DoD's $11.6M Janitorial Services Contract Awarded to Gesher Human Services Under Sole Source Basis

Contract Overview

Contract Amount: $11,569,656 ($11.6M)

Contractor: Gesher Human Services

Awarding Agency: Department of Defense

Start Date: 2007-12-27

End Date: 2013-06-30

Contract Duration: 2,012 days

Daily Burn Rate: $5.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GENERAL CLEANING (BASE YEAR)

Place of Performance

Location: WARREN, MACOMB County, MICHIGAN, 48089

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $11.6 million to GESHER HUMAN SERVICES for work described as: GENERAL CLEANING (BASE YEAR) Key points: 1. The contract was awarded on a sole-source basis, raising questions about potential price efficiencies and market competition. 2. The firm-fixed-price structure provides cost certainty but may limit flexibility in adapting to changing service needs. 3. The duration of the contract, spanning over five years, suggests a long-term need for these services. 4. The absence of small business set-aside indicates a focus on specific capabilities rather than broad economic participation. 5. Performance context is limited without specific metrics on service quality or timeliness. 6. The contract falls under the janitorial services category, a common but essential operational support function for federal facilities.

Value Assessment

Rating: fair

Benchmarking the value of this $11.6 million contract for janitorial services is challenging without comparable sole-source awards or detailed service level agreements. The firm-fixed-price structure suggests a negotiated price that was deemed fair at the time of award. However, the lack of competition means there's no direct market comparison to assess if this price represents optimal value for money. Further analysis would require understanding the scope of services, the specific facilities covered, and the prevailing market rates for similar services in the Michigan region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or qualifications required for the service. The lack of competition limits the government's ability to leverage market forces to drive down prices and ensure the best possible value. Without a competitive bidding process, it is difficult to ascertain the full range of available pricing and service options.

Taxpayer Impact: The sole-source award means taxpayers did not benefit from the potential cost savings that could arise from a competitive bidding process. This could lead to a higher overall cost for the services provided.

Public Impact

The primary beneficiaries are the Department of the Army facilities in Michigan requiring janitorial services. The contract ensures the maintenance of sanitary and clean environments within these federal facilities. Geographic impact is concentrated within Michigan, where the contractor operates. Workforce implications include employment opportunities for individuals performing janitorial duties, likely sourced locally in Michigan.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Lack of competition may reduce incentives for the contractor to innovate or improve service quality over time.
Firm-fixed-price contract may not adequately account for unforeseen service demands or changes in scope without modification.

Positive Signals

Contract ensures consistent provision of essential janitorial services for DoD facilities.
Firm-fixed-price provides budget certainty for the agency.
Long contract duration suggests a stable, ongoing need and potentially a reliable service provider.

Sector Analysis

The janitorial services sector is a mature and essential part of the facilities management industry, supporting the operational needs of government and private organizations. Federal spending in this area is consistent, driven by the maintenance requirements of numerous buildings and installations. While often procured through competitive means, sole-source awards can occur for specialized needs or in specific geographic areas where vendor options are limited. This contract represents a portion of the broader federal expenditure on facility maintenance and support services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary contractor, Gesher Human Services, is either a large business or that the nature of the service did not lend itself to a small business set-aside under the procurement regulations. The impact on the small business ecosystem is therefore minimal for this specific award, as opportunities for subcontracting were not explicitly mandated.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the Department of the Army's contract management division. Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is limited due to the sole-source nature of the award, with details of the justification and negotiation not publicly available. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Federal Janitorial Services Contracts
Department of Defense Facility Maintenance
General Cleaning Services
Base Operations Support Contracts

Risk Flags

Sole-source award may indicate limited competition.
Contract duration is lengthy, requiring careful performance monitoring.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.6 million to GESHER HUMAN SERVICES. GENERAL CLEANING (BASE YEAR)

Who is the contractor on this award?

The obligated recipient is GESHER HUMAN SERVICES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.6 million.

What is the period of performance?

Start: 2007-12-27. End: 2013-06-30.

What specific criteria led to the sole-source award for Gesher Human Services?

The specific criteria leading to the sole-source award for Gesher Human Services are not detailed in the provided data. Typically, sole-source justifications are based on factors such as the unique capabilities of a single contractor, the urgency of the requirement where competition is not feasible, or when only one source is capable of meeting the government's needs. For janitorial services, this could potentially relate to specialized cleaning requirements, existing infrastructure knowledge, or a lack of other qualified vendors in the specific geographic area of operation within Michigan. Without the official justification document, the precise reasons remain speculative.

How does the $11.6 million contract value compare to similar janitorial service contracts awarded by the Department of Defense?

Comparing the $11.6 million value of this contract to similar Department of Defense (DoD) janitorial service contracts requires access to a broader dataset of federal procurements. However, for a contract spanning over five years (December 2007 to June 2013), an average annual value of approximately $2.3 million is indicated. This figure can be considered moderate to substantial depending on the scale and complexity of the facilities being serviced. Larger installations or those with specialized cleaning needs (e.g., clean rooms, sensitive equipment areas) would naturally command higher contract values. Without specific details on the scope of services and the number/size of facilities covered by this particular contract, a precise benchmark against other DoD contracts is difficult.

What are the potential risks associated with a sole-source award for essential services like janitorial support?

The primary risk associated with a sole-source award for essential services like janitorial support is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may end up paying more than necessary for the services. Another risk is reduced incentive for the contractor to innovate or enhance service quality, as there is no direct threat of losing the contract to a competitor. Furthermore, if the sole-source contractor experiences performance issues or financial instability, the government has limited alternatives for immediate service continuity without potentially lengthy and costly re-procurement processes, even if a new sole-source justification is pursued.

What performance metrics or quality standards are typically included in janitorial service contracts?

Typical performance metrics and quality standards in janitorial service contracts often include adherence to schedules, cleanliness levels (e.g., absence of dust, debris, stains), proper waste disposal, safety compliance (e.g., use of appropriate cleaning agents, equipment safety), and responsiveness to special requests or emergency cleaning needs. Contracts often specify inspection frequencies and acceptable defect rates. Performance is usually evaluated through methods like government inspections, user feedback, and contractor self-reporting. The specific metrics and standards are tailored to the unique requirements of the facilities being serviced, such as healthcare environments, administrative offices, or industrial areas.

How has federal spending on janitorial services evolved over the years, and does this contract represent a significant portion of that spending?

Federal spending on janitorial services is a consistent component of overall facility maintenance budgets across various agencies. While specific year-over-year trends for the entire federal government's janitorial spending are not provided here, such services are essential for maintaining government buildings and infrastructure. This $11.6 million contract, awarded between 2007 and 2013, represents a significant, albeit localized, expenditure for the Department of the Army during that period. It is one of many contracts supporting facility operations nationwide. Broader trends in federal spending on janitorial services are influenced by factors like the number of federal facilities, their condition, and overall budget allocations for operations and maintenance.

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

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912CH08RA502

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 29699 SOUTHFIELD RD, SOUTHFIELD, MI, 48076

Business Categories: AbilityOne Program Participant, Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $11,881,714

Exercised Options: $11,881,714

Current Obligation: $11,569,656

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline