CFPB awards $5.5M custodial services contract to Didlake Inc. on a sole-source basis

Contract Overview

Contract Amount: $5,510,664 ($5.5M)

Contractor: Didlake Inc

Awarding Agency: Consumer Financial Protection Bureau

Start Date: 2022-05-15

End Date: 2026-05-14

Contract Duration: 1,460 days

Daily Burn Rate: $3.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW 1700 G ST. CUSTODIAL SERVICES CONTRACT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20552

State: District of Columbia Government Spending

Plain-Language Summary

Consumer Financial Protection Bureau obligated $5.5 million to DIDLAKE INC for work described as: NEW 1700 G ST. CUSTODIAL SERVICES CONTRACT Key points: 1. The contract's value of $5.5 million over four years represents a significant investment in maintaining federal facilities. 2. The sole-source award raises questions about the extent of market research and potential for cost savings through competition. 3. The firm-fixed-price structure shifts cost risk to the contractor, but the absence of competition limits price discovery. 4. Performance will be assessed against janitorial service standards, with potential impacts on employee and visitor experience. 5. The contract's duration of four years provides stability for the contractor and consistent service delivery for the agency. 6. The geographic focus is Washington D.C., impacting local employment and service providers in the region.

Value Assessment

Rating: fair

Benchmarking the value of this custodial services contract is challenging without comparable sole-source awards or detailed cost breakdowns. The $5.5 million price tag over four years, averaging approximately $1.375 million annually, appears substantial for janitorial services. However, without insight into the scope of services, square footage covered, or specific requirements, a definitive value-for-money assessment is difficult. The lack of competition means there's no direct market comparison to assess if this price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Consumer Financial Protection Bureau did not conduct a competitive bidding process. This approach is typically used when only one responsible source is available or in specific emergency situations. The lack of competition means that potential cost savings that could arise from multiple bidders vying for the contract were not realized. It also limits the agency's ability to explore innovative solutions or different service models that might be offered by other qualified vendors.

Taxpayer Impact: Taxpayers may be paying a premium for these services due to the absence of competitive pressure. Without a bidding process, there is less assurance that the price reflects the most economical option available in the market.

Public Impact

The primary beneficiaries are the employees and visitors of the Consumer Financial Protection Bureau, who will experience a maintained and clean working environment. The services delivered include essential janitorial and custodial functions necessary for the operation and upkeep of federal office spaces. The geographic impact is concentrated in Washington D.C., where the CFPB facilities are located. The contract supports jobs within the custodial services sector, potentially benefiting the workforce employed by Didlake Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Absence of performance metrics or service level agreements in the provided data.
Potential for higher costs compared to a competitively procured contract.

Positive Signals

Contract provides stable, long-term janitorial services for CFPB facilities.
Firm-fixed-price contract shifts cost risk to the contractor.
Contractor (Didlake Inc.) is established, potentially bringing experience to the role.

Sector Analysis

The custodial services sector is a mature and essential part of the facilities management industry, supporting the operational needs of government agencies and private organizations. Spending on such services is consistent across federal agencies to maintain workspaces. While specific benchmarks for sole-source custodial contracts are not readily available, the overall federal spending on facilities maintenance and support services is substantial, indicating the importance of these contracts. This contract fits within the broader category of 'Other Services' or 'Facilities Support' within federal procurement.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, and there is no information suggesting subcontracting opportunities for small businesses. As a sole-source award to Didlake Inc., the direct impact on the small business ecosystem is likely minimal unless Didlake itself utilizes small business subcontractors, which is not specified. Further investigation into Didlake's subcontracting plans would be needed to assess any potential benefits or implications for small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Consumer Financial Protection Bureau's contracting officer and program managers. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency regarding the sole-source justification and the contract's performance would be subject to Freedom of Information Act requests and agency reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Building Maintenance Contracts
Government Facilities Management Services
Janitorial and Cleaning Services for Federal Agencies
Consumer Financial Protection Bureau Operations Support

Risk Flags

Sole-source award raises concerns about competition and potential cost overruns.
Lack of detailed performance metrics in the provided data.
Absence of small business subcontracting information.

Frequently Asked Questions

What is this federal contract paying for?

Consumer Financial Protection Bureau awarded $5.5 million to DIDLAKE INC. NEW 1700 G ST. CUSTODIAL SERVICES CONTRACT

Who is the contractor on this award?

The obligated recipient is DIDLAKE INC.

Which agency awarded this contract?

Awarding agency: Consumer Financial Protection Bureau (Consumer Financial Protection Bureau).

What is the total obligated amount?

The obligated amount is $5.5 million.

What is the period of performance?

Start: 2022-05-15. End: 2026-05-14.

What is the specific justification for awarding this custodial services contract on a sole-source basis?

The provided data states the contract was 'NOT COMPETED,' indicating a sole-source award. Federal regulations (e.g., FAR Part 6) permit sole-source procurements under specific circumstances, such as when only one responsible source can satisfy the agency's needs, or in cases of urgency or national emergency. Without further documentation from the CFPB, the precise justification remains unclear. Typically, agencies must document extensive market research to demonstrate that no other sources can meet the requirement. The absence of competition suggests that either Didlake Inc. possesses unique capabilities, or the agency did not adequately explore the market.

How does the annual cost of this contract compare to similar custodial services contracts awarded by other federal agencies?

Direct comparison is difficult without knowing the exact scope of services, square footage, and specific requirements of the CFPB's facilities. However, the average annual cost of approximately $1.375 million for custodial services is substantial. General government estimates for janitorial services can vary widely, but for large federal buildings, costs can range from $1 to $5 per square foot annually, depending on service intensity. If the CFPB's facility is, for example, 500,000 square feet, this annual cost would fall within a plausible range. However, the lack of competition prevents a definitive assessment of whether this represents good value compared to what could be achieved through a competitive process.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this custodial services contract. In a typical federal contract, these would be detailed within the Performance Work Statement (PWS) or Statement of Work (SOW). They would outline specific requirements for cleanliness, frequency of services, response times for issues, and methods for performance evaluation. Without these details, it is difficult to assess how the contractor's performance will be measured and what standards must be met to ensure the quality and value of the services provided.

What is Didlake Inc.'s track record in providing custodial services to the federal government?

Didlake Inc. is a non-profit organization that provides employment and services through various government contracts, including custodial services. While the provided data doesn't detail their specific performance history with the CFPB or other agencies for custodial work, their status as a non-profit often aligns with specific government initiatives aimed at employing individuals with disabilities. Their longevity and continued awards suggest a level of capability and reliability in fulfilling contract requirements, though specific performance metrics and past client feedback would provide a more comprehensive view.

What is the historical spending pattern for custodial services at the Consumer Financial Protection Bureau?

The provided data only includes the current contract awarded in May 2022. To understand historical spending patterns, one would need to access historical contract databases (like USASpending.gov or FPDS) for the Consumer Financial Protection Bureau (CFPB) for previous fiscal years. This would reveal if custodial services were previously contracted out, the value of those contracts, and whether they were awarded competitively or on a sole-source basis. Analyzing this history would help determine if the current $5.5 million award represents an increase, decrease, or consistent level of spending for these services.

What are the potential risks associated with a sole-source award for essential services like custodial support?

The primary risks associated with a sole-source award for essential services like custodial support include: 1) Higher Costs: Without competition, the contractor may charge a premium, leading to less value for taxpayer money. 2) Reduced Innovation: The agency misses out on potentially innovative solutions or service improvements that competing firms might offer. 3) Contractor Complacency: The lack of competitive pressure could lead to a decline in service quality or responsiveness over time. 4) Limited Market Insight: The agency may not fully understand the current market rates or capabilities available for such services. 5) Difficulty in Transition: If performance issues arise, finding and transitioning to a new provider can be more complex and costly due to the established sole-source relationship.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8641 BREEDEN AVE STE 101, 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: $6,910,556

Exercised Options: $5,510,664

Current Obligation: $5,510,664

Actual Outlays: $4,830,835

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline