DoD's $27.8M Janitorial Services Contract with Power Works Industries Faces Scrutiny for Lack of Competition

Contract Overview

Contract Amount: $27,847,377 ($27.8M)

Contractor: Power Works Industries, Inc

Awarding Agency: Department of Defense

Start Date: 2017-01-01

End Date: 2021-02-28

Contract Duration: 1,519 days

Daily Burn Rate: $18.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF BASIC CUSTODIAL SERVICES

Place of Performance

Location: FORT BENNING, CHATTAHOOCHEE County, GEORGIA, 31905

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $27.8 million to POWER WORKS INDUSTRIES, INC for work described as: IGF::OT::IGF BASIC CUSTODIAL SERVICES Key points: 1. The contract awarded to Power Works Industries, Inc. for custodial services represents a significant expenditure of $27.8 million. 2. The absence of competition for this contract raises concerns about potential overpricing and reduced value for taxpayers. 3. The 'NOT AVAILABLE FOR COMPETITION' status suggests a sole-source award, limiting market-driven price discovery. 4. The sector is janitorial services, a common area for government contracts, making the lack of competition notable.

Value Assessment

Rating: questionable

The contract's value of $27.8 million for janitorial services over approximately four years needs comparison against similar government contracts. Without competitive bidding, it's difficult to ascertain if the pricing is fair market value.

Cost Per Unit: $18,333 (average annual cost)

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis ('NOT AVAILABLE FOR COMPETITION'), which significantly limits price discovery. This approach bypasses the competitive process, potentially leading to higher costs for the government.

Taxpayer Impact: The lack of competition means taxpayers may be paying more than necessary for these essential custodial services, as market forces are not driving down the price.

Public Impact

Taxpayers may be overpaying for basic custodial services due to the absence of competitive bidding. The Department of Defense is spending nearly $28 million on janitorial services without exploring multiple vendor options. The long duration of the contract (over 4 years) further entrenches the lack of competition and potential for inflated costs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Sole-source award

Positive Signals

Contract awarded to a single vendor
Services provided to Department of Defense

Sector Analysis

The janitorial services sector is characterized by numerous small and medium-sized businesses capable of providing these services. Government contracts in this area typically see robust competition, making this sole-source award unusual and potentially inefficient.

Small Business Impact

The data does not indicate whether Power Works Industries, Inc. is a small business. However, the lack of competition for this large contract suggests that opportunities for small businesses to bid on and win such contracts may have been missed.

Oversight & Accountability

The sole-source nature of this contract warrants closer oversight to ensure that the pricing remains reasonable and that the services delivered meet the required standards. Accountability is reduced when competition is absent.

Related Government Programs

Janitorial Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Sole-source award raises transparency concerns
Limited oversight due to absence of market pressure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.8 million to POWER WORKS INDUSTRIES, INC. IGF::OT::IGF BASIC CUSTODIAL SERVICES

Who is the contractor on this award?

The obligated recipient is POWER WORKS INDUSTRIES, 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 $27.8 million.

What is the period of performance?

Start: 2017-01-01. End: 2021-02-28.

What justification was provided for awarding this janitorial services contract on a sole-source basis, and were alternative competitive strategies considered?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. A thorough review would require access to the contract file to understand the specific justification, such as urgency, unique capabilities, or lack of market availability. Without this information, it's impossible to confirm if alternative competitive strategies were adequately explored or if the sole-source determination was fully justified.

How does the per-unit cost of $18,333 for custodial services compare to industry benchmarks for similar government contracts, especially those awarded competitively?

The average annual cost of $18,333 per contract (assuming 'br' represents average annual cost) needs to be benchmarked against similar janitorial service contracts, particularly those awarded competitively by the Department of Defense or other federal agencies. Without competitive data, it's challenging to definitively assess if this rate is fair. A higher-than-average cost would indicate potential overpricing due to the lack of competition.

What mechanisms are in place to ensure the quality and effectiveness of custodial services provided by Power Works Industries, Inc., given the absence of competitive pressure?

With a sole-source contract, quality assurance and performance monitoring become even more critical. The Department of the Army should have robust inspection protocols and performance metrics in place to ensure the contractor meets all service level agreements. Regular performance reviews and clear channels for addressing deficiencies are essential to maintain service effectiveness and taxpayer value in the absence of competitive incentives.

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: W911SF16R0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2600 CROSS COUNTRY DR BLDG A, COLUMBUS, GA, 31906

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: $44,199,583

Exercised Options: $44,199,583

Current Obligation: $27,847,377

Actual Outlays: $997,456

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline