DoD awards $20.5M contract for custodial services to Huntsville Rehabilitation Foundation, a non-competed delivery order
Contract Overview
Contract Amount: $20,495,341 ($20.5M)
Contractor: Huntsville Rehabilitation Foundation
Awarding Agency: Department of Defense
Start Date: 2014-05-01
End Date: 2015-10-31
Contract Duration: 548 days
Daily Burn Rate: $37.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CT::IGF CUSTODIAL SERVICE "A"-OPTION 4
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $20.5 million to HUNTSVILLE REHABILITATION FOUNDATION for work described as: IGF::CT::IGF CUSTODIAL SERVICE "A"-OPTION 4 Key points: 1. The contract value is $20.5 million over 548 days. 2. The service falls under Security Guards and Patrol Services (NAICS 561612). 3. This was a non-competed delivery order, raising questions about price discovery. 4. The contract was awarded to Huntsville Rehabilitation Foundation, a non-profit organization.
Value Assessment
Rating: questionable
The contract was awarded via a delivery order under a larger contract, but the specific pricing for this order is not benchmarked against similar contracts. The base contract value was $37,400, with this delivery order significantly exceeding that.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited competition approach. This method may not ensure the best possible price for taxpayers as alternative vendors were not solicited.
Taxpayer Impact: The lack of competition for a significant contract value may result in suboptimal pricing, potentially leading to higher costs for taxpayers than if the service had been openly competed.
Public Impact
Taxpayers may be paying more than necessary due to the lack of competitive bidding. The reliance on a single provider without competition could impact service quality or innovation. The contract supports a non-profit organization, which may have social benefits alongside service provision.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited transparency in pricing
Positive Signals
- Award to a non-profit organization
Sector Analysis
The Security Guards and Patrol Services sector involves significant government spending. Benchmarks for custodial services vary widely based on location, scope, and specific requirements, making direct comparison difficult without more detail.
Small Business Impact
The contract was awarded to Huntsville Rehabilitation Foundation, a non-profit organization, not a small business. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The non-competed nature of this delivery order warrants further oversight to ensure the pricing is fair and reasonable and that the government received value for its expenditure.
Related Government Programs
- Security Guards and Patrol Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency on price justification
- No clear indication of performance metrics
Tags
security-guards-and-patrol-services, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.5 million to HUNTSVILLE REHABILITATION FOUNDATION. IGF::CT::IGF CUSTODIAL SERVICE "A"-OPTION 4
Who is the contractor on this award?
The obligated recipient is HUNTSVILLE REHABILITATION FOUNDATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $20.5 million.
What is the period of performance?
Start: 2014-05-01. End: 2015-10-31.
What was the justification for not competing this significant delivery order, and how was the price determined to be fair and reasonable?
The justification for not competing this delivery order is not provided in the data. Typically, non-competed awards are made under specific exceptions to full and open competition, such as sole-source justifications or urgent needs. Without this information, it's impossible to assess the price determination process. Further investigation into the contract file is needed to understand the rationale and the methods used to ensure fair pricing.
What are the risks associated with awarding a $20.5 million contract without competition, particularly regarding potential cost overruns or service quality?
The primary risk of awarding a large contract without competition is the potential for paying above-market prices, as there is no market pressure to drive down costs. This can lead to significant cost overruns for taxpayers. Additionally, without the incentive of future competition, the contractor may have less motivation to maintain high service quality or innovate, potentially leading to a decline in performance over the contract's duration.
How effective is the current custodial service provided by Huntsville Rehabilitation Foundation, and does the non-competed award mechanism hinder the government's ability to assess or improve this eff
The provided data does not include performance metrics or effectiveness ratings for the custodial services. The non-competed award mechanism itself does not directly hinder effectiveness assessment, but it removes the competitive pressure that often drives contractors to excel. The government should have performance monitoring in place regardless of the award type. However, the lack of competition means the government cannot easily switch to a potentially more effective provider if current services are lacking.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol 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: 2939 JOHNSON RD SW, HUNTSVILLE, AL, 35805
Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,092,612
Exercised Options: $21,092,612
Current Obligation: $20,495,341
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9124P10D0022
IDV Type: IDC
Timeline
Start Date: 2014-05-01
Current End Date: 2015-10-31
Potential End Date: 2015-10-31 00:00:00
Last Modified: 2022-04-08
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