DoD's $12.4M Janitorial Services Contract Awarded to Easter Seals Alabama Raises Value Questions
Contract Overview
Contract Amount: $12,406,048 ($12.4M)
Contractor: Easter Seals Alabama, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-10-01
End Date: 2026-09-30
Contract Duration: 1,460 days
Daily Burn Rate: $8.5K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: JANITORIAL SERVICES - BASE YEAR
Place of Performance
Location: ANNISTON, CALHOUN County, ALABAMA, 36201
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $12.4 million to EASTER SEALS ALABAMA, INC. for work described as: JANITORIAL SERVICES - BASE YEAR Key points: 1. The contract's value appears high relative to the scope of janitorial services, warranting further scrutiny. 2. A lack of competition suggests potential for suboptimal pricing and reduced taxpayer value. 3. The firm-fixed-price structure offers some cost certainty but may not incentivize efficiency. 4. Performance context is limited without details on service levels and quality metrics. 5. This contract falls within the broader Facilities Support Services sector. 6. The award to a single entity without open competition warrants a closer look at justification.
Value Assessment
Rating: questionable
The base year value of $12.4 million for janitorial services seems exceptionally high, especially when compared to industry benchmarks for similar contracts. Without detailed service requirements, it's difficult to definitively assess value, but the price per square foot or per employee served would likely be significantly above average. The lack of competitive bidding further compounds concerns about whether the government secured the best possible price and value for these essential services. Further analysis of the specific deliverables and the justification for the non-competitive award is needed to understand this valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed under the simplified acquisition procedures and was awarded as a sole-source definitive contract. The specific justification for this sole-source award is not provided in the data. A sole-source award means that only one contractor was solicited and considered, significantly limiting the opportunity for price discovery and potentially leading to higher costs for the government. The absence of competition means that market forces were not leveraged to drive down prices or improve service offerings.
Taxpayer Impact: The lack of competition means taxpayers may have paid a premium for these janitorial services. Without a competitive bidding process, there is less assurance that the selected contractor offered the most cost-effective solution available in the market.
Public Impact
The primary beneficiaries are the personnel and facilities within the Department of the Army that require janitorial services. The contract ensures the maintenance of sanitary and clean environments for military installations. The geographic impact is concentrated in Alabama, where Easter Seals Alabama, Inc. is located and presumably where services are rendered. While not explicitly stated, the contract likely supports local employment through the janitorial staff employed by the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value for janitorial services raises concerns about potential overspending.
- Sole-source award limits competitive pressure, potentially inflating costs.
- Lack of detailed performance metrics makes it difficult to assess service quality and efficiency.
- Firm-fixed-price contract may not incentivize cost savings or innovation by the contractor.
Positive Signals
- Award to Easter Seals Alabama, Inc. may support a mission-driven organization.
- Definitive contract provides a clear framework for service delivery over its term.
- Firm-fixed-price contract offers budget certainty for the Department of the Army.
Sector Analysis
This contract falls under the Facilities Support Services sector, specifically janitorial and cleaning services. This is a mature market with numerous providers, ranging from large facility management companies to smaller, specialized cleaning businesses. The federal government is a significant consumer of these services across various agencies and installations. Benchmarking this contract's value against other federal janitorial contracts or private sector equivalents would be crucial for a comprehensive value assessment, especially given the high reported value.
Small Business Impact
The data indicates that this contract was not awarded to a small business (sb: false) and there is no indication of small business set-aside provisions (ss: false). Therefore, this contract does not directly contribute to small business contracting goals. There is no information provided regarding subcontracting plans, so the impact on the small business ecosystem through subcontracting is unknown.
Oversight & Accountability
Oversight for this contract would typically fall under the contracting officer and the relevant Department of the Army contracting and program management offices. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is limited by the sole-source nature of the award and the lack of publicly available justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Facilities Maintenance Contracts
- Base Operations Support Contracts
- Government Cleaning Services
- Department of Defense Service Contracts
- Janitorial and Sanitation Services
Risk Flags
- High contract value for janitorial services
- Sole-source award without clear justification
- Lack of competitive bidding
- Potential for overpayment
- Limited transparency on performance metrics
Tags
janitorial-services, department-of-defense, department-of-the-army, alabama, sole-source, firm-fixed-price, facilities-support, non-competed, large-contract, service-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.4 million to EASTER SEALS ALABAMA, INC.. JANITORIAL SERVICES - BASE YEAR
Who is the contractor on this award?
The obligated recipient is EASTER SEALS ALABAMA, 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 $12.4 million.
What is the period of performance?
Start: 2022-10-01. End: 2026-09-30.
What specific janitorial services are included in this $12.4 million contract, and what are the performance standards?
The provided data identifies the contract as 'JANITORIAL SERVICES - BASE YEAR' with a North American Industry Classification System (NAICS) code of 561720 for Janitorial Services. However, the specific details of the services rendered, such as square footage to be cleaned, frequency of cleaning, types of facilities (e.g., offices, barracks, restrooms), and specialized cleaning requirements (e.g., hazardous material cleanup), are not included. Similarly, the performance standards, key performance indicators (KPIs), and quality assurance surveillance plan (QASP) that would define acceptable service levels and measure contractor performance are absent from this summary data. Understanding these specifics is critical for evaluating the contract's value and necessity.
What was the justification for awarding this $12.4 million janitorial contract on a sole-source basis?
The data explicitly states the contract was 'NOT COMPETED UNDER SAP' and is a 'SOLE-SOURCE' award. Federal procurement regulations typically require full and open competition unless specific exceptions apply, such as the availability of only one responsible source, urgent and compelling needs, or specific statutory authorities. Without the official justification document (e.g., a Justification and Approval for Other Than Full and Open Competition - J&A), it is impossible to determine the precise reason the Department of the Army chose not to compete this requirement. This lack of competition is a significant factor in assessing the value for money and potential risks associated with the contract.
How does the $12.4 million base year cost compare to industry benchmarks for janitorial services of similar scope?
Benchmarking this $12.4 million base year cost requires detailed information on the scope of services, including the total square footage covered, the types of facilities cleaned, the frequency of services, and the geographic location. However, as a general estimate, janitorial services can range from $0.05 to $0.50 per square foot per month, depending on the complexity and frequency. For a large installation, this contract value appears exceptionally high, suggesting either a vast area is covered, highly specialized services are required, or the pricing is significantly above market rates. Without more granular data on the service requirements, a precise comparison is difficult, but the initial valuation warrants scrutiny.
What is the track record of Easter Seals Alabama, Inc. in performing large-scale government janitorial contracts?
The provided data identifies Easter Seals Alabama, Inc. as the contractor. While the organization is known for its services to individuals with disabilities, its specific track record in executing large, complex government janitorial contracts is not detailed here. Information regarding past performance on similar federal contracts, client satisfaction ratings, and history of successful contract completion would be necessary to assess their capability and reliability for this specific requirement. Further investigation into their contract history and performance evaluations would be prudent.
What are the potential risks associated with a sole-source award for essential janitorial services?
The primary risks associated with a sole-source award for essential janitorial services include inflated pricing due to the lack of competitive pressure, potential for complacency from the contractor regarding service quality and efficiency, and a reduced incentive for innovation. Taxpayers may bear a higher cost than necessary. Furthermore, if the sole-source contractor experiences performance issues or financial instability, the government may have limited options for remediation or replacement without initiating a new, potentially lengthy, sole-source justification process. This situation can also create a barrier for other capable vendors seeking to enter the market.
Are there any indications of cost savings or efficiencies achieved through this contract's structure or the contractor's approach?
The contract is structured as 'FIRM FIXED PRICE' (FFP), which generally provides cost certainty for the government and shifts the risk of cost overruns to the contractor. This structure can incentivize the contractor to find efficiencies to maximize profit. However, the data does not provide information on whether Easter Seals Alabama, Inc. has implemented specific cost-saving measures or innovative approaches to janitorial services under this contract. Without performance reports or post-award reviews, it is difficult to assess if any efficiencies beyond the standard FFP structure have been realized or if the high initial price negates potential savings.
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 UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: W911KF22R0277
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6300 MCCLELLAN BLVD, ANNISTON, AL, 36206
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: $15,419,792
Exercised Options: $12,406,048
Current Obligation: $12,406,048
Actual Outlays: $2,655,461
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-10-01
Current End Date: 2026-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2025-12-11
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