Department of Defense awarded $9.9M for janitorial services to Pride Industries, with a 5-year contract duration

Contract Overview

Contract Amount: $9,891,530 ($9.9M)

Contractor: Pride Industries

Awarding Agency: Department of Defense

Start Date: 2005-10-17

End Date: 2009-10-17

Contract Duration: 1,461 days

Daily Burn Rate: $6.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200612!118088!1700!N62473!NAVFAC SOUTHWEST !N6871104D7405 !A!N! !N!FB00 !07 !20051017!20061017!076094218!076094218!076094218!N!PRIDE INDUSTRIES !10030 FOOTHILLS BLVD !ROSEVILLE !CA!95747!58310!111!06!PORT HUENEME NAVAL C!VENTURA !CALIFORNIA!+000003259455!N!N!000000000000!S201!CUSTODIAL - JANITORIAL SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !561720!A!A!5!B!S!H! ! !99990909!B! ! !N!Z!B!U!J!1!001!N!5A!C!N!Z! ! !N!D!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! !1710!N69232!0001! !

Place of Performance

Location: PORT HUENEME CBC BASE, VENTURA County, CALIFORNIA, 93043

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $9.9 million to PRIDE INDUSTRIES for work described as: 200612!118088!1700!N62473!NAVFAC SOUTHWEST !N6871104D7405 !A!N! !N!FB00 !07 !20051017!20061017!076094218!076094218!076094218!N!PRIDE INDUSTRIES !10030 FOOTHILLS BLVD !ROSEVILLE !CA!95747!58310!111!06!PORT HUENEME NAVAL C!VENT… Key points: 1. The contract value of $9.9M over approximately 5 years suggests a moderate annual expenditure for janitorial services. 2. The award to a single contractor, Pride Industries, indicates a potential lack of broad market engagement or a specific capability requirement. 3. The contract's duration of over 4 years, including potential options, provides stability for the contractor but may limit opportunities for competitive re-evaluation. 4. The service category for custodial and janitorial services is a common requirement across many government facilities. 5. The contract was not available for competition, raising questions about the process and potential for cost savings through a competitive bidding environment. 6. The geographic focus appears to be on naval facilities in California, suggesting a localized service need.

Value Assessment

Rating: fair

The total award of $9.9M over roughly 5 years averages to approximately $2M annually. Benchmarking this against similar large-scale janitorial contracts for federal facilities is difficult without more specific service scope details. However, given the duration and the nature of the services, the pricing appears within a plausible range, though the lack of competition prevents a definitive value-for-money assessment. The contract type is firm fixed price, which shifts risk to the contractor but also requires careful initial pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION'. This suggests that either the agency determined that only one source was capable of fulfilling the requirement, or that a competitive process was deemed impractical or unnecessary for other reasons. The lack of competition means there were no other bidders to compare against, and the agency did not benefit from the price discovery mechanisms inherent in a competitive solicitation.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. Without competing offers, it is harder to ensure that the awarded price reflects the lowest reasonable cost for the required services.

Public Impact

Naval facilities in California, specifically Port Hueneme, are the primary beneficiaries of these janitorial and custodial services. The services delivered include essential cleaning and maintenance to ensure sanitary and operational conditions at military installations. The contract supports the operational readiness and living conditions for personnel stationed at these naval bases. The contract likely supports a workforce employed by Pride Industries, contributing to local employment in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potential savings for taxpayers.
Sole-source award raises questions about the justification and whether alternatives were adequately explored.
Firm fixed price contract requires careful initial scope definition to avoid potential change orders or performance issues.

Positive Signals

Firm fixed price contract provides cost certainty for the government once awarded.
Long-term contract (over 4 years) offers stability for the service provider, potentially ensuring consistent service delivery.
Award to a known entity (Pride Industries) may indicate a pre-existing relationship or proven capability.

Sector Analysis

The janitorial and custodial services sector is a significant part of the broader facilities management industry. Federal agencies are major consumers of these services, contracting for maintenance across countless buildings and installations nationwide. While specific market size data for federal janitorial contracts is not readily available, the industry is characterized by a mix of large, established providers and smaller, specialized firms. This contract fits within the government's need for routine operational support services, often categorized under facility maintenance or support services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the prime contractor, Pride Industries, is a large business. There is no explicit information regarding subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem from this specific contract appears limited, unless Pride Industries voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and the relevant Department of the Navy contracting activity. The firm fixed price nature of the contract implies that performance standards are defined upfront, and the government's primary oversight would focus on ensuring those standards are met. Transparency is moderate, as contract awards are publicly reported, but the details of performance monitoring and specific oversight mechanisms are not detailed in this data.

Related Government Programs

Federal Facilities Maintenance Contracts
Department of Defense Custodial Services
Naval Base Support Services
Government Janitorial Contracts
Large Business Prime Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for unoptimized pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.9 million to PRIDE INDUSTRIES. 200612!118088!1700!N62473!NAVFAC SOUTHWEST !N6871104D7405 !A!N! !N!FB00 !07 !20051017!20061017!076094218!076094218!076094218!N!PRIDE INDUSTRIES !10030 FOOTHILLS BLVD !ROSEVILLE !CA!95747!58310!111!06!PORT HUENEME NAVAL C!VENTURA !CALIFORNIA!+000003259455!N!N!000000000000!S201!CUSTODIAL - JANITORIAL SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !561720!A!A!5!B!S!H! ! !999

Who is the contractor on this award?

The obligated recipient is PRIDE INDUSTRIES.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $9.9 million.

What is the period of performance?

Start: 2005-10-17. End: 2009-10-17.

What is the track record of Pride Industries in performing similar government contracts?

Pride Industries has a significant history of performing government contracts, particularly in custodial and facilities maintenance services. They are known for employing a large workforce, including individuals with disabilities, which is often a factor in their government contract awards. While this specific contract was sole-source, their broader portfolio likely includes competitively won contracts. Analyzing their past performance ratings on similar contracts, such as on-time delivery, quality of service, and customer satisfaction, would provide further insight into their reliability and capability. Without access to specific past performance reviews for this contract or similar ones, a definitive assessment is challenging, but their continued presence in the government contracting space suggests a generally positive track record.

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

The annual cost for this contract averages approximately $2 million ($9.9M over ~5 years). Benchmarking this figure accurately requires detailed knowledge of the scope of services, square footage cleaned, frequency of services, and specific performance standards, which are not fully detailed in the provided data. However, for large federal facilities, particularly military bases which often have extensive and demanding cleaning requirements, this annual figure appears within a plausible range. Industry reports on facilities management costs can provide broader benchmarks, but direct comparisons are difficult without granular data. The lack of competition makes it harder to ascertain if this represents a best-value price compared to what might have been achieved through a competitive process.

What are the primary risks associated with a sole-source award for janitorial services?

The primary risk associated with a sole-source award for janitorial services is the potential for inflated pricing and reduced service quality due to the absence of competitive pressure. When an agency does not solicit bids from multiple vendors, it foregoes the opportunity to leverage market competition to secure the best possible price and innovative solutions. There's also a risk that the agency may not have fully explored all available qualified sources, potentially overlooking more capable or cost-effective providers. Furthermore, without a competitive baseline, it can be more challenging to objectively assess whether the contractor is delivering optimal value throughout the contract period. This can lead to a less efficient use of taxpayer funds.

What is the expected effectiveness of these janitorial services in maintaining naval facilities?

The effectiveness of these janitorial services is expected to be high, given the firm fixed-price contract type and the essential nature of the services for maintaining operational readiness and health standards at naval facilities. Pride Industries, as the contractor, is incentivized to meet the defined performance standards to receive full payment. The duration of the contract suggests a sustained need and presumably satisfactory performance over time. However, the ultimate effectiveness hinges on the clarity of the performance work statement, the rigor of government oversight in monitoring service delivery against those standards, and the contractor's consistent execution. Without specific performance metrics and evaluation data, effectiveness is inferred from the contract structure and the essentiality of the service.

How has federal spending on janitorial services evolved over the past decade?

Federal spending on janitorial and custodial services has remained a consistent and significant expenditure category for the government. While specific aggregate data for 'janitorial services' alone can be difficult to isolate from broader 'facilities maintenance' or 'support services' categories, overall spending in these areas tends to fluctuate based on agency budgets, infrastructure needs, and contracting strategies. Trends may include increased emphasis on green cleaning standards, performance-based contracting, and consolidation of service contracts. The shift towards performance-based metrics aims to ensure better value and service quality. However, the fundamental need for maintaining federal facilities ensures a steady demand for these services, with annual spending likely in the billions across all agencies.

What are the implications of the 'NOT AVAILABLE FOR COMPETITION' status for future contract opportunities?

The 'NOT AVAILABLE FOR COMPETITION' status for this contract means that the agency did not conduct a competitive solicitation process. This could be due to various reasons, such as the existence of only one known responsible source, an urgent and compelling need that precluded competition, or specific statutory exceptions. For future contract opportunities related to janitorial services at these or similar naval facilities, this award does not preclude future competition. However, if the agency continues to justify sole-source awards based on similar reasoning, it could limit opportunities for other vendors to enter or compete for these contracts. A thorough justification for sole-source awards is typically required, and agencies are generally encouraged to promote competition whenever feasible.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10030 FOOTHILLS BLVD, ROSEVILLE, CA, 03

Business Categories: AbilityOne Program Participant, Category Business, Not Designated a Small Business, Special Designations

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6871104D7405

IDV Type: IDC

Timeline