DoD's $17.3M custodial services contract with CW Resources, Inc. awarded non-competitively

Contract Overview

Contract Amount: $17,340,833 ($17.3M)

Contractor: CW Resources, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-10-21

End Date: 2027-09-30

Contract Duration: 2,901 days

Daily Burn Rate: $6.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ABILITYONE GROUND MAINTENANCE, CUSTODIAL SERVICES, SOLID WASTE, AND MAIL CENTER OPERATIONS

Place of Performance

Location: ARNOLD AFB, COFFEE County, TENNESSEE, 37389

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $17.3 million to CW RESOURCES, INC. for work described as: ABILITYONE GROUND MAINTENANCE, CUSTODIAL SERVICES, SOLID WASTE, AND MAIL CENTER OPERATIONS Key points: 1. Contract awarded without competition, raising questions about potential cost savings. 2. Significant duration of nearly 8 years suggests a long-term need for these services. 3. Firm Fixed Price contract type provides cost certainty but may limit flexibility. 4. Service area in Tennessee indicates a specific geographic focus for these operations. 5. The contract's value is substantial, warranting scrutiny of its overall efficiency. 6. No small business set-aside indicates a focus on larger contracting vehicles or specific capabilities.

Value Assessment

Rating: fair

The contract's value of $17.3 million over nearly 8 years averages approximately $2.2 million annually. Without comparable contract data or detailed cost breakdowns, it is difficult to definitively benchmark the value for money. The non-competitive award limits the ability to assess if market-based pricing was achieved. However, the firm fixed-price structure offers predictability in spending.

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. This approach is typically used when only one responsible source is available or when a compelling justification exists for excluding competition. The lack of competition means that potential cost savings that could arise from a competitive bidding process were not realized.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down costs. The government did not benefit from the price discovery mechanism inherent in a competitive solicitation.

Public Impact

The primary beneficiaries are the Department of Defense and its facilities in Tennessee, which receive essential custodial, waste management, and mail services. This contract ensures the cleanliness and operational efficiency of military installations. It supports the workforce employed by CW Resources, Inc. to perform these vital support functions. The services provided contribute to a safe and functional working environment for military personnel and civilian staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs than a competed contract.
Long contract duration could reduce flexibility to adapt to changing needs or technologies.
Firm fixed price may not account for potential efficiencies or cost reductions during the contract period.

Positive Signals

Firm fixed price provides budget certainty for the agency.
Long-term award suggests a stable and reliable service provider.
Focus on essential support services ensures operational continuity for the DoD.

Sector Analysis

The janitorial services industry is a significant sector within the broader facilities management market. This contract falls under the 'Janitorial Services' NAICS code 561720. The federal government is a major consumer of these services across various agencies and installations. Benchmarking this contract's value against similar large-scale government custodial contracts would require access to detailed pricing and scope information, which is not readily available for sole-source awards.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The award to CW Resources, Inc., a large business, suggests that the primary focus was on meeting the specific requirements of the Department of Defense rather than promoting small business participation through set-asides. There is no information provided regarding subcontracting plans for small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting agency, the Department of the Air Force, and potentially the Department of Defense's Inspector General. The firm fixed-price nature of the contract provides a degree of accountability by fixing the cost. However, the lack of competition limits the transparency into the cost-effectiveness and efficiency of the services provided. Regular performance reviews and audits would be key oversight mechanisms.

Related Government Programs

Base Operations Support Services
Facilities Maintenance Contracts
Logistics and Support Services
Government Cleaning Services

Risk Flags

Non-competitive award limits transparency and potential cost savings.
Long contract duration may reduce adaptability to evolving needs.
Lack of detailed performance metrics in summary data hinders effectiveness assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.3 million to CW RESOURCES, INC.. ABILITYONE GROUND MAINTENANCE, CUSTODIAL SERVICES, SOLID WASTE, AND MAIL CENTER OPERATIONS

Who is the contractor on this award?

The obligated recipient is CW RESOURCES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $17.3 million.

What is the period of performance?

Start: 2019-10-21. End: 2027-09-30.

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

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is a form of sole-source procurement. Specific justifications for sole-source awards typically fall under FAR Part 6.302, such as 'only one responsible source and no other supplies or services will satisfy agency requirements' (FAR 6.302-1) or 'unusual and compelling urgency' (FAR 6.302-7). Without further documentation from the agency, the precise reason for this non-competitive award remains unspecified. This lack of competition prevents an assessment of whether alternative, potentially more cost-effective solutions were overlooked or if unique circumstances truly necessitated a sole-source approach.

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

The contract's total value is $17.34 million over approximately 2901 days (about 7.95 years), resulting in an average annual cost of roughly $2.18 million. Benchmarking this against industry standards is challenging without specific details on the scope of services, square footage cleaned, frequency, and specific tasks (e.g., waste disposal volume, mail center operations scale). However, for large-scale custodial and facilities support contracts, annual costs can range widely. For context, large federal building maintenance contracts can easily run into millions annually. The firm fixed-price nature suggests the contractor bears the risk of cost overruns, but it also implies the price was deemed fair and reasonable at the time of award, though the lack of competition makes this assessment less robust.

What are the performance metrics and quality assurance measures in place for this contract?

The provided data does not detail the specific performance metrics or quality assurance (QA) measures for this contract. Typically, government contracts include a Performance Work Statement (PWS) outlining required services and performance standards, often tied to a Quality Assurance Surveillance Plan (QASP). For custodial services, metrics might include cleanliness standards, response times for issues, waste removal efficiency, and mail processing timeliness. The contracting officer's representative (COR) is usually responsible for monitoring contractor performance against these standards. Without access to the PWS and QASP, it's impossible to evaluate the robustness of the oversight and ensure the government is receiving the expected level of service quality.

What is the historical spending trend for custodial and related services at this specific Air Force installation or command?

The provided data only pertains to this single definitive contract awarded on October 21, 2019. It does not offer historical spending data for custodial and related services at this specific Air Force installation or command. To analyze historical spending trends, one would need to examine contract awards for similar services (NAICS 561720, custodial services) to the same or similar entities within the Department of the Air Force or Department of Defense in the relevant geographic area (Tennessee) over several preceding fiscal years. This would help determine if this contract represents an increase, decrease, or stable level of spending for these essential support functions.

What is the track record of CW Resources, Inc. in performing similar government contracts?

CW Resources, Inc. is a known provider of services to the federal government, often through AbilityOne programs which focus on employing individuals with disabilities. Their track record typically involves providing essential services such as custodial, grounds maintenance, and administrative support. While the AbilityOne program has specific goals and operational frameworks, the performance on individual contracts can vary. Assessing their specific track record for this particular $17.3 million custodial services contract would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or contract terminations, and the successful completion of previous similar scope contracts. The fact that this contract was awarded non-competitively might suggest a prior relationship or specific capability, but doesn't inherently guarantee past performance quality without further review.

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: FA910119R1500

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 MYRTLE ST, NEW BRITAIN, CT, 06053

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,073,914

Exercised Options: $17,469,895

Current Obligation: $17,340,833

Actual Outlays: $1,005,803

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline