HHS Awards $7M Warehouse Support Services Contract to DIDLAKE INC for 4 Years
Contract Overview
Contract Amount: $7,011,497 ($7.0M)
Contractor: Didlake Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2024-04-01
End Date: 2028-03-31
Contract Duration: 1,460 days
Daily Burn Rate: $4.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: WAREHOUSE SUPPORT SERVICES
Place of Performance
Location: MANASSAS, MANASSAS CITY County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $7.0 million to DIDLAKE INC for work described as: WAREHOUSE SUPPORT SERVICES Key points: 1. Contract value of $7.01M over 4 years. 2. Sole-source award to DIDLAKE INC. 3. Potential risk due to lack of competition. 4. Services fall under 'All Other Support Services' NAICS code 561990.
Value Assessment
Rating: questionable
The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the $7.01M price is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no competition. This significantly limits price discovery and may result in a higher cost to the government than if multiple vendors had competed.
Taxpayer Impact: The lack of competition raises concerns about the efficient use of taxpayer funds, as a potentially lower price may have been achievable through a competitive process.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long-term nature of the contract (4 years) locks in this potentially non-competitive pricing. Lack of transparency in the procurement process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Time and Materials contract type
- Lack of competition
Positive Signals
- Contract awarded to a single vendor.
Sector Analysis
Warehouse support services are essential for government operations, ensuring efficient storage and distribution of goods. The benchmark for such services can vary widely based on scope and location, but competitive bidding typically drives costs down.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, either as prime contractors or subcontractors. Further analysis would be needed to determine if small business participation was considered or overlooked.
Oversight & Accountability
The sole-source nature of this award warrants closer oversight to ensure the contractor is delivering services effectively and that costs remain reasonable throughout the contract period.
Related Government Programs
- All Other Support Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Lack of competition may lead to inflated prices.
- Time and Materials contract type increases cost risk.
- Potential for vendor lock-in due to sole-source award.
- Limited transparency in the procurement process.
Tags
all-other-support-services, department-of-health-and-human-services, va, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $7.0 million to DIDLAKE INC. WAREHOUSE SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is DIDLAKE INC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).
What is the total obligated amount?
The obligated amount is $7.0 million.
What is the period of performance?
Start: 2024-04-01. End: 2028-03-31.
What justification was provided for the sole-source award, and was a market research conducted to confirm the lack of competition?
The provided data indicates a sole-source award ('CT': 'NOT COMPETED'). A thorough justification for this approach, including documented market research confirming the unavailability of other sources or the necessity of a specific vendor, is crucial for accountability. Without this, it's difficult to ascertain if taxpayer funds are being used efficiently or if a competitive process was bypassed without adequate reason.
How will the government ensure cost control and value for money with a Time and Materials contract awarded sole-source?
With a Time and Materials contract awarded without competition, robust government oversight is paramount. This includes detailed tracking of labor hours and material costs, establishing clear ceilings, and regular performance reviews to ensure services align with the stated needs and that pricing remains fair. Proactive management is key to mitigating risks associated with cost escalation.
What is the specific nature of the 'warehouse support services' being procured, and how does this contract align with the agency's mission objectives?
The data identifies the service as 'WAREHOUSE SUPPORT SERVICES' under NAICS code 561990. Understanding the precise functions—such as inventory management, storage, logistics, or distribution—is vital. This contract's alignment with the Office of the Assistant Secretary for Administration's mission ensures that essential operational support is maintained, contributing to the overall effectiveness of the Department of Health and Human Services' programs.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: ABILITY ONE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 8641 BREEDEN AVE, MANASSAS, VA, 20110
Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $7,011,497
Exercised Options: $7,011,497
Current Obligation: $7,011,497
Actual Outlays: $3,927,196
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-04-01
Current End Date: 2028-03-31
Potential End Date: 2029-03-31 00:00:00
Last Modified: 2026-03-26
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