NIST awards $9.8M janitorial contract to DIDLAKE INC, raising questions about competition and value

Contract Overview

Contract Amount: $9,779,186 ($9.8M)

Contractor: Didlake Inc

Awarding Agency: Department of Commerce

Start Date: 2025-05-01

End Date: 2027-04-30

Contract Duration: 729 days

Daily Burn Rate: $13.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL AND RELATED SERVICES (ABILITYONE). NIST GAITHERSBURG CAMPUS LOCATED IN MARYLAND.

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20899

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $9.8 million to DIDLAKE INC for work described as: JANITORIAL AND RELATED SERVICES (ABILITYONE). NIST GAITHERSBURG CAMPUS LOCATED IN MARYLAND. Key points: 1. The contract's value appears reasonable for janitorial services in a large federal facility. 2. The lack of competition raises concerns about potential overpricing and reduced service quality. 3. The firm-fixed-price structure offers some cost certainty but may limit flexibility. 4. This contract supports the National Institute of Standards and Technology's operational needs. 5. The duration of the contract (2 years) is standard for service agreements. 6. The contractor, DIDLAKE INC, has a history of performing government contracts.

Value Assessment

Rating: fair

The contract value of approximately $9.8 million over two years for janitorial services at the NIST Gaithersburg campus seems within a reasonable range for a facility of this size and complexity. Benchmarking against similar federal janitorial contracts suggests that the per-square-foot cost is not excessively high. However, without a competitive bidding process, it is difficult to definitively assess if the government secured the best possible price and value. The firm-fixed-price nature of the contract provides cost predictability, but it also means that potential cost savings from efficiencies might not be fully realized by the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. The justification for this approach is not provided in the available data, which is a significant concern. Typically, sole-source awards occur when only one vendor can meet specific requirements, such as unique capabilities or urgent needs. The absence of competition limits the government's ability to explore different service models, innovative solutions, and potentially lower prices from multiple qualified providers. This lack of a competitive process hinders price discovery and may lead to a less optimal outcome for the taxpayer.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive pressure. Without competing bids, there is less assurance that the selected contractor's pricing reflects the most cost-effective market rate for these essential services.

Public Impact

The primary beneficiary is the National Institute of Standards and Technology (NIST), which will receive essential janitorial and related services to maintain its facilities. The contract ensures a clean and safe working environment for NIST researchers, staff, and visitors at the Gaithersburg campus. The geographic impact is localized to Gaithersburg, Maryland, where the NIST campus is located. The contract supports jobs within the janitorial services sector, likely benefiting the workforce employed by DIDLAKE INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding raises concerns about potential overpricing and reduced value for taxpayer funds.
Sole-source award limits transparency and the government's ability to explore alternative service providers or innovative solutions.
Firm-fixed-price contract may disincentivize contractor efficiency gains if not structured with performance incentives.
Absence of specific performance metrics or quality standards in the provided data makes it difficult to assess service quality.
The contract's value, while seemingly reasonable, cannot be definitively validated without a competitive benchmark.

Positive Signals

The contract ensures the continued provision of essential janitorial services, maintaining a safe and functional work environment at NIST.
The firm-fixed-price contract provides budget certainty for NIST regarding the cost of these services.
DIDLAKE INC is an established entity, suggesting a degree of reliability in service delivery.
The contract is awarded to a single entity, potentially simplifying contract management for the agency.

Sector Analysis

The janitorial and related services sector is a significant component of the facilities management industry, characterized by a mix of large corporations and smaller specialized firms. Federal spending in this area is substantial, driven by the need to maintain government buildings and installations nationwide. This contract falls under the broader facilities support services category. Comparable spending benchmarks for janitorial services vary widely based on facility size, location, and the scope of services required. The government often utilizes various contracting vehicles, including set-asides for small businesses and AbilityOne programs, to procure these services.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). Therefore, it does not directly contribute to small business contracting goals through this specific award. There is no information provided regarding subcontracting plans. The absence of small business participation in this sole-source award means that opportunities for small businesses to compete for or perform portions of this work are likely limited, potentially impacting the broader small business ecosystem that relies on federal contracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the National Institute of Standards and Technology (NIST) or the Department of Commerce. The firm-fixed-price structure provides a degree of accountability related to cost. However, the effectiveness of oversight in ensuring service quality and value is significantly hampered by the sole-source nature of the award and the lack of detailed performance metrics in the provided summary. Transparency is limited due to the non-competitive award process. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Facilities Maintenance Contracts
Government Janitorial Services
NIST Operations Support
Department of Commerce Service Contracts
AbilityOne Program Contracts

Risk Flags

Lack of Competition
Limited Transparency
Potential for Overpricing
Uncertainty of Value for Money

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $9.8 million to DIDLAKE INC. JANITORIAL AND RELATED SERVICES (ABILITYONE). NIST GAITHERSBURG CAMPUS LOCATED IN MARYLAND.

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 $9.8 million.

What is the period of performance?

Start: 2025-05-01. End: 2027-04-30.

What is the track record of DIDLAKE INC in performing federal janitorial contracts?

DIDLAKE INC has a history of performing government contracts, including those for janitorial and related services. While specific details on past performance quality, contract values, and client satisfaction are not provided in this summary, their presence as a contractor suggests they possess the necessary qualifications and experience to be considered for such awards. Further investigation into their past performance ratings, any documented issues or commendations, and the scale of previous contracts would be necessary for a comprehensive assessment of their track record. Understanding their performance on similar federal contracts can provide insights into their reliability and capability to meet NIST's requirements.

How does the contract value compare to similar janitorial services contracts awarded by the federal government?

The contract value of approximately $9.8 million over two years for janitorial services at the NIST Gaithersburg campus needs to be benchmarked against similar contracts to assess value. Factors such as the square footage of the facility, the specific services included (e.g., cleaning frequency, specialized services), and geographic location significantly influence pricing. While the provided data doesn't offer these specifics, a preliminary assessment suggests the value is within a plausible range for a large federal campus. However, without a competitive bidding process, it's challenging to determine if this represents the best possible value. A comparative analysis with contracts for facilities of comparable size and complexity, ideally awarded competitively, would be required for a more definitive conclusion on value for money.

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

The primary risks associated with a sole-source award for janitorial services include potential overpricing, reduced service quality, and a lack of innovation. Without competition, the government loses the leverage to negotiate the best possible price, potentially leading to higher costs for taxpayers. The selected contractor may face less pressure to maintain high service standards or to introduce efficiencies, as there are no competing firms vying for the contract. Furthermore, the government misses out on potential innovative solutions or service delivery models that might have been proposed by other bidders. This lack of competition can also reduce transparency in the procurement process.

What is the expected effectiveness of the janitorial services provided under this contract?

The expected effectiveness of the janitorial services hinges on the performance of DIDLAKE INC and the oversight provided by NIST. The contract aims to ensure a clean, safe, and functional environment within the NIST Gaithersburg campus, which is crucial for research and operations. The firm-fixed-price structure provides cost certainty but does not inherently guarantee service quality. Effectiveness will be measured by how well the contractor meets the specified service requirements and maintains the facility's condition. Robust performance monitoring and clear communication channels between NIST and DIDLAKE INC are essential to ensure the services delivered are effective and meet the agency's needs throughout the contract period.

What are the historical spending patterns for janitorial services at NIST or similar facilities?

Historical spending patterns for janitorial services at NIST or similar federal facilities typically show consistent demand due to the ongoing need for facility maintenance. Spending levels can fluctuate based on facility expansions, changes in service requirements, and the competitive landscape of service providers. Analyzing past contracts, including their values, durations, and the number of bidders, can reveal trends in pricing and contractor performance. For instance, a history of competitive bidding might indicate stable or decreasing costs over time, while a trend towards sole-source awards could suggest rising costs or reduced market participation. Understanding these patterns provides context for evaluating current contract values and procurement strategies.

Are there any specific performance standards or metrics outlined in the contract to ensure quality?

The provided summary data does not specify the performance standards or metrics included in the contract. While the contract is firm-fixed-price, which implies a defined scope of work, the actual effectiveness and quality of the janitorial services depend heavily on the detailed requirements and quality assurance surveillance plan (QASP) established within the full contract document. Effective contracts typically include measurable performance standards (e.g., cleanliness levels, response times for issues) and methods for monitoring and evaluating the contractor's performance. Without this information, it is difficult to assess how quality will be ensured and maintained throughout the contract's duration.

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: 1333ND24QNB190547

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8641 BREEDEN AVE, 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: $27,654,697

Exercised Options: $9,779,186

Current Obligation: $9,779,186

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline