DoD Awards $24M Janitorial Services Contract to Employment Horizons Inc. for 5 Years
Contract Overview
Contract Amount: $24,086,972 ($24.1M)
Contractor: Employment Horizons Inc
Awarding Agency: Department of Defense
Start Date: 2020-03-30
End Date: 2025-03-31
Contract Duration: 1,827 days
Daily Burn Rate: $13.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 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 $24.1 million to EMPLOYMENT HORIZONS INC for work described as: 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 over a 5-year period. 3. Potential for higher costs due to lack of competitive bidding. 4. The sector is facility support services, a common area for government contracts.
Value Assessment
Rating: fair
The contract value of $24M over 5 years averages $4.8M annually. Benchmarking against similar large-scale custodial contracts is difficult without more data on scope and location, but this appears to be a significant award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these services, impacting taxpayer funds.
Public Impact
Taxpayers may be overpaying for janitorial services due to limited competition. The long-term nature of the contract (5 years) locks in current pricing. Potential impact on local employment in New Jersey where the vendor is based.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Long contract duration
Positive Signals
- Consistent service provider for a critical function
- Potential for specialized services from a dedicated vendor
Sector Analysis
This contract falls under facility support services, specifically janitorial services. Government spending in this sector is consistent, but competition typically drives down prices. The $4.8M annual spend is high for this service category.
Small Business Impact
The data indicates the awardee is 'EMPLOYMENT HORIZONS INC.' Further investigation is needed to determine if this is a small business and if subcontracting opportunities exist for other small businesses.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' status warrants closer oversight to ensure the justification for limited competition is valid and that the pricing is reasonable.
Related Government Programs
- Janitorial Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Potential for cost overruns
- Lack of transparency in award justification
- Long-term commitment without competitive re-evaluation
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 $24.1 million to EMPLOYMENT HORIZONS INC. 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 $24.1 million.
What is the period of performance?
Start: 2020-03-30. End: 2025-03-31.
What is the specific justification for awarding this contract on a limited or sole-source basis?
The justification for limited competition is crucial for understanding why a competitive process was not pursued. This could be due to specialized capabilities, urgent needs, or existing infrastructure. Without this justification, it's difficult to assess if the government received the best possible value or if alternative solutions were overlooked.
How does the pricing compare to industry benchmarks for similar-sized facilities and service scopes?
Benchmarking the $24M contract against similar janitorial service contracts is essential for value assessment. Factors like square footage, frequency of service, specific cleaning requirements, and geographic location influence pricing. Without this comparison, it's hard to determine if the $4.8M annual cost is competitive or inflated due to the lack of bidding.
What performance metrics are in place to ensure the quality and effectiveness of the custodial services provided?
Effective oversight requires clear performance metrics and service level agreements. Understanding these metrics will reveal how the Department of the Army ensures the quality of services rendered by Employment Horizons Inc. This includes tracking response times, cleanliness standards, and client satisfaction to ensure the contract delivers on its objectives.
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: $24,089,072
Exercised Options: $24,089,072
Current Obligation: $24,086,972
Actual Outlays: $2,385,144
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-03-30
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2025-03-06
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