DoD's $20.2M Custodial Services Contract with Employment Horizons Inc. Faces Competition Concerns
Contract Overview
Contract Amount: $20,235,557 ($20.2M)
Contractor: Employment Horizons Inc
Awarding Agency: Department of Defense
Start Date: 2010-03-26
End Date: 2015-06-30
Contract Duration: 1,922 days
Daily Burn Rate: $10.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CUSTODIAL SERVICES, ARSENAL-AT-LARGE
Place of Performance
Location: PICATINNY ARSENAL, MORRIS County, NEW JERSEY, 07806
Plain-Language Summary
Department of Defense obligated $20.2 million to EMPLOYMENT HORIZONS INC for work described as: CUSTODIAL SERVICES, ARSENAL-AT-LARGE Key points: 1. Contract awarded to Employment Horizons Inc. for custodial services at Arsenal-at-Large. 2. Significant spending of $20.2M over its duration. 3. Contracting method raises questions about competition and potential price discovery. 4. Sector context suggests potential for competitive bidding in janitorial services.
Value Assessment
Rating: questionable
The contract's total value of $20.2M over approximately 5.3 years is substantial. Without a competitive bidding process, it's difficult to assess if this price represents fair market value compared to similar custodial service contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection. This lack of competition may have prevented the government from obtaining the best possible price through a robust bidding process.
Taxpayer Impact: The absence of competition could lead to taxpayers potentially overpaying for custodial services compared to what could have been achieved through a competitive solicitation.
Public Impact
Taxpayers may be overpaying due to lack of competition. Limited transparency in the contract award process. Potential for improved service delivery through competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Limited price discovery
- Potential for inflated costs
Positive Signals
- Contract awarded to a single vendor
- Long-term service provision
Sector Analysis
The janitorial services sector (NAICS 561720) is generally competitive, with many firms capable of providing these services. Benchmarks for custodial services vary widely based on scope, location, and specific requirements.
Small Business Impact
The data does not indicate whether Employment Horizons Inc. is a small business. The lack of competition limits opportunities for small businesses to bid on this contract.
Oversight & Accountability
The contract's award without full and open competition warrants further oversight to ensure the government received fair value and that the limited competition justification was sound.
Related Government Programs
- Janitorial Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Potential for overpricing
- Lack of transparency in award
- No clear small business participation noted
Tags
janitorial-services, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.2 million to EMPLOYMENT HORIZONS INC. CUSTODIAL SERVICES, ARSENAL-AT-LARGE
Who is the contractor on this award?
The obligated recipient is EMPLOYMENT HORIZONS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $20.2 million.
What is the period of performance?
Start: 2010-03-26. End: 2015-06-30.
What was the justification for awarding this contract on a limited competition basis, and was it adequately documented?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a limited source justification was used. A thorough review of the contract file would be necessary to determine the specific reasons cited (e.g., unique capabilities, urgent need) and assess if the justification was appropriate and met regulatory requirements for limited competition.
How does the per-unit cost of services under this contract compare to industry benchmarks for similar custodial services?
Without detailed service breakdowns and specific performance metrics, a direct per-unit cost comparison is challenging. However, given the lack of competition, it is reasonable to question whether the pricing reflects market rates. Benchmarking against publicly available data for similar government or commercial contracts would be a necessary step to identify potential cost discrepancies.
What mechanisms were in place to ensure service quality and accountability given the limited competition?
The contract type is 'FIRM FIXED PRICE,' which generally places the responsibility for cost control on the contractor. However, effective oversight by the Department of the Army would still be crucial to monitor performance standards, ensure service delivery meets requirements, and hold the contractor accountable for any deficiencies, regardless of the competition method.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10 RIDGEDALE AVE, CEDAR KNOLLS, NJ, 07927
Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Domestic Shelter, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,333,873
Exercised Options: $20,333,873
Current Obligation: $20,235,557
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2010-03-26
Current End Date: 2015-06-30
Potential End Date: 2015-06-30 00:00:00
Last Modified: 2022-04-07
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