DoD Spends $34.8M on Restroom Cleaning Services with Power Works Industries, Inc
Contract Overview
Contract Amount: $34,801,213 ($34.8M)
Contractor: Power Works Industries, Inc
Awarding Agency: Department of Defense
Start Date: 2021-03-01
End Date: 2026-02-28
Contract Duration: 1,825 days
Daily Burn Rate: $19.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RESTROOM CLEANING
Place of Performance
Location: FORT BENNING, CHATTAHOOCHEE County, GEORGIA, 31905
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $34.8 million to POWER WORKS INDUSTRIES, INC for work described as: RESTROOM CLEANING Key points: 1. Significant contract value of $34.8 million for janitorial services. 2. Sole-source award indicates limited competition, potentially impacting price discovery. 3. Contract duration of 5 years raises questions about long-term value and flexibility. 4. The 'GA' status suggests a General Services Administration (GSA) schedule, which can offer competitive pricing but may not always be the lowest.
Value Assessment
Rating: fair
The contract's firm fixed price structure provides cost certainty. However, without competitive bidding, it's difficult to assess if the $34.8 million price represents optimal value compared to market rates for similar janitorial services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not available for competition, suggesting a sole-source award. This limits price discovery and may lead to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition for a $34.8 million contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers are funding a significant contract for essential but non-specialized services. The duration of the contract means potential for price increases or service quality issues over five years without re-evaluation. Lack of transparency in the sole-source award process can erode public trust in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of clear justification for sole-source
Positive Signals
- Firm fixed price contract provides cost certainty
Sector Analysis
The janitorial services sector is highly competitive with numerous small and large businesses. A $34.8 million contract for these services is substantial and typically awarded through competitive processes to ensure best value.
Small Business Impact
The contract does not indicate any specific set-asides for small businesses. Given the large contract value, it's possible smaller, specialized firms were excluded due to the sole-source nature of the award.
Oversight & Accountability
The sole-source nature of this contract warrants further oversight to ensure the price is fair and reasonable and that the government received adequate justification for foregoing competition.
Related Government Programs
- Janitorial Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Long contract duration
- Potential for inflated pricing
- Limited oversight on sole-source justification
- No small business participation noted
Tags
janitorial-services, department-of-defense, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.8 million to POWER WORKS INDUSTRIES, INC. RESTROOM CLEANING
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 $34.8 million.
What is the period of performance?
Start: 2021-03-01. End: 2026-02-28.
What is the justification for awarding this $34.8 million restroom cleaning contract on a sole-source basis, and what steps were taken to ensure fair pricing?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source award. Without further documentation, the specific justification is unknown. Typically, sole-source awards require extensive justification, such as unique capabilities or urgent needs. The absence of competition makes it difficult to ascertain if fair pricing was achieved, as market forces were not leveraged.
Given the long duration (5 years) and significant value ($34.8M), what are the primary risks associated with this contract for the Department of Defense?
The primary risks include potential cost escalation over the contract's life, even with a fixed price, if market conditions change significantly. There's also a risk of service quality degradation without competitive pressure. Furthermore, the government is locked into a single provider, limiting its ability to adopt newer, potentially more efficient cleaning technologies or methods that might emerge.
How effective is a sole-source contract for a common service like restroom cleaning in achieving the government's objectives for value and efficiency?
Sole-source contracts for common services like restroom cleaning are generally considered less effective in achieving optimal value and efficiency compared to competitive awards. Competition drives down prices and encourages innovation. While a sole-source award might offer administrative simplicity, it sacrifices the benefits of market forces, potentially leading to higher costs and less incentive for the contractor to maximize efficiency or service quality.
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: W911SF21R0006
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: $38,192,285
Exercised Options: $37,594,905
Current Obligation: $34,801,213
Actual Outlays: $7,602,659
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-03-01
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2025-12-16
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