HHS awards $33.8M janitorial contract to Goodwill Industries of North Georgia, Inc

Contract Overview

Contract Amount: $33,858,575 ($33.9M)

Contractor: Goodwill Industries of North Georgia, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2018-09-23

End Date: 2023-07-22

Contract Duration: 1,763 days

Daily Burn Rate: $19.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $33.9 million to GOODWILL INDUSTRIES OF NORTH GEORGIA, INC. for work described as: JANITORIAL Key points: 1. Value for money appears fair given the contract duration and scope. 2. The contract was not competed, raising questions about price discovery. 3. Risk indicators are moderate, with a long performance period. 4. Performance context shows a single awardee over nearly five years. 5. This contract falls within the 'Other Services to Buildings and Dwellings' sector.

Value Assessment

Rating: fair

The contract value of $33.8 million over approximately 1763 days (roughly 4.8 years) averages to about $7.1 million annually. Benchmarking this against similar janitorial service contracts for federal facilities is challenging without more specific details on the scope of services, square footage, and location. However, the firm fixed-price structure suggests a predictable cost, but the lack of competition makes a direct value-for-money assessment difficult.

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. The data indicates only one offer was solicited and received. This approach limits the potential for competitive bidding, which typically drives down prices and encourages innovation. Without a competitive process, it's difficult to ascertain if the government received the best possible pricing or service.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost savings typically achieved through a bidding process. This could result in a higher overall expenditure for the janitorial services provided.

Public Impact

The primary beneficiary of this contract is Goodwill Industries of North Georgia, Inc., supporting its mission. Services delivered include janitorial and building maintenance for facilities managed by the Centers for Disease Control and Prevention (CDC). The geographic impact is concentrated in Georgia, where the services are performed. The contract supports employment opportunities through Goodwill Industries' workforce, which often includes individuals with barriers to employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potential savings for taxpayers.
Long contract duration without re-competition may reduce incentive for continuous service improvement.
Sole-source awards can sometimes indicate a lack of market research or a pre-determined relationship.

Positive Signals

Award to an organization with a social mission (Goodwill) aligns with potential socio-economic goals.
Firm fixed-price contract provides cost certainty for the agency.
Long-term contract provides stability for the service provider and consistent service delivery.

Sector Analysis

The janitorial services sector is a significant part of the broader facilities management industry. Federal spending in this area supports a wide range of building maintenance needs across numerous agencies. While specific benchmarks for federal janitorial contracts are not readily available, the market is generally characterized by numerous small and large providers competing on price, service quality, and specialized capabilities. This contract represents a portion of the government's overall expenditure on maintaining its physical infrastructure.

Small Business Impact

This contract was awarded to Goodwill Industries of North Georgia, Inc., which is not typically classified as a small business. The data indicates that small business set-asides were not utilized for this procurement. There is no explicit information on subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem appears minimal, with no specific provisions to encourage small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting agency, the Centers for Disease Control and Prevention (CDC), and the Department of Health and Human Services (HHS). Performance reviews, quality assurance checks, and invoice approvals are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS, where award details are recorded. The Inspector General for HHS may conduct audits or investigations if specific concerns arise regarding contract performance or financial management.

Related Government Programs

Federal Building Maintenance Contracts
Janitorial Services
Facilities Management Services
CDC Support Services
HHS Contracts

Risk Flags

Lack of Competition
Sole-Source Award
Potential for higher cost due to no competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $33.9 million to GOODWILL INDUSTRIES OF NORTH GEORGIA, INC.. JANITORIAL

Who is the contractor on this award?

The obligated recipient is GOODWILL INDUSTRIES OF NORTH GEORGIA, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $33.9 million.

What is the period of performance?

Start: 2018-09-23. End: 2023-07-22.

What is the historical spending trend for janitorial services by the CDC?

Analyzing historical spending trends for janitorial services by the Centers for Disease Control and Prevention (CDC) requires accessing detailed procurement data over multiple fiscal years. While this specific contract represents a significant award from FY2018 to FY2023, it is one data point. To understand the trend, one would need to aggregate all janitorial and related facility maintenance contracts awarded by the CDC, identify any patterns in award values, contract types (e.g., competitive vs. sole-source), and the duration of these contracts. A trend analysis might reveal if spending has increased, decreased, or remained stable, and whether the CDC is increasingly relying on sole-source awards or shifting towards different service providers. Without a broader dataset, it's difficult to establish a definitive trend from this single contract.

How does the annual cost of this contract compare to industry benchmarks for similar services?

The annual cost of this contract, approximately $7.1 million ($33.8M / ~4.8 years), is difficult to benchmark accurately against industry standards without detailed service scope, facility size, and geographic specifics. Janitorial services costs vary widely based on factors like square footage, frequency of cleaning, specialized services (e.g., deep cleaning, disinfection), and labor rates in the specific region (Georgia). General industry estimates for commercial janitorial services can range from $0.05 to $0.50 per square foot per month, but federal contracts often have different cost structures and requirements. Given the lack of competition, a direct comparison to ascertain 'best value' is challenging. A formal benchmarking study involving multiple comparable federal or large commercial contracts would be necessary for a robust assessment.

What are the specific performance metrics and quality assurance procedures associated with this contract?

The provided data does not detail the specific performance metrics or quality assurance (QA) procedures for this janitorial services contract. Typically, federal contracts include a Performance Work Statement (PWS) outlining required services, standards, and measurable outcomes. QA plans detail how the government will monitor contractor performance against these standards, often involving inspections, user feedback, and defined corrective action processes. For a contract of this value and duration, robust QA measures are expected to ensure services meet CDC facility needs. Without access to the contract's PWS and QA documentation, a thorough assessment of performance management is not possible.

What is the track record of Goodwill Industries of North Georgia, Inc. in performing similar federal contracts?

Goodwill Industries of North Georgia, Inc. has a history of performing various services, including janitorial and facilities support, though specific details on their federal contract performance history beyond this award are not provided in the summary data. Organizations like Goodwill often leverage their social mission to secure contracts, particularly those with socio-economic considerations. To assess their track record, one would need to examine past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or contract terminations, and the scope and value of previous government contracts they have held. This information would provide insight into their reliability, quality of service, and ability to manage large-scale contracts.

Were there any attempts to solicit small business participation or set-asides for this requirement?

Based on the provided data, this contract was awarded on a sole-source basis ('CT': 'NOT COMPETED') and does not indicate any small business set-aside ('SB': false). This suggests that prior to the award, there were likely no formal efforts to compete this requirement specifically for small businesses, nor was it designated as a small business set-aside. Sole-source awards are typically justified when only one responsible source can satisfy the agency's needs. While this doesn't preclude small business subcontracting, it means the prime contract itself was not awarded through a small business program.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Other Services to Buildings and Dwellings

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 2018N67633

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2201 LAWRENCEVILLE HWY, DECATUR, GA, 30033

Business Categories: AbilityOne Program Participant, Category Business, Community Developed Corporation Owned Firm, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,796,998

Exercised Options: $34,796,998

Current Obligation: $33,858,575

Actual Outlays: $15,303,162

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline