Army Food Program contract awarded to Employment Source Inc. for janitorial services at Fort Bragg

Contract Overview

Contract Amount: $6,974,353 ($7.0M)

Contractor: Employment Source Inc

Awarding Agency: Department of Defense

Start Date: 2025-06-01

End Date: 2026-05-30

Contract Duration: 363 days

Daily Burn Rate: $19.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SUPPORTS FORT BRAGG, NC REQUIREMENT TO MEET THE DFA NEEDS AT DESIGNATED DFACS IN SUPPORT OF THE ASC AND LRC UNDER THE ARMY FOOD PROGRAM. THE REQUIREMENT WILL HAVE A 5-YEAR ORDERING PERIOD AND THE POTENTIAL FOR A SIX (6) MONTH EXTENSION IAW 52.217-8.

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $7.0 million to EMPLOYMENT SOURCE INC for work described as: SUPPORTS FORT BRAGG, NC REQUIREMENT TO MEET THE DFA NEEDS AT DESIGNATED DFACS IN SUPPORT OF THE ASC AND LRC UNDER THE ARMY FOOD PROGRAM. THE REQUIREMENT WILL HAVE A 5-YEAR ORDERING PERIOD AND THE POTENTIAL FOR A SIX (6) MONTH EXTENSION IAW 52.217-8. Key points: 1. Contract aims to support Fort Bragg's dining facilities for the Army Food Program. 2. The contract has a 5-year ordering period with a potential 6-month extension. 3. Services include janitorial support for designated dining facilities. 4. The contract is a Firm Fixed Price type, indicating predictable costs. 5. The award was not competed, raising questions about potential cost savings. 6. The contract value is approximately $6.97 million over its initial term.

Value Assessment

Rating: questionable

The contract value of approximately $6.97 million over five years for janitorial services at Fort Bragg appears to be within a reasonable range for a large military installation. However, without comparable contract data for similar services at other Army bases or for similar scope, a precise value-for-money assessment is difficult. The firm fixed-price structure provides cost certainty, but the lack of competition means there's no direct benchmark to assess if the price is truly competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other vendors. The data indicates it was 'NOT AVAILABLE FOR COMPETITION.' This approach can be justified for specific reasons, such as unique capabilities or urgent needs, but it limits the government's ability to leverage market competition to secure the best possible pricing and service terms.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from competitive pricing, potentially leading to higher costs than if multiple bids were solicited.

Public Impact

Service members and personnel at Fort Bragg will benefit from maintained cleanliness in dining facilities. The contract ensures the operational readiness of designated dining facilities (DFACs) supporting the Army Food Program. The primary geographic impact is localized to Fort Bragg, North Carolina. The contract supports the workforce of Employment Source Inc., providing employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Potential for cost overruns if scope expands beyond initial estimates without competitive re-evaluation.
Limited transparency into the justification for sole-source award.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Supports essential services for military personnel at a major installation.
Clear ordering period and extension clause.

Sector Analysis

The janitorial services sector is a mature and competitive market. For federal contracts, the General Services Administration (GSA) often facilitates procurement, and many contracts are set aside for small businesses. The North American Industry Classification System (NAICS) code 561720 (Janitorial Services) covers a broad range of cleaning services. While this specific contract is for a military installation, the overall market for janitorial services is characterized by a mix of large and small providers, with pricing influenced by labor costs, service scope, and geographic location.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. The award to Employment Source Inc. (a company name that does not inherently suggest size) suggests it may not be a small business, or if it is, the contract was not specifically designated for small business participation. This means opportunities for small businesses to participate in this specific contract are likely limited unless they are part of the prime contractor's supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices at Fort Bragg. The contract's performance will likely be monitored through regular inspections and performance reviews. While specific Inspector General (IG) jurisdiction isn't detailed, the DoD IG generally oversees all DoD contracts for waste, fraud, and abuse. Transparency is limited due to the sole-source nature, but contract award details are typically available through federal procurement databases.

Related Government Programs

Army Food Program
Fort Bragg Support Services
Base Operations Support Contracts
Department of Defense Facilities Maintenance

Risk Flags

Sole-source award lacks competitive pricing.
Potential for unbenchmarked costs.
Limited public information on justification for sole-source.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.0 million to EMPLOYMENT SOURCE INC. SUPPORTS FORT BRAGG, NC REQUIREMENT TO MEET THE DFA NEEDS AT DESIGNATED DFACS IN SUPPORT OF THE ASC AND LRC UNDER THE ARMY FOOD PROGRAM. THE REQUIREMENT WILL HAVE A 5-YEAR ORDERING PERIOD AND THE POTENTIAL FOR A SIX (6) MONTH EXTENSION IAW 52.217-8.

Who is the contractor on this award?

The obligated recipient is EMPLOYMENT SOURCE 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 $7.0 million.

What is the period of performance?

Start: 2025-06-01. End: 2026-05-30.

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

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. However, the specific justification (e.g., urgent need, unique capability, incumbent advantage, or lack of market research) is not detailed in the provided information. Typically, sole-source justifications are documented by the contracting agency and may include reasons such as the unavailability of other sources, a critical need that cannot be met through competition, or a follow-on contract where the original source is the only viable option. Without this documentation, it's difficult to fully assess the necessity of the sole-source approach.

How does the awarded price compare to market rates for similar janitorial services at large military installations?

The contract value is approximately $6.97 million over an initial 5-year period, averaging about $1.39 million per year. Benchmarking this against similar contracts is challenging without access to a comprehensive database of janitorial service contracts at comparable military installations (e.g., other large Army bases). Factors like the specific scope of services (e.g., frequency of cleaning, types of facilities covered, specialized cleaning requirements), labor costs in North Carolina, and the exact square footage of the facilities would significantly influence pricing. The lack of competition further complicates a direct price comparison, as there's no market-driven benchmark available for this specific award.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, contracts for janitorial services would include metrics related to cleaning standards, response times for issues, adherence to schedules, and customer satisfaction. These are crucial for ensuring the quality and effectiveness of the services delivered. The absence of this information in the summary suggests it would be detailed within the full contract documentation and performance work statement (PWS).

What is the track record of Employment Source Inc. in performing similar government contracts?

Information regarding the track record of Employment Source Inc. in performing similar government contracts is not provided in the summary data. A thorough assessment would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the number and type of previous federal awards, and any history of contract disputes or performance issues. Without this background, it is difficult to gauge the contractor's reliability and past success in fulfilling government requirements.

What is the potential impact of the 6-month extension clause on the total contract value and duration?

The contract has an initial 5-year ordering period (approximately 60 months) with the potential for a six (6) month extension under FAR 52.217-8. If exercised, this extension would increase the total contract duration to approximately 66 months. The total contract value would also increase proportionally based on the average annual cost. Assuming the average annual cost of $1.39 million, the 6-month extension could add approximately $695,000 to the total contract expenditure, bringing the potential maximum value closer to $7.67 million over the full 66-month period.

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: W5168W25R0029

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 600 AMES ST, FAYETTEVILLE, NC, 28301

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

Financial Breakdown

Contract Ceiling: $9,124,113

Exercised Options: $9,124,113

Current Obligation: $6,974,353

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W5168W25DA010

IDV Type: IDC

Timeline