DoD Awards $18.5M Firm Fixed Price Contract for Custodial Services in Germany
Contract Overview
Contract Amount: $18,466,738 ($18.5M)
Contractor: GEG Gebäudedienste Gmbh
Awarding Agency: Department of Defense
Start Date: 2020-03-16
End Date: 2025-08-31
Contract Duration: 1,994 days
Daily Burn Rate: $9.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CUSTODIAL SERVICES FOR KMC AND BAUMHOLDER.
Plain-Language Summary
Department of Defense obligated $18.5 million to GEG GEBÄUDEDIENSTE GMBH for work described as: CUSTODIAL SERVICES FOR KMC AND BAUMHOLDER. Key points: 1. Contract awarded to GEG GEBÄUDEDIENSTE GMBH for janitorial services. 2. Full and open competition was utilized for this procurement. 3. The contract spans over five years, indicating a long-term need. 4. The firm fixed price structure aims to control costs for the government.
Value Assessment
Rating: good
The contract's firm fixed price structure suggests a clear understanding of service needs and associated costs. Benchmarking against similar custodial service contracts would provide further insight into the pricing's competitiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, allowing all eligible vendors to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The firm fixed price contract aims to provide cost certainty for taxpayers over the contract's duration.
Public Impact
Ensures cleanliness and maintenance of facilities in Germany, supporting military operations. Provides employment opportunities through the awarded vendor. Supports the Department of Defense's infrastructure maintenance requirements abroad.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases if contract terms are not strictly managed.
- Geographic concentration of services could pose logistical risks.
- Vendor performance monitoring is crucial for service quality.
Positive Signals
- Full and open competition likely secured competitive pricing.
- Firm fixed price contract offers cost predictability.
- Long-term contract provides stability for service provision.
Sector Analysis
This contract falls under general services, specifically janitorial services, which are common across many government agencies. Spending benchmarks for custodial services vary significantly by location and scope, but this award appears to be a standard procurement for facility maintenance.
Small Business Impact
The contract was awarded to GEG GEBÄUDEDIENSTE GMBH, a company that may or may not be a small business. The data does not specify if small business participation was a requirement or if any subcontracts were allocated to small businesses.
Oversight & Accountability
The contract award process, utilizing full and open competition, suggests a degree of oversight. Ongoing oversight would involve monitoring vendor performance and adherence to contract terms to ensure service quality and value.
Related Government Programs
- Janitorial Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Vendor performance risk
- Geographic concentration risk
- Potential for scope creep if not managed
- Reliance on a single vendor for critical services
Tags
janitorial-services, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.5 million to GEG GEBÄUDEDIENSTE GMBH. CUSTODIAL SERVICES FOR KMC AND BAUMHOLDER.
Who is the contractor on this award?
The obligated recipient is GEG GEBÄUDEDIENSTE GMBH.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $18.5 million.
What is the period of performance?
Start: 2020-03-16. End: 2025-08-31.
What is the benchmark cost for custodial services of this scope and location?
Benchmarking custodial services is complex due to variations in labor costs, service scope, and facility specifics. However, contracts of this size and duration typically aim for competitive pricing through open competition. Further analysis would require comparing the per-square-foot cost or cost per service hour against similar contracts in the European theater.
What are the risks associated with a firm fixed price contract for services?
Firm fixed price contracts offer cost certainty but can pose risks if the vendor underestimates costs or if unforeseen circumstances arise. The government bears less risk of cost overruns, but the vendor may cut corners on service quality to maintain profitability. Robust performance monitoring is essential to mitigate this.
How effective is full and open competition in ensuring value for custodial services?
Full and open competition is generally highly effective in driving value for custodial services by fostering a competitive bidding environment. This encourages vendors to offer their best pricing and service levels to win the contract. The government benefits from a wider pool of potential providers, increasing the likelihood of securing a cost-effective and high-quality solution.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W564KV20R2003
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: FRIEDRICHSTR. 11, LONSHEIM
Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $18,727,569
Exercised Options: $18,542,114
Current Obligation: $18,466,738
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-03-16
Current End Date: 2025-08-31
Potential End Date: 2025-08-31 00:00:00
Last Modified: 2025-12-31
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