUSTRIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $19.1 million.

What is the period of performance?

Start: 2024-03-04. End: 2027-03-31.

What is the track record of Licking-Knox Goodwill Industries, Inc. in performing similar federal custodial contracts?

Information regarding Licking-Knox Goodwill Industries, Inc.'s specific track record with federal custodial contracts is not detailed in the provided data. A comprehensive review would require examining past performance evaluations, contract history databases (such as SAM.gov or FPDS), and any available CPARS (Contractor Performance Assessment Reporting System) reports. Understanding their experience with contracts of similar size, scope, and complexity, particularly within defense or large federal facilities, would be crucial for assessing their capability and reliability in fulfilling the requirements of this $19.1 million award.

How does the awarded price compare to market rates for similar custodial services in Ohio?

Directly comparing the awarded price of approximately $19.1 million over three years to market rates for similar custodial services in Ohio is difficult without detailed service scope and facility specifics. The firm-fixed-price nature provides cost certainty but doesn't inherently guarantee market competitiveness, especially given the sole-source award. To benchmark effectively, one would need to analyze the cost per square foot, labor rates, and service intensity against industry standards and rates charged by comparable service providers in the Columbus metropolitan area or similar large federal installations in the region. The lack of competition limits the ability to ascertain if this price reflects optimal market value.

What are the primary risks associated with a sole-source award for essential custodial services?

The primary risk associated with a sole-source award for essential custodial services is the potential for inflated pricing due to the absence of competitive pressure. Without multiple bidders vying for the contract, the awarded contractor may not be incentivized to offer the most cost-effective solution. Another risk is the potential for complacency in service quality, as the contractor may feel less pressure to innovate or exceed expectations compared to a competitive environment. Furthermore, a sole-source award can limit opportunities for other capable vendors, potentially hindering market dynamism and reducing the government's options in the future should circumstances change.

What is the expected impact of this contract on the operational effectiveness of the Defense Supply Center Columbus?

This contract is expected to have a positive impact on the operational effectiveness of the Defense Supply Center Columbus (DSCC) by ensuring a consistently clean, safe, and functional working environment. Well-maintained facilities are crucial for employee morale, health, and productivity, as well as for the proper storage and handling of supplies and equipment managed by the DLA. Reliable custodial services contribute to the overall readiness and efficiency of the installation, supporting its mission-critical logistics functions. The long-term nature of the contract suggests a commitment to maintaining these standards consistently.

What has been the historical spending trend for custodial services at the Defense Supply Center Columbus?

The provided data does not include historical spending trends for custodial services at the Defense Supply Center Columbus (DSCC). To analyze this, one would need to access historical contract award data for DSCC over previous years, identifying contracts for similar services (NAICS 561720) and their associated values and durations. Comparing the current $19.1 million award over approximately three years to past expenditures would reveal whether spending has increased, decreased, or remained relatively stable, and whether this represents a significant shift in resource allocation for facility maintenance.

Are there specific performance metrics or service level agreements (SLAs) tied to this contract?

The provided data does not specify the performance metrics or service level agreements (SLAs) associated with this contract. Typically, government contracts for services include detailed requirements and performance standards that the contractor must meet. These might include frequency of cleaning, specific cleaning protocols, response times for issues, and quality control measures. The effectiveness of the contract's value and the contractor's performance would be assessed against these metrics, which are usually outlined in the contract's statement of work (SOW) or performance work statement (PWS).

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: SP470224R0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 65 S 5TH ST, NEWARK, OH, 43058

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: $32,514,314

Exercised Options: $19,157,834

Current Obligation: $19,125,105

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline