DoD's $26.7M Housekeeping Contract Awarded to Professional Contract Services, Inc. Raises Value Concerns

Contract Overview

Contract Amount: $26,734,317 ($26.7M)

Contractor: Professional Contract Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-09-19

End Date: 2018-03-31

Contract Duration: 2,019 days

Daily Burn Rate: $13.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF HOSPITAL HOUSEKEEPING SERVICES

Place of Performance

Location: FORT STEWART, LIBERTY County, GEORGIA, 31314

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $26.7 million to PROFESSIONAL CONTRACT SERVICES, INC. for work described as: IGF::OT::IGF HOSPITAL HOUSEKEEPING SERVICES Key points: 1. The contract's value proposition appears questionable given the lack of competitive bidding and the extended duration. 2. Limited competition for this significant housekeeping services contract may have led to suboptimal pricing. 3. The absence of a clear per-unit cost benchmark makes it difficult to assess true value for money. 4. Performance context is limited, with no readily available data on service quality or efficiency metrics. 5. This contract falls within the broader professional services sector, specifically janitorial and facilities maintenance. 6. The firm-fixed-price structure offers some cost certainty but may not incentivize efficiency gains. 7. The contract's duration and lack of competition warrant closer scrutiny for potential cost overruns.

Value Assessment

Rating: questionable

Assessing the value for money on this $26.7 million contract is challenging due to the lack of competitive data. The contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which significantly limits the ability to benchmark pricing against market rates or compare it to similar services procured through open competition. Without multiple bids, it's difficult to determine if Professional Contract Services, Inc. offered the most cost-effective solution. The firm-fixed-price structure provides some predictability, but the absence of competitive pressure raises concerns about whether the government secured the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' basis, indicating that the Department of the Army did not conduct a full and open competition. This typically occurs when a specific justification is made, such as the unavailability of a qualified source or a national emergency. The lack of multiple bidders means there was no opportunity for price discovery through a competitive process, potentially leading to higher costs for the government compared to a competed contract.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive bidding. Without competing offers, the government lacked leverage to negotiate the lowest possible price, potentially resulting in funds being spent less efficiently.

Public Impact

Military personnel and civilian staff benefit from maintained sanitary conditions within facilities. Essential janitorial and housekeeping services are delivered across unspecified Army installations. The geographic impact is likely concentrated within the areas served by the Department of the Army, primarily in Georgia. The contract supports jobs within the professional contract services industry, contributing to the local and national economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Extended contract duration without re-competition could mask inefficiencies.
Absence of performance metrics makes value assessment difficult.
Firm-fixed-price contract may not incentivize cost savings.
Sole-source award raises questions about justification and fairness.

Positive Signals

Professional Contract Services, Inc. has a contract history with the DoD.
Firm-fixed-price contract provides cost certainty for the government.
Contract supports essential facility maintenance services.
Awarded to a single, established vendor.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically focusing on facilities support and janitorial services. The market for these services is highly competitive, with numerous providers ranging from small businesses to large corporations. Government contracts for housekeeping and maintenance are common across various agencies, representing a significant portion of spending in this category. Benchmarking this contract's value is difficult without competitive data, but the total award value suggests a substantial service requirement.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary contractor, Professional Contract Services, Inc., is expected to perform the majority of the work directly. The lack of small business participation could limit opportunities for smaller firms in this sector to gain experience and revenue through government contracts.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. However, the 'NOT AVAILABLE FOR COMPETITION' status and the lack of readily available performance metrics make a detailed assessment of accountability and transparency challenging without further information. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Facilities Maintenance Contracts
Janitorial Services Contracts
Professional Services Contracts
Army Installation Support Services

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Performance Data
Sole-Source Justification Unclear

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.7 million to PROFESSIONAL CONTRACT SERVICES, INC.. IGF::OT::IGF HOSPITAL HOUSEKEEPING SERVICES

Who is the contractor on this award?

The obligated recipient is PROFESSIONAL CONTRACT SERVICES, 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 $26.7 million.

What is the period of performance?

Start: 2012-09-19. End: 2018-03-31.

What is the track record of Professional Contract Services, Inc. with the Department of Defense?

Professional Contract Services, Inc. (PCS) has a history of contracting with the Department of Defense. While this specific contract is for a significant amount ($26.7 million) and spans several years, it is crucial to examine PCS's broader performance history across all their government contracts. This includes reviewing past performance evaluations, any documented instances of contract disputes, overruns, or quality issues. A comprehensive review would involve looking at the number and types of contracts awarded to PCS, their value, and their successful completion rates. Without access to detailed past performance information, it is difficult to definitively assess their reliability and capability for large-scale service contracts like this one.

How does the pricing of this contract compare to similar housekeeping services procured by the government?

Direct comparison of pricing for this contract is severely limited due to its 'NOT AVAILABLE FOR COMPETITION' status. Typically, value is assessed by benchmarking against contracts awarded through full and open competition, where multiple bids allow for price discovery and negotiation. Since this contract was sole-sourced, there is no competitive pricing data to evaluate. To perform a robust comparison, one would need to identify similar janitorial or housekeeping service contracts awarded by the Army or other DoD components during the same period, ideally through competitive bidding. Analyzing the per-square-foot cost or cost per service unit for those comparable contracts would provide a basis for assessing whether the $26.7 million awarded here was reasonable.

What are the primary risks associated with a sole-source award for essential services like housekeeping?

The primary risks associated with a sole-source award for essential services like housekeeping include potential overpricing, reduced service quality, and a lack of innovation. Without competition, the contractor faces less pressure to offer the most competitive price, potentially leading to higher costs for the government and taxpayers. The absence of multiple bidders can also diminish the incentive for the contractor to continuously improve service quality or adopt more efficient methods, as there is no direct threat of losing the contract to a competitor. Furthermore, sole-source awards can sometimes indicate a lack of market research or an inability to identify multiple qualified sources, which could represent a systemic risk in procurement processes.

What evidence exists regarding the effectiveness and efficiency of the services provided under this contract?

Evidence regarding the effectiveness and efficiency of the services provided under this contract is not readily available in the provided data. The contract details focus on the award itself, including the contractor, amount, and duration, but lack specific performance metrics, quality assurance reports, or user feedback. To assess effectiveness, one would typically look for data on service completion rates, adherence to cleaning standards, response times to issues, and overall satisfaction from the end-users (e.g., military personnel, facility managers). Without such performance data, it is impossible to definitively determine if the services delivered were efficient and met the government's requirements adequately.

How has spending on housekeeping services by the Department of the Army evolved over time, and where does this contract fit?

Historical spending data on housekeeping services by the Department of the Army would be necessary to contextualize this $26.7 million contract. Analyzing past contracts for similar services, including their values, durations, and procurement methods (competitive vs. sole-source), would reveal trends in spending. This contract, awarded in 2012 and ending in 2018, represents a significant but potentially isolated expenditure if it was a sole-source award. Understanding whether the Army has consistently relied on sole-source contracts for such services or if this was an exception would provide insight into procurement strategies and potential cost efficiencies over time. Without broader historical data, it's difficult to determine if this contract reflects a typical spending pattern or an anomaly.

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: W91YTV12R0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 718 W FM 1626, AUSTIN, TX, 78748

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: $28,971,825

Exercised Options: $28,971,825

Current Obligation: $26,734,317

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline