Coast Guard Awards $8.47M Janitorial Contract to CW Resources, Inc. Amidst Limited Competition
Contract Overview
Contract Amount: $8,466,520 ($8.5M)
Contractor: CW Resources, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2020-10-01
End Date: 2023-09-30
Contract Duration: 1,094 days
Daily Burn Rate: $7.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: JANITORIAL SERVICES AT UNITED STATES COAST GUARD ACADEMY
Place of Performance
Location: NEW LONDON, NEW LONDON County, CONNECTICUT, 06320
Plain-Language Summary
Department of Homeland Security obligated $8.5 million to CW RESOURCES, INC. for work described as: JANITORIAL SERVICES AT UNITED STATES COAST GUARD ACADEMY Key points: 1. Contract Value: $8.47 million over three years. 2. Sole Provider: CW Resources, Inc. is the sole provider, raising competition concerns. 3. Sector: Services, specifically janitorial, with a significant but localized impact. 4. Risk: Lack of competition may lead to inflated pricing and reduced service quality.
Value Assessment
Rating: fair
The contract value of $8.47 million for janitorial services appears reasonable given the three-year duration and the scope of services for a federal academy. However, without competitive bidding, it's difficult to ascertain if this represents the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited competition scenario. This significantly restricts price discovery and potentially leads to higher costs for taxpayers compared to a fully competitive environment.
Taxpayer Impact: The lack of competition limits the potential for cost savings, meaning taxpayers may be paying more than necessary for these janitorial services.
Public Impact
Ensures a clean and safe environment at the U.S. Coast Guard Academy. Supports a single contractor, potentially impacting local employment. Limited transparency in pricing due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited contractor options
Positive Signals
- Consistent service provider
- Meets facility needs
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically janitorial services. Benchmarks for janitorial services can vary widely based on location, facility size, and service level, but a lack of competition makes direct comparison difficult.
Small Business Impact
The data does not indicate whether CW Resources, Inc. is a small business. If it is not, this contract represents a significant award to a larger entity, potentially bypassing opportunities for small businesses in the janitorial services sector.
Oversight & Accountability
Oversight is primarily the responsibility of the U.S. Coast Guard to ensure contract terms are met. The limited competition aspect warrants scrutiny to ensure fair pricing and service quality were achieved despite the lack of bidding.
Related Government Programs
- Janitorial Services
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated costs
- Limited transparency in pricing
- No benchmark for service cost-effectiveness
Tags
janitorial-services, department-of-homeland-security, ct, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $8.5 million to CW RESOURCES, INC.. JANITORIAL SERVICES AT UNITED STATES COAST GUARD ACADEMY
Who is the contractor on this award?
The obligated recipient is CW RESOURCES, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $8.5 million.
What is the period of performance?
Start: 2020-10-01. End: 2023-09-30.
What is the justification for the limited competition award for these janitorial services?
The justification for limited competition is crucial. Agencies typically cite reasons such as urgent need, unique capabilities of the contractor, or insufficient time to conduct a full and open competition. Understanding this rationale is key to assessing whether the limited competition was truly necessary or if it represents a missed opportunity for better value.
How does the pricing compare to similar janitorial contracts awarded competitively in the region?
Without competitive bids, a direct price comparison is challenging. However, an analysis could involve benchmarking the per-square-foot cost against similar-sized federal or commercial facilities in Connecticut. If the current contract's pricing significantly exceeds regional averages, it would indicate potential overpayment due to the lack of competition.
What measures are in place to ensure service quality and accountability given the non-competitive nature of the award?
Accountability relies on robust contract performance monitoring by the U.S. Coast Guard. This includes regular inspections, performance reviews, and adherence to service level agreements. Clear communication channels and defined remedies for non-performance are essential to ensure the government receives the expected value despite the absence of competitive pressure.
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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 200 MYRTLE ST, NEW BRITAIN, CT, 06053
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: $11,175,119
Exercised Options: $11,175,119
Current Obligation: $8,466,520
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70Z08420DAA152200
IDV Type: IDC
Timeline
Start Date: 2020-10-01
Current End Date: 2023-09-30
Potential End Date: 2024-09-26 00:00:00
Last Modified: 2026-01-14
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