Fort Hood custodial services contract awarded to Nugate Group LLC for over $34.7 million

Contract Overview

Contract Amount: $34,746,528 ($34.7M)

Contractor: Nugate Group LLC

Awarding Agency: Department of Defense

Start Date: 2021-02-10

End Date: 2026-03-31

Contract Duration: 1,875 days

Daily Burn Rate: $18.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INSTALLATION CUSTODIAL SERVICE FOR DIRECTORATE OF PUBLIC WORKS AT FORT HOOD, TEXAS.

Place of Performance

Location: FORT CAVAZOS, BELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $34.7 million to NUGATE GROUP LLC for work described as: INSTALLATION CUSTODIAL SERVICE FOR DIRECTORATE OF PUBLIC WORKS AT FORT HOOD, TEXAS. Key points: 1. Contract value appears substantial for janitorial services over a 5-year period. 2. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a potentially complex procurement process. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. Performance is for Directorate of Public Works at Fort Hood, Texas. 5. The duration of the contract is over 4 years, indicating a long-term need. 6. Nugate Group LLC is the sole awardee. 7. The North American Industry Classification System (NAICS) code is 561720 for Janitorial Services.

Value Assessment

Rating: fair

The contract value of $34.7 million over approximately 5 years for custodial services at a large military installation like Fort Hood warrants careful benchmarking. Without specific details on the scope of services (e.g., square footage, frequency, specialized cleaning), it's difficult to definitively assess value for money. However, the duration and scale suggest a significant operational requirement. Comparing this to similar large-scale facility maintenance contracts at other military bases or large government facilities would be necessary for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This specific procurement method implies that while the competition was intended to be open, certain sources may have been excluded for reasons not immediately apparent from the provided data. The number of bidders (9) is a positive indicator of some level of competition, but the 'exclusion of sources' clause raises questions about the breadth of the initial competition and whether the most competitive pricing was achieved.

Taxpayer Impact: The exclusion of certain sources, even if justified, could potentially limit the number of truly competitive bids, possibly leading to a higher price for taxpayers than if all potential qualified vendors had participated.

Public Impact

The primary beneficiaries are the personnel and operations at Fort Hood, Texas, who will receive janitorial services. The contract ensures the cleanliness and maintenance of facilities within the Directorate of Public Works. The geographic impact is localized to Fort Hood, Texas. The contract supports jobs within the janitorial services industry, potentially benefiting the local workforce in the vicinity of Fort Hood.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method warrants further investigation to ensure it did not unduly restrict competition.
The substantial contract value over a long period requires ongoing performance monitoring to ensure consistent quality and value.
Lack of specific performance metrics or service level agreements in the provided data makes it difficult to assess contractor performance objectively.

Positive Signals

The contract is Firm Fixed Price, which provides cost certainty for the government.
The award was made after a competitive process involving 9 bidders, indicating some level of market interest.
The contract duration of over 4 years suggests a stable, long-term requirement being met.

Sector Analysis

The janitorial services sector is a significant part of the facilities management industry, supporting the operational readiness of government installations. This contract falls within the broader professional, scientific, and technical services category. Benchmarking against similar contracts for large military bases or government facilities would provide context for the $34.7 million award over five years, which appears to be a substantial but potentially justifiable amount given the scale of Fort Hood.

Small Business Impact

The provided data indicates that small business participation (set-aside or subcontracting) was not a feature of this contract (ss: false, sb: false). This means that opportunities for small businesses to directly bid or to be involved as subcontractors were not explicitly mandated or tracked within this specific award. The impact on the small business ecosystem is therefore neutral to negative, as there was no direct mechanism to promote their involvement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and facility management divisions. Accountability measures would be tied to the performance standards within the Firm Fixed Price contract. Transparency is facilitated by the contract award notice, but detailed performance reports or Inspector General involvement would depend on specific issues arising during the contract's lifecycle.

Related Government Programs

Base Operations Support Services
Facility Maintenance Contracts
Government Cleaning Services
Department of Defense Procurement

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Need for detailed performance metrics to ensure value for money.
Contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.7 million to NUGATE GROUP LLC. INSTALLATION CUSTODIAL SERVICE FOR DIRECTORATE OF PUBLIC WORKS AT FORT HOOD, TEXAS.

Who is the contractor on this award?

The obligated recipient is NUGATE GROUP LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $34.7 million.

What is the period of performance?

Start: 2021-02-10. End: 2026-03-31.

What specific services are included under this custodial contract, and what is the square footage or number of facilities being serviced?

The provided data identifies the contract as 'INSTALLATION CUSTODIAL SERVICE FOR DIRECTORATE OF PUBLIC WORKS AT FORT HOOD, TEXAS' and assigns it the NAICS code 561720 for Janitorial Services. However, it does not detail the specific services (e.g., daily cleaning, deep cleaning, window washing, waste removal) or the precise scope of facilities covered (e.g., total square footage, number of buildings, types of buildings like barracks, offices, training facilities). This level of detail is crucial for a thorough value-for-money assessment and for comparing it against industry benchmarks. Without this information, the $34.7 million price tag remains difficult to contextualize accurately.

What were the specific reasons for excluding certain sources in the 'full and open competition after exclusion of sources' procurement method?

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the competition was intended to be open to all responsible sources, a preliminary step involved excluding certain entities. The reasons for such exclusions can vary widely and might include factors like past performance issues, inability to meet specific technical requirements outlined in the solicitation, or pre-qualification criteria that not all potential bidders met. Understanding these specific exclusion criteria is vital to determine if the competition was genuinely broad or if it inadvertently limited the pool of capable contractors, potentially impacting price discovery and the final award amount for taxpayers.

How does the awarded price of approximately $6.94 million per year compare to industry benchmarks for custodial services at large military installations?

The annual cost of this contract, averaging approximately $6.94 million ($34.7 million / 5 years), needs to be benchmarked against similar contracts. Factors such as the size and type of facilities at Fort Hood, the specific service levels required, labor costs in Texas, and the overall scope of work are critical for a fair comparison. Without access to a database of comparable military base custodial contracts or detailed scope-of-work documents, it's challenging to definitively state if this price represents excellent, good, or fair value. However, for a large installation, this figure could be within a reasonable range, provided the service quality is high and comprehensive.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how is performance being monitored?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) that govern the performance of Nugate Group LLC under this custodial services contract. Effective monitoring of these metrics is essential for ensuring the government receives the quality of service it is paying for and for holding the contractor accountable. Typical KPIs in such contracts might include response times for reported issues, cleanliness scores in inspected areas, and adherence to safety protocols. The absence of this information in the award notice makes it difficult to assess the robustness of the government's oversight and performance management framework for this significant contract.

What is Nugate Group LLC's track record with government contracts, particularly within the Department of Defense?

Information regarding Nugate Group LLC's specific track record with government contracts, especially within the Department of Defense, is not detailed in the provided data. A comprehensive analysis would require reviewing their past performance history, including any awards, contract modifications, past performance evaluations, and any instances of disputes or contract terminations. Understanding their experience with similar-sized contracts and their performance quality in previous roles is crucial for assessing the risk associated with awarding them this substantial, long-term custodial services contract.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 619 N 1ST ST, SAN JOSE, CA, 95112

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $34,746,768

Exercised Options: $34,746,768

Current Obligation: $34,746,528

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline