DoD's $13.7M Janitorial Services Contract Awarded to Khotol Services Corporation Under Sole Source Basis

Contract Overview

Contract Amount: $13,721,037 ($13.7M)

Contractor: Khotol Services Corporation

Awarding Agency: Department of Defense

Start Date: 2004-08-18

End Date: 2010-09-30

Contract Duration: 2,234 days

Daily Burn Rate: $6.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: ROCK ISLAND, ROCK ISLAND County, ILLINOIS, 61299

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $13.7 million to KHOTOL SERVICES CORPORATION for work described as: Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Long contract duration of over 6 years suggests potential for sustained service delivery. 3. Firm Fixed Price contract type provides cost certainty for the government. 4. Service area in Illinois indicates a localized operational focus. 5. No small business set-aside or subcontracting reported, potentially limiting small business participation. 6. Contract awarded in 2004, with services ending in 2010, indicating historical spending.

Value Assessment

Rating: fair

Benchmarking the value of this janitorial services contract is challenging without specific performance metrics or detailed cost breakdowns. The total award amount of $13.7 million over approximately six years suggests an average annual spend of around $2.3 million. This figure needs to be compared against the scale and scope of facilities serviced, the specific services provided (e.g., cleaning frequency, specialized services), and prevailing market rates for similar services in the Illinois region. Given the sole-source nature, it's difficult to definitively assess if the pricing represents optimal value for money without competitive bids.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that the Department of Defense did not solicit bids from multiple potential contractors. This approach is typically used when only one contractor is capable of meeting the agency's needs, often due to specialized capabilities, urgent requirements, or existing infrastructure. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices or spurred innovation from multiple vendors.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the absence of competition removes a key incentive for contractors to offer their most competitive pricing.

Public Impact

The primary beneficiaries of this contract are the facilities and personnel within the Department of Defense in Illinois that require janitorial and cleaning services. The services delivered include routine and potentially specialized cleaning to maintain sanitary and operational conditions. The geographic impact is concentrated within Illinois, where the contract was administered. The contract supports jobs within Khotol Services Corporation, contributing to the janitorial services workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Long contract duration without clear performance incentives could lead to complacency.
Lack of small business participation may not fully leverage the small business industrial base.

Positive Signals

Firm Fixed Price contract provides budget certainty.
Sustained contract over several years suggests consistent service delivery and contractor reliability.
Focus on janitorial services addresses essential facility maintenance needs.

Sector Analysis

Janitorial services fall under the broader facilities maintenance and management sector. This sector is characterized by a mix of large, established companies and numerous small businesses. Government contracts for these services are common across various agencies to maintain buildings, grounds, and related infrastructure. The market size for government janitorial services is substantial, driven by the vast real estate holdings of federal agencies. This specific contract represents a portion of the overall spending within this category for the Department of Defense.

Small Business Impact

This contract does not appear to have included a small business set-aside, nor is there an indication of subcontracting requirements for small businesses. This means that the primary contract was awarded without specific provisions to ensure small business participation. Consequently, the potential benefits to the small business ecosystem, such as opportunities for subcontracting or direct prime contracting, were likely limited for this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and administrative contracting officer within the Department of the Army. Performance monitoring, invoice review, and ensuring compliance with contract terms are standard oversight mechanisms. Transparency is generally facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Schedules for Facilities Maintenance
Department of Defense Facilities Management Contracts
Commercial Cleaning Services Contracts
Base Operations Support (BOS) Contracts

Risk Flags

Sole-source award limits competition.
Lack of performance metrics in summary data hinders value assessment.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.7 million to KHOTOL SERVICES CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is KHOTOL SERVICES CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.7 million.

What is the period of performance?

Start: 2004-08-18. End: 2010-09-30.

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

The provided data indicates the contract was awarded as 'NOT COMPETED,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the provided data. Typically, sole-source justifications are based on factors such as the existence of only one responsible source capable of providing the required services, urgent and compelling needs where competition is not feasible, or specific national security requirements. Without further documentation from the awarding agency (Department of Defense/Army), the precise reason remains unknown. This lack of competition means that potential cost savings or service enhancements that might have arisen from a competitive bidding process were not realized.

How does the total contract value of $13.7 million compare to similar janitorial service contracts for the Department of Defense?

Comparing the $13.7 million total award value requires context regarding the contract's duration, scope, and geographic location. This contract spanned approximately 6 years (August 2004 to September 2010), averaging about $2.3 million annually. To benchmark effectively, one would need to analyze other DoD janitorial contracts of similar duration and service complexity within the same region or comparable military installations. Larger installations or those requiring highly specialized cleaning (e.g., cleanrooms, sensitive labs) would naturally command higher values. Conversely, smaller facilities or contracts with less frequent service might be significantly lower. Without access to a comprehensive database of comparable DoD janitorial contracts with detailed scope information, a precise comparison is difficult, but the annual average suggests a substantial service requirement.

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

The provided data does not include details on the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this janitorial services contract. In a typical government contract of this nature, KPIs and SLAs would define the expected standards of service, such as cleaning frequency, response times for specific issues, cleanliness ratings, and customer satisfaction metrics. These would be crucial for evaluating the contractor's performance and ensuring the government received the value it paid for. The absence of this information in the summary data makes it impossible to assess the quality or effectiveness of the services rendered by Khotol Services Corporation under this award.

What is the track record of Khotol Services Corporation in performing federal contracts, particularly for janitorial services?

Khotol Services Corporation was awarded this $13.7 million janitorial services contract by the Department of the Army. The contract ran from August 2004 to September 2010, indicating a significant period of service delivery. While the data doesn't detail performance outcomes, the duration suggests a level of capability and reliability in fulfilling the contract requirements. To fully assess their track record, one would need to examine other contracts awarded to Khotol Services Corporation, including their value, duration, agency, and any available performance reviews or past performance information. This would provide a broader picture of their experience and success in the federal contracting space.

Were there any contract modifications or change orders issued during the life of this contract?

The provided data summary does not specify whether any contract modifications or change orders were issued during the 2004-2010 period for this $13.7 million janitorial services contract. Contract modifications are common and can adjust scope, price, or schedule due to evolving requirements, unforeseen circumstances, or administrative changes. Without access to the detailed contract file or modification history, it's impossible to determine if the final cost or service delivery deviated from the original terms. Such modifications could potentially alter the total value or impact the overall assessment of the contract's execution.

What is the significance of the NAICS code 561720 assigned to this contract?

The North American Industry Classification System (NAICS) code 561720 signifies 'Janitorial Services.' This classification indicates that the primary purpose of the contract was to procure cleaning and maintenance services for buildings and other structures. Companies operating under this NAICS code typically offer a range of services including dusting, sweeping, mopping, vacuuming, restroom cleaning, and trash removal. For the Department of Defense, assigning this code ensures that the procurement process is aligned with industry standards and that the contract is categorized appropriately for statistical and analytical purposes, facilitating comparisons with other similar service contracts across the government.

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 COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Gana-A' YOO, Limited (UEI: 037998499)

Address: FRONT STREET, GALENA, AK, 00

Business Categories: Category Business, HUBZone Firm, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $67,472

Exercised Options: $2,181,133

Current Obligation: $13,721,037

Contract Characteristics

Cost or Pricing Data: YES

Timeline