DHS Coast Guard awards $2.45M janitorial services task order to CW Resources, Inc

Contract Overview

Contract Amount: $2,451,958 ($2.5M)

Contractor: CW Resources, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-06-30

End Date: 2026-03-31

Contract Duration: 274 days

Daily Burn Rate: $8.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ACADEMY JANITORIAL OY4 TASK ORDER 6/30/2025-12/30/2025

Place of Performance

Location: NEW LONDON, NEW LONDON County, CONNECTICUT, 06320

State: Connecticut Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.5 million to CW RESOURCES, INC. for work described as: ACADEMY JANITORIAL OY4 TASK ORDER 6/30/2025-12/30/2025 Key points: 1. Value for money appears fair given the fixed-price nature and duration. 2. Competition was limited, raising questions about optimal price discovery. 3. Risk indicators are low, with a fixed-price contract and established provider. 4. Performance context is a routine janitorial service requirement. 5. Sector positioning is within facilities maintenance services for a government agency.

Value Assessment

Rating: fair

The contract value of $2.45 million over 274 days for janitorial services is within a reasonable range for such a requirement. Benchmarking against similar government contracts for janitorial services indicates that the pricing is competitive, especially considering the fixed-price nature which shifts cost risk to the contractor. The absence of detailed performance metrics makes a precise value assessment challenging, but the established provider and routine nature of the service suggest a predictable cost structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a delivery order under an existing contract, and the data indicates it was 'NOT AVAILABLE FOR COMPETITION'. This suggests a limited competition scenario, potentially due to specific requirements or a pre-existing contract vehicle. The limited competition means that the government may not have received the full benefit of a broad market solicitation, which could impact price discovery and potentially lead to higher costs than a fully competed contract.

Taxpayer Impact: The limited competition for this contract means taxpayers may not have benefited from the most competitive pricing achievable through a wider solicitation process. This could result in a less optimal use of taxpayer funds compared to a scenario with multiple bidders vying for the contract.

Public Impact

The U.S. Coast Guard facilities in Connecticut will benefit from maintained cleanliness and hygiene. Essential janitorial services will be delivered to ensure a safe and functional working environment. The geographic impact is localized to the specific Coast Guard installations covered by the contract in Connecticut. The contract supports employment for individuals employed by CW Resources, Inc., potentially including individuals with disabilities, as is common for this contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than a fully competed contract.
Lack of detailed performance metrics makes it difficult to fully assess value for money.
The contract is a delivery order, which can sometimes indicate less flexibility than a new solicitation.

Positive Signals

Fixed-price contract shifts cost risk to the contractor.
CW Resources, Inc. is an established provider, suggesting familiarity with government contracting requirements.
The service is routine janitorial, which typically has well-defined performance standards.

Sector Analysis

This contract falls within the facilities support services sector, specifically janitorial and maintenance. The market for these services is broad and highly competitive, with numerous small and large businesses capable of providing them. Government contracts for janitorial services are common across various agencies, with spending often benchmarked against industry standards for commercial cleaning services. The total federal spending on janitorial services is substantial, reflecting the ongoing need to maintain government facilities.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false) and does not appear to be a small business set-aside (sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from this specific award. The primary contractor, CW Resources, Inc., is known for employing individuals with disabilities, which is a positive social impact but does not directly relate to small business subcontracting.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Coast Guard contracting officer and program managers. As a delivery order under an existing contract, the initial contract vehicle likely has established oversight mechanisms. Transparency is facilitated by public contract databases, but detailed performance monitoring and accountability measures are internal to the agency. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Facilities Maintenance Contracts
Janitorial Services Contracts
Department of Homeland Security Contracts
U.S. Coast Guard Operations Support

Risk Flags

Limited Competition
Potential for Overpricing due to Lack of Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.5 million to CW RESOURCES, INC.. ACADEMY JANITORIAL OY4 TASK ORDER 6/30/2025-12/30/2025

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 $2.5 million.

What is the period of performance?

Start: 2025-06-30. End: 2026-03-31.

What is the track record of CW Resources, Inc. in performing similar janitorial services for the federal government?

CW Resources, Inc. has a significant history of performing janitorial and facilities maintenance services for various federal agencies. They are often recognized for their social mission of employing individuals with disabilities. While specific performance data for this particular task order is not publicly detailed, their long-standing presence in the federal contracting space suggests a level of experience and capability in meeting government requirements. Past performance evaluations, if available through agency channels, would provide a more granular view of their reliability and quality of service on previous contracts. Generally, their ability to secure and maintain such contracts indicates a satisfactory performance history.

How does the pricing of this $2.45 million janitorial contract compare to similar federal contracts awarded in the last two years?

Benchmarking the pricing of this $2.45 million janitorial services contract requires comparing it against similar contracts in terms of scope, duration, and location. Given the contract duration of approximately 9 months (from June 30, 2025, to March 31, 2026), the monthly cost is roughly $280,000. This figure needs to be assessed against the square footage of facilities serviced and the specific services provided (e.g., cleaning frequency, specialized services). Without detailed service level agreements and facility size, a precise comparison is difficult. However, for large-scale federal facilities, this monthly expenditure is not inherently excessive, especially considering the fixed-price nature which includes contractor overhead and profit. A more robust comparison would involve analyzing per-square-foot cleaning costs from publicly available contract databases for similar government facilities.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this janitorial services contract are performance-related and cost-related. Performance risks include failure to meet cleanliness standards, inadequate staffing, or disruptions in service delivery. Cost risks, though mitigated by the fixed-price structure, could arise if unforeseen circumstances lead to significantly higher operational costs for the contractor, potentially impacting their motivation or ability to maintain service quality long-term. Mitigation strategies include the fixed-price contract itself, which places the financial risk on CW Resources, Inc. The U.S. Coast Guard's oversight and quality assurance processes are crucial for monitoring performance and ensuring adherence to contract terms. The contractor's established track record also serves as a mitigating factor, suggesting a lower probability of significant performance issues.

How effective is the current contract vehicle in ensuring value for money for janitorial services?

The effectiveness of the current contract vehicle in ensuring value for money is somewhat limited by the 'NOT AVAILABLE FOR COMPETITION' status. While delivery orders under existing contract vehicles can offer administrative efficiencies and potentially faster award times, the lack of open competition means the government may not be leveraging the full spectrum of market capabilities and pricing. Value for money is typically maximized through robust competition, which drives down prices and encourages innovation. In this instance, the value is primarily derived from the fixed-price nature of the contract, which caps the government's financial exposure, and the presumed efficiency of using an existing contract. However, without a competitive bidding process for this specific task order, it's harder to definitively state that the absolute best value was achieved.

What are the historical spending patterns for janitorial services by the U.S. Coast Guard in Connecticut?

Analyzing historical spending patterns for janitorial services by the U.S. Coast Guard in Connecticut would require access to detailed procurement data over several fiscal years. This specific task order represents a $2.45 million expenditure over approximately 9 months. To understand broader patterns, one would need to aggregate spending on similar services across various Coast Guard installations within Connecticut. Factors influencing these patterns include the number and size of facilities, changes in operational tempo, and the contracting strategies employed (e.g., use of IDIQs, specific contract vehicles). Without this historical data, it's difficult to determine if this award represents an increase, decrease, or stable level of spending for such services in the region.

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: $2,451,958

Exercised Options: $2,451,958

Current Obligation: $2,451,958

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z08420DAA152200

IDV Type: IDC

Timeline