HHS awards $27.4M janitorial contract to Goodwill Industries of North Georgia, Inc

Contract Overview

Contract Amount: $27,380,022 ($27.4M)

Contractor: Goodwill Industries of North Georgia, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2001-03-02

End Date: 2007-06-30

Contract Duration: 2,311 days

Daily Burn Rate: $11.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL SERVICES

Place of Performance

Location: DECATUR, DEKALB County, GEORGIA, 30030, UNITED STATES OF AMERICA

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $27.4 million to GOODWILL INDUSTRIES OF NORTH GEORGIA, INC. for work described as: JANITORIAL SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Long contract duration of over 19 years suggests potential for price escalation. 3. No small business set-aside was applied to this contract. 4. The contract was awarded by the Centers for Disease Control and Prevention. 5. The service category is 'Other Services to Buildings and Dwellings'.

Value Assessment

Rating: fair

The contract value of $27.4 million over its extended period of performance is substantial for janitorial services. Without a competitive bidding process, it is difficult to benchmark the value for money. The firm fixed-price contract type offers some cost certainty, but the extended duration raises concerns about potential overpayment if market rates for janitorial services have decreased over time. A comparison to similar contracts for janitorial services at federal facilities of comparable size and scope would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one vendor, Goodwill Industries of North Georgia, Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities or urgent needs), they generally lead to less price discovery and potentially higher costs for the government compared to full and open competition.

Taxpayer Impact: The lack of competition means taxpayers may not have received the most cost-effective pricing for these essential building services. Without competing bids, the government cannot be assured it obtained the best possible value.

Public Impact

The primary beneficiary of this contract is Goodwill Industries of North Georgia, Inc., providing them with significant revenue. The services delivered include janitorial and related support for facilities managed by the Centers for Disease Control and Prevention. The geographic impact is concentrated in Georgia, where the contractor is based and likely performs the services. This contract supports employment opportunities within Goodwill Industries, potentially including individuals with barriers to employment, aligning with the organization's mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Extended contract duration (over 19 years) increases risk of paying above market rates.
Lack of transparency in the sole-source justification process.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Contract supports a mission-driven organization (Goodwill Industries).

Sector Analysis

The janitorial services sector is a mature and competitive market, with numerous providers ranging from small local businesses to large national corporations. Federal spending in this area is consistent, supporting the maintenance of government facilities nationwide. This contract represents a significant portion of spending within the 'Other Services to Buildings and Dwellings' category for the specific agency. Benchmarking would typically involve comparing pricing structures and service levels against other federal contracts for similar services or against commercial rates in the relevant geographic area.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a large, established organization like Goodwill Industries means that opportunities for small businesses to compete for or subcontract on this particular contract are likely minimal. This could represent a missed opportunity to foster small business participation in federal contracting.

Oversight & Accountability

The provided data does not detail specific oversight mechanisms for this contract. However, as a federal contract, it would typically be subject to oversight by the contracting agency (HHS/CDC), potentially including contract officers' representatives (CORs) responsible for monitoring performance. Inspector General audits could also be a form of oversight, particularly concerning financial aspects and adherence to contract terms. Transparency is limited due to the sole-source nature of the award.

Related Government Programs

Federal Building Maintenance Contracts
Janitorial Services Contracts
Department of Health and Human Services Contracts
Centers for Disease Control and Prevention Contracts
Goodwill Industries Federal Contracts

Risk Flags

Sole-source award
Long contract duration
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $27.4 million to GOODWILL INDUSTRIES OF NORTH GEORGIA, INC.. JANITORIAL SERVICES

Who is the contractor on this award?

The obligated recipient is GOODWILL INDUSTRIES OF NORTH GEORGIA, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $27.4 million.

What is the period of performance?

Start: 2001-03-02. End: 2007-06-30.

What is the track record of Goodwill Industries of North Georgia, Inc. in performing federal janitorial contracts?

The provided data indicates that Goodwill Industries of North Georgia, Inc. was awarded this specific contract. Without additional data on other federal contracts held by this entity, a comprehensive track record assessment is not possible. However, the long duration of this contract (over 19 years) suggests a sustained relationship with the agency. Further investigation would be needed to determine if they have successfully managed similar contracts, met performance standards, and adhered to contract terms throughout the period of performance. Past performance reviews and any documented disputes or awards would be crucial for a complete understanding of their track record.

How does the pricing of this contract compare to similar janitorial services contracts awarded by the federal government?

Direct price comparison is challenging due to the sole-source nature of this award and the extended duration, which spans over 19 years. Typically, competitive bidding allows for price benchmarking against other offers. To assess value, one would need to compare the per-square-foot cleaning costs, labor rates, and included services against other federal contracts for similar-sized facilities in comparable geographic regions. Given the lack of competition, it is plausible that the pricing may not reflect the lowest achievable market rate. A detailed analysis of the contract's line items and comparison with publicly available data on federal janitorial service costs would be required.

What are the primary risks associated with this sole-source, long-term janitorial services contract?

The primary risks include potential overpayment due to the absence of competitive pricing, especially if market rates for janitorial services decline over the contract's extensive lifespan. The long duration increases the risk of the contractor becoming complacent or failing to adapt to evolving cleaning standards and technologies. Furthermore, sole-source awards can sometimes indicate a lack of market research or a failure to identify potential competitors, which could be a systemic risk. There's also a risk that the contractor's capacity or focus might shift over nearly two decades, potentially impacting service delivery quality.

How effective has this contract been in meeting the janitorial needs of the CDC facilities?

The provided data does not contain specific metrics on the effectiveness of the janitorial services delivered under this contract. Effectiveness would typically be measured through performance evaluations, user satisfaction surveys, and adherence to service level agreements. Given the contract's long tenure, it implies a level of satisfaction or necessity that led to its renewal or extension. However, without access to performance reports, quality assurance assessments, or any formal feedback mechanisms, a definitive judgment on effectiveness cannot be made. The sole-source nature also means there was no competitive pressure to drive continuous improvement in service delivery.

What is the historical spending pattern for janitorial services at the CDC, and how does this contract fit within it?

The provided data focuses on a single contract awarded in 2001 and ending in 2007, with a total value of $27.4 million. This represents a significant, albeit specific, instance of federal spending on janitorial services. To understand historical patterns, one would need to examine total CDC spending on janitorial services across multiple contracts and fiscal years, including both competed and sole-source awards. This single contract, awarded on a sole-source basis, might indicate a specific need or relationship that bypassed broader competitive processes. Analyzing trends in contract types, durations, and values over time would reveal whether this was an outlier or representative of CDC's procurement strategies for such services.

Are there any specific clauses or provisions within this contract that address potential cost increases or service level adjustments over its long duration?

The provided summary data indicates a 'FIRM FIXED PRICE' contract type. Typically, firm fixed-price contracts aim to lock in prices, making them less susceptible to adjustments for cost increases unless specific escalation clauses are included. However, the extremely long duration (over 19 years) makes it unusual for a standard firm fixed-price agreement without some form of adjustment mechanism. It's possible that the contract includes provisions for equitable adjustments under specific circumstances (e.g., changes in law, significant unforeseen events) or that the initial price was set with long-term considerations. Without the full contract text, it's impossible to confirm the presence and nature of any such clauses that would allow for price or service level adjustments over time.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Other Services to Buildings and Dwellings

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2001N00042

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2201 GLENWOOD AVE SE, ATLANTA, GA, 30316

Business Categories: AbilityOne Program Participant, Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $491,974,881

Exercised Options: $207,837,772

Current Obligation: $27,380,022

Timeline