DOJ's FBI awards $17.7M janitorial contract to Huntsville Rehabilitation Foundation, a non-competitive sole-source agreement

Contract Overview

Contract Amount: $17,752,850 ($17.8M)

Contractor: Huntsville Rehabilitation Foundation

Awarding Agency: Department of Justice

Start Date: 2021-09-09

End Date: 2026-09-29

Contract Duration: 1,846 days

Daily Burn Rate: $9.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REDSTONE ARSENAL CUSTODIAL

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $17.8 million to HUNTSVILLE REHABILITATION FOUNDATION for work described as: REDSTONE ARSENAL CUSTODIAL Key points: 1. The contract's value of $17.7 million over its period of performance suggests a significant investment in facility maintenance. 2. The sole-source nature of this award raises questions about potential price discovery and the availability of competitive alternatives. 3. The contractor, Huntsville Rehabilitation Foundation, has a specific mission that may influence the contract's social impact. 4. The contract duration of approximately 5 years provides a long-term commitment for janitorial services. 5. The fixed-price contract type aims to provide cost certainty for the government, shifting performance risk to the contractor.

Value Assessment

Rating: fair

Benchmarking the value of this $17.7 million janitorial contract is challenging without specific service level agreements and detailed scope of work. However, the per-square-foot cost for custodial services can vary widely based on facility type, location, and service intensity. Given the sole-source nature, a direct comparison to competitively bid contracts is not feasible. The price appears substantial, necessitating a review of the services provided to ensure they align with the allocated funds and meet the FBI's operational needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Federal Bureau of Investigation did not conduct a competitive solicitation. This approach is typically used when only one responsible source is available or in cases of urgent need. The lack of competition means that the government did not benefit from a bidding process that could have potentially driven down prices or spurred innovation from multiple vendors. The justification for this sole-source award would need to be thoroughly documented to ensure it was appropriate.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process. This could potentially lead to higher costs than if multiple firms had vied for the contract.

Public Impact

The primary beneficiary is the Federal Bureau of Investigation, which will receive essential janitorial services to maintain its facilities. The contract ensures a clean and safe working environment for FBI personnel. The services are geographically focused on Redstone Arsenal, Alabama, supporting federal operations in that region. The contractor, Huntsville Rehabilitation Foundation, is an organization that employs individuals with disabilities, suggesting a positive workforce implication and social impact.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than a competitive award.
The sole-source justification needs to be robust to ensure proper use of taxpayer funds.
Performance metrics and quality control are crucial to ensure value for money in a non-competed contract.

Positive Signals

The contract supports a mission-driven organization (Huntsville Rehabilitation Foundation) that employs individuals with disabilities.
The fixed-price contract type provides cost certainty for the government.
The long-term nature of the contract (nearly 5 years) offers stability for service provision.

Sector Analysis

The janitorial services sector is a significant part of the broader facilities management industry. Federal agencies are major consumers of these services, with spending spread across various types of buildings and operational needs. While specific benchmarks for federal janitorial contracts are not readily available, the market is generally characterized by a mix of large corporations and smaller, specialized firms. This contract, valued at $17.7 million, represents a substantial commitment within this sector, particularly for the specific geographic area of Redstone Arsenal.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a specific small business set-aside component. The contractor, Huntsville Rehabilitation Foundation, is a non-profit organization. There is no explicit information regarding subcontracting plans with small businesses. The impact on the small business ecosystem is therefore likely minimal unless the prime contractor voluntarily engages small businesses for specific services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Bureau of Investigation's contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, including performance standards and payment schedules. Transparency is facilitated through contract databases like FPDS, though the specific details of the sole-source justification may not be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Bureau of Investigation Facility Maintenance Contracts
Department of Justice Custodial Services
Redstone Arsenal Support Services
Non-Profit Organization Federal Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for cost overruns without competitive benchmarking.
Need for stringent performance monitoring due to non-competitive nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $17.8 million to HUNTSVILLE REHABILITATION FOUNDATION. REDSTONE ARSENAL CUSTODIAL

Who is the contractor on this award?

The obligated recipient is HUNTSVILLE REHABILITATION FOUNDATION.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $17.8 million.

What is the period of performance?

Start: 2021-09-09. End: 2026-09-29.

What is the specific justification for awarding this janitorial services contract on a sole-source basis to Huntsville Rehabilitation Foundation?

The provided data indicates the contract was 'NOT COMPETED' and is a 'SOLE SOURCE' award. Federal procurement regulations (e.g., FAR Part 6) allow for sole-source procurements under specific circumstances, such as when only one responsible source is capable of providing the required services, or in cases of urgent and compelling need. For this contract, the FBI would have had to document a justification, often referred to as a Justification and Approval (J&A), detailing why competition was not feasible or practicable. This might involve factors like the unique capabilities of Huntsville Rehabilitation Foundation, its established relationship with the facility, or specific social program requirements mandated by the agency. Without access to the official J&A document, the precise reasons remain unconfirmed, but it is a critical piece of information for assessing the propriety of the award.

How does the total contract value of $17.7 million compare to similar janitorial service contracts awarded by federal agencies?

Comparing the $17.7 million total contract value requires context regarding the scope, duration, and location of services. Federal janitorial contracts can range from tens of thousands to millions of dollars annually, depending on the size and complexity of the facilities. For a contract spanning nearly five years (1846 days) at a significant federal installation like Redstone Arsenal, $17.7 million is a substantial but not necessarily outlier figure. However, without detailed service level agreements (SLAs), square footage, frequency of service, and specific tasks included, a direct benchmark is difficult. Competitively procured contracts for similar scope and duration might yield different price points, potentially lower due to market competition. The sole-source nature here means a direct comparison to competitive pricing is inherently limited.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to ensure quality and value?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a janitorial services contract of this magnitude, typical KPIs would likely include metrics related to cleanliness standards (e.g., visual inspection scores, dust levels), response times for reported issues, waste management efficiency, adherence to safety protocols, and customer satisfaction. SLAs would define the specific services to be performed, frequency, and acceptable quality thresholds. Effective oversight by the FBI would involve regular performance evaluations against these defined metrics to ensure the contractor, Huntsville Rehabilitation Foundation, is meeting its obligations and delivering value for the $17.7 million investment.

What is the track record of Huntsville Rehabilitation Foundation in performing federal janitorial contracts, particularly sole-source awards?

Huntsville Rehabilitation Foundation (HRF) is noted as the contractor for this FBI janitorial services contract. HRF's mission often involves employing individuals with disabilities, which can be a factor in sole-source awards, particularly under specific socio-economic programs or justifications. Information regarding HRF's specific track record on federal janitorial contracts, especially sole-source ones, would typically be found in contract performance databases and agency records. While the data shows this is a definitive contract awarded to them, details on past performance, client satisfaction, and history with sole-source awards are not provided here. A deeper dive into their contract history would be necessary to fully assess their experience and reliability in fulfilling such federal obligations.

What are the potential risks associated with a sole-source contract for essential services like janitorial support?

The primary risk associated with a sole-source contract for essential services like janitorial support is the potential for inflated pricing due to the lack of competition. Without multiple bidders vying for the contract, the government may not achieve the most cost-effective outcome. Another risk is complacency; the contractor may have less incentive to innovate or improve service quality over time compared to a competitive environment. Furthermore, if the sole-source justification is weak or becomes outdated, it could lead to questions of fairness and compliance with procurement regulations. Ensuring robust contract management, clear performance standards, and regular price reviews becomes even more critical in sole-source situations to mitigate these risks and ensure value for taxpayer money.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 15F06721R0000155

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2939 JOHNSON RD, 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: $29,000,493

Exercised Options: $28,774,135

Current Obligation: $17,752,850

Actual Outlays: $14,259,556

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)

Cost or Pricing Data: NO

Timeline