DoD awards $10.8M for custodial services at Ft Detrick, raising questions about competition and value

Contract Overview

Contract Amount: $10,769,943 ($10.8M)

Contractor: Hagerstown Goodwill Industries, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-01-24

End Date: 2026-01-31

Contract Duration: 1,103 days

Daily Burn Rate: $9.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE FOLLOW-ON CUSTODIAL SERVICES FOR FT DETRICK AND FOREST GLEN ANNEX, MD FROM 1 FEB 2023 - 31 JAN 2028.

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $10.8 million to HAGERSTOWN GOODWILL INDUSTRIES, INC. for work described as: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE FOLLOW-ON CUSTODIAL SERVICES FOR FT DETRICK AND FOREST GLEN ANNEX, MD FROM 1 FEB 2023 - 31 JAN 2028. Key points: 1. The contract's value of over $10 million for custodial services over five years warrants scrutiny for cost-effectiveness. 2. The 'Not Available for Competition' designation suggests a lack of competitive bidding, potentially impacting price discovery. 3. The firm-fixed-price contract type offers cost certainty but may not incentivize efficiency if not benchmarked effectively. 4. The duration of the contract (over 3 years) provides stability but also locks in terms, potentially missing market shifts. 5. The services are essential for facility maintenance, indicating a critical need for reliable performance. 6. The contract is a definitive contract, suggesting a direct award mechanism.

Value Assessment

Rating: fair

The contract value of approximately $10.8 million over five years for custodial services at Ft Detrick and Forest Glen Annex appears to be within a reasonable range for such essential facility support. However, without specific details on the scope of services, square footage covered, and the level of service required (e.g., daily cleaning, deep cleaning, specialized services), a precise value-for-money assessment is challenging. Benchmarking against similar contracts for large military installations would provide a clearer picture of whether this price reflects competitive market rates or if there is potential for cost savings through better negotiation or competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was designated as 'Not Available for Competition,' indicating a sole-source award. This means that the contracting agency did not solicit bids from multiple vendors. While sole-source awards are sometimes justified for specific reasons (e.g., unique capabilities, urgent needs, or continuation of existing services where switching is impractical), they generally lead to less competitive pricing and potentially reduced innovation compared to full and open competition. The lack of competition here means taxpayers may not be benefiting from the lowest possible price achievable through a bidding process.

Taxpayer Impact: The absence of competition means taxpayers are not benefiting from the downward pressure on prices that typically occurs when multiple companies vie for a contract. This could result in a higher overall cost for the government.

Public Impact

Military personnel and civilian staff at Fort Detrick and Forest Glen Annex will benefit from maintained and sanitary facilities. Essential custodial services, including janitorial support, will be delivered to ensure operational readiness and a safe working environment. The geographic impact is localized to Fort Detrick and Forest Glen Annex in Maryland. The contract supports the workforce by ensuring a clean and functional environment for government employees and military personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Firm-fixed-price contract might not incentivize maximum efficiency if not properly scoped.
Contract duration could lock in potentially suboptimal pricing if market rates decrease.

Positive Signals

Hagerstown Goodwill Industries, Inc. is a known provider, suggesting potential for reliable service delivery.
Firm-fixed-price contract provides cost certainty for the agency.
Essential services ensure operational continuity for critical military facilities.

Sector Analysis

The custodial services sector is a significant part of the facilities management industry, supporting a wide range of government and private operations. Federal spending in this area is substantial, covering everything from basic janitorial tasks to specialized cleaning for sensitive environments. This contract fits within the broader category of facility maintenance and support services, which are crucial for the operational effectiveness of military bases and government installations. Benchmarks for such services vary widely based on location, scope, and service level, but consistent demand ensures a stable market for qualified providers.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The award to Hagerstown Goodwill Industries, Inc., which is often considered a social enterprise, may have indirect benefits for individuals with employment barriers, but it does not represent a direct small business contracting opportunity in the traditional sense.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and facility management divisions. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is generally maintained through contract award databases like FPDS. Accountability measures would include performance monitoring, quality assurance checks, and adherence to the terms and conditions of the firm-fixed-price agreement. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Base Operations Support Services
Facility Maintenance Contracts
Government Janitorial Services
Department of Defense Facilities Management

Risk Flags

Lack of Competition
Potential for Overpricing
Security Risks
Performance Monitoring Gaps

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.8 million to HAGERSTOWN GOODWILL INDUSTRIES, INC.. THE PURPOSE OF THIS CONTRACT IS TO PROVIDE FOLLOW-ON CUSTODIAL SERVICES FOR FT DETRICK AND FOREST GLEN ANNEX, MD FROM 1 FEB 2023 - 31 JAN 2028.

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 $10.8 million.

What is the period of performance?

Start: 2023-01-24. End: 2026-01-31.

What is the specific scope of work included in these custodial services, and how does it compare to industry standards for similar facilities?

The provided data does not detail the specific scope of work for the custodial services. It only states the general purpose: 'FOLLOW-ON CUSTODIAL SERVICES FOR FT DETRICK AND FOREST GLEN ANNEX, MD'. To assess value for money and compare it to industry standards, a detailed breakdown of tasks (e.g., daily cleaning frequency, types of areas cleaned – offices, restrooms, common areas, specialized labs, etc.), square footage, and service level agreements would be necessary. Industry standards for custodial services on military installations typically involve maintaining high levels of hygiene, sanitation, and general upkeep to support operational readiness and the well-being of personnel. Without this granular detail, it's difficult to definitively benchmark the $10.8 million contract against typical market rates or specific performance expectations.

Given the sole-source nature of this award, what justifications were provided by the Department of the Army for not competing the contract?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION' (ct: NOT AVAILABLE FOR COMPETITION). However, the specific justifications for this sole-source determination are not provided in the abbreviated data. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can satisfy the agency's needs, in cases of urgent and compelling need, or when it's impractical to obtain competition. The Department of the Army would have documented these justifications internally, likely citing reasons such as the unique requirements of the facility, the need for continuity of services from a proven provider, or specific security considerations at Fort Detrick. Without access to the full contract file or justification documents, the precise rationale remains unknown.

How does the historical spending on custodial services at Ft Detrick compare to this new contract's value?

The provided data indicates this is a 'follow-on' contract, suggesting prior custodial services were in place. However, the data does not include historical spending figures for these services at Ft Detrick or Forest Glen Annex. To perform a historical spending analysis, we would need access to previous contract awards for custodial services at these locations, including their values, durations, and the contractors involved. Comparing the current $10.8 million contract over approximately five years to previous expenditures would help determine if costs have increased, decreased, or remained stable, and whether the current award represents a reasonable escalation or a significant shift in spending patterns. This analysis is crucial for understanding long-term cost trends and value.

What are the key performance indicators (KPIs) and quality assurance measures in place to ensure the effectiveness of these custodial services?

The provided data does not specify the Key Performance Indicators (KPIs) or quality assurance measures for this contract. For a firm-fixed-price contract of this nature, the government typically establishes performance standards and inspection protocols to ensure the contractor meets the required level of service. These might include metrics related to cleanliness levels in different areas, response times for reported issues, adherence to schedules, and proper handling of waste and supplies. A robust Quality Assurance Surveillance Plan (QASP) would likely be in place, outlining how the government will monitor performance and assess contractor compliance. Without these details, it's difficult to gauge the mechanisms for ensuring service effectiveness and contractor accountability beyond the basic contractual terms.

Are there any specific risks associated with contracting custodial services for a military installation like Ft Detrick, and how are they mitigated?

Key risks associated with custodial services at a military installation like Ft Detrick include potential security breaches (unauthorized access), health and safety hazards (improper chemical use, slip-and-fall incidents), disruption of operations due to inadequate service, and potential for fraud or overcharging. Mitigation strategies typically involve thorough vetting of the contractor and its personnel, strict adherence to security protocols and background checks, clear performance standards and regular inspections, comprehensive training for custodial staff on safety and security procedures, and robust contract oversight by the government. The firm-fixed-price nature of this contract helps mitigate financial risk for the government by providing cost certainty, assuming the scope is well-defined and priced appropriately.

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: W91QV122R0104

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, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,617,656

Exercised Options: $10,844,287

Current Obligation: $10,769,943

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline