DoD Awards $24M Janitorial Services Contract to Employment Horizons Inc. with No Competition
Contract Overview
Contract Amount: $24,010,532 ($24.0M)
Contractor: Employment Horizons Inc
Awarding Agency: Department of Defense
Start Date: 2015-05-06
End Date: 2020-05-29
Contract Duration: 1,850 days
Daily Burn Rate: $13.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CT::IGF CUSTODIAL SVCS ARSENAL-AT-LARGE, BASE YR
Place of Performance
Location: PICATINNY ARSENAL, MORRIS County, NEW JERSEY, 07806
Plain-Language Summary
Department of Defense obligated $24.0 million to EMPLOYMENT HORIZONS INC for work described as: IGF::CT::IGF CUSTODIAL SVCS ARSENAL-AT-LARGE, BASE YR Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. The contract value is substantial for janitorial services. 3. Lack of competition may lead to higher costs for taxpayers. 4. The sector is janitorial services, a common government need.
Value Assessment
Rating: questionable
The contract value of $24 million over five years is significant for janitorial services. Benchmarking against similar contracts is difficult without more data on scope and location, but the lack of competition suggests potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited or sole-source award. This limits price discovery and potentially reduces the government's ability to secure the best value.
Taxpayer Impact: The lack of competitive bidding may result in taxpayers paying more than necessary for these essential services.
Public Impact
Taxpayers may be overpaying for janitorial services due to a lack of competition. The long duration of the contract limits opportunities for other businesses to bid. Essential services are being provided, but the cost-effectiveness is in question.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Essential service provision
- Contract awarded to a single entity
Sector Analysis
The janitorial services sector is characterized by numerous small and medium-sized businesses. Government contracts in this area typically see robust competition, making this award's limited competition notable.
Small Business Impact
The contract was not awarded to a small business. The lack of competition also means that other small businesses in the janitorial services sector were not given an opportunity to bid.
Oversight & Accountability
Further review is needed to understand why this contract was not competed and if adequate justification exists for the limited competition. Oversight should focus on ensuring fair pricing and performance.
Related Government Programs
- Janitorial Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in award justification
- Missed opportunity for small business participation
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 $24.0 million to EMPLOYMENT HORIZONS INC. IGF::CT::IGF CUSTODIAL SVCS ARSENAL-AT-LARGE, BASE YR
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 $24.0 million.
What is the period of performance?
Start: 2015-05-06. End: 2020-05-29.
What is the justification for awarding this janitorial services contract without competition?
The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION'. A thorough review would require access to the contract file to determine the specific reasons, which could include urgency, unique capabilities of the incumbent, or other factors that precluded a competitive process. Without this information, the justification remains unclear.
How does the contract's price compare to market rates for similar janitorial services?
Benchmarking is challenging without detailed service scope and location specifics. However, the absence of competition inherently limits price discovery. The reported contract value of $24 million over five years suggests a significant expenditure, and without competitive pressure, there's a risk that the price may exceed what could have been achieved through a competitive solicitation.
What is the potential impact on small businesses in the janitorial services sector?
This contract, valued at $24 million and awarded without competition, represents a missed opportunity for small businesses. Typically, the janitorial services sector has many capable small businesses. By not competing this requirement, the government has excluded these potential small business contractors from participating and potentially earning revenue.
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, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,010,532
Exercised Options: $24,010,532
Current Obligation: $24,010,532
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2015-05-06
Current End Date: 2020-05-29
Potential End Date: 2020-05-29 00:00:00
Last Modified: 2024-06-28
More Contracts from Employment Horizons Inc
- Custodial Svcs Arsenal-At-Large, Base YR — $24.1M (Department of Defense)
- Custodial Services, Arsenal-At-Large — $20.2M (Department of Defense)
- 200508!500266!2100!w15qkn!tacom - Picatinny !w15qkn05c1155 !A!N! !Y! ! !20041210!20051231!085647949!085647949!085647949!n!employment Horizons Inc !10 Ridgedale AVE !cedar Knolls !nj!07927!58410!027!34!picatinny Arsenal !morris !NEW Jersey!+000000504348!n!n!000015161448!s201!custodial - Janitorial Services !S1 !services !000 !* !561720!E! !3! ! ! ! ! !20200930!B! ! !n!z!b!u!j!1!001!n!5a!c!n!z! ! !Y!D!N! ! ! ! ! !a!a!000!a!b!n! ! ! ! ! ! !0001! ! — $15.6M (Department of Defense)
- Custodial, Grounds Maintenance, Refuse Recycle, and Firebreak Maintenance for Picatinny Arsenal — $6.6M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)