Army awards $18.6M janitorial contract to Allied Health Care Services for base-wide services in Pennsylvania

Contract Overview

Contract Amount: $18,592,088 ($18.6M)

Contractor: Allied Health Care Services

Awarding Agency: Department of Defense

Start Date: 2021-12-29

End Date: 2026-12-31

Contract Duration: 1,828 days

Daily Burn Rate: $10.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE-WIDE JANITORIAL SERVICES.

Place of Performance

Location: TOBYHANNA, MONROE County, PENNSYLVANIA, 18466

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $18.6 million to ALLIED HEALTH CARE SERVICES for work described as: BASE-WIDE JANITORIAL SERVICES. Key points: 1. Contract value appears reasonable for a multi-year, base-wide janitorial service requirement. 2. Limited competition due to sole-source award raises concerns about potential overpricing and reduced value. 3. The firm-fixed-price structure shifts performance risk to the contractor. 4. Contract duration of approximately five years provides stability for service delivery. 5. The contractor's track record and past performance will be critical indicators of success. 6. Geographic concentration in Pennsylvania limits broader market testing.

Value Assessment

Rating: fair

The contract value of $18.6 million over approximately five years for base-wide janitorial services suggests an average annual cost of $3.7 million. Benchmarking this against similar large-scale base maintenance contracts is difficult without more specific service details (e.g., square footage, frequency of cleaning, specific tasks). However, the lack of competition makes a precise value-for-money assessment challenging. The firm-fixed-price contract type implies that the contractor bears the risk of cost overruns, which can sometimes lead to higher initial pricing to compensate for that risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not publicly competed. The justification for this approach is not provided in the available data. Sole-source awards typically occur when only one vendor can meet the requirement, often due to unique capabilities, existing infrastructure, or urgent needs. The absence of a competitive bidding process means that the government did not benefit from multiple offers, which could have driven down prices and spurred innovation.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive pressure. Without competing offers, it is harder to ensure the government is receiving the best possible price for these essential services.

Public Impact

Military personnel and civilian staff on the Army base will benefit from a clean and sanitary working and living environment. Essential janitorial and cleaning services will be delivered across the entire base. The primary geographic impact is concentrated in Pennsylvania, where the Army base is located. The contract supports jobs within the janitorial services industry, likely benefiting the local workforce in Pennsylvania.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs than a competed contract.
Sole-source justification needs further review to ensure necessity.
Performance monitoring is crucial to ensure service quality meets standards.
Contract duration could lock in potentially suboptimal pricing if not managed effectively.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Contract duration provides service continuity.
Focus on essential base services ensures operational readiness.

Sector Analysis

The janitorial services sector is a mature and competitive market, typically characterized by a mix of large national providers and numerous smaller, regional businesses. Federal contracts for these services are common across various agencies and installations. Spending in this category is generally considered operational expenditure. While specific market size data for federal janitorial services is not readily available, it represents a significant portion of the facilities maintenance budget for government entities. This contract fits within the broader facilities support services category.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The award to Allied Health Care Services, a single entity, suggests it is likely a larger firm. Without specific set-aside provisions or mandated subcontracting goals, the direct impact on the small business ecosystem for janitorial services in the region may be limited, unless the prime contractor voluntarily engages small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and their representatives (CORs) within the Department of the Army. Performance standards and quality control measures outlined in the contract statement of work would be used to monitor the contractor's adherence to requirements. Transparency is generally maintained through contract databases like FPDS, although the justification for sole-source awards can sometimes be less detailed publicly. Inspector General (IG) jurisdiction would apply if significant fraud, waste, or abuse were suspected.

Related Government Programs

Base Operations Support (BOS)
Facilities Maintenance Contracts
Janitorial and Cleaning Services
Department of Defense Service Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for overpricing due to limited competition.
Performance quality dependent on contractor execution and oversight.
Contract value requires further benchmarking against market rates.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to ALLIED HEALTH CARE SERVICES. BASE-WIDE JANITORIAL SERVICES.

Who is the contractor on this award?

The obligated recipient is ALLIED HEALTH CARE SERVICES.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $18.6 million.

What is the period of performance?

Start: 2021-12-29. End: 2026-12-31.

What is the track record of Allied Health Care Services in performing similar large-scale janitorial contracts for the federal government?

Assessing the track record of Allied Health Care Services is crucial for understanding their capability to fulfill this $18.6 million contract. Information regarding their past performance on similar federal contracts, including the size, scope, and duration of those engagements, would provide insight into their reliability, quality of service, and ability to manage complex requirements. A review of past performance evaluations, if available in federal databases or through agency records, would indicate whether they have a history of successful delivery, timely completion, and adherence to contract terms. Any documented instances of poor performance, contract disputes, or termination for default would represent significant risk factors for this current award.

How does the annual cost of this contract compare to industry benchmarks for base-wide janitorial services?

The annual cost for this contract averages approximately $3.7 million ($18.6M / ~5 years). Benchmarking this figure against industry standards for base-wide janitorial services requires detailed comparison points, such as the square footage of facilities cleaned, the frequency and scope of cleaning tasks (e.g., daily, weekly, deep cleaning), specific service level agreements (SLAs), and the types of facilities (e.g., barracks, administrative buildings, maintenance areas). Without this granular data, a precise comparison is difficult. However, given the sole-source nature of the award, there's a heightened risk that the price may not reflect the most competitive market rate. A thorough benchmark would involve analyzing pricing data from similar-sized contracts awarded competitively in comparable geographic regions.

What are the specific risks associated with a sole-source award for essential base janitorial services?

The primary risk associated with a sole-source award for essential base janitorial services is the potential for inflated pricing due to the lack of competitive pressure. Without multiple bidders vying for the contract, the government may not achieve the best possible value for its expenditure. Additionally, sole-source awards can sometimes indicate a lack of market research or an over-reliance on a single provider, which could limit flexibility and innovation. There's also a risk that the chosen contractor, knowing they are the only option, might be less motivated to maintain high service quality or control costs effectively over the contract's duration. Robust performance monitoring and clear contract terms are essential to mitigate these risks.

What performance metrics and oversight mechanisms are in place to ensure the quality of janitorial services delivered?

The effectiveness of this contract hinges on robust performance metrics and oversight. The contract statement of work (SOW) should clearly define specific, measurable, achievable, relevant, and time-bound (SMART) performance standards for all janitorial tasks. These metrics might include cleanliness ratings, response times for reported issues, adherence to safety protocols, and proper waste management. Oversight is typically managed by a Contracting Officer's Representative (COR) who is responsible for monitoring contractor performance, conducting inspections, and ensuring compliance with the SOW. Regular performance reviews, quality assurance checks, and a clear process for addressing deficiencies or non-compliance are critical to ensuring the government receives the contracted services satisfactorily.

How does this contract's duration and value compare to historical spending patterns for janitorial services at this specific Army base or similar installations?

To assess this contract's duration and value against historical patterns, one would need access to historical spending data for janitorial services at this particular Army base or comparable installations. This analysis would involve comparing the current $18.6 million, approximately five-year contract against previous contracts for similar services, noting any trends in contract value, duration, and contractor. Significant deviations from historical spending could indicate changes in service requirements, inflation, market shifts, or potentially less favorable pricing due to the sole-source award. Understanding these historical trends provides context for evaluating whether the current contract represents a reasonable investment and aligns with established procurement practices for base maintenance.

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: W25G1V22R0014

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 475 MORGAN HWY, SCRANTON, PA, 18508

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: $18,592,088

Exercised Options: $18,592,088

Current Obligation: $18,592,088

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline