Goodwill of Western Missouri and Eastern Kansas awarded $10.1M for custodial services, raising value-for-money questions
Contract Overview
Contract Amount: $10,115,825 ($10.1M)
Contractor: Goodwill of Western Missouri and Eastern Kansas
Awarding Agency: Department of Defense
Start Date: 2007-09-27
End Date: 2010-09-28
Contract Duration: 1,097 days
Daily Burn Rate: $9.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BASE YEAR CUSTODIAL SERVICES
Place of Performance
Location: FORT LEAVENWORTH, LEAVENWORTH County, KANSAS, 66027
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $10.1 million to GOODWILL OF WESTERN MISSOURI AND EASTERN KANSAS for work described as: BASE YEAR CUSTODIAL SERVICES Key points: 1. The contract's value-for-money is fair, given the long duration and lack of competitive bidding. 2. Competition dynamics are limited, with the contract being awarded on a non-competitive basis. 3. Risk indicators are moderate, primarily due to the sole-source nature and extended performance period. 4. Performance context shows a consistent provider for custodial services over a significant period. 5. Sector positioning places this contract within the facilities support services industry.
Value Assessment
Rating: fair
The contract's base year value of $10.1 million for custodial services appears reasonable on an annual basis, but the lack of competitive bidding makes a direct value-for-money assessment difficult. Benchmarking against similar janitorial contracts is challenging without more detailed service scope and performance metrics. The extended duration of the contract, spanning from 2007 to 2010, suggests a stable, albeit potentially less cost-optimized, arrangement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. The absence of a competitive process means there were no multiple bidders to compare proposals from, which limits the ability to ascertain the most cost-effective option. This approach may be justified by specific circumstances, but it bypasses the typical price discovery mechanisms inherent in open competition.
Taxpayer Impact: Taxpayers may not have received the benefit of the lowest possible price due to the lack of competition. Without a bidding process, there's less pressure on the contractor to offer the most competitive rates.
Public Impact
The primary beneficiary is Goodwill of Western Missouri and Eastern Kansas, a non-profit organization, which receives significant funding for its services. The services delivered are essential custodial and janitorial support, maintaining facilities for the Department of the Army. The geographic impact is localized to Kansas, where the contractor operates and provides services. Workforce implications include employment opportunities for individuals, potentially including those with barriers to employment, through Goodwill's mission.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition limits price optimization for taxpayers.
- Extended contract duration without re-competition may lead to complacency or reduced cost-consciousness.
- Sole-source awards require strong justification to ensure fair value.
Positive Signals
- Consistent service provider for a long period, suggesting reliability.
- Award to a non-profit organization aligns with potential social impact goals.
- Fixed-price contract type provides cost certainty for the government.
Sector Analysis
This contract falls within the facilities support services sector, specifically janitorial and custodial services. This is a mature market with numerous providers, ranging from large corporations to smaller specialized firms. The total federal spending on janitorial services is substantial, and contracts like this represent a portion of that expenditure. Benchmarking would typically involve comparing pricing for similar square footage, service levels, and geographic locations.
Small Business Impact
This contract was awarded to Goodwill of Western Missouri and Eastern Kansas and does not appear to have a small business set-aside component (ss: false, sb: false). As a sole-source award, it did not involve a competitive process where small businesses could bid. There is no explicit information on subcontracting plans for small businesses within this award.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army administrative staff. Accountability measures would be tied to the terms of the firm fixed-price contract, focusing on service delivery and performance standards. Transparency is limited due to the sole-source nature and the lack of readily available detailed performance reports in the public domain.
Related Government Programs
- Federal Facilities Maintenance Contracts
- Government Janitorial Services
- Non-Profit Contracting
- Department of Defense Support Services
Risk Flags
- Sole-source award requires justification.
- Lack of competition may impact price.
- Extended contract duration without re-competition.
Tags
facilities-support, custodial-services, janitorial-services, department-of-defense, department-of-the-army, kansas, sole-source, firm-fixed-price, non-profit-contractor, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.1 million to GOODWILL OF WESTERN MISSOURI AND EASTERN KANSAS. BASE YEAR CUSTODIAL SERVICES
Who is the contractor on this award?
The obligated recipient is GOODWILL OF WESTERN MISSOURI AND EASTERN KANSAS.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $10.1 million.
What is the period of performance?
Start: 2007-09-27. End: 2010-09-28.
What is the track record of Goodwill of Western Missouri and Eastern Kansas in performing federal custodial contracts?
Goodwill of Western Missouri and Eastern Kansas has a history of providing custodial services to the federal government, as evidenced by this contract awarded in 2007. While specific details on past performance metrics for this particular contract are not publicly detailed, the renewal or continuation of such a significant contract suggests a level of satisfactory performance. Further investigation into their broader federal contracting history, including other agencies and contract types, would provide a more comprehensive understanding of their capabilities and reliability as a federal contractor.
How does the $10.1 million base year cost compare to similar federal custodial contracts?
Directly comparing the $10.1 million base year cost to similar federal custodial contracts is challenging without detailed scope of work, square footage, service frequency, and geographic location. However, annual costs for large-scale federal custodial services can range from hundreds of thousands to millions of dollars, depending on the size and complexity of the facilities. Given this contract's duration and the fact it was sole-sourced, it's difficult to definitively state if it represents optimal value. A competitive bidding process would typically yield more transparent pricing benchmarks.
What are the primary risks associated with this sole-source custodial services contract?
The primary risks associated with this sole-source custodial services contract include potential lack of cost-effectiveness due to the absence of competition, which could lead to higher prices than might be achieved through bidding. There's also a risk of reduced incentive for the contractor to innovate or improve service quality over time, as they are the sole provider. Furthermore, sole-source awards require robust justification to ensure they are truly necessary and not simply a result of convenience, otherwise, it could indicate potential inefficiencies in the procurement process.
How effective has this contract been in delivering essential custodial services?
The effectiveness of this contract in delivering essential custodial services is presumed to be adequate, given its duration and the fact that it was awarded to a specific entity. However, without publicly available performance reports, detailed metrics, or user feedback, a definitive assessment of its effectiveness is not possible. The Department of the Army would have internal mechanisms to evaluate service delivery against contract requirements. The long-term nature of the award suggests a baseline level of satisfaction, but does not preclude potential areas for improvement.
What are the historical spending patterns for custodial services by the Department of the Army in Kansas?
Historical spending patterns for custodial services by the Department of the Army in Kansas are not detailed in the provided data. This specific contract represents a significant expenditure of $10.1 million for its base year in that region. To understand broader patterns, one would need to analyze aggregated federal procurement data for janitorial and custodial services awarded by the Army and other DoD components within Kansas over multiple fiscal years. This would reveal trends in contract values, types of services procured, and the prevalence of competitive versus non-competitive awards.
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: W91QF407R0026
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1817 CAMPBELL ST, KANSAS CITY, MO, 05
Business Categories: AbilityOne Program Participant, Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $10,115,825
Exercised Options: $10,115,825
Current Obligation: $10,115,825
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-09-27
Current End Date: 2010-09-28
Potential End Date: 2010-09-28 00:00:00
Last Modified: 2011-01-13
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