Department of Energy's $18M facilities maintenance contract awarded to Chugach McKinley, Inc. for janitorial services
Contract Overview
Contract Amount: $18,084,056 ($18.1M)
Contractor: Chugach Mckinley, Inc.
Awarding Agency: Department of Energy
Start Date: 2004-06-01
End Date: 2009-07-31
Contract Duration: 1,886 days
Daily Burn Rate: $9.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FACILITIES MAINTENANCE
Place of Performance
Location: LAS VEGAS, CLARK County, NEVADA, 89193
State: Nevada Government Spending
Plain-Language Summary
Department of Energy obligated $18.1 million to CHUGACH MCKINLEY, INC. for work described as: FACILITIES MAINTENANCE Key points: 1. Contract awarded as 'not available for competition', raising questions about potential cost savings through broader bidding. 2. Long contract duration of 1886 days suggests a need for stable, long-term service provision. 3. Fixed-price contract type aims to control costs, but requires careful scope management to avoid overruns. 4. Services provided are essential for maintaining operational readiness and safety within DOE facilities. 5. Geographic location in Nevada (NV) may influence labor costs and availability. 6. No small business set-aside indicates potential missed opportunities for smaller, specialized service providers.
Value Assessment
Rating: fair
Benchmarking the value of this $18 million facilities maintenance contract is challenging without specific performance metrics or comparable contract data. The fixed-price structure suggests an attempt to control costs, but the lack of competition could have led to a higher price than might have been achieved in a more open bidding process. The contract's duration of over five years also means that pricing may not reflect current market rates for janitorial services, potentially impacting overall value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded under a 'not available for competition' basis, meaning it was not openly competed. This approach typically occurs when a specific contractor is deemed uniquely qualified or when there are urgent needs that preclude a full solicitation process. The lack of multiple bidders means that price discovery through competitive bidding was not utilized, potentially leading to a less favorable price for the government.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure, as the government did not benefit from multiple offers to drive down costs.
Public Impact
Federal employees and visitors benefit from a clean and safe working environment. Essential janitorial and facilities maintenance services are delivered to Department of Energy sites. The contract's geographic impact is concentrated in Nevada (NV). The contract supports jobs within the janitorial services sector, though specific workforce numbers are not detailed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may have resulted in a higher price than a fully competed contract.
- Long contract duration could mean the price is not aligned with current market rates.
- Fixed-price contracts can lead to disputes if the scope of work is not clearly defined.
- No small business participation noted, potentially limiting opportunities for smaller firms.
Positive Signals
- Fixed-price contract type provides cost certainty for the government.
- Essential services are secured for an extended period, ensuring facility upkeep.
- Contractor has a long-term relationship with the agency, suggesting established performance.
Sector Analysis
The facilities maintenance sector, particularly janitorial services, is a significant component of government spending on operational support. This contract falls within the broader facilities support services industry, which includes a wide range of activities from cleaning to groundskeeping. Government contracts for these services are often awarded on a fixed-price basis to manage costs, and competition levels can vary significantly depending on the specific requirements and market dynamics. The size of this contract, at $18 million, is substantial for janitorial services.
Small Business Impact
The absence of a small business set-aside for this contract indicates that it was not specifically targeted towards small businesses. This could mean that larger companies were deemed more capable or that the contracting agency did not prioritize small business participation for this particular requirement. Without subcontracting requirements, the direct impact on the small business ecosystem is limited, potentially missing an opportunity to foster growth and innovation among smaller service providers.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Energy's contracting officers and program managers. Accountability measures are inherent in the fixed-price contract structure, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is limited by the sole-source award, but contract details and performance reports, if publicly available, would offer insights. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Federal Buildings Maintenance
- Government Janitorial Services
- Department of Energy Operations Support
- Facilities Management Contracts
Risk Flags
- Sole-source award raises concerns about potential lack of price competition.
- Long contract duration may not reflect current market pricing.
- Lack of public performance data hinders value assessment.
Tags
facilities-maintenance, janitorial-services, department-of-energy, nevada, definitive-contract, firm-fixed-price, sole-source, operational-support, government-contracting
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $18.1 million to CHUGACH MCKINLEY, INC.. FACILITIES MAINTENANCE
Who is the contractor on this award?
The obligated recipient is CHUGACH MCKINLEY, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $18.1 million.
What is the period of performance?
Start: 2004-06-01. End: 2009-07-31.
What is the historical spending pattern for facilities maintenance and janitorial services at the Department of Energy, particularly in Nevada?
Analyzing historical spending for facilities maintenance and janitorial services at the Department of Energy (DOE) in Nevada would provide crucial context for this $18 million contract. Without specific historical data, it's difficult to determine if this award represents an increase or decrease in spending for these services. Typically, agencies maintain budgets for operational support, and fluctuations can occur due to facility upgrades, changes in operational tempo, or shifts in contracting strategies. Understanding past expenditures would help assess whether the current contract's value is consistent with previous investments and if the 'not available for competition' award deviates from a pattern of competitive bidding for similar services.
How does the $18 million contract value compare to similar janitorial services contracts awarded by other federal agencies?
Comparing the $18 million value of this Department of Energy contract to similar janitorial services contracts awarded by other federal agencies is essential for assessing its reasonableness. Benchmarking against contracts of comparable scope, duration, and geographic location would reveal if the price is within market norms. For instance, if other agencies are securing similar services for significantly less, it could indicate that this contract's price is inflated due to the lack of competition. Conversely, if the price aligns with or is lower than comparable contracts, it might suggest that despite the sole-source award, a reasonable price was negotiated. Access to a database of federal contract awards would facilitate this comparative analysis.
What specific janitorial and facilities maintenance services are included in this $18 million contract, and how were they defined?
The specific janitorial and facilities maintenance services encompassed by this $18 million contract are critical for evaluating its scope and value. The contract is categorized under NAICS code 561720 (Janitorial Services), suggesting a focus on cleaning and upkeep. However, 'facilities maintenance' can be broad, potentially including minor repairs, landscaping, pest control, or waste management. A detailed breakdown of the Statement of Work (SOW) is necessary to understand the full extent of services required. Without this, it's challenging to assess if the $18 million price adequately covers the expected deliverables or if there's potential for scope creep or under-delivery.
What are the performance metrics and quality assurance procedures associated with this contract to ensure value for money?
The effectiveness of this $18 million facilities maintenance contract hinges on robust performance metrics and quality assurance (QA) procedures. For a fixed-price contract, clear deliverables and service level agreements (SLAs) are paramount. The Department of Energy would typically have a system in place to monitor the contractor's adherence to these standards, potentially including regular inspections, user feedback mechanisms, and performance reports. The absence of readily available performance data makes it difficult to ascertain the contractor's track record and whether the government is receiving adequate value for its investment. Strong QA processes are key to ensuring that essential janitorial services are consistently met.
Given the 'not available for competition' award, what justification did the Department of Energy provide for not seeking multiple bids?
The justification provided by the Department of Energy (DOE) for awarding this $18 million facilities maintenance contract on a 'not available for competition' basis is a key factor in assessing its transparency and potential value. Agencies typically cite specific circumstances, such as the unique capabilities of a sole provider, urgent and compelling needs, or the existence of a follow-on contract where only one source can reasonably provide the services. Understanding this justification is crucial because it dictates whether the government explored all viable options for obtaining competitive pricing. If the justification is weak or unsubstantiated, it raises concerns about potential cost inefficiencies and missed opportunities for better value.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Chugach Alaska Corporation (UEI: 071844021)
Address: 560 EAST 34TH AVENUE, ANCHORAGE, AK, 99503
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $18,544,056
Exercised Options: $18,544,056
Current Obligation: $18,084,056
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Timeline
Start Date: 2004-06-01
Current End Date: 2009-07-31
Potential End Date: 2009-07-31 00:00:00
Last Modified: 2018-06-08
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