DoD's $13.3M Janitorial Services Contract Awarded to Hagerstown Goodwill Industries, Inc
Contract Overview
Contract Amount: $13,366,061 ($13.4M)
Contractor: Hagerstown Goodwill Industries, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-12-20
End Date: 2010-12-31
Contract Duration: 1,837 days
Daily Burn Rate: $7.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TAS::21 2020::TAS
Place of Performance
Location: FREDERICK, FREDERICK County, MARYLAND, 21702
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $13.4 million to HAGERSTOWN GOODWILL INDUSTRIES, INC. for work described as: TAS::21 2020::TAS Key points: 1. Contract awarded for janitorial services valued at $13.3M. 2. Hagerstown Goodwill Industries, Inc. is the sole awardee. 3. The contract was not competed, raising potential value concerns. 4. Services are for the Department of the Army in Maryland.
Value Assessment
Rating: questionable
The contract's value of $13.3M over 5 years (2005-2010) for janitorial services needs comparison to similar contracts. Without competition, it's difficult to assess if this price reflects market rates or if a better value could have been achieved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This limits price discovery and may result in a higher cost to taxpayers than if competitive bids were solicited.
Taxpayer Impact: The lack of competition for a $13.3M contract suggests potential overspending and reduced value for taxpayer funds.
Public Impact
Taxpayers may have paid more than necessary due to the absence of competition. The contract supported a specific organization, potentially impacting broader small business opportunities. The long duration of the contract (5 years) limits flexibility for adopting new service methods or providers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for overpricing
Positive Signals
- Supports a specific social enterprise (Goodwill)
- Long-term service provision
Sector Analysis
The janitorial services sector is generally competitive with many providers. A $13.3M contract over five years represents a significant award within this sector, especially when awarded without competition.
Small Business Impact
While Hagerstown Goodwill Industries, Inc. is a non-profit organization focused on employment for individuals with barriers, the sole-source nature of this large contract means other small businesses in the janitorial services sector did not have an opportunity to compete for this work.
Oversight & Accountability
The lack of competition raises questions about the oversight applied during the award process. Further review would be needed to understand why this contract was not competed and if appropriate justifications were documented.
Related Government Programs
- Janitorial Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Limited transparency in award justification
Tags
janitorial-services, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.4 million to HAGERSTOWN GOODWILL INDUSTRIES, INC.. TAS::21 2020::TAS
Who is the contractor on this award?
The obligated recipient is HAGERSTOWN GOODWILL 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 $13.4 million.
What is the period of performance?
Start: 2005-12-20. End: 2010-12-31.
What was the justification for awarding this janitorial services contract on a sole-source basis?
The justification for a sole-source award typically involves specific circumstances, such as unique capabilities of the vendor, urgent needs, or limited availability of other sources. Without access to the contract file, the specific justification for this $13.3M janitorial services contract awarded to Hagerstown Goodwill Industries, Inc. remains unknown. Further investigation into the contract's documentation is required to understand the rationale behind bypassing the competitive bidding process.
How did the lack of competition impact the overall cost-effectiveness of this contract?
The absence of competition for this $13.3M contract likely led to a higher cost for taxpayers. Competitive bidding processes typically drive down prices as vendors vie for the contract. A sole-source award removes this downward pressure, potentially allowing the awarded vendor to charge more than they might under a competitive scenario. This reduces the overall cost-effectiveness and value for the government.
What is the potential risk associated with awarding a large, long-term contract without competition?
The primary risk of awarding a large, long-term contract without competition is financial inefficiency, meaning the government may overpay. Additionally, it can stifle innovation by preventing new or more efficient service providers from entering the market. There's also a risk of complacency from the awarded vendor, knowing they face no immediate competitive threat, potentially impacting service quality over the contract's duration.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 14515 PENNSYLVANIA AVE, HAGERSTOWN, MD, 21742
Business Categories: AbilityOne Program Participant, Category Business, Minority Owned Business, Other Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2005-12-20
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2020-02-28
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