Treasury's $21.6M custodial services contract awarded to CHIMES DISTRICT OF COLUMBIA INCORPORATED raises value concerns

Contract Overview

Contract Amount: $21,643,328 ($21.6M)

Contractor: Chimes District of Columbia Incorporated

Awarding Agency: Department of the Treasury

Start Date: 2003-12-04

End Date: 2004-09-30

Contract Duration: 301 days

Daily Burn Rate: $71.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE)

Sector: Other

Official Description: CUSTODIAL SERVICES NORTH/EAST BUILDINGS

Place of Performance

Location: BALTIMORE, BALTIMORE (CITY) County, MARYLAND, 21215

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $21.6 million to CHIMES DISTRICT OF COLUMBIA INCORPORATED for work described as: CUSTODIAL SERVICES NORTH/EAST BUILDINGS Key points: 1. The contract's value appears high relative to its duration and scope. 2. Limited competition suggests potential for inflated pricing. 3. The contract's performance period was relatively short, raising questions about long-term value. 4. The specific services provided under 'custodial services' need further clarification to benchmark effectively. 5. The award was made without full and open competition, limiting price discovery. 6. The contractor's track record and past performance on similar contracts warrant review. 7. The absence of a specific Product Service Code (PSC) makes direct comparison difficult.

Value Assessment

Rating: questionable

The total award amount of $21.6 million for a 301-day contract (approximately 10 months) for custodial services seems disproportionately high. Benchmarking against similar custodial contracts for federal buildings of comparable size and scope is difficult without more detailed service descriptions. However, the reported value per day is substantial, suggesting that the pricing may not be competitive or that the scope of services was exceptionally broad. Further analysis of the specific tasks included in 'custodial services' is needed to determine if the price reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that CHIMES DISTRICT OF COLUMBIA INCORPORATED was the only vendor considered. This lack of competition significantly limits the government's ability to secure the best possible price and service. Without a competitive bidding process, there is no market pressure to drive down costs or encourage innovation. The justification for a sole-source award, if available, would be critical to understanding why other potential vendors were not solicited.

Taxpayer Impact: Sole-source awards mean taxpayers likely paid a premium, as there was no competitive pressure to ensure the lowest possible price for these essential services.

Public Impact

Federal employees working in the North/East buildings managed by the IRS benefit from maintained facilities. The contract ensures the upkeep and cleanliness of government office spaces. The geographic impact is limited to the specific IRS buildings in Maryland where the services were rendered. The contract likely supported local employment through the custodial services provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High cost per day for custodial services.
Sole-source award limits price discovery and potentially inflates costs.
Short contract duration may indicate a temporary or poorly planned solution.
Lack of detailed service description hinders value assessment.
Absence of a specific PSC makes benchmarking difficult.

Positive Signals

Contract was awarded to a specific entity, ensuring service provision.
Services were delivered within the specified (though short) timeframe.
The contract falls under the Department of the Treasury, a major federal agency.

Sector Analysis

Custodial services represent a significant segment of the facilities management market, which is a crucial component of government operations. Federal agencies rely heavily on these services to maintain a safe and functional working environment. While specific market size data for federal custodial contracts is not readily available, the overall facilities management industry is vast. This contract, valued at over $21 million, is a substantial award within this sector, though its sole-source nature and short duration are atypical for such a significant expenditure.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The sole-source nature of the award further suggests that small businesses were not actively solicited or considered as primary contractors. This limits the potential for small business participation and economic impact.

Oversight & Accountability

Oversight for this contract would have been primarily managed by the contracting officers and program managers within the Internal Revenue Service (IRS) and the Department of the Treasury. Transparency is limited due to the sole-source nature and lack of publicly available detailed justifications. Accountability would be tied to the performance metrics outlined in the contract, though these are not detailed here. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
IRS Facilities Management Contracts
Department of the Treasury Facilities Operations

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
High daily cost suggests potential value-for-money issues.
Lack of detailed service description hinders comprehensive analysis.
Short contract duration may indicate a lack of long-term planning or a stop-gap measure.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $21.6 million to CHIMES DISTRICT OF COLUMBIA INCORPORATED. CUSTODIAL SERVICES NORTH/EAST BUILDINGS

Who is the contractor on this award?

The obligated recipient is CHIMES DISTRICT OF COLUMBIA INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $21.6 million.

What is the period of performance?

Start: 2003-12-04. End: 2004-09-30.

What was the specific justification for awarding this custodial services contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source is available or capable of meeting the agency's needs. This could be due to unique capabilities, urgent requirements, or specific circumstances that preclude a competitive solicitation. Without the official justification document, it is impossible to definitively state why full and open competition was not pursued. This lack of transparency is a concern for ensuring fair and efficient use of taxpayer funds.

How does the cost per day of this contract compare to industry benchmarks for similar custodial services?

Calculating a precise cost per day requires dividing the total award amount ($21,643,327.96) by the contract duration in days (301). This yields approximately $71,905 per day. Benchmarking this figure against industry standards for custodial services is challenging without knowing the exact scope of services, the square footage of the buildings, the level of service required (e.g., standard cleaning vs. specialized sanitation), and the geographic location's labor costs. However, $71,905 per day is a very substantial amount for custodial services, suggesting it may be significantly above typical market rates unless the contract encompassed highly specialized or extensive facility management duties beyond basic cleaning.

What was the track record of CHIMES DISTRICT OF COLUMBIA INCORPORATED on previous federal contracts?

The provided data does not contain information on the track record or past performance of CHIMES DISTRICT OF COLUMBIA INCORPORATED. To assess this, one would need to review contract databases (like SAM.gov or FPDS) for previous awards to this contractor, including their performance ratings, any disputes, or contract terminations. A contractor's history of successful performance on similar federal contracts is a key indicator of their reliability and ability to deliver services effectively and within budget. Without this information, evaluating the risk associated with this award is incomplete.

What specific services were included under 'Custodial Services North/East Buildings'?

The data provided is limited and does not specify the exact services included under 'Custodial Services North/East Buildings.' Custodial services can range widely from basic janitorial tasks like trash removal, vacuuming, and restroom cleaning to more comprehensive facility management functions such as specialized floor care, window washing, pest control, and minor maintenance. The broad description makes it difficult to assess the value proposition and compare the contract's scope and cost to other similar service agreements. A detailed statement of work (SOW) would be necessary for a thorough analysis.

Were there any performance issues or contract modifications during the life of this contract?

The provided data does not include information regarding performance issues or contract modifications for this specific award. Contract modifications can indicate changes in scope, unforeseen issues, or adjustments to pricing. Performance issues, if documented, would be critical for assessing the contractor's effectiveness and the overall success of the contract. Without access to the contract file or performance reports, it is impossible to determine if the contract was executed smoothly or if there were challenges encountered during its term.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › All Other Miscellaneous Electrical Equipment and Component Manufacturing

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE) (2)

Contractor Details

Address: 4815 SETON DR, BALTIMORE, MD, 90

Business Categories: AbilityOne Program Participant, Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $25,187,444

Exercised Options: $25,187,444

Current Obligation: $21,643,328

Timeline