DoD's $13.1M Janitorial Services Contract Awarded to Chugach McKinley, Inc. Lacks Competition

Contract Overview

Contract Amount: $13,104,447 ($13.1M)

Contractor: Chugach Mckinley, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-12-01

End Date: 2009-09-30

Contract Duration: 1,034 days

Daily Burn Rate: $12.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPTION YEAR II-IDIQ

Place of Performance

Location: PORT HUENEME CBC BASE, VENTURA County, CALIFORNIA, 93043

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $13.1 million to CHUGACH MCKINLEY, INC. for work described as: OPTION YEAR II-IDIQ Key points: 1. The contract, valued at $13.1 million, is for janitorial services. 2. Competition was limited, with the award method noted as 'NOT AVAILABLE FOR COMPETITION'. 3. The contract duration is 1034 days. 4. The award was made by the Department of the Navy. 5. The contract was not awarded to a small business.

Value Assessment

Rating: questionable

The contract value is $13.1 million over approximately 3 years. Without competitive bids, it's difficult to assess if this pricing is optimal compared to similar janitorial service contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for janitorial services.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Essential janitorial services are being provided, maintaining facility cleanliness. The contract supports a single vendor, limiting opportunities for other businesses.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
No small business awardee

Positive Signals

Essential service provided
Firm fixed price contract

Sector Analysis

This contract falls under the facilities support services sector. Spending in this sector can vary widely based on the size and type of facilities managed by government agencies.

Small Business Impact

The contract was not awarded to a small business, missing an opportunity to support small business economic growth.

Oversight & Accountability

The award method 'NOT AVAILABLE FOR COMPETITION' warrants further scrutiny to ensure proper justification and adherence to procurement regulations.

Related Government Programs

Janitorial Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competitive bidding
Potential for overpricing
No small business participation
Limited transparency in award justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.1 million to CHUGACH MCKINLEY, INC.. OPTION YEAR II-IDIQ

Who is the contractor on this award?

The obligated recipient is CHUGACH MCKINLEY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $13.1 million.

What is the period of performance?

Start: 2006-12-01. End: 2009-09-30.

What was the justification for not making this contract available for competition?

The justification for not making this contract available for competition is crucial for understanding the procurement process. Without this information, it's impossible to determine if the government received fair value or if alternative, more competitive options were overlooked. Further investigation into the contract file is needed to ascertain the specific reasons cited for the limited competition award.

How does the cost of this contract compare to similar janitorial services procured competitively?

Without competitive bids, a direct cost comparison is challenging. Benchmarking against similar government or commercial janitorial contracts of comparable scope and service level would be necessary. If this contract's per-unit costs or overall price are significantly higher than market rates or competitively procured contracts, it indicates potential overspending and a lack of value for taxpayer money.

What is the long-term impact of repeatedly awarding contracts without competition?

Repeatedly awarding contracts without competition can stifle innovation, reduce market competition, and lead to inflated prices over time. It can also create vendor lock-in and reduce the government's ability to leverage market dynamics for better service and cost efficiencies. This practice may also discourage new entrants from competing for government contracts.

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 ID: N6871104R3601

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Alaska Corporation (UEI: 071844021)

Address: 3800 CENTERPOINT DR STE 601, ANCHORAGE, AK, 00

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,104,447

Exercised Options: $13,104,447

Current Obligation: $13,104,447

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6871104D3601

IDV Type: IDC

Timeline