CDC Awards $28.8M Janitorial Services Contract to Goodwill Industries of North Georgia
Contract Overview
Contract Amount: $28,810,927 ($28.8M)
Contractor: Goodwill Industries of North Georgia, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2023-07-23
End Date: 2026-07-22
Contract Duration: 1,095 days
Daily Burn Rate: $26.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CDC ATLANTA CAMPUSES - JANITORIAL SERVICES
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30329
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $28.8 million to GOODWILL INDUSTRIES OF NORTH GEORGIA, INC. for work described as: CDC ATLANTA CAMPUSES - JANITORIAL SERVICES Key points: 1. Contract awarded to a single provider, raising questions about competition. 2. The contract value is substantial for janitorial services. 3. Potential for higher costs due to limited competition. 4. The sector is essential for public health facility maintenance.
Value Assessment
Rating: fair
The contract value of $28.8 million over three years for janitorial services appears high. Benchmarking against similar contracts for large federal facilities is needed to assess if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition could result in taxpayers paying more than necessary for these essential janitorial services.
Public Impact
Ensures cleanliness and hygiene at critical CDC facilities. Supports a social enterprise (Goodwill) in its mission. Potential for job creation within the local community.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value for services
- Potential for cost overruns
Positive Signals
- Supports a mission-driven organization
- Ensures essential facility maintenance
Sector Analysis
Janitorial services are crucial for maintaining the operational integrity and hygiene of federal facilities, especially those involved in public health like the CDC. Spending benchmarks for such services can vary widely based on facility size, scope of work, and location.
Small Business Impact
While Goodwill Industries is a large non-profit, the contract does not explicitly indicate subcontracting opportunities for small businesses. Further analysis would be needed to determine if small businesses are involved in fulfilling this contract.
Oversight & Accountability
Oversight of this contract will be critical to ensure service quality and cost-effectiveness, especially given the limited competition. The CDC should monitor performance closely against contract requirements.
Related Government Programs
- Janitorial Services
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Lack of competitive bidding
- High contract value
- Potential for cost inefficiencies
- Limited transparency in pricing
Tags
janitorial-services, department-of-health-and-human-services, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $28.8 million to GOODWILL INDUSTRIES OF NORTH GEORGIA, INC.. CDC ATLANTA CAMPUSES - JANITORIAL SERVICES
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 $28.8 million.
What is the period of performance?
Start: 2023-07-23. End: 2026-07-22.
What is the benchmark cost for janitorial services at comparable federal facilities of similar size and scope?
Benchmarking janitorial services costs requires detailed analysis of contract scope, facility size, geographic location, and service level agreements. Without specific comparable contracts, it's difficult to provide an exact benchmark. However, a $28.8 million contract over three years for janitorial services at CDC campuses suggests a significant scale, and costs could range from $5 to $15 per square foot annually, depending on the factors mentioned.
What are the risks associated with awarding a janitorial contract without full and open competition?
The primary risk of awarding a contract without full and open competition is the potential for inflated prices due to a lack of market pressure. It can also limit innovation and the opportunity to engage with a wider range of qualified vendors who might offer better value or specialized services. This can lead to reduced overall value for taxpayer money.
How effectively does this contract ensure the necessary hygiene and cleanliness standards for CDC facilities?
The effectiveness of this contract in ensuring hygiene standards hinges on the detailed service level agreements and robust performance monitoring by the CDC. While Goodwill Industries is a reputable organization, the contract's success depends on clear performance metrics, regular inspections, and mechanisms for addressing any deficiencies promptly to maintain the high standards required for public health facilities.
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: 75D301-23-R-72669
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 Development Corporation, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $48,389,644
Exercised Options: $28,810,927
Current Obligation: $28,810,927
Actual Outlays: $22,514,276
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-07-23
Current End Date: 2026-07-22
Potential End Date: 2028-07-22 00:00:00
Last Modified: 2025-08-28
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