Commerce Department's $21.5M Janitorial Services Contract Awarded to DIDLAKE INC

Contract Overview

Contract Amount: $21,550,735 ($21.6M)

Contractor: Didlake Inc

Awarding Agency: Department of Commerce

Start Date: 2020-02-27

End Date: 2025-04-30

Contract Duration: 1,889 days

Daily Burn Rate: $11.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL SERVICES

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20899

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $21.6 million to DIDLAKE INC for work described as: JANITORIAL SERVICES Key points: 1. Value for money appears fair given the 5-year duration and fixed-price nature. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery. 3. Risk indicators are moderate, with contract duration and fixed-price terms. 4. Performance context is within janitorial services, a standard operational need. 5. Sector positioning is in general government services, supporting agency operations.

Value Assessment

Rating: fair

The contract's total value of $21.55 million over approximately 5 years suggests an average annual spend of $4.31 million. Benchmarking this against similar janitorial service contracts is challenging without more specific service scope details. However, the firm fixed-price structure provides cost certainty for the government. The price per month averages around $358,512, which needs to be evaluated against the square footage and specific services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source is available or when a compelling justification exists for not seeking competition. The lack of multiple bidders means that the government did not benefit from competitive pricing pressures that could have potentially lowered the cost.

Taxpayer Impact: Taxpayers may have paid a higher price than if the contract had been competed. The absence of competition limits the government's ability to ensure it is receiving the best possible value for the services rendered.

Public Impact

The primary beneficiaries are the employees and visitors of the National Institute of Standards and Technology (NIST) facilities, who will experience a cleaner and more hygienic environment. The services delivered include routine janitorial tasks essential for maintaining government facilities. The geographic impact is localized to the NIST facilities in Maryland. Workforce implications include the employment of individuals performing the janitorial services, likely through the contractor DIDLAKE INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Lack of detailed service scope makes value-for-money assessment difficult.
Long contract duration (over 5 years) may reduce flexibility for future service needs.

Positive Signals

Firm fixed-price contract provides cost predictability.
Contract supports essential facility maintenance for a key research agency.
Established contractor (DIDLAKE INC) may bring experience to service delivery.

Sector Analysis

Janitorial services fall under the broader facilities support services sector. This sector is characterized by a large number of small and medium-sized businesses, as well as larger players. Government contracts for janitorial services are common across federal agencies to maintain buildings and grounds. The market size for government janitorial services is substantial, driven by the vast inventory of federal real property.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no information provided regarding subcontracting plans. The sole-source nature of the award further suggests that opportunities for small businesses to participate as prime contractors were not pursued in this instance.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer's representative (COR) at the National Institute of Standards and Technology. Performance standards and quality control measures are expected to be outlined in the contract's statement of work. Transparency is limited due to the sole-source nature, but contract award details are publicly available through federal procurement databases.

Related Government Programs

Federal Building Maintenance Contracts
Government Facility Support Services
Janitorial and Cleaning Services
National Institute of Standards and Technology Operations

Risk Flags

Sole-source award may limit price competition.
Lack of detailed service scope hinders precise value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $21.6 million to DIDLAKE INC. JANITORIAL SERVICES

Who is the contractor on this award?

The obligated recipient is DIDLAKE INC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Institute of Standards and Technology).

What is the total obligated amount?

The obligated amount is $21.6 million.

What is the period of performance?

Start: 2020-02-27. End: 2025-04-30.

What is the specific scope of services included in this $21.55 million janitorial contract?

The provided data indicates the contract is for 'Janitorial Services' (NAICS code 561720) awarded to DIDLAKE INC by the Department of Commerce's National Institute of Standards and Technology. However, the specific details of the scope of work, such as the square footage to be cleaned, frequency of services (daily, weekly, monthly), types of cleaning required (e.g., dusting, vacuuming, restroom sanitation, window washing), and any specialized services (e.g., floor waxing, carpet cleaning), are not included in the abbreviated data. A comprehensive understanding of the value for money would necessitate a review of the detailed Performance Work Statement (PWS) or Statement of Work (SOW) attached to the contract.

How does the pricing of this contract compare to similar janitorial services contracts at other federal agencies?

Direct price comparison is difficult without a detailed scope of work and service levels. However, the contract's total value of $21.55 million over approximately 63 months (February 2020 to April 2025) yields an average annual value of roughly $4.31 million, or about $358,512 per month. This figure needs to be contextualized by the size and complexity of the NIST facilities being serviced. Generally, janitorial services pricing is influenced by labor costs, material costs, geographic location, and the specific tasks required. Without these variables, benchmarking against other federal contracts remains speculative. The sole-source nature also raises questions about whether the price reflects competitive market rates.

What are the potential risks associated with a sole-source award for janitorial services?

The primary risk of a sole-source award is the potential for inflated pricing due to the lack of competition. When a contract is not competed, the government loses the opportunity to leverage market forces to secure the most cost-effective solution. This can lead to taxpayers paying more than necessary for the services. Additionally, sole-source awards can sometimes indicate a lack of market research or a failure to identify potential sources, which could represent a missed opportunity for small businesses or specialized providers. There's also a risk that the incumbent contractor may become complacent without the pressure of competition, potentially impacting service quality over time.

What is DIDLAKE INC's track record with federal janitorial service contracts?

Information on DIDLAKE INC's specific track record with federal janitorial service contracts is not detailed in the provided data. However, the fact that they were awarded this significant sole-source contract by the Department of Commerce suggests they have some established relationship or prior performance that justified this approach. To assess their track record thoroughly, one would need to examine their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other federal contracts they have held, and their history of compliance and service delivery. Without this additional information, it's difficult to definitively gauge their reliability and expertise in this domain.

How has federal spending on janitorial services evolved over the past five years, and where does this contract fit in?

Federal spending on janitorial services is a consistent and significant expenditure across numerous agencies to maintain government facilities. While specific aggregate data for janitorial services alone isn't readily available in this format, it falls under the broader category of facilities maintenance and support services, which collectively represent billions of dollars annually. This $21.55 million contract for NIST is a substantial award for a single facility or campus over a multi-year period. It reflects the ongoing need for essential upkeep of government infrastructure. Historical spending patterns would likely show a steady demand, with fluctuations influenced by budget appropriations, facility upgrades, and changes in government real estate holdings.

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: 1333ND19RNB190015

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8641 BREEDEN AVE STE 101, MANASSAS, VA, 20110

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: $21,550,735

Exercised Options: $21,550,735

Current Obligation: $21,550,735

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline