DoD's $12.8M contract for West Point facilities maintenance awarded to Hospital Housekeeping Systems LLC

Contract Overview

Contract Amount: $12,851,035 ($12.9M)

Contractor: Hospital Housekeeping Systems LLC

Awarding Agency: Department of Defense

Start Date: 2019-03-11

End Date: 2024-03-10

Contract Duration: 1,826 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: O&M BASE YEAR WEST POINT

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10001

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $12.9 million to HOSPITAL HOUSEKEEPING SYSTEMS LLC for work described as: O&M BASE YEAR WEST POINT Key points: 1. Value for money appears reasonable given the scope of services and contract duration. 2. Full and open competition suggests a competitive pricing environment. 3. Contract duration of five years indicates a need for stable, long-term service provision. 4. Performance context is critical for ensuring consistent facility standards at a major military installation. 5. Sector positioning is within the facilities management and maintenance services for government institutions.

Value Assessment

Rating: good

The contract value of approximately $12.8 million over five years for comprehensive facilities maintenance at West Point suggests a fair price point. Benchmarking against similar large-scale government maintenance contracts indicates that the annual cost per facility is within expected ranges. The firm-fixed-price structure helps manage cost predictability for the government, although it places more risk on the contractor for cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors were invited to bid. The presence of three bidders suggests a healthy level of competition for this service. This competitive process is expected to drive more favorable pricing and service quality for the government.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that likely resulted in a lower overall cost compared to a sole-source or limited competition award.

Public Impact

West Point cadets and staff benefit from well-maintained facilities, contributing to a conducive learning and living environment. Services delivered include essential housekeeping and maintenance, ensuring operational readiness and hygiene. Geographic impact is concentrated at the United States Military Academy in West Point, New York. Workforce implications include employment opportunities for maintenance and housekeeping staff, potentially sourced locally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service quality degradation if contractor prioritizes cost-cutting over thoroughness.
Reliance on a single contractor for critical facility upkeep could pose risks if performance issues arise.
Ensuring consistent adherence to specific military installation standards requires diligent oversight.

Positive Signals

Awarded through full and open competition, suggesting a competitive selection process.
Firm-fixed-price contract provides cost certainty for the government.
Long-term contract duration allows for stable service provision and relationship building.

Sector Analysis

This contract falls within the facilities management and maintenance sector, a significant segment of the government services market. The market for institutional building maintenance is competitive, with numerous providers capable of handling large-scale contracts. Spending benchmarks for similar services at large federal installations often run into millions of dollars annually, making this contract's value comparable to industry standards.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army at West Point. Accountability measures are built into the firm-fixed-price contract through performance standards and payment schedules. Transparency is generally maintained through federal procurement databases, though specific performance metrics and inspection reports may not always be publicly accessible.

Related Government Programs

Base Operations Support (BOS)
Facilities Engineering and Maintenance Services
Janitorial and Housekeeping Services
Government Building Maintenance Contracts

Risk Flags

Potential for service quality issues if not adequately monitored.
Contractor financial stability risk.
Dependence on a single provider for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.9 million to HOSPITAL HOUSEKEEPING SYSTEMS LLC. O&M BASE YEAR WEST POINT

Who is the contractor on this award?

The obligated recipient is HOSPITAL HOUSEKEEPING SYSTEMS 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 $12.9 million.

What is the period of performance?

Start: 2019-03-11. End: 2024-03-10.

What is the track record of Hospital Housekeeping Systems LLC with federal contracts, particularly within the Department of Defense?

Hospital Housekeeping Systems LLC has a history of securing federal contracts, primarily within the Department of Defense and other government agencies. Their awards often center around facilities maintenance, housekeeping, and related support services. Analyzing their past performance on similar contracts, including any reported issues or commendations, would provide further insight into their reliability and capability. A review of contract close-out data and any past performance evaluations would be crucial to assessing their track record comprehensively. For instance, examining the number of delivery orders issued against previous contracts and their timely completion can indicate operational efficiency.

How does the pricing of this contract compare to similar facilities maintenance contracts awarded by the Department of the Army or other branches?

Benchmarking this contract's pricing requires comparing its annual value (approximately $2.57 million) against contracts for similar scope and scale at other military installations or federal facilities. Factors such as geographic location (affecting labor costs), specific service requirements (e.g., specialized cleaning, groundskeeping), and contract duration influence pricing. If comparable contracts for similar-sized installations in the Northeast region show significantly lower annual costs, it might indicate a potential overpayment. Conversely, if the scope of services is more extensive or the location presents higher operational costs, the current pricing could be justified. A detailed analysis would involve comparing the price per square foot or price per service unit across multiple contracts.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential service quality degradation if the contractor understaffs or cuts corners, contractor default or financial instability, and inadequate performance monitoring by the government. Mitigation strategies typically involve robust performance work statements (PWS) with clear deliverables and standards, regular inspections and performance reviews by a Contracting Officer's Representative (COR), and contract clauses that allow for remedies up to termination for default. The firm-fixed-price nature also incentivizes the contractor to manage costs, but requires careful oversight to ensure quality is not sacrificed. Ensuring the contractor has adequate bonding and insurance also mitigates financial risks.

How effective has Hospital Housekeeping Systems LLC been in meeting the performance requirements of its federal contracts historically?

Assessing the effectiveness of Hospital Housekeeping Systems LLC requires a review of their past performance evaluations, often documented in the Contractor Performance Assessment Reporting System (CPARS). Positive ratings in CPARS would indicate consistent adherence to quality, timeliness, and cost control. Conversely, negative ratings or documented instances of non-compliance would suggest potential effectiveness issues. Analyzing the number and nature of contract modifications, disputes, or terminations on their previous contracts can also shed light on their performance effectiveness. Without direct access to CPARS data for this contractor, a definitive assessment is challenging, but the fact that they were awarded this significant contract suggests a generally acceptable performance history.

What has been the historical spending trend for facilities maintenance at West Point over the last five years?

To understand the historical spending trend for facilities maintenance at West Point, one would need to examine previous contracts awarded for similar services at the installation over the past five years. This would involve searching federal procurement databases for contracts related to housekeeping, maintenance, and facility operations at West Point. Analyzing the annual spending, contract types (e.g., fixed-price, cost-plus), and the contractors involved would reveal patterns. For example, a steady increase in spending might indicate rising costs or expanding service needs, while significant fluctuations could suggest changes in operational scope or contracting strategies. This contract represents a significant portion of that recent spending.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9127816R0030

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 216 E 4TH ST, AUSTIN, TX, 78701

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,851,035

Exercised Options: $12,851,035

Current Obligation: $12,851,035

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127818D0097

IDV Type: IDC

Timeline