DoD's $8.47M janitorial services contract awarded to Gesher Human Services raises questions about competition and value
Contract Overview
Contract Amount: $8,470,353 ($8.5M)
Contractor: Gesher Human Services
Awarding Agency: Department of Defense
Start Date: 2023-06-30
End Date: 2028-06-30
Contract Duration: 1,827 days
Daily Burn Rate: $4.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: GENERAL CLEANING - DETROIT ARSENAL
Place of Performance
Location: SOUTHFIELD, OAKLAND County, MICHIGAN, 48076
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $8.5 million to GESHER HUMAN SERVICES for work described as: GENERAL CLEANING - DETROIT ARSENAL Key points: 1. The contract's value appears high for janitorial services, necessitating a benchmark comparison. 2. The lack of competition raises concerns about potential overpricing and reduced service quality. 3. The firm-fixed-price structure offers some cost certainty but may not incentivize efficiency. 4. The contract duration of five years (including options) is substantial for a service contract. 5. The award to a single entity without a competitive process warrants scrutiny. 6. The absence of small business set-aside or subcontracting requirements is noted.
Value Assessment
Rating: questionable
The awarded amount of $8.47 million over five years for janitorial services at the Detroit Arsenal seems high when compared to industry benchmarks for similar contracts. Without a competitive bidding process, it is difficult to ascertain if this price represents fair market value or if taxpayers are receiving optimal value for money. Further analysis of the scope of work and service levels is needed to provide a more precise valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This significantly limits price discovery and the opportunity for multiple vendors to offer their services, potentially leading to higher costs for the government. The rationale for a sole-source award should be thoroughly documented and justified.
Taxpayer Impact: A sole-source award means taxpayers did not benefit from competitive pricing, potentially resulting in a higher overall expenditure for these essential services.
Public Impact
The primary beneficiaries are the personnel and operations at the Detroit Arsenal, who will receive janitorial services. The contract ensures the maintenance of a clean and sanitary working environment. The geographic impact is localized to the Detroit Arsenal facility in Michigan. There are potential workforce implications for the contractor, Gesher Human Services, in terms of staffing and employment opportunities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competitive bidding may lead to inflated costs.
- Sole-source award limits transparency and accountability.
- Potential for reduced service quality due to absence of competition.
- Long contract duration without performance review could mask inefficiencies.
Positive Signals
- Firm-fixed-price contract provides cost predictability.
- Contract awarded to an established entity, potentially ensuring service continuity.
Sector Analysis
The janitorial services sector is highly competitive, with numerous providers ranging from small local businesses to large national corporations. Government contracts for these services are typically awarded through competitive solicitations to ensure best value. The market size for government cleaning services is substantial, and contracts often include specific performance standards and requirements. This contract, valued at over $8 million, represents a significant procurement within this sector.
Small Business Impact
This contract was not awarded as a small business set-aside, nor is there any indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this significant janitorial services contract are absent, potentially limiting their access to federal contracting dollars within this sector.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Transparency is limited due to the sole-source nature of the award. Accountability measures would be defined in the contract's performance standards and deliverables, with potential recourse through contract modifications or termination if performance is unsatisfactory. Inspector General jurisdiction may apply if fraud or mismanagement is suspected.
Related Government Programs
- General Services Administration (GSA) Schedules for cleaning services
- Department of Defense Facilities Maintenance Contracts
- Federal Building Maintenance Services
Risk Flags
- Lack of Competition
- Potential for Overpricing
- Limited Transparency
- Unverified Value for Money
Tags
defense, department-of-defense, department-of-the-army, janitorial-services, facilities-maintenance, firm-fixed-price, sole-source, michigan, detroit-arsenal, large-contract, service-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.5 million to GESHER HUMAN SERVICES. GENERAL CLEANING - DETROIT ARSENAL
Who is the contractor on this award?
The obligated recipient is GESHER HUMAN 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 $8.5 million.
What is the period of performance?
Start: 2023-06-30. End: 2028-06-30.
What is the specific scope of work and service level agreement for this janitorial contract?
The provided data indicates the contract is for 'GENERAL CLEANING - DETROIT ARSENAL' and falls under the NAICS code 561720 (Janitorial Services). However, the detailed scope of work, including specific tasks, frequency of services, performance standards, and key performance indicators (KPIs), is not available in the provided data. A comprehensive understanding of the scope is crucial for evaluating the contract's value and appropriateness, especially given the firm-fixed-price structure and sole-source award. Without this detail, it's challenging to benchmark the $8.47 million against industry norms effectively.
What was the justification for awarding this contract on a sole-source basis?
The data explicitly states the contract type as 'NOT AVAILABLE FOR COMPETITION,' which typically signifies a sole-source or limited-source award. The specific justification for this sole-source award is not provided. Government regulations generally require full and open competition unless specific exceptions apply, such as the availability of only one responsible source, or in certain emergency situations. Understanding the documented rationale behind bypassing the competitive process is essential for assessing the legitimacy and fairness of the award and its potential impact on cost and value for taxpayers.
How does the contract's price compare to similar janitorial services contracts awarded by the DoD or other federal agencies?
Benchmarking this $8.47 million contract against similar janitorial services contracts is difficult without more specific details on the scope of work, facility size, and service levels. However, the duration of five years (including options) and the total value suggest a significant service requirement. Typically, janitorial contracts are competed, and the lowest price technically acceptable or best value determination is made. The absence of competition here prevents a direct price comparison, but industry averages for janitorial services per square foot or per employee can serve as a rough guide. Without competitive bids, it's hard to confirm if this price is optimal.
What are the performance metrics and oversight mechanisms in place for this contract?
The provided data indicates a 'FIRM FIXED PRICE' contract type, which implies that the contractor is obligated to perform the specified services for a set price. However, the specific performance metrics, quality assurance surveillance plans (QASPs), or key performance indicators (KPIs) are not detailed. Oversight would typically be managed by a Contracting Officer's Representative (COR) or a similar role within the Department of the Army. The effectiveness of oversight is critical, especially in a sole-source award, to ensure the government receives the contracted services at the agreed-upon quality and that the contractor remains accountable for performance throughout the contract's duration.
Has Gesher Human Services performed similar janitorial services for the federal government previously?
Information regarding Gesher Human Services' prior federal contracting history, specifically for janitorial services, is not included in the provided data. Assessing a contractor's past performance is a standard part of the procurement process, especially when considering competitive bids or sole-source justifications. A review of their track record, including any previous government contracts, client references, and performance evaluations, would be necessary to gauge their capability and reliability in fulfilling this significant janitorial services requirement at the Detroit Arsenal.
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: W56HZV23RL006
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 29699 SOUTHFIELD RD, SOUTHFIELD, MI, 48076
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: $16,591,421
Exercised Options: $9,045,854
Current Obligation: $8,470,353
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-06-30
Current End Date: 2028-06-30
Potential End Date: 2028-06-30 00:00:00
Last Modified: 2025-12-12
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